Tsakos Energy Navigation (TNP) Q1 2024 earnings summary

Executive summary

• Q1 2024 saw historically low fleet utilization at 91.3% due to extensive dry dockings, but operational excellence and strong market fundamentals supported robust results.

• Net income for Q1 2024 was $54 million, or $1.60 per share, with voyage revenues of $201.6 million and adjusted EBITDA of $100.5 million.

• Significant fleet renewal included the sale of 13 older vessels and acquisition of 21 modern, eco-friendly ships, with six dual-fuel LNG-powered Aframax tankers now operational.

• Dividend for July 2024 set at $0.60 per share, double the previous year, with a policy to consolidate special dividends into regular payouts.

• NYSE ticker symbol changes to “TEN” effective July 1, 2024.

Financial highlights

• Voyage revenues reached $201.6 million in Q1 2024, with operating income at $76.2 million, including $16.2 million in capital gains from vessel sales.

• Adjusted EBITDA was $100.5 million, and net income attributable to common stockholders was $54 million.

• Cash and cash equivalents stood at $344 million as of March 31, 2024.

• Operating expenses were $48.6 million, or $9,387 per ship per day.

• TCE per ship per day was $33,403 in Q1 2024.

Outlook and guidance

• Q2 and the second half of 2024 are expected to be significantly stronger as new vessels contribute to earnings.

• Management anticipates a record year for 2024, driven by high demand from major oil companies, a tight tanker market, and ongoing fleet modernization.

• No special dividend planned for Q2; any excess will be included in the second-half dividend.

• Ongoing newbuilding program includes shuttle tankers, Suezmax, MR, and LR1 vessels with deliveries through 2028.