Tsakos Energy Navigation Q2 2025 Earnings Report

Tsakos Energy Navigation EPS Results

• Actual EPS: $0.67
• Consensus EPS: $0.59
• Beat/Miss: Beat by +$0.08
• One Year Ago EPS: N/A

Tsakos Energy Navigation Revenue Results

• Actual Revenue: N/A
• Expected Revenue: $163.62 million
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Tsakos Energy Navigation Announcement Details

• Quarter: Q2 2025
• Date: 9/10/2025
• Time: Before Market Opens
• Conference Call Date: Wednesday, September 10, 2025
• Conference Call Time: 10:00AM ET

Tsakos Energy Navigation (NYSE:TEN). (NYSE: TEN) is an international shipping company specializing in the transportation of crude oil and refined petroleum products. Founded in 1993 by Nikolas P. Tsakos, the company has built a reputation for operating a modern, well-maintained fleet of double-hull tankers. Tsakos Energy Navigation is organized around both ownership and technical management of vessels, offering chartering, commercial operations and crew services under one umbrella.

The company’s fleet consists primarily of very large crude carriers (VLCCs), Suezmax and Aframax tankers, as well as medium-range (MR) and Handy product carriers. These vessels are employed under a mix of spot charters, time charters and multi-year contracts with major national oil companies and trading houses. TEN’s technical management division oversees all aspects of vessel maintenance, safety compliance and crew training, ensuring adherence to stringent international standards.

Tsakos Energy Navigation serves global oil trade routes, calling at terminals and ports across the Americas, Europe, the Middle East, West Africa and Asia-Pacific. The company’s commercial office coordinates voyage planning to optimize fuel efficiency and minimize turnaround times, while maintaining close relationships with charterers and port authorities worldwide. TEN has also worked in strategic partnerships to secure long-term employment for its vessels in key geographic markets.

Nikolas P. Tsakos continues to lead the company as President and Chief Executive Officer, supported by a team of maritime professionals with extensive experience in ship operations, finance and regulatory affairs. Under his leadership, TEN has focused on fleet modernization, environmental compliance and cost management. The company’s technical offices, located in Piraeus, Athens, London and New York, sustain its commitment to safe and efficient shipping services for clients around the world.

Tsakos Energy Navigation Q2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: The company reports a $3.7 billion contract backlog (over $120 per share), highlighting strong future revenue visibility.
• Positive Sentiment: TEN ordered three new VLCCs with scrubbers (plus an option) and is replacing older ships with eco-friendly newbuilds to modernize its fleet.
• Positive Sentiment: With 87% of its 61-vessel operating fleet on fixed charters or profit-sharing contracts, TEN has secured substantial recurring revenue.
• Positive Sentiment: The company generated $26.8 million in Q2 net income ($0.67 per share) and paid its first dividend in July, with another expected in November.
• Neutral Sentiment: TEN is exploring corporate structuring alternatives, possibly spinning off specialized assets, to boost shareholder value amid perceived share undervaluation.

Presentation

[Operator]

Thank you for standing by, ladies and gentlemen, and welcome to Tsakos Energy Navigation Conference Call on the Second Quarter 2025 Rinancial results. We have with us today Mr. Efstratios-Georgios A. Arapoglou, Chairman of the Board; Mr. Nikolas P. Tsakos, Founder and CEO; Mr. George V. Saroglou, President and Chief Operating Officer; and Mr. Harrys Kosmatos, Co-CFO of the company. At this time, all participants are on a listen-only mode. There will be a presentation followed by a question and answer session, at which time, if you wish to ask a question, please press star one on your telephone keypad and wait for your name to be announced. I must advise that this conference is being recorded today. I now pass the floor over to your host, Mr. Nikolas Bornozis, President of Capital Link and Investor Relations Advisor to Tsakos Energy Navigation. Please go ahead, sir.

