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- **Market Leadership**: 96.2% fleet utilization, $4B contracted revenue, and 20 newbuildings highlight strategic fleet expansion.
- **Profitability**: $103M net income (2025) vs. $87M (2024), with 47.3% debt-to-cap ratio supporting growth.
- **Dividend Growth**: $1.60 annual dividend (4% yield) aligns with financial discipline.
- **Strategic Renewal**: 17 older vessels sold to fund 33 modern ships, reducing avg. fleet age from 17.3 to 0.6 years.

**【Management Opening Remarks】**
- CEO Nikolas Tsakos highlighted Q3 2025 results showing strong market performance, with 20 newbuildings under construction and $4 billion of contracted future revenue.
- Fleet utilization remains at 96.2%, with 23 vessels (37% of fleet) exposed to spot market opportunities.
- Dividend policy updated to align with financial reporting, with $1.60 annual dividend yielding 4% at current stock price.

**【CEO Commentary】**
- Emphasized tanker market strength driven by geopolitical tensions (e.g., Iran hijacking, Somalia piracy) and limited supply of modern tonnage.
- 40 new time charter fixtures secured in 2025, including 16 vessels on profit-sharing contracts.
- Newbuilding program includes 10 shuttle tankers and 3 VLCCs, targeting long-term accretive employment.

**【CFO Financial Commentary】**
- 9-month 2025 net income of $103M ($2.75 EPS) vs. $87M ($2.28 EPS) in 2024, driven by cost control and fleet expansion.
- Operating expenses per ship/day at $9,797, 1/3 of TCE rate, reflecting efficient fleet management.
- Debt-to-cap ratio at 47.3%, with $264M cash on hand and $1.9B debt supporting newbuilding program.

**【Q&A Highlights】**
- VLCC employment extended for 2 years with 20%+ rate improvement; 5-6 oil majors seeking MR newbuilds for long-term charters.
- Fleet renewal strategy: sold 17 vessels (avg. age 17.3 years) replaced with 33 modern ships (avg. age 0.6 years).
- 2026 MR newbuilds likely fixed on 5-10 year charters; Cargill-Maersk pool performance drives pooling interest.

Tsakos Energy Navigation Limited (TEN) Q3 2025 Earnings Call Transcript

- **Fleet Expansion**: Added 3 new VLCCs to capitalize on strong demand, with options for further expansion.
- **Financial Strength**: H1 2025 net income of $64.5 million, Q2 EBITDA of $94 million, and 43.6% net debt to capital ratio.
- **Contracted Revenue**: $3.7 billion backlog, 87% of fleet under secured contracts with major energy clients.
- **Dividend Expectation**: Plans to announce H2 dividend in November, targeting a healthy payout.
- **Operational Efficiency**: Fleet utilization at 96.9% in H1, competitive operating expenses of $9,743 per vessel per day.

**【Chairman's Remarks】**
- Highlighted strong tanker market fundamentals and the company's focus on contracted revenue with strict cost control.
- Announced the addition of 3 new VLCCs with scrubbers to rebalance the fleet and fill a strategic gap.
- Praised the team for navigating market challenges and maintaining operational excellence.

**【CEO's Opening Remarks】**
- Noted the company's active summer activity, including vessel orders, sales, and dividend payment in July.
- Emphasized the importance of quality, strategy, and operational discipline in maintaining profitability.
- Highlighted the company's ability to secure long-term contracts with major energy clients despite market volatility.
- Indicated plans to announce the next dividend in November, contingent on Q3 results.

**【COO's Fleet and Financial Update】**
- Reported $3.7 billion in contracted revenue, with 87% of the fleet under secured contracts.
- Detailed the diversified fleet of 82 vessels, including 2 LNG and 16 shuttle tankers.
- Highlighted the company's operational efficiency, with all-in breakeven costs below market rates.
- Mentioned the impact of spot market rates on EPS, with $0.10 EPS per $1,000/day increase in spot rates.
- Noted the fleet's modernity, with 33 new vessels replacing 17 older ones since 2023.

