Tsakos Energy Navigation Sails Past Revenue Estimates Despite Choppy Waters In Q4

Tsakos Energy Navigation Ltd TNP reported fourth-quarter FY23 Voyage revenue of $220.2 million, down from $270.3 million in the prior year quarter but above the consensus of $186.18 million. 

EPS of $0.85 came below $3.17 in the prior year’s quarter and also missed the consensus of $1.72.

The company said it operated six fewer vessels compared to the same period in 2022, due to vessel sales and before the add-on of the five new vessel acquisitions. The abovementioned factors led to an adjusted EBITDA of $124 million versus $159 million in the prior year quarter. 

Quarterly fleet utilization reached 98.3% vs 97.4% in the prior year, led by increased vessels in time-charter employment. 

The average daily Time Charter Equivalent (TCE) rate per vessel in the fleet stood at $35,565 (vs. $39,776 in fourth-quarter FY22), with vessel operating expenses per ship per day coming in at $9,607 (vs. $8,827 in the prior quarter).

Cash reserves remained at $377 million, and debt obligations settled at $1.56 as of December 31, 2023. 

Dividend: The company plans to pay semi-annual dividend of $0.60 per common share in June 2024, which is double the amount distributed in 2023 for the same period.

Management expects to distribute a second semi-annual dividend to holders of its common shares in December 2024.

In February 2024, the company inked a newbuilding contract with a major South Korean yard to construct one option one suezmax DP2 Shuttle Tanker, which is expected to be delivered in 2026. 

Investors can gain exposure to the stock via AdvisorShares Dorsey Wright ADR ETF AADR and Global X MSCI Greece ETF GREK.

Price Action: TNP shares are trading lower by 0.39% at $25.51 on the last check Wednesday.