[Nikolas Bornozis, President and IR Advisor at Capital Link and Tsakos Energy]

Thank you very much, and good morning to all of our participants. I am Nikolas Bornozis, President of Capital Link and Investor Relations Advisor to Tsakos Energy Navigation. This morning, the company publicly released its financial results for the second quarter and six months ended on June 30th, 2025. In case you do not have a copy of today's earnings release, please call us at 212-661-7566 or email us at ten@capitallink.com, and we will have a copy for you emailed 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. The conference call will follow the presentation slides, so please we urge you to access the presentation slides on the company's website.

[Nikolas Bornozis, President and IR Advisor at Capital Link and Tsakos Energy]

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 contain certain forward-looking statements within the meaning of the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties which may affect TEN's business prospects and results of operations. At this moment, I would like to pass the floor to Mr. Arapoglou, the Chairman of Tsakos Energy Navigation. Please go ahead, sir.

[Efstratios-Georgios A. Arapoglou, Chairman of the Board (Tsakos Energy) at Tsakos Energy]

Thank you. Thank you, Nikolas. Good morning. Good afternoon to everyone. In a tanker market with still strong fundamentals, we continue to perform extremely well, sticking to our well-known industrial model that the CEO, Nikolas Tsakos, has described many times, generating healthy contracted revenue under very strict cost control, as you see in the numbers. At the same time, we're selling older vessels and replacing them with new state-of-the-art ships, keeping a young fleet attractive to our customers. I will remind you that some time ago, we identified the lack of good weighting on VLCCs. We are correcting this now, and as you've seen, we've gone ahead to order three new VLCCs with scrubbers, plus option one. We are rebalancing the portfolio, and we are filling a gap that we always wanted to fill. The results, well done to Nikolas Tsakos and his team.

[Efstratios-Georgios A. Arapoglou, Chairman of the Board (Tsakos Energy) at Tsakos Energy]

Best wishes for every success going forward. Over to you, Nikolas.

[Nikolas P. Tsakos, Founder and CEO at Tsakos Energy]

Thank you, Chairman, and good morning to everybody. It's a pleasure to be here after the short summer lull. Whereas in TEN, we did not experience such a lull because the company was very active during the summer months. We find it always interesting to make sure that during the slow seasonal months of the summer, perhaps it's the best time to do business when not everybody is around his desk. We've been busy. In August, ordering the three plus one vessel, taking delivery in August and in July, starting from June of our Suezmaxes and our shuttle tankers with long employment, selling older vessels and ordering, as the Chairman said, supporting the VLCC segment of our company.

[Nikolas P. Tsakos, Founder and CEO at Tsakos Energy]

We have been traditionally a company with a larger number of VLCCs, and we renewed part of the fleet some years ago, and now it's very much time to come up with strong environmentally friendly vessels, all of them built in South Korea, in the traditional yards that we have been supporting over the years, like Hyundai. I mean, we must be one of the very few companies that we are very proud to take delivery of our vessels, thanks to our new building capacity capability. We just took delivery of our 150th newbuilding in the last less than 30 years. These vessels have been delivered from what I would say is the core peer group of shipbuilders in the world. We started in April in Samsung.

[Nikolas P. Tsakos, Founder and CEO at Tsakos Energy]

We moved in June to Hyundai in Korea, and we just renewed our relationship with what used to be called Daewoo, which we're just right now building VLCCs there. The company is following its model of quality comes first. We have not, and through the years, we have never cut corners. We have always done things the correct way by the book. I think we are a proof that things can work when you actually follow your strategy, follow the rules, and always aim towards quality. As mentioned in the press release, the beginning of the year and the first six months have been a period of turmoil, mainly because we are big supporters of the open seas. Whenever sanctions and tariffs are imposed, of course, this puts a question mark and uncertainty in the market that we are facing.

[Nikolas P. Tsakos, Founder and CEO at Tsakos Energy]

However, we have been able to navigate this, I would say, interesting and interesting new times successfully. We paid our first dividend in July. We're looking forward to paying the next dividend to announce it in November. In the meantime, we are happy to see the appetite of the major oil companies for good quality vessels at very, very accretive rates. With that, I would like to ask George V. Saroglou, our President, to give us a more detailed analysis, not very detailed, George, more detailed of what has happened in the last six months and this upcoming period.

