Tsakos Energy Q1 2025

[HohumYNWA]

Among shipping companies, Tsakos Energy Navigation (TEN) is usually the last company to report its respective quarterly results. If not last, amongst the last.

• Voyage rev of $197.1M
• Net Income $30.8M (TEN have an entry of $37.7M prior to preferred share payments, but I figure the preferred shares are a financing choice)
• Per a couple of slides: 63 on-the-water vessels, plus 18 newbuilds
• Declared div of 60c/sh (TEN pays div twice a year)
  https://static.seekingalpha.com/uploads/sa_presentations/258/111258/original.pdf

TEN has a decent backlog of $3.7B However, $1.3B of the backlog is future revenue from 9 newbuild shuttle tankers on 15-year charters. The longevity on the contracts is nice. But, I work the rate out to under $27K daily. That’s below par for an asset that usually costs > $100M

[HohumYNWA]

Was left with a feeling that I missed something with the rate. Went digging, and made a discovery. In the Q&A summary, the response to an analyst’s question was that the charterer (Transpetro) was providing the crew, but TEN had operational oversight. I infer, not really bare-boat. But, a decent chunk of operational costs borne by the charterer.

https://seekingalpha.com/news/4426175-tsakos-energy-navigation-outlines-4b-revenue-backlog-driven-by-shuttle-tanker-deal

Even factoring an adjustment (maybe $7k - $10k daily), still think the rate is somewhat low for that type of asset.