NYSE:TEN Tsakos Energy Navigation Q4 2024 Earnings Report $16.75 -0.13 (-0.77%) Closing price 04/28/2025 03:59 PM EasternExtended Trading$16.62 -0.13 (-0.78%) As of 08:31 AM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. Earnings HistoryForecast Tsakos Energy Navigation EPS ResultsActual EPS$0.42Consensus EPS $0.40Beat/MissBeat by +$0.02One Year Ago EPSN/ATsakos Energy Navigation Revenue ResultsActual Revenue$154.59 millionExpected Revenue$158.71 millionBeat/MissMissed by -$4.13 millionYoY Revenue GrowthN/ATsakos Energy Navigation Announcement DetailsQuarterQ4 2024Date3/27/2025TimeBefore Market OpensConference Call DateThursday, March 27, 2025Conference Call Time11:00AM ETUpcoming EarningsTsakos Energy Navigation's Q1 2025 earnings is scheduled for Thursday, June 19, 2025, with a conference call scheduled at 10:00 AM ET. Check back for transcripts, audio, and key financial metrics as they become available.Conference Call ResourcesConference Call AudioConference Call TranscriptSlide DeckPress Release (8-K)Annual Report (20-F)Earnings HistoryCompany ProfileSlide DeckFull Screen Slide DeckPowered by Tsakos Energy Navigation Q4 2024 Earnings Call TranscriptProvided by QuartrMarch 27, 2025 ShareLink copied to clipboard.PresentationSkip to Participants Operator00:00:00Good morning to all. Thank you for standing by, ladies and gentlemen, and welcome to SACOS Energy Navigation Conference Call on the Fourth Quarter twenty twenty four Financial Results. We have with us today Mr. Takis, Erapoglou, Chairman of the Board Mr. Nicholas Sakos, Founder and CEO Mr. Operator00:00:20Paul Durham, Chief Financial Officer Mr. George Saroglou, President and Chief Operating Officer and Mr. Harries Kosmatos, CFO of the company. At this time, all participants are in a listen only mode. There will be a presentation followed by a question I must advise that this conference is being recorded today. Operator00:00:50And now, I'd like to pass the floor over to your host, Mr. Nicholas Bornosas, President of Capital Link and Investor Relations Advisor to Tsakos Energy Navigation. Please go ahead. Nicolas BornozisPresident & CEO at Capital Link00:01:02Thank you very much and good morning to all of our participants. I'm Nicholas Bornosic, President of Capital Link and Investor Relations Advisor to Tsakos Energy Releviation, to ten. This morning, the company publicly released its financial results for the twelve months and fourth quarter ended 12/31/2024. In case we do not have a copy of today's earnings release, please call us at (212) 661-7566 or email us at temcapitlin dot com and we'll have a copy sent to you emailed to you right away. Please note that parallel to today's conference call, there is also a live audio and slide webcast, which can be accessed on the company's website on the front page at www.tenn.gr. Nicolas BornozisPresident & CEO at Capital Link00:01:53The conference call will follow the presentation slides, so please we urge you to access the presentation slides on the company's website. Please note that the slides of the webcast presentation will be available and archived on the website of the company after the conference call. Also please note that the slides of the webcast presentation are user controlled and that means that by clicking on the proper button you can move to the next or to the previous slide on your own. At this time, I would like to read the Safe Harbor statement. This conference call and slide presentation of the webcast contains certain forward looking statements within the meaning of the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. Nicolas BornozisPresident & CEO at Capital Link00:02:35Investors are cautioned that such forward looking statements involve risks and uncertainties, which may affect TEN's business prospects and results of operations. So before passing the floor to the Chairman, I would like to congratulate the company for the transformational milestone transaction to build nine shuttle tankers with secured fifteen year employment. This transaction solidifies TEN's profitability and growth for many years ahead. And by the way, it also proves how TEN's prudent capital allocation has enabled the company not only to move fast to close the transaction, but also to finance the equity portion required at this stage with your own funds without stretching the company's balance sheet. And now at this moment, I would like to pass the floor to Mr. Nicolas BornozisPresident & CEO at Capital Link00:03:26Takis Arapoglou, Chairman of Tsakos Energy Navigation. Please, Mr. Arapoglou, go ahead. Efstratios Georgios ArapoglouChairman of the Board at Tsakos Energy Navigation00:03:34Thank you. Thank you, Nicolas. Good morning and good afternoon to everyone. And thank you all for joining our call today for the fourth quarter twenty twenty four and full year '20 '20 '4 results. As you've seen excellent results from a market that continues to demonstrate strong fundamentals, a record 21 vessel expansion that will result in a fleet pro form a of 82 vessels and $4,000,000,000 of contracted fixed revenues confirming the unique and robust industrial model of 10. Efstratios Georgios ArapoglouChairman of the Board at Tsakos Energy Navigation00:04:20The milestone nine DP2 Shuttle Factor deal worth $1,300,000,000 with Trans Petro, firmly establishes then among a very select group of leaders in the shuttle tanker business and demonstrates once more the commitment we have in servicing the needs of our customers, fully justifies our strategy of maintaining ample liquidity. And it also shows that it allows us to comfortably enter into such accretive mega sized transactions. The sale of one more of our oldest vessels generates again cash for the company and the S and P activity of 10 in this front will continue in order to maintain a young fleet and generate additional cash. All this, I think, confirms the textbook nature of TEN's management that allows it to continue paying dividends uninterruptedly since inception, oblivious I would say, to the cyclical nature of the market. So once again, congratulations to Nikos Tsakos and the team for this excellent performance, which no doubt will continue keeping them in the forefront of the energy transportation business going forward. Efstratios Georgios ArapoglouChairman of the Board at Tsakos Energy Navigation00:05:52So thank you and over to Nikos Sarkos. Thanks. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:05:58Yes. Good afternoon and good morning for everybody. Thank you for your good words. The recent period has been a milestone period, as you mentioned, for the company. It's one of those periods where we leap up to our next stage. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:06:17And we've done that back in 02/2007 when we became the largest ice class operating fleet in the world. A few years later, in 2014, we became the largest operator for Equinor, one of the most prestigious and demanding end users in the world. Last year, we became the largest dual fuel vessel operator, just helping our greener side of moving our vessels and keeping our member footprint in line. And that was by the acquisition of a large fleet of modern DRQL vessels. And the pre Brazilian transaction, as we call it big in Brazil, is a transaction that puts them in and makes them, for sure, the most modern view the most modern big, sharply tanker operator, DP2 operator with complements our existing fleet, which we started in 2012 with four vessels already in the water, three being delivered very early next month. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:07:51So we have April, July and then in 2026. All the vessels are being built, I would say, in the most superior, subtropangent South Korean yard. We have to compete in parties who have inferior or lower rates, more competitive rates than us, but they were bringing ships in other yards in the Far East, including China, where the expectation was not there. So our experience, our long term commitment to the segment, our training center, which is the only one that produces seafarers with accreditation from the North Carolina of the UK has given us the chance Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:08:40to be Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:08:41successful in achieving a positive result. But in the meantime, we were still running business, always looking at extending we've extended 21 new businesses with our major rail companies. As you may know, about 70% of our business is held by the six or seven very prestigious end users. We try to avoid employing our ships to operators or traders. We do it sometimes on the spot market, but to end turn, we focus on the people who know and appreciate our services. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:09:23Also, we have been active and already still be active in the S and P central defensive market. Just yesterday, we delivered one of our 2,009 beautiful Swiss Maxes for a capital gain after so many years since 02/2009 and they're offering $40,000,000 30 million dollars of cash. We're also in the market for two more similar transactions from now up to the end of the second quarter. So in the meantime, we do not lose track of the day to day business. And the fundamentals are very positive. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:10:04We are a company that has perhaps right now the largest EBB program from any WorldPL Group, a very specialized 21 vessels program. All of our program is financed and a significant contribution from banks to finance. So one thing I have to make clear, we've been always criticized for keeping enough cash, but when transactions like these are there, we can achieve those transactions much better than any of our peer goods. In fact, really, putting strain on our balance sheet or ever having to use to raise equity. So this metal transaction is fully financed by internal equity and bank debt, which is competing at very attractive terms for our business. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:11:02Still, we're one of the I have to say I'm very proud about our team. It has been a very international global transaction that we were able to achieve. What we are still disappointed is that our share price is half of what it was a year ago when I was here in The United States. But our company was much smaller. Our company has much less prospects right now with 21 vessels, a 36% dynamic expansion, 82 vessels in the water very soon, and we have doubled our medium to long term receivables from 2,000,000,000 to 4,000,000,000 within the last two months with these transactions. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:11:53We hope as the major shareholders here who know the value of our company but very soon our share price will be very cheap. I mean, our book value is in excess of $3,000,000,000 However, what includes in the new transactions, our market value is even higher than that and our net debt is $1,500,000,000 So if you divide this by 30, you should see that the corporate level we are surprised to be closer to $50 than $16 or $17 But again, we know the value of our company and hopefully others will identify that this thirty two years of continuous dividend as a Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:12:40Chairman Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:12:40said is going to grow for at least another thirty three years. And with that, I would ask Mr. Kvasmatos or George to please give us Mr. Saroglou, our President to give us his detailed report. Thank you. George SaroglouCOO, President & Executive Director at Tsakos Energy Navigation00:13:02Thank you very much, Nikos. We are very pleased to report today another profitable quarter and profitable year. There is a slide presentation that we will try to follow. You can look at it later on as well. Let's go straight to slide number four, which shows the growth of the company since inception in 1993 in terms of deadweight tons. George SaroglouCOO, President & Executive Director at Tsakos Energy Navigation00:13:29As you can see here, we have done every major crisis the world has faced into a growth opportunity for TEM, thanks to our operating model. We have a counter cyclical approach in investing in fleet growth by raising equity when we need it, which is usually at the bottom of the tanker market and not usually when our share price is at the top in order to fund growth projects. This is what Slide five shows. The strategy has served us very well so far. In blue, you see the equity offerings in common shares since 1993. George SaroglouCOO, President & Executive Director at Tsakos Energy Navigation00:14:09In red, the offerings in preferred shares. And as you can see, since 2013, we have issued six series of preferred shares. And we have already redeemed as we speak four of them at par. But those that we the four that we have redeemed have a par value of approximately $225,000,000 We have announced today a major transaction in the shuttle tanker sector. And this is a milestone deal with Trans Petro Petrobras in Brazil. George SaroglouCOO, President & Executive Director at Tsakos Energy Navigation00:14:48We are building nine state of the art TP2 shuttle tankers that we can complement the four that are already in operation and three that we are building for a total pro form a shuttle fleet of 16 tankers. This is a landmark transaction that makes TEN one of the largest shuttle tanker operators in the world to date. And all 16 vessels are fixed on long employment to major energy companies, including, of course, Transcerto and Brazil. Since in the last two years, since 01/01/2023, we have upgraded the quality of the fleet by divesting from our first generation conventional tankers, replacing them with more energy efficient newbuildings and more than secondhand tankers, including dual fuel vessels. And we are very proud to have today one of the largest being one of the largest owners of dual fuel LNG powered Aframax tankers with six vessels in the water. George SaroglouCOO, President & Executive Director at Tsakos Energy Navigation00:15:54Slide six lists the conventional pro form a fleet divided between crudes and product tankers, spreading from large VLCCs to the smaller hand sized tankers. We have nine new buildings that we expect to take delivery from the second quarter of this year until the third quarter of twenty twenty eight. And you see various colors in this slide. The red color denotes the newbuilding vessels, but also the vessels that we operate today in the spot market. With dark blue, we list the vessels under fixed time charters and with light blue, the vessels with time charters with profit sharing. George SaroglouCOO, President & Executive Director at Tsakos Energy Navigation00:16:34In the next slide, which has the pro form a specialized fleet, we leased the 16 shuttle tankers. And on top of that slide, we listed the company's two LNG car with carriers. If we combine the two slides and account only for the current operating fleet of 61 vessels, 29 vessels or 48% of the operating fleet has market exposure through spot and time charter with profit sharing, while 51% or 84% of the fleet is in secured revenue contracts, which means time charters and time charter with profit sharing. Our biggest clients for both conventional and specialized segment of the fleet are the names you see in Slide eight. These are blue chip names with whom we do repeat long term business. George SaroglouCOO, President & Executive Director at Tsakos Energy Navigation00:17:31The largest client of all today is ExxonMobil without yet accounting of the deal that we announced with Petrobras in Brazil. The left side of the next slide shows you the all in breakeven cost for the type of vessels we operate. We have a simple operating model. We try to have our time charter vessels generate revenue to cover the company's cash expenses, which means paying for the vessel operating expenses, finance expenses, overheads, chartering costs and commissions, and we let the revenue from the spot trading vessels contribute to the profitability of the company. Thanks to the profit sharing element, every $1,000 per day increase in spot rates has a positive impact of $0.12 in the annual earnings per share based on the number of 10 vessels that currently operate in the spot market. George SaroglouCOO, President & Executive Director at Tsakos Energy Navigation00:18:29And with that, I will pass the floor to Carlos Kebartos, who will walk us through the financial performance of the quarter and the year. Harry? Harrys KosmatosCo-CFO at Tsakos Energy Navigation00:18:37Thank you, George. Thanks. On behalf of our CFO, Paul Dow and myself, hello and welcome to our call. During 2024, Tun's fleet averaged approximately two vessels more compared to 2023, reaching 62 vessels in the water. As a result of the divestment of five older tankers, two Suezmaxes, two Aframaxes and one LNG carrier and the acquisition and or delivery of nine vessels, namely five modern tankers from Norway's Beacon Crude, the repurchase and termination of two selling installed transactions involving two Suezmaxes and the delivery of two dual fuel LNG Aframaxes. Harrys KosmatosCo-CFO at Tsakos Energy Navigation00:19:15Despite this fleet increase during the year, 15 vessels underwent scheduled drydolts while three performed repositioning voyages, all of which led to average fleet utilization for the year to settle at 92.5 from 96.3% in 2023, a still healthy level nonetheless. Resulting from the above and combined with a somewhat softer than tanker market, 10 still generated $8.00 $4,000,000 in gross revenues and $279,000,000 in operating income, the latter after $49,000,000 in capital gains from the sales mentioned above. TCE per se per day during the twelve month period, which was naturally impacted by the drydockings, settled at a still healthy $32,550 thanks to a large extent to the number of operating days and long term secure revenue contracts corresponding to the long term nature of our clients. 82% in 2024 compared to 77% in 2023. As a result, net income for 2024 was at 176,000,000 equating to $5.03 per common share and adjusted EBITDA for the year of $400,000,000 Fleet operating expenses of $198,000,000 modestly increased in line with the loans in number and size of vessels in the fleet after the various acquisitions and divestments during the year. Harrys KosmatosCo-CFO at Tsakos Energy Navigation00:20:42Operating expenses per se per day, however, were about 3% lower from the 2023 levels at $9,350 thanks again to efficient management performed by 10 technical experts on shore and nonvolter vessels. Total debt and other financial liabilities at the end of the year were at $1,800,000,000 which compares favorably to both the book and fair value of the fleet, $3,000,000,000 and just about $4,000,000,000 at the end of the year respectively. At the same time, net debt to capital remain at a comfortable 45%. Interest and finance costs for 2024 and reflecting the larger fleet size both in terms of vessels and vessel types as well as continuing elevated global interest rates despite recent cuts was at $112,000,000 from $100,000,000 in 2023, a manageable increase. However, this inevitable and controlled cost increase was nullified more as a result of the $4,000,000 in reduced preferred coupon payments from amounts paid during 2023, '5 million dollars in savings in forward variable higher from the repurchase of two Series Maxxis on leasing contracts in the summer of twenty twenty four and $50,000,000 in interest income. Harrys KosmatosCo-CFO at Tsakos Energy Navigation00:21:55Cash and Bank as of 12/31/2024 was at just under $350,000,000 a very healthy level despite having paid $258,000,000 for common and preferred dividends, growth projects and