[George V. Saroglou, President and COO at Tsakos Energy]

Thank you, Nikolas. We are pleased to report today another profitable quarter. Tanker markets have remained healthy through 2025 to date. Energy majors continue to approach our company for tanker charter business. As we speak today, total fleet contracted revenue, the backlog that we have today, the minimum is approximately $3.7 billion, which equates to more than $120 per share, just to put it in a share perspective. That is the limit. TEN is one of the largest transporters of energy in the world. We have started with four vessels back in 1993, and we have turned every crisis the world and shipping has faced into a growth opportunity. Today, we have a pro forma fleet of 82 vessels, thanks to the company's crisis-resistant model. During these 32 years, we have combined self-generated cash, traditional bank lending, and countercyclical capital market fundraising in order to build a corporate fleet.

[George V. Saroglou, President and COO at Tsakos Energy]

Modernity is an integral part of our operating model. We build vessels at the best shipyards. We acquire very modern, high-specification tonnage, and at the same time, we sell some of the older vessels in the fleet. We have built a young, diversified, and versatile fleet covering both the conventional and specialized transportation requirements of our clients, which are mainly major energy concerns, blue chip names with global risk. In slide number four, we list the pro forma fleets of all conventional tankers, both crude and product carriers. The red color shows the vessels that trade in the spot market and our new buildings under construction.

[George V. Saroglou, President and COO at Tsakos Energy]

Since our last earnings call, we have added three new building VLCCs to boost our presence in a sector that we felt we needed to increase the number of vessels we operate, with very good, solid fundamentals, as a big part of the VLCC fleet in the water is over 15 years. With light blue, we have the vessels that are on tanker charter with profit sharing, and with dark blue, the vessels that are on fixed-rate tanker charters. In the next slide, we list the pro forma diversified fleet, which consists of our two LNG vessels and our 16-vessel shuttle tanker fleet. We are one of the largest shuttle tanker operators in the world, following the recently announced deal with Transpetro in Brazil for nine high-specification shuttle tankers to be built in the Samsung shipyard in South Korea.

[George V. Saroglou, President and COO at Tsakos Energy]

We have six shuttle tankers in full operation after recently taking delivery of both Athens IV and Paris 24, which commenced long-time charters to an energy major. If we combine the two slides and account only for the current operating fleet of 61 vessels, we have 24 vessels, or 39% of the operating fleet with market exposure that is spot and tanker charter with profit sharing, while 53 tankers, or 87% of the fleet, is in secured revenue contract, tanker charter and tanker charter with profit sharing. The next slide, we list our clients with whom we do repeat business through the year, thanks to our industrial model. ExxonMobil is the largest revenue client as we speak. Equinor, Shell, Chevron, Total, and BP follow.

[George V. Saroglou, President and COO at Tsakos Energy]

We believe that over the years, we have become the carrier of choice to energy majors, thanks to the fleet that we built, the operational and safety record, the disciplined financial approach, and the strong balances. The left side of slide seven presents the all-in break-even cost for the various vessel types we operate in TEN. Our operating model is simple. We try to have our tanker charter vessels generate revenue to cover the company's cash expenses. That is, pay for the vessel operating expenses, finance expenses, overheads, chartering costs, and commissions. We let the revenue from the spot trading vessels contribute to the profitability of the company. Thanks to the profit sharing element, for every $1,000 per day increase in spot rates, we have a positive impact of $0.10 in the annual EPS based on the number of 10 vessels that currently are exposed to the spot market.

[George V. Saroglou, President and COO at Tsakos Energy]

We have a solid balance sheet with strong cash reserves, and the fair market value of the fleet is $3.8 billion against $1.8 billion debt, and the net debt-to-cap is around 42%. Fleet renewal and investing in eco-friendly, greener vessels has been key to our operating model. Since January 1st, 2023, we have further upgraded the quality of the fleet by divesting from our first-generation conventional tanker, replacing them with more energy-efficient new buildings and modern second-hand tankers, including dual-fuel vessels. In summary, we have sold 17 vessels with an average age of 17.3 years and a capacity of 1.4 million deadweight and replaced them with 33 contracted and modern acquired vessels with an average age of less than a year and 3.4x the deadweight capacity of the vessels we sold. We continue to transition our fleet to greener and dual-fuel vessels.

