Tsakos Energy Navigation Comments on Market Conditions and Announces Date for Third Quarter 2014 Financial Results
Crude Price Drop and Dollar Strength Benefit TEN's Bottom Line Materially; Third Quarter Financial Results to Be Announced on November 21, 2014
(firmenpresse) - ATHENS, GREECE -- (Marketwired) -- 10/16/14 -- Tsakos Energy Navigation Ltd. (NYSE: TNP), a leading crude, product and LNG tanker operator, stated today its belief that the recent decline in TEN's stock is in direct contrast to the state of the physical tanker market, the future prospects and the financial strength of the Company.
Management believes that the supply and demand balance, particularly for crude tankers, is in equilibrium and should provide a solid platform for continuing the healthy rates and asset prices currently in evidence.
Additionally, the recent decrease in the price of oil can be viewed as a "double blessing" for TEN. On the one hand, it creates a tailwind for maritime transportation as the soft price of the commodity leads to increased global imports in time for the approaching winter. As a result, spot rates have doubled compared to rates this time last year for most of the vessel types TEN operates, as the table below demonstrates. On the other hand, given that the largest expense item of the Company's operations relates to vessel fuelling, the lower price of oil translates into material cost savings. Such savings are estimated to be approximately $10 million on an annualised basis to TEN's bottom line.
Furthermore, the strengthening of the US dollar provides an additional layer of support as it reduces our Euro expenditure by an estimated $12 million dollars annualized at current exchange rate levels.
Below is a year-on-year comparison of spot rates in TEN's vessel types as provided by market brokers highlighting the current strength of the tanker market.
TEN is one of the largest transporters of energy in the world and a partner of choice for major oil companies. With its modern, versatile and diversified fleet, with a strong crude presence, TEN is uniquely positioned to benefit from such hikes. This trend is expected to continue for the near future particularly with the winter months still ahead of us.
In light of the above, TEN's management has decided to recommend to the Board of Directors an increase in common stock dividends for 2015. Should the Board accept such recommendation, we expect the increase to be announced in our forthcoming third quarter earnings results on November 21, 2014.
To date, TEN's fleet, including the LNG carrier Maria Energy, nine Aframax crude oil tankers and two LR1 tankers all under construction, consists of 62 double-hull vessels, a mix of crude tankers, product tankers and LNG carriers, totaling 6.4 million dwt. Of these, 44 vessels trade in crude, 14 in products, two are shuttle tankers and two are LNG carriers. The average age of the operational fleet is 7.2 years.
The Company's newbuilding program consists of:
Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those predicted by such forward-looking statements. TEN undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.
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Company
Tsakos Energy Navigation Ltd.
George Saroglou
COO
+30210 94 07 710
Investor Relations / Media
Capital Link, Inc.
Nicolas Bornozis
Paul Lampoutis
+212 661 7566
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Datum: 16.10.2014 - 12:42 Uhr
Sprache: Deutsch
News-ID 344572
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ATHENS, GREECE
Kategorie:
Maritime
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