the exercise of the above leasing repurchase options. Results for the fourth quarter of twenty twenty four were equally attractive considering that four of the 15 vessels that underwent drydocking during that year happened in this quarter. A fleet of 62 vessels as opposed to about 60 in the fourth quarter of twenty twenty three generated gross revenues of $188,000,000 dollars and operating income of $42,000,000 compared to $220,000,000 and $57,000,000 in the fourth quarter of twenty twenty three respectively. Unlike the twenty twenty three fourth quarter, no impairment charges were recorded during this twenty twenty fourth quarter. Fleet operating expenses for the fourth quarter of twenty twenty four and despite the four bright auctions mentioned above in the larger fleet size were at $51,000,000 just $1,300,000 higher than twenty twenty three fourth quarter level. Harrys KosmatosCo-CFO at Tsakos Energy Navigation00:23:04However, operating expenses per se per day were marginally lower from the twenty twenty three fourth quarter at $9,480 TCE per se per day closed the quarter 3.2 times higher than the above OpEx number at $30,107 The resulting net income for the fourth quarter of twenty twenty four was at $19,300,000 producing EPS of $0.42 reflecting the somewhat softer market driven by lower Asian oil imports, lower fleet utilization compared to twenty twenty three fourth quarter and the $4,000,000 increase in depreciation and amortization charges the larger fleet entailed. Adjusted EBITDA finished the quarter at $85,000,000 Supported by the aforementioned results, TEN is in line and in line with the semi annual dividend policy will pay a common stock dividend of $0.6 in July 2025, identical to the level paid in July 2024. In ending, it is pertinent to highlight what George mentioned earlier that Brent today is facing is undergoing its largest growth phase in its history with 21 vessels on order, none of which the DP2 shuttle tanker on fifty year contracts to transfer Petrobras as recently announced, which in the wrong right contributing double intense minimum revenue backlog from $2,000,000,000 to $4,000,000,000 while turning us into one of the largest shuttle tanker owners Harrys KosmatosCo-CFO at Tsakos Energy Navigation00:24:33in the world. And with this, Harrys KosmatosCo-CFO at Tsakos Energy Navigation00:24:36I'll turn back to Nikos for the closing remarks. Thank you. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:24:44Well, thank you, Harry, for and George for putting the details on some putting some numbers on the bones. And as we said, it is a very significant period of growth. We are starting the delivery and yesterday was the very successful C trials. And I don't know if you guys have a picture, it was received overnight from South Korea from the Athens Two Thousand And Four, the first of the two total energy vessels to be delivered on the April 28, followed by the next one in on the June, which will be the Paris Twenty Twenty First Twenty Twenty Four. So we're keeping our Olympian names for those state of the art ships. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:25:39And those ships will be identical sister vessels to the ones that we are going to build in South Korea, which might have a significant higher cost than other yards between 15% to 20%. But there are ships that are going to be with us for a very, very long time. The Bandapla, which was just shown yesterday, she was another Samsung vessel, which from 02/2009 and the Blue Bayers were very impressed with the air condition. And then the next is the Anfield. It seems we had a big lever from fan cloud when it was named, and it will be delivered in 2026. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:26:24And as soon as those ships will move over 2027 and 2028, identical sister vessels, upgraded versions, environmentally friendly ones are going to follow. So it's going to be a very exciting period, very accretive transactions that will add at least will almost double our EBITDA when the company will be in full force. As I said, we are a company with the lowest or I would say, let's put it in proportion with the highest concentration of Japanese and Korean vessels. More than 90% of our vessels are new Korean and Japanese. And if you put it on deadweight terms, in deadweight terms, it is up to 95%. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:27:20We have always been delivered, but quality has a cost. So that's why we have these results as we speak. And with that, I would like to open the floor for any questions. Operator00:27:35Thanks. At this time, we'll be conducting a question and answer session. Our first question comes from Poe Fratt with Alliance Global Partners. Please proceed with your question. Poe FrattEquity Research Analyst - Transportation at Alliance Global Partners00:28:16Good afternoon. I had a congratulations on the shuttle tanker deal getting all nine done. I had a question about the structure of the how they're going to be operated. My understanding is that Trans Petro is going to be providing the crews and operating the shuttle tankers under a bareboat charter. Is this the first time they've done this? Poe FrattEquity Research Analyst - Transportation at Alliance Global Partners00:28:43And do you think that what's their capacity to be able to provide the crews for those? And then is there a potential where you would if they can't provide the crews by 2027, would you be able to step in Poe FrattEquity Research Analyst - Transportation at Alliance Global Partners00:29:00and do the crewing on those shuttle tankers? Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:29:05Well, I have to say that a very, very correct and to the point operational question. And I think, yes, you are very right. They have been operating as I said, currently, we have four vessels working for in Brazilian waters, which we also train in our Greek and Rio, facilities by the Syrian group. The lack of highly educated for training Seafarer is a global phenomenon. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:29:46It's not just in Brazil. And that's why companies like us, we have our own we run our own academy. So we take a young mannered women, quite a big number of women, which is, I would say, an untapped source of our shipowners. Just less than 5% of the world's shipowners are women. And we pay them from 2018 after when they enter service. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:30:18So there is a very good probability that we will closely cooperate with the Transpatrol. And I would say one of the reasons that we will have to do some floor supplies initially, but for many supplies all nine vessels is our gravitational capacity to man and run those ships. So I'll be visiting the local part of the world with our team. And our aim is to closely cooperate in actually running those ships, which will be a pleasure for us and it will be very prudent for us because we will be able also to maintain our investment in the quality that we would like to. So the short answer is your first two years. Poe FrattEquity Research Analyst - Transportation at Alliance Global Partners00:31:13Okay, great. And then on the asset sales front, it looks like you told the Pentathlon Suezmax at 02/2009 I'm sorry, 02/2009 vintage. You have four older Suezmaxes that are older than 02/2009. You talked about two potentially pending transactions. Can you give us some flavor on what assets might be under contract right now to be sold in Poe FrattEquity Research Analyst - Transportation at Alliance Global Partners00:31:41the second quarter? Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:31:43Yes, I mean, you are correct. Some of our old ships, however, they are chartered long term to the major rail companies like Exxon and BP. Because of their I class features, they get basically continued for almost twenty years we want to And but there could be candidates age wise, although they're in excellent condition. And then we have the our first generation Aframax, the 02/2007 and 02/2008 ones. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:32:19And we expect to be able to net close to $130,000,000 including the recent sale of net proceeds for the sale. So that's why I said the mega transaction, because of our strong liquidity and the sales of ships by vanadium, would not affect our balance sheet. It's fully funded. There is no requirement for raising equity. And so we will still maintain a very, very strong liquidity going through that. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:32:51We will be looking for the first generation Macromax and Srosmax going forward. Poe FrattEquity Research Analyst - Transportation at Alliance Global Partners00:32:59Great. Thank you. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:33:01Thank you very much. Operator00:33:15Our next question comes from Clement Mullins with Value Investor's Edge. Please proceed with your question. Clement MullinsAnalyst at Value Investor's Edge00:33:24Hi. Thank you for taking my questions. I wanted to start by following up on Pong's question on selling the other side of the fleet. You mentioned decision only to make space for new eco friendly vessels. And I was wondering, generally speaking, does it refer to the vessels you have already ordered? Clement MullinsAnalyst at Value Investor's Edge00:33:44Or are you looking into adding additional tonnage over the coming months? Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:33:50I mean, we are always looking at strategic opportunities, but I was referring to the 21 vessels that we have ordered currently. And I think we are the we have currently the largest renewal program from any of our fuel groups going forward. Clement MullinsAnalyst at Value Investor's Edge00:34:16That's helpful. Thank you. And shifting toward the recent shuttle tanker orders, is there any appetite to hedge the interest rate risk on the financing you secure for the shuttle tanker? Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:34:29Yes, that's a very good point. And we have a desk of two very stingy gentlemen sitting in our petrol department looking on a daily basis to find ways to make refinancing even cheaper. So yes, we are looking on a daily basis. We are proposing to me and to our CFO, various structures that could cap in the straight uplift or yes, I mean, we're very, very focused on that part of the business. Clement MullinsAnalyst at Value Investor's Edge00:35:07Makes sense. Thank you. The Maria Energy is coming off contract in May. Could you talk a bit about how you plan to employ the vessel going forward? Are you willing to lock in a term contract despite the mediocre rates offered for LNG carriers? Clement MullinsAnalyst at Value Investor's Edge00:35:23And secondly, is the sale of the vessel potentially in the cards? Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:35:28Well, what would you like Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:35:29to point about the cards? Clement MullinsAnalyst at Value Investor's Edge00:35:33Whether you could consider selling the Marie Energy? Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:35:37Perhaps, Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:35:39yes, just to refresh, the Maria Energy, the name of my late sister, is one of our largest ships. The vessel is fixed forward from May 2026 for twelve to fifteen years at a very, very, very accretive rate to a major end user. So what we have to do from May until the next May is to cover a year of operational before it's going to be delivered to a very, very long program that actually will take it to the July Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:36:22earning a humongously Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:36:25high double digit IRR and recovery velocity that when we build the ship, we'll never calculate it as big as that. So perhaps we have not communicated that yet to the market or perhaps we did it long time ago. But she started from 2026 to 2014, I think, at the over my retirement age, but I'll be following developments. Clement MullinsAnalyst at Value Investor's Edge00:36:56That's very interesting and helpful. Thank you. And final question from me. I wanted to ask about the dividend. You reiterated last year's 0.6 semiannual distribution. Clement MullinsAnalyst at Value Investor's Edge00:37:10And I was wondering, should the market improve going forward? Would there be any appetite to potentially raise the second semiannual payment? Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:37:20Yes, that's we've been doing. We always have the first dividend is a result of the year we just had, the year we just reported. And it was $0.6 last year, we maintained exactly $0.6 for the July semi annual dividend. And if you recall, last year in December, we locked it because the market was very, very strong to $0.9 Hopefully, we can do the same having such a big backlog of employment and at least have the same dividend. So that's what we do. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:38:00We have our strategy meeting in October. By that time, we have a review of the first nine months of the year. And as we did last year, we hopefully, we can do another month, essentially, or even more. Let's stick. Let's so that's how we operate. Clement MullinsAnalyst at Value Investor's Edge00:38:21Makes sense. That's everything from me. Thank you for taking my questions. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:38:26Thank you. Operator00:38:39Our next question comes from Poe Fratt with Alliance Global Partners. Please proceed with your question. Poe FrattEquity Research Analyst - Transportation at Alliance Global Partners00:38:46Just two quick ones about operating stats. I think you mentioned you had 15 dry docks in the 2024 timeframe. How many do you expect in 2025? And then also, it looks like your G and A expenses were up in the second half of the year, I think, because of incentive comp. Can you give us sort of an idea of how the 2025 G and A expense line looks? Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:39:18Yes, we are looking almost at the growth of the month, which considering that we operate a fleet Nicolas BornozisPresident & CEO at Capital Link00:39:28of inner Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:39:28water of 60 vessels. That's what you would expect. Generally, it's a five year cycle. Sometimes when the ships are being I mean, it is kind of Nicolas BornozisPresident & CEO at Capital Link00:39:42not hard Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:39:43for someone to figure it out because it's every five years since the vessels if the vessels took in 2010, so we'll have fifteen, twenty and thirty five of her special surveys. And as far as we expect the G and A to drop significantly. We've had the pleasure to distribute the big number or a significant number of shares to our personnel on the ships and in our offices last year. And I think that has created a good team feeling for them. So they're all now are trying to make sure we do the share price, but above $20 which it should be. Operator00:40:46We have reached the end of the question and answer session. I'd now like to turn the call back over to Mr. Nicholas Saklas. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:40:56Well, again, thank you for listening in. It has been a very exciting and one of those game changers as well as the international maritime financial process called our transactions going forward. We tend to do this every now and then to put the company in its next phase. But we always do prudently and without putting the house for sale. So we are the company is very well funded. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:41:29The company can even do a similar transaction going forward without having to raise extra equity. And we are in an environment that the underlying day to day market is growing is maintaining strength. Right now, the Aframaxes, I have my son, he is going to do his appointment to do a work here in one of the famous grocery stores. So in the report, it's very exciting to see that the win of this week are the Aframaxes. So Aframaxes today are in the 70,000 range. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:42:10So the ones we haven't profit sharing whether the spot are really enjoying that. It's true as much as not far behind in the 50,000 range. Last week, the VLs were in the 50,000 shop. So it's a very, very lively and strong market with rates being very accretive, mainly for companies like that that have a low cost and a low breakeven. So we're looking at a well balanced market. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:42:40The geopolitical security fluctuates geopolitical events around the world, starting with the the group is attacking the word split. And I think the very good defense of The United States and Greece and all the allies that are protecting our seafarers are going to open up further, hopefully, our oceans. And of course, the increased part of the presence of a decaying gray fleet, and we've seen two incidents in the last month of gray ships actually being abandoned and creating or putting environmental danger in the market, allows mainstream shipping companies like ourselves to enjoy healthy rates going forward. And again, just to reiterate that 60% of our business is done by Exxon, our largest client, followed by Ethanol, followed by Chevron, Total, a pipeline of, of course, and between. So we are in a sense that the floating pipelines of very, very demanding end users. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:44:01And we are getting rewarded for us. And hopefully, we will see this reward move to our surprise like it was last year. And with that, I would like to thank all of you for listening in. Thank you very much. Operator00:44:22This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.Read moreParticipantsExecutivesEfstratios Georgios ArapoglouChairman of the BoardNikolas TsakosFounder, CEO & Executive DirectorGeorge SaroglouCOO, President & Executive DirectorHarrys KosmatosCo-CFOAnalystsNicolas BornozisPresident & CEO at Capital LinkPoe FrattEquity Research Analyst - Transportation at Alliance Global PartnersClement MullinsAnalyst at Value Investor's EdgePowered by Conference Call Audio Live Call not available Earnings Conference CallTsakos Energy Navigation Q4 202400:00 / 00:00Speed:1x1.25x1.5x2xTranscript SectionsPresentationParticipants Earnings DocumentsSlide DeckPress Release(8-K)Annual report(20-F) Tsakos Energy Navigation Earnings HeadlinesWhile institutions own 19% of Tsakos Energy Navigation Limited (NYSE:TEN), retail investors are its largest shareholders with 54% ownershipApril 26 at 11:07 AM | finance.yahoo.comTEN Ltd. Announces the Filing of Form 20-F With the SECApril 15, 2025 | globenewswire.comHere’s How to Claim Your Stake in Elon’s Private Company, xAIEven though xAI is a private company, tech legend and angel investor Jeff Brown found a way for everyday folks like you… To partner with Elon on what he believes will be the biggest AI project of the century… Starting with as little as $500.April 29, 2025 | Brownstone Research (Ad)TEN Ltd. Declares Dividend on its Series F Cumulative Redeemable Perpetual Preferred SharesApril 4, 2025 | globenewswire.comTsakos Energy Navigation Full Year 2024 Earnings: Beats ExpectationsMarch 30, 2025 | finance.yahoo.comEarnings call transcript: Tsakos Energy Navigation’s Q4 2024 sees strong revenue growthMarch 29, 2025 | uk.investing.comSee More Tsakos Energy Navigation Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Tsakos Energy Navigation? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Tsakos Energy Navigation and other key companies, straight to your email. Email Address About Tsakos Energy NavigationTsakos Energy Navigation (NYSE:TEN). engages in the provision of seaborne crude oil and petroleum product transportation services. Its activities include the operation of crude tankers, product tankers, and liquefied natural gas carriers. The company was founded by Nikolas P. Tsakos and Michael Gordon Jolliffee in July 1993 and is headquartered in Athens, Greece.View Tsakos Energy Navigation ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Alphabet Rebounds After Strong Earnings and Buyback AnnouncementMarkets Think Robinhood Earnings Could Send the Stock UpIs the Floor in for Lam Research After Bullish Earnings?Texas Instruments: Earnings Beat, Upbeat Guidance Fuel RecoveryMarket Anticipation Builds: Joby Stock Climbs Ahead of EarningsIs Intuitive Surgical a Buy After Volatile Reaction to Earnings?Seismic Shift at Intel: Massive Layoffs Precede Crucial Earnings Upcoming Earnings QUALCOMM (4/30/2025)Automatic Data Processing (4/30/2025)Microsoft (4/30/2025)Meta Platforms (4/30/2025)KLA (4/30/2025)Equinix (4/30/2025)Lloyds Banking Group (4/30/2025)Itaú Unibanco (4/30/2025)Banco Santander (4/30/2025)Equinor ASA (4/30/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. Start Your 30-Day Trial MarketBeat All Access Features Best-in-Class Portfolio Monitoring Get personalized stock ideas. Compare portfolio to indices. Check stock news, ratings, SEC filings, and more. Stock Ideas and Recommendations See daily stock ideas from top analysts. Receive short-term trading ideas from MarketBeat. Identify trending stocks on social media. Advanced Stock Screeners and Research Tools Use our seven stock screeners to find suitable stocks. Stay informed with MarketBeat's real-time news. Export data to Excel for personal analysis. Sign in to your free account to enjoy these benefits In-depth profiles and analysis for 20,000 public companies. Real-time analyst ratings, insider transactions, earnings data, and more. Our daily ratings and market update email newsletter. Sign in to your free account to enjoy all that MarketBeat has to offer. Sign In Create Account Your Email Address: Email Address Required Your Password: Password Required Log In or Sign in with Facebook Sign in with Google Forgot your password? Your Email Address: Please enter your email address. Please enter a valid email address Choose a Password: Please enter your password. Your password must be at least 8 characters long and contain at least 1 number, 1 letter, and 1 special character. Create My Account (Free) or Sign in with Facebook Sign in with Google By creating a free account, you agree to our terms of service. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
PresentationSkip to Participants Operator00:00:00Good morning to all. Thank you for standing by, ladies and gentlemen, and welcome to SACOS Energy Navigation Conference Call on the Fourth Quarter twenty twenty four Financial Results. We have with us today Mr. Takis, Erapoglou, Chairman of the Board Mr. Nicholas Sakos, Founder and CEO Mr. Operator00:00:20Paul Durham, Chief Financial Officer Mr. George Saroglou, President and Chief Operating Officer and Mr. Harries Kosmatos, CFO of the company. At this time, all participants are in a listen only mode. There will be a presentation followed by a question I must advise that this conference is being recorded today. Operator00:00:50And now, I'd like to pass the floor over to your host, Mr. Nicholas Bornosas, President of Capital Link and Investor Relations Advisor to Tsakos Energy Navigation. Please go ahead. Nicolas BornozisPresident & CEO at Capital Link00:01:02Thank you very much and good morning to all of our participants. I'm Nicholas Bornosic, President of Capital Link and Investor Relations Advisor to Tsakos Energy Releviation, to ten. This morning, the company publicly released its financial results for the twelve months and fourth quarter ended 12/31/2024. In case we do not have a copy of today's earnings release, please call us at (212) 661-7566 or email us at temcapitlin dot com and we'll have a copy sent to you emailed to you right away. Please note that parallel to today's conference call, there is also a live audio and slide webcast, which can be accessed on the company's website on the front page at www.tenn.gr. Nicolas BornozisPresident & CEO at Capital Link00:01:53The conference call will follow the presentation slides, so please we urge you to access the presentation slides on the company's website. Please note that the slides of the webcast presentation will be available and archived on the website of the company after the conference call. Also please note that the slides of the webcast presentation are user controlled and that means that by clicking on the proper button you can move to the next or to the previous slide on your own. At this time, I would like to read the Safe Harbor statement. This conference call and slide presentation of the webcast contains certain forward looking statements within the meaning of the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. Nicolas BornozisPresident & CEO at Capital Link00:02:35Investors are cautioned that such forward looking statements involve risks and uncertainties, which may affect TEN's business prospects and results of operations. So before passing the floor to the Chairman, I would like to congratulate the company for the transformational milestone transaction to build nine shuttle tankers with secured fifteen year employment. This transaction solidifies TEN's profitability and growth for many years ahead. And by the way, it also proves how TEN's prudent capital allocation has enabled the company not only to move fast to close the transaction, but also to finance the equity portion required at this stage with your own funds without stretching the company's balance sheet. And now at this moment, I would like to pass the floor to Mr. Nicolas BornozisPresident & CEO at Capital Link00:03:26Takis Arapoglou, Chairman of Tsakos Energy Navigation. Please, Mr. Arapoglou, go ahead. Efstratios Georgios ArapoglouChairman of the Board at Tsakos Energy Navigation00:03:34Thank you. Thank you, Nicolas. Good morning and good afternoon to everyone. And thank you all for joining our call today for the fourth quarter twenty twenty four and full year '20 '20 '4 results. As you've seen excellent results from a market that continues to demonstrate strong fundamentals, a record 21 vessel expansion that will result in a fleet pro form a of 82 vessels and $4,000,000,000 of contracted fixed revenues confirming the unique and robust industrial model of 10. Efstratios Georgios ArapoglouChairman of the Board at Tsakos Energy Navigation00:04:20The milestone nine DP2 Shuttle Factor deal worth $1,300,000,000 with Trans Petro, firmly establishes then among a very select group of leaders in the shuttle tanker business and demonstrates once more the commitment we have in servicing the needs of our customers, fully justifies our strategy of maintaining ample liquidity. And it also shows that it allows us to comfortably enter into such accretive mega sized transactions. The sale of one more of our oldest vessels generates again cash for the company and the S and P activity of 10 in this front will continue in order to maintain a young fleet and generate additional cash. All this, I think, confirms the textbook nature of TEN's management that allows it to continue paying dividends uninterruptedly since inception, oblivious I would say, to the cyclical nature of the market. So once again, congratulations to Nikos Tsakos and the team for this excellent performance, which no doubt will continue keeping them in the forefront of the energy transportation business going forward. Efstratios Georgios ArapoglouChairman of the Board at Tsakos Energy Navigation00:05:52So thank you and over to Nikos Sarkos. Thanks. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:05:58Yes. Good afternoon and good morning for everybody. Thank you for your good words. The recent period has been a milestone period, as you mentioned, for the company. It's one of those periods where we leap up to our next stage. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:06:17And we've done that back in 02/2007 when we became the largest ice class operating fleet in the world. A few years later, in 2014, we became the largest operator for Equinor, one of the most prestigious and demanding end users in the world. Last year, we became the largest dual fuel vessel operator, just helping our greener side of moving our vessels and keeping our member footprint in line. And that was by the acquisition of a large fleet of modern DRQL vessels. And the pre Brazilian transaction, as we call it big in Brazil, is a transaction that puts them in and makes them, for sure, the most modern view the most modern big, sharply tanker operator, DP2 operator with complements our existing fleet, which we started in 2012 with four vessels already in the water, three being delivered very early next month. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:07:51So we have April, July and then in 2026. All the vessels are being built, I would say, in the most superior, subtropangent South Korean yard. We have to compete in parties who have inferior or lower rates, more competitive rates than us, but they were bringing ships in other yards in the Far East, including China, where the expectation was not there. So our experience, our long term commitment to the segment, our training center, which is the only one that produces seafarers with accreditation from the North Carolina of the UK has given us the chance Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:08:40to be Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:08:41successful in achieving a positive result. But in the meantime, we were still running business, always looking at extending we've extended 21 new businesses with our major rail companies. As you may know, about 70% of our business is held by the six or seven very prestigious end users. We try to avoid employing our ships to operators or traders. We do it sometimes on the spot market, but to end turn, we focus on the people who know and appreciate our services. