Tsakos Energy Navigation Ltd. ( TEN ) on Tuesday reported net income of $177.458 billion in the first quarter, more than 28 times higher than the same period a year ago due to strong rental rates.
The Athens-based energy carrier saw its leased-time equivalent rates, or daily revenue that includes round-trip expenses, more than double to $41,882 a day from January to March 2022.
It said in a press release that “positive industry fundamentals together with the trade imbalances created by the war in Ukraine, continue to support a healthy tanker market and allowed TEN – despite operating fewer vessels – to generate gross revenue of $261 million, representing an increase of 74% or $112 million over the same quarter in 2022.”
TEN recorded a fleet utilization of 96.4 percent and has secured extensions and new charters for 15 vessels. “These recent fit-outs bring the fleet’s total minimum contracted revenue to $1.6 billion,” he said.
With cash reserves of $476 million in March, the New York-listed company said it will continue to redeem preferred shares. A total of 3,517,061 Series D Redeemable Perpetual Preferred Shares accrued in July, valued at nearly $87.93 million, are expected to be repurchased, of which TEN expects to save $7.7 million in payments of dividends This repurchase would bring the total preferred stock redeemed since 2019 to $188 million with a savings of about $16.1 million.
However, TEN reported $1.39 billion in bank debt, although this was $21 million lower compared to the year-end level.
Earning $5.69 per share, it has declared $0.6 in annual dividends per common share, up 140% from the previous year.
“As TEN celebrates 30 years as a public entity, this quarter’s performance highlights the company’s ability to deliver record profits by adapting its employment and investment policy to take advantage of market circumstances,” he said TEN.
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