**【CFO's Financial Performance】**
- First half 2025 net income: $64.5 million ($1.70 per share), up from $420 million in the previous quarter.
- Q2 2025 net income: $26.8 million ($0.67 per share), with EBITDA of $94 million.
- Fleet utilization improved to 96.9% in H1 2025, driven by a shift to secured contracts.
- Vessel operating expenses remained competitive at $9,743 per vessel per day.
- Net debt to capital ratio: 43.6%, with $1.4 billion in debt and $3.8 billion in fleet value.

**【Q&A Highlights】**
- **VLCC Strategy**: CEO confirmed 3 new VLCCs with options for more, driven by strong market demand and the need for modern, eco-friendly vessels.
- **Dividend Outlook**: Indicated a healthy dividend for H2 2025, pending Q3 results.
- **Fleet Restructuring**: Discussed potential separation of specialized vessels into a separate entity, though no timeline provided.
- **Cost Management**: CFO highlighted stable OpEx and G&A despite inflation, with no significant one-time items in H1.


Tsakos Energy Navigation Limited (TEN) Q2 2025 Earnings Call Transcript

- **Record Fleet Utilization**: 97.2% uptime with 29 vessels secured in first half, 83% of fleet in fixed contracts.
- **Profitability Resilience**: $3.7B backlog and $99.3M EBITDA despite soft spot rates, driven by contract diversification.
- **Fleet Modernization**: 21 newbuilds underway, replacing 14 older vessels to enhance efficiency and safety.
- **Dividend Stability**: $0.60 semi-annual dividend declared, with plans to maintain or grow payout.
- **Valuation Disconnect**: NAV >$6 vs. $20 share price; exploring spin-off to highlight LNG/shuttle tanker value.
- **Growth Opportunities**: Targeting VLCC and LNG segments with $100M+ from vessel sales to fund expansion.

**【Chairman's Opening Remarks】**
- Q1 2025 financial results highlight strong operational performance and robust market fundamentals.
- Fleet backlog of $3.7 billion across long-term charters ensures stability and profitability.
- Fleet renewal continues with 21 newbuilds, modernizing the fleet and reducing age-related risks.
- Share price undervaluation persists despite NAV exceeding $6 per share, driven by sector-wide market dynamics.

**【CEO Nikolas Tsakos Key Points】**
- Navigated geopolitical turbulence with 29 vessels secured in first half, 46% of fleet exposed to spot market.
- Example of 23-year-old vessel with 20 extensions underscores operational excellence and client trust.
- Fleet expansion to 82 vessels (including 16 shuttle tankers) positions TEN as a leading energy transporter.
- VLCC and LNG segments underinvested; exploring opportunities for growth in these high-demand areas.
- Dividend policy focuses on stability, with semi-annual dividend of $0.60 declared for Q1.

**【COO George Saroglou Fleet Overview】**
- 63-vessel operating fleet with 83% in secured contracts, minimizing spot market volatility.
- Clients include ExxonMobil, Shell, Chevron, and BP, leveraging repeat business for operational consistency.
- Breakeven analysis shows spot market exposure contributes $0.13 per $1,000 increase in rates for 10 vessels.
- Fleet modernization: sold 14 first-gen tankers (avg. 17.3 years) replaced with 30 modern vessels (avg. <1 year).

**【CFO Harrys Kosmatos Financial Highlights】**
- Q1 2025 gross revenue $197.1M, operating income $57.1M, net income $37.7M (EPS $1.04).
- Adjusted EBITDA $99.3M, stable despite soft spot rates, reflecting contract diversification.
- Debt reduced to $1.7B (40.6% debt-to-capital), with $350M in cash payments and principal reductions.
- Fleet utilization 97.2%, driven by 2 dry dockings vs. 5 in Q1 2024.
- Capital gains $3.6M from vessel sale, down from $16.2M in Q1 2024 due to reduced divestitures.