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:09:23Also, we have been active and already still be active in the S and P central defensive market. Just yesterday, we delivered one of our 2,009 beautiful Swiss Maxes for a capital gain after so many years since 02/2009 and they're offering $40,000,000 30 million dollars of cash. We're also in the market for two more similar transactions from now up to the end of the second quarter. So in the meantime, we do not lose track of the day to day business. And the fundamentals are very positive. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:10:04We are a company that has perhaps right now the largest EBB program from any WorldPL Group, a very specialized 21 vessels program. All of our program is financed and a significant contribution from banks to finance. So one thing I have to make clear, we've been always criticized for keeping enough cash, but when transactions like these are there, we can achieve those transactions much better than any of our peer goods. In fact, really, putting strain on our balance sheet or ever having to use to raise equity. So this metal transaction is fully financed by internal equity and bank debt, which is competing at very attractive terms for our business. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:11:02Still, we're one of the I have to say I'm very proud about our team. It has been a very international global transaction that we were able to achieve. What we are still disappointed is that our share price is half of what it was a year ago when I was here in The United States. But our company was much smaller. Our company has much less prospects right now with 21 vessels, a 36% dynamic expansion, 82 vessels in the water very soon, and we have doubled our medium to long term receivables from 2,000,000,000 to 4,000,000,000 within the last two months with these transactions. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:11:53We hope as the major shareholders here who know the value of our company but very soon our share price will be very cheap. I mean, our book value is in excess of $3,000,000,000 However, what includes in the new transactions, our market value is even higher than that and our net debt is $1,500,000,000 So if you divide this by 30, you should see that the corporate level we are surprised to be closer to $50 than $16 or $17 But again, we know the value of our company and hopefully others will identify that this thirty two years of continuous dividend as a Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:12:40Chairman Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:12:40said is going to grow for at least another thirty three years. And with that, I would ask Mr. Kvasmatos or George to please give us Mr. Saroglou, our President to give us his detailed report. Thank you. George SaroglouCOO, President & Executive Director at Tsakos Energy Navigation00:13:02Thank you very much, Nikos. We are very pleased to report today another profitable quarter and profitable year. There is a slide presentation that we will try to follow. You can look at it later on as well. Let's go straight to slide number four, which shows the growth of the company since inception in 1993 in terms of deadweight tons. George SaroglouCOO, President & Executive Director at Tsakos Energy Navigation00:13:29As you can see here, we have done every major crisis the world has faced into a growth opportunity for TEM, thanks to our operating model. We have a counter cyclical approach in investing in fleet growth by raising equity when we need it, which is usually at the bottom of the tanker market and not usually when our share price is at the top in order to fund growth projects. This is what Slide five shows. The strategy has served us very well so far. In blue, you see the equity offerings in common shares since 1993. George SaroglouCOO, President & Executive Director at Tsakos Energy Navigation00:14:09In red, the offerings in preferred shares. And as you can see, since 2013, we have issued six series of preferred shares. And we have already redeemed as we speak four of them at par. But those that we the four that we have redeemed have a par value of approximately $225,000,000 We have announced today a major transaction in the shuttle tanker sector. And this is a milestone deal with Trans Petro Petrobras in Brazil. George SaroglouCOO, President & Executive Director at Tsakos Energy Navigation00:14:48We are building nine state of the art TP2 shuttle tankers that we can complement the four that are already in operation and three that we are building for a total pro form a shuttle fleet of 16 tankers. This is a landmark transaction that makes TEN one of the largest shuttle tanker operators in the world to date. And all 16 vessels are fixed on long employment to major energy companies, including, of course, Transcerto and Brazil. Since in the last two years, since 01/01/2023, we have upgraded the quality of the fleet by divesting from our first generation conventional tankers, replacing them with more energy efficient newbuildings and more than secondhand tankers, including dual fuel vessels. And we are very proud to have today one of the largest being one of the largest owners of dual fuel LNG powered Aframax tankers with six vessels in the water. George SaroglouCOO, President & Executive Director at Tsakos Energy Navigation00:15:54Slide six lists the conventional pro form a fleet divided between crudes and product tankers, spreading from large VLCCs to the smaller hand sized tankers. We have nine new buildings that we expect to take delivery from the second quarter of this year until the third quarter of twenty twenty eight. And you see various colors in this slide. The red color denotes the newbuilding vessels, but also the vessels that we operate today in the spot market. With dark blue, we list the vessels under fixed time charters and with light blue, the vessels with time charters with profit sharing. George SaroglouCOO, President & Executive Director at Tsakos Energy Navigation00:16:34In the next slide, which has the pro form a specialized fleet, we leased the 16 shuttle tankers. And on top of that slide, we listed the company's two LNG car with carriers. If we combine the two slides and account only for the current operating fleet of 61 vessels, 29 vessels or 48% of the operating fleet has market exposure through spot and time charter with profit sharing, while 51% or 84% of the fleet is in secured revenue contracts, which means time charters and time charter with profit sharing. Our biggest clients for both conventional and specialized segment of the fleet are the names you see in Slide eight. These are blue chip names with whom we do repeat long term business. George SaroglouCOO, President & Executive Director at Tsakos Energy Navigation00:17:31The largest client of all today is ExxonMobil without yet accounting of the deal that we announced with Petrobras in Brazil. The left side of the next slide shows you the all in breakeven cost for the type of vessels we operate. We have a simple operating model. We try to have our time charter vessels generate revenue to cover the company's cash expenses, which means paying for the vessel operating expenses, finance expenses, overheads, chartering costs and commissions, and we let the revenue from the spot trading vessels contribute to the profitability of the company. Thanks to the profit sharing element, every $1,000 per day increase in spot rates has a positive impact of $0.12 in the annual earnings per share based on the number of 10 vessels that currently operate in the spot market. George SaroglouCOO, President & Executive Director at Tsakos Energy Navigation00:18:29And with that, I will pass the floor to Carlos Kebartos, who will walk us through the financial performance of the quarter and the year. Harry? Harrys KosmatosCo-CFO at Tsakos Energy Navigation00:18:37Thank you, George. Thanks. On behalf of our CFO, Paul Dow and myself, hello and welcome to our call. During 2024, Tun's fleet averaged approximately two vessels more compared to 2023, reaching 62 vessels in the water. As a result of the divestment of five older tankers, two Suezmaxes, two Aframaxes and one LNG carrier and the acquisition and or delivery of nine vessels, namely five modern tankers from Norway's Beacon Crude, the repurchase and termination of two selling installed transactions involving two Suezmaxes and the delivery of two dual fuel LNG Aframaxes. Harrys KosmatosCo-CFO at Tsakos Energy Navigation00:19:15Despite this fleet increase during the year, 15 vessels underwent scheduled drydolts while three performed repositioning voyages, all of which led to average fleet utilization for the year to settle at 92.5 from 96.3% in 2023, a still healthy level nonetheless. Resulting from the above and combined with a somewhat softer than tanker market, 10 still generated $8.00 $4,000,000 in gross revenues and $279,000,000 in operating income, the latter after $49,000,000 in capital gains from the sales mentioned above. TCE per se per day during the twelve month period, which was naturally impacted by the drydockings, settled at a still healthy $32,550 thanks to a large extent to the number of operating days and long term secure revenue contracts corresponding to the long term nature of our clients. 