Post Earnings Coverage as Tsakos’ Earnings Outperformed Expectations

Upcoming AWS Coverage on Golar LNG Post-Earnings Results

LONDON, UK / ACCESSWIRE / March 30, 2017 / Active Wall St. announces its post-earnings coverage on Tsakos Energy Navigation Ltd. (NYSE: TNP). The Company announced its fourth quarter and fiscal 2016 financial results on March 17, 2017. The Oil and gas shipping Company revenue increased on q-o-q basis as market condition improved. Register with us now for your free membership at:

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One of Tsakos Energy Navigation’s competitors within the Shipping space, Golar LNG Ltd (NASDAQ: GLNG), reported on February 28, 2017, preliminary Q4 and financial year 2016 results. AWS will be initiating a research report on Golar LNG in the coming days.

Today, AWS is promoting its earnings coverage on TNP; touching on GLNG. Get our free coverage by signing up to:

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Earnings Reviewed

For the quarter ended December 31, 2016, Tsakos Energy Navigation reported voyage revenues of $130.66 million compared to voyage revenues of $143.09 million in Q4 2015. The Company’s revenues, net of voyage expenses (bunker, port expenses, and commissions) totaled 99.1 million, approximately $17.0 million more than in Q3 2016, due to the delivery of three vessels, the new charters of the two LNG carriers and a high utilization rate of 98%. In addition, during the reported quarter, the tanker markets saw a promising improvement as certain of the factors, such as oil supply disruptions, that had depressed rates in most of 2016 dissipated. However, the Company’s adjusted revenues came in below analysts’ consensus of $101.2 million.

Tsakos Energy Navigation’s earnings before interest, depreciation, and amortization (EBITDA) in Q4 2016 amounted to $53.7 million. The Company’s operating income in FY16 totaled to $89.8 million and EBITDA to $205.1 million.

For Q4 2016, Tsakos Energy Navigation reported net income of $11.93 million, or $0.10 per common share, net of preferred stock dividends compared to net income of $35.67 million, or $0.41 per common share, net of preferred stock dividends for Q4 2015. The Company’s earnings numbers surpassed Wall Street’s estimates of $0.06 per share. Tsakos Energy Navigation’s net income for the year 2016 was $55.8 million, or $0.47 per share.

Operation Details

Tsakos Energy Navigation reported that the daily time charter equivalent (TCE) for its fleet averaged $20,412 for FY16. The Company’s Aframaxes achieved average daily TCE rates of $19,600, while Suezmaxes recorded $23,600. Tsakos Energy Navigation’s vessel operating expenses, on a daily average per vessel basis for the year fell 2.1% to $7,763 from $7,933 in the year ago comparable period.

Tsakos Energy Navigation stated that all the vessels, apart from the 2007-built LNG Neo Energy, currently on a floating storage employment, generated positive EBITDA in the year. The Company reported that six newbuilding vessels were delivered since Q3 2016, consisting of one VLCC, three Aframaxes, one LNG carrier, and one DP2 Suezmaxes shuttle tanker, all under long-term employment. In October and November 2016, Tsakos Energy Navigation took delivery of the Aframaxes newbuildings Leontios H and Parthenon TS, both employed under long-term charters. Furthermore, in October 2016, the LNG carrier Maria Energy was delivered and placed on a time-charter with escalating options until mid-2018, when it is expected that higher rates may be available. The Company had pro-forma fleet of 65 vessels, totaling 7.2 million dwt, consisting of 45 tankers that trade in the crude space, 3 shuttle tankers, 15 tankers carrying products, and 2 LNG vessels.

During Q4 2016, Tsakos Energy Navigation’s depreciation and dry-docking amortization costs increased to $31.7 million, due to the new vessels joining the fleet. The Company’s interest and finance costs in the reported quarter totaled $10.1 million, an increase compared to the year ago same period, primarily due to the new loans for the newbuilding program and increases in the applicable LIBOR rate.

Balance Sheet

Tsakos Energy Navigation’s balance sheet remained strong with cash balances at $197.8 million as of December 31, 2016. As of year-end 2016, the Company had undrawn bank facilities totaling $194.3 million, specifically relating to the seven vessels then under construction, of which $99.6 million has since been drawn for the 2017 deliveries to date. Net debt to capital at December 31, 2016 was 52.5%.

The Company will pay a dividend of $0.05 per common share on April 28, 2017, to shareholders of record as of April 25, 2017. Inclusive of this payment, Tsakos Energy Navigation will have distributed a total of $10.46 per share in uninterrupted dividends to its common shareholders since the Company’s listing on the NYSE in March 2002.

Stock Performance

On Wednesday, March 29, 2017, the stock closed the trading session at $4.83, climbing 2.55% from its previous closing price of $4.71. A total volume of 352.39 thousand shares have exchanged hands. Tsakos Energy Navigation’s stock price advanced 4.32% in the last month, 1.90% in the past three months, and 4.20% in the previous six months. Furthermore, on a year to date basis, the stock gained 2.99%. Shares of the company have a PE ratio of 6.21 and have a dividend yield of 4.14 %.

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