[George V. Saroglou, President and COO at Tsakos Energy]

We are currently one of the largest owners of dual-fuel LNG-powered Aframax tankers with six vessels in the water. The fundamentals continue to be good as global demand grows year after year. OPEC+ really accelerated further their voluntary production cuts. Economic sanctions, wars, sanctioned listed tankers, and geopolitical events affect our tanker market positively. The same is happening on freight rates, and while the tanker order book remains at healthy levels as a big part of the global tanker fleet, it's over 20 years and it needs to be replaced soon. With that, I will pass the floor to Harrys Kosmatos, who will walk us through the financial performance of the second quarter.

[Harrys Kosmatos, Co-CFO at Tsakos Energy]

Thank you. Thank you, George. Let me start with the first half highlights. With a slightly larger fleet, both in terms of vessels and deadweight tons, when compared to the first half of 2024, Tsakos Energy Navigation during the first six months of 2025 continued to place more tonnage on tanker charter contracts to adhere to the long-term needs of its clients. As a result, during the first six months of 2025, Tsakos Energy Navigation secured charters, including those with top-tier provisions, increased by about 14%, while spot contracts experienced a marked decline by about 27%. A point of note, however, is the company's continued belief in the market, which despite Tsakos Energy Navigation's limited exposure in the inherently volatile spot market, which has softened somewhat from prior periods of the recent past, has increased its presence in profit-sharing contracts by about 28% from the 2024 first half.

[Harrys Kosmatos, Co-CFO at Tsakos Energy]

In order to capture the upside, Tsakos Energy Navigation will expect to provide, starting with the upcoming winter months. In addition, during the first six months of 2025, five vessels underwent scheduled dry dockings from eight in the same period of 2024, which, when combined with the shift in employment patterns explained above, resulted in an increase of fleet utilization from 91.9% in the first half of 2024 to 96.9% in the first half of 2025. As a result, Tsakos Energy Navigation's 62 vessels in the water fleet generated $390 million of gross revenues during the first half of 2025, from $415 million in the spot-heavy 2024 first half, averaging a healthy $30,754 per ship per day.

[Harrys Kosmatos, Co-CFO at Tsakos Energy]

The aforementioned shift in employment patterns led to a material reduction in voyage expenses from $83.4 million in the first half of 2024 to about $68 million in the 2025 earliest months, a $15.5 million reduction. In a similar fashion, charter hire expenses fell from $11 million-$6.6 million, a $4.5 million improvement during the equivalent six-month timeframe. Vessel operating expenses reflecting the somewhat larger fleet, both in terms of numbers and vessel sizes, were at $102.3 million, slightly higher than the 2024 first half level, equating to a daily average expense of a still competitive $9,743 per vessel. A similar pattern was evident in both depreciation and amortization expenses, which closed the first half of 2025 at $83.2 million, up $6 million from the 2024 period.

[Harrys Kosmatos, Co-CFO at Tsakos Energy]

Unlike the 2024 first half, whose results included a mere $49 million capital gain from a series of vessel sales, such gains for the 2025 first half were reduced to just $3.5 million as a result of the sale of the 2009-built Suezmax tanker during the first quarter of 2025. Inclusive of these gains, during the first half of 2025, TEN's operating income settled at about $111 million. Interest and finance costs during the 2025 first half, on the back of a somewhat lower interest rate environment and two refinances at lower margins, were at $49 million from $55.2 million in the same 2024 six-month period, an over $6 million improvement. Interest income during the first half of 2025 reached $5.5 million. General and administrative expenses for the first half of 2025 were at $23.1 million, incorporating a management incentive and stock compensation plan.

