GlobeNewswire Inc | Sep 23, 2020 08:30AM EDT

September 23, 2020

Five-fold increase in net income Y-o-Y

Strong quarterly revenues of $190million

$300 million debt reduction from 2016 peak

New deliveries add a minimum of $180 million in time-charter equivalent revenues during charter period

TENs crewhealth and safety remains a priority

ATHENS, Greece, Sept. 23, 2020 (GLOBE NEWSWIRE) -- TEN, Ltd (TEN) (NYSE: TNP) (the Company) today reported results (unaudited) for the quarter and six months ended June 30, 2020.

SIX MONTHS 2020SUMMARY RESULTSNet income in the first half of 2020 amounted to $69.2 million excluding non-cash one-off charges or $52.7 million if such non-cash charges are included. Earnings per share for this six-month period were $1.64 compared to a $(0.66) loss per share for the same period of 2019.

Gross revenues in the first half of 2020 amounted to $369.7 million, 27.0% higher than in the first half of 2019, mainly due to the strong rates following the widening contango in the oil markets that started in the first quarter.

The daily time charter equivalent rate per vessel increased by 36% over the equivalent 2019 period to $27,689. Operating income, before the impairment charges and loss on vessel sales totaled $118.2 million compared to $46.8 million in the first six months of 2019, a 153% increase.

Adjusted EBITDA (Earnings before interest, taxes, depreciation and amortization) increased to $186 million, 55% higher than in the first six months of 2019.

Total cash reserves were $262 million, as at June 30, 2020.

Vessel operating expenses decreased by 1.3% while depreciation and dry-docking amortization costs remained at similar levels as in the first half of 2019.

Total debt outstanding as at June 30, 2020 stood at $1.47 billion, $74.7 million lower from the level at the end of 2019 and about $300 million lower from its peak in 2016.

Four vessels were sold in the 2020 six-month period generating about $30 million free cash after repaying nearly $44 million of debt and maintained TENs young fleet profile.

Finance costs in the first six months of 2020 increased by $8.6 million to $47.5 million mainly due to approximately $16 million in non-cash negative bunker hedge valuations.

Q2 2020SUMMARY RESULTSFollowing a solid first quarter, second quarter net income amounted to $49.6 million excluding non-cash losses on a vessel sale and impairment charges. Including these non-cash items, net income was still a healthy $31.5 million and earnings per share were $1.07 from $(0.72) in the 2019 second quarter.

Accordingly, TENs voyage revenues increased 32.5% to $190.8 million in the second quarter of 2020 with the fleet achieving 95.7% utilization. TENs fleet had one vessel less on average in this second quarter compared to the 2019 second quarter due to the sale of a vessel in June 2020.

The average daily TCE per vessel generated by the fleet was $28,767, approximately $9,000 more than the prior year second quarter.

Operating income during the quarter reached $46.9 million, 147% higher than the equivalent quarter of 2019.

Adjusted EBITDA totaled $98.0 million, up $42.2 million or 75% from the 2019 second quarter.

Total vessel operating expenses decreased by $3.4 million or 7.3% due to efficient cost management and the strengthening of the US dollar against the Euro which had a positive impact on crew costs. On an average daily per vessel basis, operating expenses per ship per day fell to $7,457, a 5.7% reduction.

A modest increase in G&A expenses was mainly due to sundry office expenses and professional fees, while management fees per vessel stayed basically the same, as they have done for over ten years.

Finance costs declined by $7.4 million or 34.7% mainly due to $2.2 million positive bunker hedge valuations and to loan interest decreases following renewed pricing terms on the occasion of refinancing certain loans. Interest costs were also partially reduced by the reduction in total average outstanding debt by $68 million since the end of the prior year second quarter.

CORPORATE STRATEGY & OUTLOOKThe first half of 2020 has been a rollercoaster of sentiments for our industry and the world in general. The year started with optimism on the one hand and justifiable concerns on the other due to the new emission regulations imposed by the IMO and the endless debates on the use of scrubbers, something that TEN has avoided and saved significant unnecessary capital expenditure.

Within weeks however, all this faded away with the spread of the Covid-19 pandemic, affecting everyday life as never before. This combination of events caused volatility leading to wide contango spreads that resulted in a strong tanker market, which TENs modern fleet took full advantage of.

In this unprecedented environment, TEN has managed to safeguard the health of its seafarers, increase profitability through high utilization and continue its path to growth and modernization

Following the sale of four vessels with an average age of fourteen years, the Company has taken delivery of a series of three new vessels (two aframaxes and one suezmax), with an additional suezmax to follow in the fourth quarter with long-term employment. All vessels are chartered to a major oil company for a minimum period of five years that will add $180 million in time charter equivalent revenues. Concurrently, the Company was awarded a long-term accretive contract for up to three suezmax DP2 shuttle tankers by a major utility company.

