Tsakos Energy Navigation Limited 16 Mar 232022 Q4 Earnings call transcript

Thank you for standing by, ladies and gentlemen and welcome to the Tsakos Energy Navigation Conference Call on the Fourth Quarter 2022 Financial Results.

We have with us Mr. Takis Arapoglou, Chairman of the Board; Mr. Nikolas Tsakos, President and CEO; Mr. Paul Durham, Chief Financial Officer; and Mr. Officer company. Operating Chief Saroglou, of the George [Operator is being must advice this conference you that recorded Instructions] I today.

Link of And now, ahead, Bornozis, Capital Nicolas over sir. to Relations I will pass Chief the President Please Energy Navigation. Tsakos floor Mr. Investor go Advisor of

December call year-ended case am fourth us Advisor do company XXX-XXX-XXXX Thank and I the for results right will Navigation. XXXX. XX, morning, and the you e-mailed Tsakos released our today’s much Capital email you its for of we very away. not morning to Energy In of Bornozis you copy of Link publicly financial all quarter good have earnings participants. have Nicolas for a at or us a ten@capitallink.com and Investor Relations release, copy please This at

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are operations. and provision involve such certain which the statements of Harbor would that Litigation read presentation conference like statements Safe prospects I TEN’s of and the and stage, uncertainties, business forward-looking XXXX. risks Act to of meaning of Securities Private the within results may of forward-looking statement. this affect contains Investors Reform Harbor slide cautioned At the call the webcast Safe This

next Hellenic person Global the New Exchange, the and on the Forum looking us Shipping in Monday. we Friday And with listed York American fact Dr. is would Capital the in York the floor at the Link record year to TEN year to for Greek Arapoglou, recognizing I forward congratulate being a like would Mr. coincides of with to to by record contribution are Greece, to his New also as company like New passing him the and the this And having Chamber of and we before recognizing that Commerce longest – Tsakos honoring for TEN. the next to York, recognition profitability, Stock recognized

ahead, Tsakos I the to please Navigation, will go Chairman. with Energy Chairman So, pass Mr. floor of that, Arapoglou, Mr. the

to is remind Thank morning you, you telephone good I receive to everyone company directly] and Good books dividend since full-year, my Please attending and the the call results [usual voice, mitigates positive afternoon Nicolas. markets model [ph] for in very inception. are increase. that markets. need which which strong managed. [Indiscernible] [ph] everyone, with our of record allows results negative the calls] [for to and [indiscernible] TEN thank today. in Celebrating and

[indiscernible] U.S. pay lifetime an Tsakos the revenues, I'm Nikolas a XX% as an to later. sure inception. interrupted explain since average of ratio has At model dividend over over This of would

for The market the main more fundamentals are we driver stellar otherwise about now. unfortunate to expected geopolitical very these of [indiscernible] results begin were some events quite time

despite strong more, a keeping is management once Tsakos a future from team, reducing [indiscernible] and debt, what sustained from [ph]. [credit expectation] which benefit the and [recessional be excellence to market, the [economically pursuing] seems Nikolas to [ph] to course] [ph] our congratulations So, apart again operational

in to But profitable of potential [SOX] the going we been investment again, journey continuation TEN months. [Indiscernible] TENs by our firmly done the well to look performance has recognized in and forward. and the all, market forward [ph] recent

Nikolas to over it hand I'll and all, Thank you Thank Tsakos. you.

or everybody call] afternoon, to side. and good on [ph]. Thank XXXX we you you like morning are if our welcome And [year-end to this on you, would Chairman, good

reached very Nick, able it much the us great you on Chairman think great Stock year. of Exchange. quite a a celebrate record thank bit talk, we soon and get I good people think year, a the be that whenever year, talk But said, care honor to the worried Greek for with New As that the But looking and have are with thinking very about reminding we we York a the I and companies event you coincides to the record privilege that's really the peak. greatest and we're oldest we

as we're facing or as we fundamentals XXXX, market than hope now. has But the and from something year an the is stronger actual This done. ever right we can XXXX see that that has conditions started

will coincidence, Exchange Oslo XXXX. we by started celebrating years the XX So, company on in as be public Stock

said So, we $XX the CEO above XXth share within hope see as the we our has that can anniversary. our