82% in 2024 compared to 77% in 2023. As a result, net income for 2024 was at 176,000,000 equating to $5.03 per common share and adjusted EBITDA for the year of $400,000,000 Fleet operating expenses of $198,000,000 modestly increased in line with the loans in number and size of vessels in the fleet after the various acquisitions and divestments during the year. Harrys KosmatosCo-CFO at Tsakos Energy Navigation00:20:42Operating expenses per se per day, however, were about 3% lower from the 2023 levels at $9,350 thanks again to efficient management performed by 10 technical experts on shore and nonvolter vessels. Total debt and other financial liabilities at the end of the year were at $1,800,000,000 which compares favorably to both the book and fair value of the fleet, $3,000,000,000 and just about $4,000,000,000 at the end of the year respectively. At the same time, net debt to capital remain at a comfortable 45%. Interest and finance costs for 2024 and reflecting the larger fleet size both in terms of vessels and vessel types as well as continuing elevated global interest rates despite recent cuts was at $112,000,000 from $100,000,000 in 2023, a manageable increase. However, this inevitable and controlled cost increase was nullified more as a result of the $4,000,000 in reduced preferred coupon payments from amounts paid during 2023, '5 million dollars in savings in forward variable higher from the repurchase of two Series Maxxis on leasing contracts in the summer of twenty twenty four and $50,000,000 in interest income. Harrys KosmatosCo-CFO at Tsakos Energy Navigation00:21:55Cash and Bank as of 12/31/2024 was at just under $350,000,000 a very healthy level despite having paid $258,000,000 for common and preferred dividends, growth projects and the exercise of the above leasing repurchase options. Results for the fourth quarter of twenty twenty four were equally attractive considering that four of the 15 vessels that underwent drydocking during that year happened in this quarter. A fleet of 62 vessels as opposed to about 60 in the fourth quarter of twenty twenty three generated gross revenues of $188,000,000 dollars and operating income of $42,000,000 compared to $220,000,000 and $57,000,000 in the fourth quarter of twenty twenty three respectively. Unlike the twenty twenty three fourth quarter, no impairment charges were recorded during this twenty twenty fourth quarter. Fleet operating expenses for the fourth quarter of twenty twenty four and despite the four bright auctions mentioned above in the larger fleet size were at $51,000,000 just $1,300,000 higher than twenty twenty three fourth quarter level. Harrys KosmatosCo-CFO at Tsakos Energy Navigation00:23:04However, operating expenses per se per day were marginally lower from the twenty twenty three fourth quarter at $9,480 TCE per se per day closed the quarter 3.2 times higher than the above OpEx number at $30,107 The resulting net income for the fourth quarter of twenty twenty four was at $19,300,000 producing EPS of $0.42 reflecting the somewhat softer market driven by lower Asian oil imports, lower fleet utilization compared to twenty twenty three fourth quarter and the $4,000,000 increase in depreciation and amortization charges the larger fleet entailed. Adjusted EBITDA finished the quarter at $85,000,000 Supported by the aforementioned results, TEN is in line and in line with the semi annual dividend policy will pay a common stock dividend of $0.6 in July 2025, identical to the level paid in July 2024. In ending, it is pertinent to highlight what George mentioned earlier that Brent today is facing is undergoing its largest growth phase in its history with 21 vessels on order, none of which the DP2 shuttle tanker on fifty year contracts to transfer Petrobras as recently announced, which in the wrong right contributing double intense minimum revenue backlog from $2,000,000,000 to $4,000,000,000 while turning us into one of the largest shuttle tanker owners Harrys KosmatosCo-CFO at Tsakos Energy Navigation00:24:33in the world. And with this, Harrys KosmatosCo-CFO at Tsakos Energy Navigation00:24:36I'll turn back to Nikos for the closing remarks. Thank you. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:24:44Well, thank you, Harry, for and George for putting the details on some putting some numbers on the bones. And as we said, it is a very significant period of growth. We are starting the delivery and yesterday was the very successful C trials. And I don't know if you guys have a picture, it was received overnight from South Korea from the Athens Two Thousand And Four, the first of the two total energy vessels to be delivered on the April 28, followed by the next one in on the June, which will be the Paris Twenty Twenty First Twenty Twenty Four. So we're keeping our Olympian names for those state of the art ships. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:25:39And those ships will be identical sister vessels to the ones that we are going to build in South Korea, which might have a significant higher cost than other yards between 15% to 20%. But there are ships that are going to be with us for a very, very long time. The Bandapla, which was just shown yesterday, she was another Samsung vessel, which from 02/2009 and the Blue Bayers were very impressed with the air condition. And then the next is the Anfield. It seems we had a big lever from fan cloud when it was named, and it will be delivered in 2026. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:26:24And as soon as those ships will move over 2027 and 2028, identical sister vessels, upgraded versions, environmentally friendly ones are going to follow. So it's going to be a very exciting period, very accretive transactions that will add at least will almost double our EBITDA when the company will be in full force. As I said, we are a company with the lowest or I would say, let's put it in proportion with the highest concentration of Japanese and Korean vessels. More than 90% of our vessels are new Korean and Japanese. And if you put it on deadweight terms, in deadweight terms, it is up to 95%. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:27:20We have always been delivered, but quality has a cost. So that's why we have these results as we speak. And with that, I would like to open the floor for any questions. Operator00:27:35Thanks. At this time, we'll be conducting a question and answer session. Our first question comes from Poe Fratt with Alliance Global Partners. Please proceed with your question. Poe FrattEquity Research Analyst - Transportation at Alliance Global Partners00:28:16Good afternoon. I had a congratulations on the shuttle tanker deal getting all nine done. I had a question about the structure of the how they're going to be operated. My understanding is that Trans Petro is going to be providing the crews and operating the shuttle tankers under a bareboat charter. Is this the first time they've done this? Poe FrattEquity Research Analyst - Transportation at Alliance Global Partners00:28:43And do you think that what's their capacity to be able to provide the crews for those? And then is there a potential where you would if they can't provide the crews by 2027, would you be able to step in Poe FrattEquity Research Analyst - Transportation at Alliance Global Partners00:29:00and do the crewing on those shuttle tankers? Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:29:05Well, I have to say that a very, very correct and to the point operational question. And I think, yes, you are very right. They have been operating as I said, currently, we have four vessels working for in Brazilian waters, which we also train in our Greek and Rio, facilities by the Syrian group. The lack of highly educated for training Seafarer is a global phenomenon. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:29:46It's not just in Brazil. And that's why companies like us, we have our own we run our own academy. So we take a young mannered women, quite a big number of women, which is, I would say, an untapped source of our shipowners. Just less than 5% of the world's shipowners are women. And we pay them from 2018 after when they enter service. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:30:18So there is a very good probability that we will closely cooperate with the Transpatrol. And I would say one of the reasons that we will have to do some floor supplies initially, but for many supplies all nine vessels is our gravitational capacity to man and run those ships. So I'll be visiting the local part of the world with our team. And our aim is to closely cooperate in actually running those ships, which will be a pleasure for us and it will be very prudent for us because we will be able also to maintain our investment in the quality that we would like to. So the short answer is your first two years. Poe FrattEquity Research Analyst - Transportation at Alliance Global Partners00:31:13Okay, great. And then on the asset sales front, it looks like you told the Pentathlon Suezmax at 02/2009 I'm sorry, 02/2009 vintage. You have four older Suezmaxes that are older than 02/2009. You talked about two potentially pending transactions. Can you give us some flavor on what assets might be under contract right now to be sold in Poe FrattEquity Research Analyst - Transportation at Alliance Global Partners00:31:41the second quarter? Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:31:43Yes, I mean, you are correct. Some of our old ships, however, they are chartered long term to the major rail companies like Exxon and BP. Because of their I class features, they get basically continued for almost twenty years we want to And but there could be candidates age wise, although they're in excellent condition. And then we have the our first generation Aframax, the 02/2007 and 02/2008 ones. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:32:19And we expect to be able to net close to $130,000,000 including the recent sale of net proceeds for the sale. So that's why I said the mega transaction, because of our strong liquidity and the sales of ships by vanadium, would not affect our balance sheet. It's fully funded. There is no requirement for raising equity. And so we will still maintain a very, very strong liquidity going through that. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:32:51We will be looking for the first generation Macromax and Srosmax going forward. Poe FrattEquity Research Analyst - Transportation at Alliance Global Partners00:32:59Great. Thank you. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:33:01Thank you very much. Operator00:33:15Our next question comes from Clement Mullins with Value Investor's Edge. Please proceed with your question. Clement MullinsAnalyst at Value Investor's Edge00:33:24Hi. Thank you for taking my questions. I wanted to start by following up on Pong's question on selling the other side of the fleet. You mentioned decision only to make space for new eco friendly vessels. And I was wondering, generally speaking, does it refer to the vessels you have already ordered? Clement MullinsAnalyst at Value Investor's Edge00:33:44Or are you looking into adding additional tonnage over the coming months? Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:33:50I mean, we are always looking at strategic opportunities, but I was referring to the 21 vessels that we have ordered currently. And I think we are the we have currently the largest renewal program from any of our fuel groups going forward. Clement MullinsAnalyst at Value Investor's Edge00:34:16That's helpful. Thank you. And shifting toward the recent shuttle tanker orders, is there any appetite to hedge the interest rate risk on the financing you secure for the shuttle tanker? Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:34:29Yes, that's a very good point. And we have a desk of two very stingy gentlemen sitting in our petrol department looking on a daily basis to find ways to make refinancing even cheaper. So yes, we are looking on a daily basis. We are proposing to me and to our CFO, various structures that could cap in the straight uplift or yes, I mean, we're very, very focused on that part of the business. Clement MullinsAnalyst at Value Investor's Edge00:35:07Makes sense. Thank you. The Maria Energy is coming off contract in May. Could you talk a bit about how you plan to employ the vessel going forward? Are you willing to lock in a term contract despite the mediocre rates offered for LNG carriers? Clement MullinsAnalyst at Value Investor's Edge00:35:23And secondly, is the sale of the vessel potentially in the cards? Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:35:28Well, what would you like Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:35:29to point about the cards? Clement MullinsAnalyst at Value Investor's Edge00:35:33Whether you could consider selling the Marie Energy? Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:35:37Perhaps, Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:35:39yes, just to refresh, the Maria Energy, the name of my late sister, is one of our largest ships. The vessel is fixed forward from May 2026 for twelve to fifteen years at a very, very, very accretive rate to a major end user. So what we have to do from May until the next May is to cover a year of operational before it's going to be delivered to a very, very long program that actually will take it to the July Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:36:22earning a humongously Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:36:25high double digit IRR and recovery velocity that when we build the ship, we'll never calculate it as big as that. So perhaps we have not communicated that yet to the market or perhaps we did it long time ago. But she started from 2026 to 2014, I think, at the over my retirement age, but I'll be following developments. Clement MullinsAnalyst at Value Investor's Edge00:36:56That's very interesting and helpful. Thank you. And final question from me. I wanted to ask about the dividend. You reiterated last year's 0.6 semiannual distribution. Clement MullinsAnalyst at Value Investor's Edge00:37:10And I was wondering, should the market improve going forward? Would there be any appetite to potentially raise the second semiannual payment? Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:37:20Yes, that's we've been doing. We always have the first dividend is a result of the year we just had, the year we just reported. And it was $0.6 last year, we maintained exactly $0.6 for the July semi annual dividend. And if you recall, last year in December, we locked it because the market was very, very strong to $0.9 Hopefully, we can do the same having such a big backlog of employment and at least have the same dividend. So that's what we do. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:38:00We have our strategy meeting in October. By that time, we have a review of the first nine months of the year. And as we did last year, we hopefully, we can do another month, essentially, or even more. Let's stick. Let's so that's how we operate. Clement MullinsAnalyst at Value Investor's Edge00:38:21Makes sense. That's everything from me. Thank you for taking my questions. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:38:26Thank you. Operator00:38:39Our next question comes from Poe Fratt with Alliance Global Partners. Please proceed with your question. Poe FrattEquity Research Analyst - Transportation at Alliance Global Partners00:38:46Just two quick ones about operating stats. I think you mentioned you had 15 dry docks in the 2024 timeframe. How many do you expect in 2025? And then also, it looks like your G and A expenses were up in the second half of the year, I think, because of incentive comp. Can you give us sort of an idea of how the 2025 G and A expense line looks? Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:39:18Yes, we are looking almost at the growth of the month, which considering that we operate a fleet Nicolas BornozisPresident & CEO at Capital Link00:39:28of inner Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:39:28water of 60 vessels. That's what you would expect. Generally, it's a five year cycle. Sometimes when the ships are being I mean, it is kind of Nicolas BornozisPresident & CEO at Capital Link00:39:42not hard Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:39:43for someone to figure it out because it's every five years since the vessels if the vessels took in 2010, so we'll have fifteen, twenty and thirty five of her special surveys. And as far as we expect the G and A to drop significantly. We've had the pleasure to distribute the big number or a significant number of shares to our personnel on the ships and in our offices last year. And I think that has created a good team feeling for them. So they're all now are trying to make sure we do the share price, but above $20 which it should be. Operator00:40:46We have reached the end of the question and answer session. I'd now like to turn the call back over to Mr. Nicholas Saklas. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:40:56Well, again, thank you for listening in. It has been a very exciting and one of those game changers as well as the international maritime financial process called our transactions going forward. We tend to do this every now and then to put the company in its next phase. But we always do prudently and without putting the house for sale. So we are the company is very well funded. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:41:29The company can even do a similar transaction going forward without having to raise extra equity. And we are in an environment that the underlying day to day market is growing is maintaining strength. Right now, the Aframaxes, I have my son, he is going to do his appointment to do a work here in one of the famous grocery stores. So in the report, it's very exciting to see that the win of this week are the Aframaxes. So Aframaxes today are in the 70,000 range. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:42:10So the ones we haven't profit sharing whether the spot are really enjoying that. It's true as much as not far behind in the 50,000 range. Last week, the VLs were in the 50,000 shop. So it's a very, very lively and strong market with rates being very accretive, mainly for companies like that that have a low cost and a low breakeven. So we're looking at a well balanced market. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:42:40The geopolitical security fluctuates geopolitical events around the world, starting with the the group is attacking the word split. And I think the very good defense of The United States and Greece and all the allies that are protecting our seafarers are going to open up further, hopefully, our oceans. And of course, the increased part of the presence of a decaying gray fleet, and we've seen two incidents in the last month of gray ships actually being abandoned and creating or putting environmental danger in the market, allows mainstream shipping companies like ourselves to enjoy healthy rates going forward. And again, just to reiterate that 60% of our business is done by Exxon, our largest client, followed by Ethanol, followed by Chevron, Total, a pipeline of, of course, and between. So we are in a sense that the floating pipelines of very, very demanding end users. Nikolas TsakosFounder, CEO & Executive Director at Tsakos Energy Navigation00:44:01And we are getting rewarded for us. And hopefully, we will see this reward move to our surprise like it was last year. And with that, I would like to thank all of you for listening in. Thank you very much. Operator00:44:22This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.Read moreParticipantsExecutivesEfstratios Georgios ArapoglouChairman of the BoardNikolas TsakosFounder, CEO & Executive DirectorGeorge SaroglouCOO, President & Executive DirectorHarrys KosmatosCo-CFOAnalystsNicolas BornozisPresident & CEO at Capital LinkPoe FrattEquity Research Analyst - Transportation at Alliance Global PartnersClement MullinsAnalyst at Value Investor's EdgePowered by