Despite a difficult tanker market Greek tanker shipping company Tsakos Energy Navigation (TEN) ended the year in the black with a net income of USD 20.4 million.
However, the full-year profit is halved when compared to 2016 when TEN’s net income stood at USD 55.7 million.
Gross revenue amounted to USD 529.2 million, a 9.8 pct increase over 2016, due to the increase of the fleet by seven new vessels on long-term contracts.
During the fourth quarter, net income came at USD 2.7 million while gross revenues reached USD 134.5 million, a 2.9 pct increase year-on-year.
During the quarter, the vessels on time charter contracts generated USD 90.5 million gross revenue, enough to cover all the operating, overhead and finance costs of the whole fleet, while vessels on spot charters contributed an additional USD 21 million of revenue, TEN said.
“As we enter our 25th year, we are proud to report profits in such a challenging environment. TEN’s tried and tested strategy of providing downside protection while allowing for the flexibility to capture rate hikes, has proved effective once again. The markets are gradually positioning for an upturn and TEN is well placed to reap those rewards as they will occur,” Nikolas P. Tsakos, President and CEO of TEN, commented.
2018 started with TEN operating the largest fleet in its 25-year history, 77 pct of which secured contracts averaging 2.7 years with minimum secured revenues of USD 1.3 billion, TEN said.
Namely, in the fourth quarter of the year, the company completed its 15-vessel newbuilding program. The tanker owner also sold two 2005-built Suezmax tankers through a sale and leaseback transaction generating USD 15.6 million of free cash.
TEN’s fleet currently stands at 65 ships, of which 47 vessels trade in crude, 13 in products, three are shuttle tankers and two are LNG carriers.