being of achieve to and looking grow, to when we have difficult because And we thrive, this. time and today, is where during has able invest grounds the investing able maintained the you TEN want been at wants prepare nobody be this markets assets to model in are to

which why we good with which of the for crisis, that's crisis, hope client our touching are we And – stopped lot fifth East [indiscernible], we're With thrive This had through a And and to of our never this Far reducing any to then debt, again. fifth bad to confidence credit are is following of X/XX when and has of going started clients crisis TEN of course, during our paying gives dividend, stopped times, – but a of XXXX, its a actually not course. has I and in reconstruct had our the the launch. times. model the good choice never never

and XXXX invest part very to in busy of able maintain of company it. back cycle That's all has COVID the of through and hit monetize of Ukraine, able the then market, but to points take advantage crisis, doing. XXXX dividend the the be invasion us then been a has and have low and at able to a been of change what been the of year. we The beginning the be these

and sales many have purchase selling I never buying in and transactions so think seen ships. we

I think of were XX XX and than in were months, three vessels [indiscernible]. less of vessels have sold done we those which ordered already X transactions

So, least. [stables] vessels, I like first even company for It an seems first and the quarter vessels prepares quarter busy ourselves. this that exciting quite think to strong from the first clients quarter. the as as by to good, is [ph], say renew Big seasoned appetite this

you a [indiscernible]? us give little I ask Paul And and George to will then us like to the would numbers give the of bit

all Sure. by means. Yes,

of million net adding million, over mainly recent Europe quarter, $XXX XXXX. reserves for new impact reaching income to So, our the our for the the of year, bringing the to over the since through almost events over of company fourth to income $XXX year-end quarter end in year of the XXXX amount to and net increased million, the Eastern in due staggering a $XXX most of for in $XXX million EBITDA the cash the of resulted by record XXXX.

which year, revenues charters $XXX And in total to since of reserves generated the to vessels, cash over taking the the year. the million Time end year account $XXX totaled of share. prior million $XX four increase profit in increase the year, Revenue amounted into and while related $XXX about XX% in million over to million have quarter of our sale continued

at to loss XXXX, in million, the with quarter. fourth income million, operating quarter the operating $XX,XXX charter almost in in loss a the amounted With to income effectively daily the quarter $XXX XX%. a that in compared prior prior average was our compared full time a year. vessels $XXX our equivalent million reached XX Total in operated with In $XXX vessels for operating, market of employment

the our dry dock, various increased XX vessels but operating and due while dry in of the higher part vessels in were two the that certain expenses vessels undertook other expenses increases. price quarter, to in Only to dock incur new year, in had

revenue able expenses charter cover to still was time funds. free our However, amounts all leave alone significant of our and

new the are strong continue company to to buildings our forthcoming new debt except are perfect always all will the years. over the In as All and latest to orders and vessels meantime, the service. expected financed generate rewards ensure orders

on plans shall are respect, course Given cash that's there note will company's will future. Please And management's use information priorities, funds in in our XX-F our of preparing the comment. be be be we filing that we included. high regarding this basic financial availability, accordingly which already my substantial of and shortly

crude Paul. and due you, and largest oil morning they Good you ongoing movements today. Africa, our trade effect replace barrels Vienna, Russian experienced were these a rates. be had permanent as Europe, on coming followed earnings call Thank demand to positive for barrels. Ukraine joining we the product all political Last biggest the sanctions to U.S., and in flows from the that mile change action a West These to in of managed the multiplier could East, seaborne oil Middle client tanker with ton barrels to creating Russian changes and of year, the

the low. tanker are the back pandemic. COVID at demand an global all-time same XX-year At after And low, newbuildings time, is coming oil

transition reliance last on least LNG despite world its energy will until fact, oil ongoing In that the the renewables, to and XXXX. longer, understands at possibly

based the million XXX as X will changed its quarter in of as enter be of expected Agency. million XXXX China, policy forecast All Energy barrels [ph] all-time record day the] which barrels of [ph] Demand International to are, grow XXXX at in the to last them. from is an growth is come latest per expected by day. per It [most] lines course, on [to zero the COVID