[Harrys Kosmatos, Co-CFO at Tsakos Energy]

Reflecting all the above, the company generated a net income for the first half of 2025 of $64.5 million or $1.70 per share. Adjusted EBITDA for the first six months of 2025 came in at $193.2 million, while total debt net of $287 million of cash account settled at $1.4 billion, leading to net debt to capital of a comfortable 43.6%. Now let's go into the second quarter highlights. During the second quarter of 2025, the employment shift towards secured employment was equally evident as available days under tanker charters and profit-sharing contracts increased by 12% from the 2024 second quarter, while days under spot voyages dropped precipitously by 31.5%, leading to fleet utilization increasing to 96.6% from 92.4% in the 2024 second quarter. Worth highlighting here is the 30% increase in total days of profit-sharing contracts, emphasizing TEN's employment strategy of downside protection with upside optionality.

[Harrys Kosmatos, Co-CFO at Tsakos Energy]

Resulting from the above and reflecting again a somewhat softer but still healthy market from the 2024 second quarter, and after having the three vessels on dry dock, TEN's fleet generated $193 million of gross revenues, equating to $30,767 per vessel per day at healthy performance. Voyage expenses, again due to lesser days on spot contracts, declined by about $10 million from the 2024 same period, while charter hire expenses also experienced a drop to settle at $3.3 million from $5.1 million in the second quarter of 2025. Operating expenses, and as indicated earlier during our first half overview, were just $3 million higher from the 2024 second quarter at $52.7 million or $9,982 per ship per day, a still competitive level thanks to the efficient and proactive management performed by TEN's technical managers.

[Harrys Kosmatos, Co-CFO at Tsakos Energy]

Depreciation and amortization costs during the 2025 second quarter, and again reflecting the slightly higher vessel classes in the fleet, were at $42.1 million from $39.5 million in the second quarter of 2024. During this second quarter, there were no gains or losses on vessel sales registered compared to the 2024 second quarter, which recorded total gains of $32.5 million. As a result, operating income for the second quarter of 2025 settled at $50 million. Interest and finance costs during the second quarter of 2025 were $5 million lower from the 2024 second quarter at $25 million, while interest income reached $3.2 million. Taking all the above in consideration, TEN during the second quarter of 2025 generated a net income of $26.8 million, which equates to $0.67 per share. In ending, adjusted EBITDA for the 2025 second quarter was at approximately $94 million.

[Harrys Kosmatos, Co-CFO at Tsakos Energy]

With this, I pass it back to Nikos. Thank you.

[Nikolas P. Tsakos, Founder and CEO at Tsakos Energy]

Thank you, Harry, for your detailed analysis. With this, we would like to open the floor for any questions or input that you may have. Thank you.

[Operator]

Thank you. At this time, we'll be conducting a question and answer session. If you'd like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we pull for questions. Our first question comes from Poe Fratt with Alliance Global Partners. Please proceed with your question.

[Poe Fratt, Analyst at Alliance Global Partners]

Yes. Thank you. Can we talk about the new build orders for the VLCCs? As you mentioned on the last quarterly call, you previewed, it seemed to preview that. Can you talk about how you decided to go forward with new builds versus acquiring assets in the open market?

[Nikolas P. Tsakos, Founder and CEO at Tsakos Energy]

Yes, thank you. We are always looking for good quality vessels in the open market also. I mean, we do not exclude this to happen. We took advantage of the strong second-hand market to sell vessels. Perhaps, you know, when it's a good time to sell vessels, and we made a significant cash profit and a profit overall on the sale of 18-year-old vessels, it means that it's not perhaps the best time to acquire second-hand vessels because they are pricey. I believe that it's very, very good for us. We have very competent and experienced new building site offices in Korea and Japan in the past.

[Nikolas P. Tsakos, Founder and CEO at Tsakos Energy]

It makes much more sense since we are building a big number of vessels in the first-class Korean yards with a site office there to build environmentally friendly vessels of the future that are actually following all the upcoming regulations, and they are built at the yards that we traditionally build ships. I think VLCCs have been a part of our portfolio that we have lagging behind, and I think that's a very good opportunity to find. We believe it may be the reason we are able to run ships at, I would say, significantly lower operating expenses than a big part of our peer group is because we tend to build good quality ships and sister vessels, and that helps us very, very much in keeping operating expenses and the experience of our seafarers, the crew, and the captains.

