Tsakos Energy Navigation (NYSE:TEN) Announces Earnings Results, Beats Expectations By $0.21 EPS

Tsakos Energy Navigation (NYSE:TEN) posted its quarterly earnings data on Thursday. The company reported $3.14 earnings per share for the quarter, beating the consensus estimate of $2.93 by $0.21, Zacks reports. Tsakos Energy Navigation had a net margin of 24.81% and a return on equity of 23.26%.

Here are the key takeaways from Tsakos Energy Navigation’s conference call:

• Record financial performance: First-half revenue reached $551 million, net income rose 253% to $228 million, adjusted EBITDA increased 68% to $324 million, and EPS climbed to $7.12. Second-quarter net income was $139.3 million, including a $38 million capital gain.
• Strong tanker demand and charterer appetite are supporting higher rates and longer contracts. TEN has approximately $3.5 billion in forward committed earnings, while profit-sharing revenue reached $71 million in the first half and management expects a significant increase in the second half.
• Management indicated it intends to increase shareholder distributions following its November strategy meeting, although it favors higher regular semiannual dividends over special dividends. TEN is also considering redeeming its $120 million, 9.25% perpetual preferred shares to reduce financing costs.
• The fleet renewal program is generating substantial asset value, with 26 newbuildings contracted at roughly $3.1 billion now estimated to be worth about 30% more. TEN has also continued selling older vessels and replacing them with newer, more efficient and dual-fuel ships.
• Geopolitical conditions have strengthened tanker rates but created significant operational and safety risks, including disruptions around the Strait of Hormuz, vessel attacks, and heightened demands on crews. Management said TEN is avoiding the Strait and emphasized that daily operations remain an “operational minefield.”

Tsakos Energy Navigation Trading Up 2.5%

Tsakos Energy Navigation stock traded up $1.12 during mid-day trading on Thursday, reaching $45.44. 235,633 shares of the company traded hands, compared to its average volume of 357,020. The firm’s 50 day moving average price is $40.38 and its 200 day moving average price is $39.16. Tsakos Energy Navigation has a 52-week low of $20.50 and a 52-week high of $46.65. The company has a debt-to-equity ratio of 0.87, a current ratio of 0.95 and a quick ratio of 0.92. The firm has a market capitalization of $1.37 billion, a price-to-earnings ratio of 7.40 and a beta of -0.26.

Tsakos Energy Navigation Announces Dividend

The business also recently declared a dividend, which was paid on Thursday, July 30th. Investors of record on Thursday, July 23rd were given a dividend of $1.00 per share. This represents a yield of 507.0%. The ex-dividend date was Thursday, July 23rd. Tsakos Energy Navigation’s dividend payout ratio (DPR) is presently 32.57%.

Insider Activity

In related news, Director Clio Hatzimichalis sold 5,000 shares of the stock in a transaction on Thursday, August 13th. The stock was sold at an average price of $41.07, for a total transaction of $205,350.00. Following the sale, the director directly owned 5,000 shares of the company’s stock, valued at $205,350. This trade represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Insiders own 1.41% of the company’s stock.

Hedge Funds Weigh In On Tsakos Energy Navigation

Hedge funds have recently added to or reduced their stakes in the stock. XTX Topco Ltd raised its stake in shares of Tsakos Energy Navigation by 55.0% during the 4th quarter. XTX Topco Ltd now owns 33,097 shares of the company’s stock worth $742,000 after acquiring an additional 11,740 shares in the last quarter. Susquehanna Portfolio Strategies LLC raised its stake in shares of Tsakos Energy Navigation by 16.8% during the 4th quarter. Susquehanna Portfolio Strategies LLC now owns 63,497 shares of the company’s stock valued at $1,424,000 after buying an additional 9,131 shares during the last quarter. Tudor Investment Corp ET AL increased its stake in Tsakos Energy Navigation by 1.9% during the 4th quarter. Tudor Investment Corp ET AL now owns 78,555 shares of the company’s stock worth $1,761,000 after buying an additional 1,445 shares in the last quarter. Summit Securities Group LLC acquired a new position in Tsakos Energy Navigation in the 4th quarter valued at $56,000. Finally, Graham Capital Management L.P. acquired a new stake in Tsakos Energy Navigation during the 4th quarter worth $353,000. 19.24% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Separately, Weiss Ratings reiterated a “hold (c)” rating on shares of Tsakos Energy Navigation in a research report on Monday, July 6th. One equities research analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $29.50.

About Tsakos Energy Navigation

Tsakos Energy Navigation Ltd. (NYSE: TEN) is an international shipping company specializing in the transportation of crude oil and refined petroleum products. Founded in 1993 by Nikolas P. Tsakos, the company has built a reputation for operating a modern, well-maintained fleet of double-hull tankers. Tsakos Energy Navigation is organized around both ownership and technical management of vessels, offering chartering, commercial operations and crew services under one umbrella.

The company’s fleet consists primarily of very large crude carriers (VLCCs), Suezmax and Aframax tankers, as well as medium-range (MR) and Handy product carriers.