continues Oil continues said, be demand, inflation, the headwinds, and tanker and that conditions, growing Ukraine good global and sustainably as financial global a despite economy to grow. appear the fundamentals war to tightening we market. geopolitical tanker favoring tensions, Especially, is global in

and Ukraine X, crisis thanks war pressures any since company its we our effects five came presentation. This the and the it's challenges out have that we managed COVID on operations created to faced operating in XXXX, and costs. we inflationary and currently fleet model. are for with the exception. We time to stronger, both Let's Starting slides is by the offshore major pandemic the go Slide in see TEN’s without serious navigating no time inception of the

freight The fundamentals established oil] war seaborne The propel low on higher [indiscernible]. [ph] book even disrupted catalyst imposed and record without long trade [Russian water as an this for result and tragic fleet aging market the sanctions additional rates routes of positive as a as tanker to served the an were war industry. were

at market since were inception. see raised market, for in and Slide X, split the prices when aftermath company access not the at [XX [ph] asset set-up for low. growth usually double-hull capital times growth TEN was we capital the open the the of legislation] countercyclically, the top We tankers. but

energy investors XX and four York XXXX three from of company tankers of grew We was years we listed million the in to the the in Exchange a in the new Stock at vessels XXXX, the XXX modern the started of with Stock raising tailored full double-hull to Oslo company and founders Where Exchange. company our catering a the New requirements newbuilding in company towards transitioning already after clients. series with

and you offerings; preferred New offerings Exchange since boxes, share the see Stock in common blue red, York the the company's In company's the of listing. shares

each redeemed Series been already first XX The million have Series series B the two and at of par. C preferreds

next slide, and we current fleet fleet the employment. see In its the

charters of X the the of time We tanker with of of the a or and have is fleet [ph] secured that prevailing charters projects affreightments] XX% profit fundamentals. operational combination sharing. sharing. well-positioned exposure, in [contract positive out with XX out as This to is vessels profit time capture XX% of XX of market charters means market water fleet and XX XX again XX an time the TEN or in spot,

today a fixed minimum the completion We a a natural the gas our [have] in of upon conditions of and is XXXX. Asian announced element current LNG XXXX income a LNG calendar expected with leading new at taking charter XX modality time tanker charter is Our XXXX-built to TEN’s should advantage and note The of delivered that model. reflecting fourth good time Greek [ph] Maria existing testament operator year to revenue operating sector. market. is is here quarter of net key a the Energy rate market a of charter be in vessel to

January In XXXX-built tanker During took and LRX shuttle fitted tanker XXXX, November time chartered Two XXXX, buildings and tanker LNG Aframax vessels in three vessels. are against scrubber of of modern a new XXXX Energy. three and VLCC. TEN the carrier we Panamax the built built XXXX in DSX, quarter, July, sold a delivery All long accretive charters. a eco-friendly

of tankers, XXXX-built In addition, is the company the XXXX-built we eight XXXX-built that and buyback today well of cash market handysize value. with two today fair Tankers, for under Suezmaxes announced and price sale six the MRs a

prices the opportunities greener spot operate with trend be two as will Suezmaxes investment divestment is higher. modern generation exploring of the replaced to currently these Any vessels asset market, management earlier While in eco-friendly vessels. continue

building for of XXXX On shuttle fuel delivery second fitted consisting today currently this Aframax today. eco-friendly tanker announced the signing yard. the during fitted the announced end building four from at South two next, has of for of two environmentally a quarter new Korean in delivery of option two tanker new one dual the Suezmaxes plus of TEN half for year we scrubber XXXX, designed and we first front, scrubber plus program delivery Suezmaxes a that the

fixed rest been of now, forward have medium for company's no for [ph], two to there buildings The time is long-term but against new attached] [charters at Except have interest. charters. the Suezmaxes, that these least

we clients. the Slide X, and current In company's present long-term

we As guidance four refineries, of as long-time chip customer the energy have all a four largest newbuilding vessels charters. topping Equinor major traders our with blue with companies, on nine you and consisting base list global with see, commodity charter

all-in for various Slide operate cost the side breakeven base. cost maintain presents in a low the we We types TEN. In X, left the vessel

our have vessel expenses expenses, opportunistically the cost expenses, tank simple net profitability model. We for have spot trading the company’s We to paying operating [indiscernible] a revenue and the cover to of vessel vessels revenue contribute operating to cost generate company. try the commissions and the from overheads, charter finance

