Greek tanker operator Tsakos Energy Navigation (TEN) posted the best annual results in 2014 since 2010, reaching USD 33.5 million profit, a significant recovery compared to a USD 9.2 million loss in 2013.
The company’s operating income for 2014 was USD 76 million compared to USD 33.2 million (before USD 28.3 million impairment charges) in 2013, a 129.2% increase.
Revenue, net of voyage expenses and commissions, totaled USD 346.9 million in 2014 compared to USD 285.4 million in 2013, a 21.5% increase. The increase was attributed primarily to the significantly stronger TCE rates achieved for crude carrying suezmaxes and aframaxes in 2014, especially in the first and fourth quarters.
TEN enjoyed a very strong fourth quarter with operating income amounting to USD 29.2 million, compared to USD 5.2 million (before impairment charges) in the fourth quarter of 2013 mainly due to a robust freight market, particularly for crude cargoes, generating higher net revenue.
“It is a great pleasure to report significant profitability in 2014. It is also encouraging that 2015 has started with very strong rates. The market fundamentals including the low cost of oil and the negative fleet growth is reassuring for, at least, the medium term prospects of our industry, ” stated Mr. Nikolas P. Tsakos, President and CEO of TEN.
According to TEN, this realignment in market fundamentals has created a solid underlying strength in the overall crude and product tanker markets, especially evident in spot fixtures, and as a result they have allowed TEN, with 73% of remaining 2015 available days on spot or spot related contracts, to enjoy significant benefits from operating under such market related and flexible charters.
The company revealed plans to look into opportunities to strategically divest some of its older assets in line with its fleet rejuvenation plans. This would also mean investment in vessel acquisitions, however, TEN said it would avoid large speculative newbuilding orders.