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Tanker bonanza lifts TEN in 2014

Tanker bonanza lifts TEN in 2014
Tsakos Energy Navigation (TEN) has declared a $33.5m profit for 2014, spurred by the strength of the freight market toward the end of the year.

By comparison in 2013, the company lost $37.4m, including $28.2m in vessel impairment charges.

Stronger charter rates for crude-carrying aframaxes and supramaxes led to a 21.5% increase in net revenue to $346.9m.

The decline in the price of oil improved the freight market toward the end of the year, bringing operating income to $29.2m in the fourth quarter from $5.2m in the same period 2013. Another effect of the oil price drop were one-time costs related to bunker hedging, which dragged down net income by $7.7m to $13.5m for the fourth quarter.

As the strong market continues into 2015, TEN is confident that it will benefit from increased freight rates as 73% of remaining days in 2015 are on spot or spot-related contracts. The company also stated that it will continue to look for opportunities to sell older vessels and acquire new tonnage.

“It is a great pleasure to report significant profitability in 2014. It is also encouraging that 2015 has started with very strong rates," commented president and ceo Nikolas Tsakos. "The market fundamentals including the low cost of oil and the negative fleet growth is reassuring for, at least, the medium term prospects of our industry. Through our counter-cyclical investment strategy and flexible chartering policy, TEN has become a prime beneficiary of the rewards the tanker markets are offering."