of of for for the year-after-year. fleet. market in power want fleet fleet, [ph] of XX a inflationary the maintain utilization XX% by average manager technical low the schedule purchasing Despite high a utilization rate almost Despite we quarter-after-quarter, to overall highlight for to the surveys, special keeping control the anticipated we efforts preparation, and achieved our ahead] upturn, [I'm the pressures, cost continuous management prevailing OpEx an while

impact XXX sharing And reduction based have of we currently have thanks shares is an a repaid to and on debt that EPS then, the integral $X.XX profit spot Debt spot every rates. outstanding. XXXX. December allocation rates, number $X,XXX million to we company's Since debt of had part repurchased increase strategy. the million of XXX positive vessels for of element the in in company's [indiscernible] the annual we preferred capital in that The exposure have TEN picked step-up

always and shareholders December. [$X.XX] dividend for of $X.XX cyclicality. in paying management. the market $X.XX down other for XXXX. irrespective company will and today paid year, be continuity of to paid In be is share $X.XX dividend compares dividend addition with an XXX% increase. [ph] common June debt, announced the The last a This the important our common has in TEN paid per will paid annual

This from to strict change XXXX. in a policy very demand the announced impact the company emerges global Global of will have policy. positive world in since pandemic. in the COVID listing Chinese and initial have COVID dividends Following changed today, oil paid million demand XXX XXXX. oil continues in the a excess zero on recently as dividend China the recover should

Despite and of XXXX. International by Agency the Energy oil headwinds, region, by Asia the from the [surge] demand is barrels approximately grow in coming financial X to global geopolitical Pacific in growth million fueled Most a [ph] China. expects

Norway. and non-OPEC the the of Brazil, most in supply U.S., Vienna, plus Canada, XXXX side, the is from expected countries Mexico, like On growth

for XX a XX. in grow, X% At supply As years. almost book the currently been oil has a XX. years] same [ph] global more at is years, fleet of [XX half] the of and is of it order over demand fleet time, part Slide little stands over look next over the big lowest over The [fourth XX% the let's continues the than to in the three at [ph] tankers

carbonization balanced down, Although ahead. factors the scrapping to XX% activity being regulations has [ph]. think natural, and come have all fleet we that for point [XX] market in which upcoming the over years these the is last year, almost supply of with a industry the tanker We initiatives

you. will back the with I that, the Nicolas for call And Q&A. to return Thank

And saying Thank of tanker of an There of we've as the some with remaining has a us for, lot XXXX as picture begun price in are and said, where Stock you, positive a with market full tanker a Bornozis oil. Mr. the there the welcomed think, It and is, is price strong. been correlation been I've I that for industry. Stock year. George, the excitement, for And exciting fundamentals I reverse long this a quite of correlation giving York say, New [indiscernible] and – oil. rates always as on Exchange Exchanges, is weakness

weeks, are the oil. price seeing price we the of in in – what think normalization the recent of I So, the

a suffered We least world quarters. in from in high at has low the inventory environment. are last, prices The oil four

to more the So, businesses good we affordable we the long-term And the the is see levels for [every business have measure] world [ph] from in I and we for ourselves. think seen demand oil becoming that correction price of don't that drive this single see more again. to for

And all As the go do VLCC and profit monitor could year for a you XX] know, similar we a for very sharing [ph] today, our years. [XX as of about to but are Suezmax rates. arrangements, couple business these close also Aframax easily to of on $XX,XXX,

opportunity a that's to environment going major where the companies. of requirement is the why we for to we're forward. fulfill vessels be able positive oil that order new generation there took So, And of the will

having I sharing environment. a balanced and think we are right profit spot now,

year a our is have I to of another a [indiscernible] next will is by least LNG in by opening the close net itself this income going one and new to of and significant, $X – charter. at she months is think LNG Our couple of

of new we welcoming very a situation And our as of forward. will be vessels that's October positive XXXX. So, going

the We our sell purchase tankers expect see our to of ever fuel original time took opportunity again, at vessels. we first ago. dual did not far prices values some that not older the product to The

that the are renewing of forward. we part So, business going

our in of– over stock hope out foreseeable – dividends cyclical are and We market energy for a trend. us. Looking of has continue next has this paid back trend [$X.X the XX presentation in years made other there. for net on year week, income billion] of of TEN And CEO very billion and we the as and the we the [ph] said seen in looking course, view years exchange $X.X through the at that have has of companies this at this the our future that least to excess last

And like with would for all your to thank this, you of I support.

