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TEN splashes out $314m on four tankers

TEN splashes out $314m on four tankers
Greek tanker Tsakos Energy Navigation (TEN) has splashed out $313.9m on two VLCCs and two suezmaxes as first half profits leapt on the back of the strongest tanker market since 2008.

In its half-year results announcement TEN revealed it had acquired two VLCC newbuilding resales for $193.9m. The vessels are being built at Hyundai Samho and expected to be delivered in the early and latter part of 2016. The company also bought two suezmaxes for $122m.

The VLCCs are being financed through a combination of $14m in cash, bank debt, and shares issued to York Capital Management. The suezmaxes will be financed through cash and bank debt.

The company recorded profits of $41.3m in the second quarter, pushing its first-half figure to $78.6m, compared with $0.2m and $14.8m, respectively, in 2014.

 Revenues amounted to $118.8m for the second quarter, a of 61.3% increase over the Q2 2014, buoyed by a 55.7% increase in time charter equivalent (TCE) to $26,721 per day versus $17,163 per day in Q2 2014. EBITDA was $76.4m, compared with $34.1m in Q2 2014.

An increase in operating expenditures in Q2 over the same period in 2014, amounting to $37.1m, were partially mitigated thanks to a 40% fall in bunker prices, from which the company benefitted materially due to its significant spot exposure. Savings arising from the 19% appreciation of the US dollar versus the Euro since Q2 2014 were also a factor.

“We are particularly pleased that together with very solid results, the Company is in the fortunate position to report premium charters, accretive acquisitions and profitable sales," said Nikolas Tsakos, president and ceo of TEN.

“With the strongest tanker market since 2008 and with a larger and more advanced fleet compared to then, we expect the company’s financial performance to excel and be reflected on our bottom line and our share price going forward."

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