[Nikolas P. Tsakos, Founder and CEO at Tsakos Energy]

It's like running, let's say, you know, a very similar fleet of airplanes or a very similar fleet of Boeings in order to have the training for the crew, the spare parts for all the vessels, and it gives us a lot of flexibility.

[Poe Fratt, Analyst at Alliance Global Partners]

Great. If you could clarify whether you've exercised the option that you had when you first announced the VLCC new builds. Secondly, typically, when you have a new build, you typically have a contractor or a tanker charter set up in advance of delivery. Do you currently have a tanker charter in place, or when do you anticipate securing a tanker charter for the B's?

[Nikolas P. Tsakos, Founder and CEO at Tsakos Energy]

Yes. I think what we did is we opted for the option, and we actually got an extra option for another couple of months because we believe that it's good to maintain these price levels going forward in a very uncertain environment. Options are always valuable. Actually, yes, we have three firm vessels right now, plus an additional option in the same yard in the same quality. Right now, the VLCC market is a very hot market. We have actually three of our existing VLs opening in the next six months, and we see a lot of appetite. We're in the process of renewing some of the existing VLs going forward with significant increased base rates and profit-sharing arrangements. The new orders, there's a lot of appetite, but it's still early to make a decision.

[Nikolas P. Tsakos, Founder and CEO at Tsakos Energy]

We would be taking care of more of the three existing ships, very young ships also themselves. It gives us, with six VLs and perhaps more coming, it's starting to get critical mass in that very, I would say, interesting segment of the tanker market.

[Poe Fratt, Analyst at Alliance Global Partners]

Great. Thank you. Could you preview, I know that you're talking about declaring the second half dividend in the November timeframe. Can you preview it at this point in time, or is it just too early?

[Nikolas P. Tsakos, Founder and CEO at Tsakos Energy]

I think it is early, but we are looking at a healthy market. We are expecting, you know, for the board to opt for a healthy dividend. I think we are in a good space, I would say.

[Poe Fratt, Analyst at Alliance Global Partners]

Okay. On the last call, you talked about potentially, you know, given the current valuation in the equity market, you talked about potentially restructuring the company or looking at alternatives, maybe splitting the company into, you know, a company that has twofold, one with, you know, long-term tanker charters in place, especially when you look at the deep, you know, the shuttle tankers versus assets that have shorter-term tanker charters. Any progress or any comments on that type of move?

[Nikolas P. Tsakos, Founder and CEO at Tsakos Energy]

First of all, we are not restructuring the company. We have never restructured any part of our debt or the company. I think, you know, Tsakos Energy Navigation is one of the few companies that, you know, I'm just joking, but we're not restructuring. We're always thinking out of the box. I think we are very happy to where we are today with the growth of the company, with the profitability of the company. One thing that I would say, like other shipping companies, but especially ourselves, we are disappointed is with the share performance. We're trying to, you know, I think our company should have easily a market cap of $2 billion from where it is today. We're always thinking of ways to get shareholders' interest and appreciation.

[Nikolas P. Tsakos, Founder and CEO at Tsakos Energy]

I think we are going through a period that, with inflation being around, we are going through a period where real assets matter. I think this is, you know, and we have very, very, very real assets and quite undervalued real assets. I think what we want to do is to be able to have a much more efficient, to make it more efficient for our shareholders. We have thoughts of perhaps having one of the largest tanker fleets plus a lot of long-term business and specialized vessels to do something down the road in the next eight quarters, I would say, in perhaps putting the more specialized vessels in a vehicle that, of course, Tsakos Energy Navigation will be by far the major shareholder. Again, these are ideas that we are discussing with our investment bankers. It's nothing imminent, I would say, for the next four quarters.

[Poe Fratt, Analyst at Alliance Global Partners]

Okay. Thank you. Could you preview or give me an idea of the direction of OpEx and G&A over the second half of the year? It looks like the first half, G&A especially, might have had some one-time items in it.