**【Q&A Key Takeaways】**
- Q2 newbuild costs: ~$130M for DP2 vessel, $17M cash payment; $67M second installment on 9 shuttle tankers due Q3.
- Fleet strategy: sell 3-4 older vessels ($100M+ cash flow) to fund expansion and maintain liquidity.
- Dividend outlook: aiming for similar semi-annual payout in H2, pending strategic review.
- NAV vs. price: 35% discount; considering spin-off of LNG/shuttle tanker fleet to demonstrate value.
- Market dynamics: VLCC and LNG demand outpaces supply; selective acquisitions of high-quality ships.
- Risk management: geopolitical tensions impact operations but provide long-term market tailwinds.

Tsakos Energy Navigation Limited (TEN) Q1 2025 Earnings Call Transcript

- **Landmark Shuttle Tanker Deal**: $1.3B 9-vessel order with 15-year contracts, expanding fleet to 82 vessels and doubling backlog to $4B.
- **Financial Strength**: 2024 net income $176M, 45% net debt/capital, $350M cash post-dividends.
- **Spot Market Resilience**: 82% revenue from long-term contracts, TCE per ship/day $30,107 in Q4.
- **Growth Catalysts**: 21 newbuilds on order, $130M+ from asset sales, and 32+ years of dividend history.
- **Risk Management**: Actively hedging interest rates, maintaining young fleet through S&P sales.

**【Chairman's Opening Remarks】**
- Announced the landmark 9 DP2 shuttle tanker deal with Transpetro, valued at $1.3 billion, solidifying TEN as a leader in the shuttle tanker sector.
- Highlighted the company's ability to execute accretive transactions without stretching the balance sheet, with 15-year employment contracts secured.
- Emphasized the fleet's young profile, with 82 vessels pro forma and $4 billion in contracted fixed revenues.

**【CEO Strategic Overview】**
- 2024 was a transformative year with 21 new vessels on order, including 9 shuttle tankers, representing a 36% fleet expansion.
- 70% of revenue comes from 6-7 major oil companies (ExxonMobil, Equinor, Chevron), minimizing exposure to spot market volatility.
- Fleet modernization: sold 5 older vessels to generate $30 million+ cash, with plans to continue S&P activity to maintain a young fleet.
- Proud of 32 years of uninterrupted dividends, with a target to grow for another 30 years.

**【CFO Financial Highlights】**
- 2024 Results:
  - Gross Revenues: $804 million
  - Operating Income: $279 million (incl. $49M capital gains)
  - Net Income: $176 million ($5.03 EPS)
  - Adjusted EBITDA: $400 million
- Fleet Operating Expenses: $198 million (down 3% per ship/day due to cost efficiency)
- Debt: $1.8 billion (45% net debt to capital ratio)
- Cash Position: $350 million post-dividend payments and growth investments
- Q4 2024 Results:
  - Gross Revenues: $188 million
  - Operating Income: $42 million
  - Net Income: $19.3 million ($0.42 EPS)

**【Q&A Key Takeaways】**
1. **Shuttle Tanker Crewing**: Transpetro will provide crews under bareboat charter, but TEN will closely monitor operations due to global seafarer shortage. TEN's training academy (only one accredited by UK Nautical Academy) ensures high-quality crewing capability.
2. **Asset Sales**: 2 more vessels (likely first-gen Aframaxes/Suezmaxes) expected to be sold by Q2 2025, generating ~$130 million net proceeds.
3. **Interest Rate Hedging**: Treasury team actively evaluating derivatives to cap interest rate risk on shuttle tanker financing.
4. **Maria Energy Deployment**: Vessel will operate in spot market until May 2026, then enter 15-year contract with a major LNG producer, yielding double-digit IRR.
5. **Dividend Policy**: Semi-annual dividend of $0.60 maintained for now, but open to increasing if market improves (e.g., $0.90 as in 2024).

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