Tsakos Energy Navigation Ltd. (TNP) reported a surprise small profit in the third quarter as the company continues to deal with lower freight rates.
Tsakos Energy Navigation Ltd. (TNP) reported a surprise small profit in the third quarter as the company continues to deal with lower freight rates. The latest results were also hurt by the accelerated dry docking of six vessels in order to have more available when demand strengthens.
The tanker industry has been hurt by slumping spot prices and as new ships--planned when commodities prices were booming--are expected to come on line. Tsakos has grown by adding to its fleet over the years, recently with a DNA-Aframax tanker, with more ships to come online over the next two years.
The Greek company was encouraged by the addition of a two-year charter contract for one of its ships, removing it from the spot market. The addition means fixed contracts cover 78% of its fleet for this year and 54% next year.
Tsakos reported a profit of $2.1 million, or 6 cents a share, down from $40.9 million, or $1.08 a share, a year earlier. Revenue decreased 33% to $106.2 million.
Analysts most recently forecast a 2-cent-loss on revenue of $81 million.
Time-charter-equivalent revenues per day, which measures the difference between voyage revenues and expenses, declined 37% to $21,116 from a year earlier. Utilization rates fell to 95.7% from 96.2% a year earlier, and 97.8% in the second quarter.
Shares closed Thursday at $15.09 and didn't trade premarket. The stock is down 18% this year.