Looking ahead and despite the challenges the world has faced, a silver lining is developing on the horizon; the demand for energy is coming back but more importantly the supply of new tonnage has completely dried up, the contango effect has returned and expectations for a strong market after a seasonally slow quarter are becoming more likely. China is importing sizeable quantities of crude, locked-down Asian recycling yards are coming back to business and the recent emergence of congestion at various terminals in the Far East are promising signs.

TEN continues to build value for its shareholders through the payment of dividends, adding another $0.375 cents (split adjusted) per common share on June 26th, 2020 and its ongoing buy-back program for common shares has so far to this date surpassed $8 million since inception. As previously mentioned, managements intention to redeem at par the $50 million Series C preferred remains intact and a relevant press release will be issued in due course to that effect.

TEN continues to give priority to environmental issues and has successfully managed the transition to low sulfur fuel without experiencing irreparable adverse issues, thanks to our seasoned and efficient technical managers. However, managements top priority remain that of the wellbeing of the Companys seafarers, both physically and mentally and tremendous efforts are being made for the timely and safe repatriation to their families, something that is not straightforward in todays challenging environment.

During TENs four-decade history, the Company has faced major world crises but always succeeded in navigating its way through stronger, thanks to the unwavering commitment of our seafarers and associates around the world. This will be the case again. We wish everyone to stay safe and healthy during this challenging period, Mr. George Saroglou, COO of TEN commented.

CONFERENCE CALLAs previously announced, today, Wednesday, September 23, 2020 at 9:00 a.m Eastern Time, TEN will host a conference call to review the results as well as management's outlook for the business. The call, which will be hosted by TEN's senior management, may contain information beyond that which is included in the earnings press release.

Conference Call details:Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1877 55 39962 (US Toll Free Dial In), 0808 2380 669 (UK Toll Free Dial In) or +44 (0)2071 928592 (Standard International Dial In). Please quote "Tsakos" to the operator.

A telephonic replay of the conference call will be available until Wednesday, September 30, 2020 by dialing 1866 331 1332 (US Toll Free Dial In), 0808 2380 667 (UK Toll Free Dial In) or +44 (0)3333 00 9785 (Standard International Dial In). Access Code: 90295809#

Simultaneous Slides and Audio Webcast:There will also be a simultaneous live, and then archived, slides webcast of the conference call, available through TEN's website (www.tenn.gr). The slides webcast will also provide details related to fleet composition and deployment and other related company information. This presentation will be available on the Company's corporate website reception page at www.tenn.gr. Participants for the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

ABOUT TENFounded in 1993 and celebrating this year 27 years as a public company, is one of the first and most established public shipping companies in the world. TENs diversified energy fleet currently consists of 67 double-hull vessels in the water, and one LNG carrier, one suezmax tanker and up to three suezmax DP2 shuttle tankers under construction, constituting a mix of crude tankers, product tankers and LNG carriers, exceeding 8.0 million dwt.

ABOUT FORWARD-LOOKING STATEMENTS Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those predicted by such forward-looking statements. TEN undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.

For further information, please contact: Company Tsakos Energy Navigation Ltd. George Saroglou COO +30210 94 07 710 gsaroglou@tenn.gr

Investor Relations / MediaCapital Link, Inc. Nicolas Bornozis Markella Kara +212 661 7566ten@capitallink.com

TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES Selected Consolidated Financial and Other Data (In Thousands of U.S. Dollars, except share, per share and fleet data) Three months ended Six months ended June 30 (unaudited) June 30 (unaudited) STATEMENT OF OPERATIONS 2020 2019 2020 2019 DATA Voyage $ 190,770 $ 144,020 $ 369,669 $ 291,064 revenues Voyage 35,412 35,191 68,120 66,755 expenses Charter hire 5,421 2,698 10,561 5,367 expense Vessel operating 42,705 46,072 88,194 89,396 expenses Depreciation and 34,503 34,260 69,331 69,543 amortization General and administrative 7,665 6,797 15,269 13,233 expenses Loss on sale 4,688 - 3,050 - of vessels Impairment 13,450 - 13,450 - charges Total expenses 143,844 125,018 267,975 244,294 Operating 46,926 19,002 101,694 46,770 income Interest and finance costs, (13,881 ) (21,262 ) (47,474 ) (38,855 ) net Interest 120 1,773 511 2,547 income Other, net 108 (2 ) 517 (31 ) Total other (13,653 ) (19,491 ) (46,446 ) (36,339 ) expenses, net Net income 33,273 (489 ) 55,248 10,431 (loss) Less: Net (income) loss attributable (1,794 ) 794 (2,545 ) 1,106 to the noncontrolling interest Net income attributable to Tsakos $ 31,479 $ 305 $ 52,703 $ 11,537 Energy Navigation Limited Effect of preferred (9,422 ) (10,204 ) (19,064 ) (20,408 ) dividends Undistributed income to (1,653 ) - (2,219 ) - Series G participants Deemed dividend on Series B - (2,750 ) - (2,750 ) preferred shares Net income (loss) attributable to common stockholders $ 20,404 $ (12,649 ) $ 31,420 $ (11,621 ) of Tsakos Energy Navigation Limited Earnings (Loss) per $ 1.07 $ (0.72 ) $ 1.64 $ (0.66 ) share, basic and diluted Weighted average number of common 19,087,556 17,550,394 19,105,159 17,535,743 shares, basic and diluted BALANCE SHEET June 30 December DATA 31 2020 2019 Cash 262,169 197,770 Other assets 233,488 261,607 Vessels, net 2,601,217 2,633,251 Advances for vessels under 63,671 61,475 construction Total assets $ 3,160,545 $ 3,154,103 Debt, net of deferred 1,460,538 1,534,296 finance costs Other 220,536 147,488 liabilities Stockholders' 1,479,471 1,472,319 equity Total liabilities and $ 3,160,545 $ 3,154,103 stockholders' equity Three months ended Six months ended OTHER June 30 June 30 FINANCIAL DATA 2020 2019 2020 2019 Net cash from operating $ 90,241 $ 45,366 $ 147,696 $ 84,604 activities Net cash provided by (used in) $ (6,442 ) $ (12,014 ) $ 16,103 $ (32,844 ) investing activities Net cash used in financing $ (48,099 ) $ (32,520 ) $ (105,017 ) $ (79,700 ) activities TCE per ship $ 28,767 $ 19,783 $ 27,689 $ 20,418 per day Operating expenses per $ 7,457 $ 7,911 $ 7,672 $ 7,717 ship per day Vessel overhead costs $ 1,297 $ 1,167 $ 1,288 $ 1,142 per ship per day 8,754 9,078 8,960 8,859 FLEET DATA Average number of vessels 64.9 64.0 65.1 64.0 during period Number of vessels at end 64.0 64.0 64.0 64.0 of period Average age of fleet at end Years 9.2 8.7 9.2 8.7 of period Dwt at end of period (in 6,961 6,936 6,961 6,936 thousands) Time charter employment - Days 2,412 2,272 4,923 4,665 fixed rate Time charter employment - Days 1,488 1,554 3,223 3,228 variable rate Period employment Days 87 273 176 453 (coa) at market rates Spot voyage employment at Days 1,669 1,526 3,090 2,854 market rates Total 5,656 5,625 11,412 11,200 operating days Total 5,908 5,824 11,851 11,584 available days Utilization 95.7 % 96.6 % 96.3 % 96.7 % Non-GAAP Measures Reconciliation of Net income to Adjusted EBITDA Three months ended Six months ended June 30 June 30 2020 2019 2020 2019 Net income attributable to Tsakos 31,479 305 52,703 11,537 Energy Navigation Limited Depreciation and 34,503 34,260 69,331 69,543 amortization Interest 13,881 21,262 47,474 38,855 Expense Loss on sale 4,688 - 3,050 - of vessels Impairment 13,450 - 13,450 - charges Adjusted $ 98,001 $ 55,827 $ 186,008 $ 119,935 EBITDA The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP measures used within the financial community may provide users of this financial information additional meaningful comparisons between current results and results in prior operating periods as well as comparisons between the performance of Shipping Companies. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company?s performance. We are using the following Non-GAAP measures: (i) TCE which represents voyage revenue less voyage expenses is divided by the number of operating days less 192 days lost for the second quarter and 392 days for the first half of 2020 and 124 days for the prior year quarter of 2019 and 214 days for the first half of 2019, respectively, as a result of calculating revenue on a loading to discharge basis. (ii) Vessel overhead costs are General & Administrative expenses, which also include Management fees, Stock compensation expense and Management incentive award. (iii) Operating expenses per ship per day which exclude Management fees, General & Administrative expenses, Stock compensation expense and Management incentive award. (iv) EBITDA. See above for reconciliation to net income. Non-GAAP financial measures should be viewed in addition to and not as an alternative for, the Company?s reported results prepared in accordance with GAAP. The Company does not incur corporation tax.