Greek tanker owner and operator Tsakos Energy Navigation Limited (TEN) reported that its net income plunged to USD 55.7 million for the full year of 2016 from USD 158.2 million seen a year earlier.
Although the tanker markets experienced a “promising improvement” during the fourth quarter of the year, the company’s net income for the three-month period ended December 31 dropped at USD 11.9 million from a net income of USD 39.6 million recorded in the same period in 2015.
TEN’s revenues, net of voyage expenses for the fourth quarter were at USD 99.1 million, more than in the third quarter of the year due to the delivery of three vessels, the new charters of the two LNG carriers and a high utilization rate of 98%, according to the company.
In October and November 2016, TEN took delivery of the aframax newbuildings Leontios H and Parthenon TS, both employed under long-term charters. In addition, in October 2016, the LNG carrier Maria Energy was delivered and placed on a time-charter with escalating options until mid-2018, when it is expected that higher rates may be available.
Subsequent to the year end, the company took delivery of the VLCC Hercules I from South Korean Hyundai Heavy Industries and reached a charter agreement for the vessel, thereby securing work for its entire 15 newbuilding fleet.
“The industrial nature of our recent charters fits in well with the company’s strategy in building and operating vessels to accommodate the long-term needs of international oil concerns,” Nikolas P. Tsakos, President and CEO of TEN and current Chairman of INTERTANKO, said.
“With our entire newbuilding program chartered on long-term accretive employment to first class end-users, TEN’s new phase will be in full force within 2017. The long-term business further solidifies our balance-sheet, ensures TEN’s continued profitability and dividend distribution. This should ultimately be reflected in our share’s true valuation,” Tsakos added.
TEN informed that it remains optimistic for 2017 due to the continued low price of crude oil, abundant alternative sources of oil supply and growing consumer demand.
“These positive fundamentals are expected to become more apparent as any pressure from excess fleet supply gradually diminishes as we move later into 2017,” TEN said.