[Nikolas P. Tsakos, Founder and CEO at Tsakos Energy]

Yes. I think we are putting a lot of emphasis. We are running things hands-on, and we look at our technical management managers almost on a weekly and monthly performance. We are facing some inflation issues, but I think we have been able to cap the majority, and we still have an average for such a big diversified fleet, which includes deep vessels, which the operating expense of those ships are in the high teens, and we're still under $10,000 on operating expenses. I think, you know, we put a lot of emphasis in running a tight ship, literally. I believe that we will be able to maintain the expenses there.

[Poe Fratt, Analyst at Alliance Global Partners]

Great. Thank you for your time.

[Nikolas P. Tsakos, Founder and CEO at Tsakos Energy]

Thank you.

[Poe Fratt, Analyst at Alliance Global Partners]

Thank you.

[Operator]

As a reminder, if you'd like to ask a question, please press star one on your telephone keypad. One moment, please, while we poll for questions. There are no further questions at this time. At this point, I'd like to turn the call back over to Mr. Tsakos for closing comments.

[Nikolas P. Tsakos, Founder and CEO at Tsakos Energy]

Thank you for attending our call in the first six months. I think moving forward has been an exciting time for the energy markets. I believe that we are here to see even more solid results coming forward. The energy part of the world economy is becoming more and more important. The players right now are getting more. We're seeing a shipping energy part of the business where really you have a two-tier market. You have vessels, and they're growing in numbers that are, I would say, they do not serve the core part of the business, which allows us with modern high-specification vessels to be able to have more opportunities in order to serve our major clients. I believe I am optimistic that we're going to be seeing at least in the near future another 18 months of a very solid, perhaps getting even stronger market.

[Nikolas P. Tsakos, Founder and CEO at Tsakos Energy]

We see also actions from the administration in the United States to support shipping, which is important because shipping and energy transportation have always been in the background. I mean, we provide a significant service, a very big service for the world economy, but in a way, we are kind of the unsung sailors, not heroes, the unsung sailors of the world economy. I think it's good to see that people are paying much more attention to actually the services we're doing, be it on the LNG, be it on the crude, on the product segment. I will be in the United States in the next couple of weeks having meetings specifically on ways where seaboard transportation and especially energy transportation is going to be appreciated and more and assisted more. I think we have, it is going to be good for the charters and the shipowner.

[Nikolas P. Tsakos, Founder and CEO at Tsakos Energy]

I think we have an optimistic view going forward. With that, I would like to thank everybody. I'll ask Mr. Arapoglou, our Chairman, if he wants to have a closing statement.

[Efstratios-Georgios A. Arapoglou, Chairman of the Board (Tsakos Energy) at Tsakos Energy]

Thank you, Nikos. Just to say that we believe that the market does not continue to appreciate the nearly $4 billion of minimum contracted revenue for TEN and keeps looking at us like any other shipping company with high volatility and low predictability of income and revenues. We feel that perhaps the market has begun focusing on it, but we feel that the value of the stock is much higher than where it is today. As far as dividend is concerned, the CEO just mentioned that the Board is going to look at the results of the third quarter and be able to perhaps announce, make a decision on the dividend in a few months' time. We continue to be very positive on that front. Thank you very much. Thank you, Nikos.

[Nikolas P. Tsakos, Founder and CEO at Tsakos Energy]

Thank you. I think the team will be attending events in London for London International Shipping Week, including the Capital Link event where our CFO is going to be a speaker, and the following week in New York. Hope to see you face to face. Thank you very much, and have a good rest of the day.

[Operator]

This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.

Participants

Analysts

• Poe Fratt, Analyst at Alliance Global Partners
• George V. Saroglou, President and COO at Tsakos Energy
• Nikolas Bornozis, President and IR Advisor at Capital Link and Tsakos Energy
• Harrys Kosmatos, Co-CFO at Tsakos Energy
• Efstratios-Georgios A. Arapoglou, Chairman of the Board (Tsakos Energy) at Tsakos Energy
• Nikolas P. Tsakos, Founder and CEO at Tsakos Energy