Over the few a last we'd open years floor ride. XX and questions. looking excitement, an enjoyable for more And for has any years it forward to like of been the

Instructions] [Operator you. Thank Thank you.

Our is Please with Climent Investors. your Value from first question. proceed with Molins question

How you really Because in you is board's January, should of Thank morning. questions. announced income you the net I XX% think start asking the taking Good about we that intention? that event to mentioned intensely during the and about XX% capital between today. for tribute my by wanted [indiscernible], dividend still it? on DMP

always – Yes. thanks your this – I for been for mean, and has to good thanks question. morning you

[ph]. – If announced out I figures the we you distributed already [XXX] X billion income, X.X of at in net have historical total, look of

a of within forward a invest going lot we liquidity that new be XX%. that's friendly lot I of So, will billion ammunition give XX% and will if XX and security to close And maintain close the between to environmentally vessels. same year, which yes, believe build-up would and policy. of think continue, we this us in cash. always And about things $X.X more – to I

the color. Thanks for

expect you ahead, provide that for usage? During you behind we the could decision? looking ATM on shares million, some additional issued insight should And the quarter, XXX,XXX XX.X reasoning

I year. it had And company transactions completed. program That similar the to complete That been up building parts was was program with any the of early the completed now that a was – in don't a foresee the within a on has decision taken that that this daily we liquidity basis, is XXXX.

helpful. That's from you. And Thank me. final question

some in of dollar the additional at Could the contract mentioned on income the For least on new or another TCE will contract the example, terms contract? energy by add net the new itself. You duration? commentary the you new provide

We but excess of are contracts the $XX,XXX day, a mentioned [XX] a day, to two-year if do about I or can about that's looking figure that's at [ph] so, a yes, we do you. how to $XXX,XXX contract decide in we yearly

sense. Makes

peak not it's ,right? So, yet

Exactly.

for for Thank quarter. my congratulations the right. All you and taking questions

Thank you very much.

to Nikolas hand [Operator Instructions] you. Dr. further over questions at closing comments. the no There this floor back for Thank like are any Tsakos time. to I'd

for Well, over the year. this first company supporting of thank all, you

be I shows quarter, tankers COO fundamentals strong the [indiscernible] of that this, built We whenever with what has because XX know lack that we I've been our in program a you think picked. with talks market have the business are actually all program at familiar in knowledge, about and or replacement market you since solid years. I of I situation engines, our are of actual someone The looking designed people should and newbuilding the that lowest thinking very in the or vessels think the in are presented

do I closer close without X%. the – tanker forward as least takes at any if industry X%. because signal This the think would very to to big to unprecedented. to whole know, market build the And going I that ship think someone strong is three industry it trades, decides whole you a X.X% in growth – And to so. segments segments years the is

of geopolitical circumstances healthy create So, going forward we miles. requirement period more in need for any are the a ton the without that for

are are So, be whereas are we company that to very and arrive that that we're we any might proud able the shocks observe record. of preparing to proven [indiscernible] we always

the we our grow the recent fleet have ships, the earnings eight of of the and that vessels two new plus that I in been in coming forward. in have harvest to weeks going think able planted we be to will everything the couple with quarter first added and

increase to and the be hopefully very and our reward with continues, very market a dividend. shareholders company major we feel the to the And later another of able if our significant year. we the very have dramatic we right correct increase can in in And are shareholders and

that, with Arapoglou And up. wrap I Mr. will to ask

Nikolas. is be the year at capture you, going of is all a end benefits market continues The forward. positioned it as that Well, to The TEN thank as is it used flash strong the to message and last not [indiscernible]. ideally

thank that, for with you So, best. all all meeting. today's attending the you. And Thank

you you New in you you. next much. and Thank see York. week very Thank Thank

today's This concludes conference.

You may for Thank your lines disconnect time. your participation. at you this