GlobeNewswire Inc | Dec 16, 2021 07:55AM EST

December 16, 2021

Positive cash-flow despite weak freight market and increased dry-dockings

$500 million in minimum revenues from recent long-term charters

New LNG vessel with market-related employment rate to be delivered in January 2022

Initiation of dual-fuel fleet expansion with long-term charters to oil majors

Drastic debt and opex reduction

Strong product and LNG market recovery

ATHENS, Greece, Dec. 16, 2021 (GLOBE NEWSWIRE) -- TEN, Ltd (TEN) (NYSE: TNP) (the Company) today reported results (unaudited) for the third quarter and nine months ended September 30, 2021.

Q3 2021 SUMMARY RESULTS In what has been described as one of the worst tanker market in 30 years, TEN generated positive cash flow and adjusted EBIDTA of $19.5 million for the third quarter.

Voyage revenues totaled $131.6 million with utilization at about 90%, as nine vessel surveys were brought forward and took place during the 2021 third quarter. Non-cash items of $36.4 million, contributed to a third quarter net loss of $25.0 million.

Total operating expenses, due to stringent controls, fell by 9%. This led to a daily opex per vessel dropping by about $600 to $7,332.

The drastic reduction of $115.0 million of our total debt since the end of 2020, positive bunker hedge valuations, cash gains and decreases in interest margins on certain loans that were refinanced at attractive terms, resulted in lowering finance costs by 40%, to $8.2 million.

NINE MONTHS 2021 SUMMARY RESULTSIn a severe market environment, caused by the commercial and operational burdens of the pandemic, TEN reported positive cash flow and adjusted EBIDTA of $86.3 million. The inclusion of non-cash items of $113.0 million contributed to a net loss of $49.5 million. TEN, due its balanced employment policy, generated $407.0 million in gross revenues in a market that continued to be soft and only recently has shown signs of recovery, starting from LNG and product carriers.

Fleet utilization was at about 91% in the 2021 nine months, a relatively low level, after taking into account the 17 vessels that went through dry docking at various stages during the period, with some earlier than scheduled for tactical employment policy reasons. As a result, average TCE per ship per day for the first nine months of 2021 amounted to $17,089, a still satisfactory level given the demanding market conditions encountered.

Finance costs fell by 63% to $22.8 million, due to lower loan interest rate margins and positive bunker hedging movements. Also, during the 2021 nine-month period, outstanding debt was reduced by $115.0 million, further lowering related interest payments whilst maintaining solid cash reserves.

During the 2021 nine months, the Company disposed of three vessels for $53.2 million which released $21 million of free cash after repayment of related debt. These sales incurred a non-cash loss of $5.8 million.

SUBSEQUENT EVENTS TEN has secured time charter contracts with an average of three years for 10 of its vessels, including four dual-fuel LNG powered Aframax crude carrier newbuildings, which together with the LNG newbuilding to be delivered in January 2022 and the Aframax DP2 Shuttle Tanker scheduled for delivery in the second quarter of 2022, are expected to generate, going forward, minimum gross revenues of about $500 million.

CORPORATE AFFAIRSThe Companys ATM program for both preferred and common shares was $14.4 million during the third quarter of 2021 and $31.9 million thereafter. As of today, there are outstanding 22,996,795 common shares and 15,001,863 publicly traded preferred shares.

STRATEGY & OUTLOOKTEN has steadily and successfully navigated the recent rough seas caused by the pandemic. The Companys long-term balanced employment strategy, however, provides for a solid income base in difficult times and allows for significant upside when markets allow.

In the recent quarter, a number of our industrys sectors have significantly improved and we are enjoying unprecedented rates in LNG and product carriers with other segments also showing signs of recovery.

Following our tried and tested strategy, we have secured fixed profit-sharing arrangements in recent weeks for more than ten of our vessels to major oil concerns. In addition we are further expanding our environmental fleet with the addition of up to six aframax duel-fuel LNG powered tankers, chartered to a major oil concern.

Our newest LNG carrier will enter the market in about three weeks, and will be significantly contributing to our bottom line in this very profitable segment, earning six figure rates currently. In addition, we are carefully planning the future with investments in new technology and renewables.

We believe that the signs of a further recovery in the energy transportation rates are evident, and TEN is well placed to reap the rewards.

The management would like to thank all our seafarers and onshore personnel who have so patiently and courageously weathered the storm.

CONFERENCE CALL Today, Thursday, December 16, 2021 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.

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 877 553 9962 (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.

SIMULTANEOUS SLIDES AND AUDIO WEBCAST:There will also be a live, and then archived, webcast of the conference call and accompanying slides, available through the Companys website. To listen to the archived audio file, visit our website www.tenn.gr and click on Webcasts & Presentations under our Investor Relations page. Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

ABOUT TEN TEN, founded in 1993 is one of the first and most established public shipping companies in the world. TENs diversified energy fleet currently consists of 71 double-hull vessels totaling 8.0 m dwt. Its newbuilding program includes one LNG carrier, one suezmax DP2 shuttle tanker and four dual-fuel LNG powered aframax vessels.

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:

CompanyTsakos Energy Navigation Ltd.George Saroglou COO+30210 94 07 710gsaroglou@tenn.gr

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

TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIESSelected Consolidated Financial and Other Data(In Thousands of U.S. Dollars, except share, per share and fleet data) Three months ended Nine months ended September 30 (unaudited) September 30 (unaudited)STATEMENT OFOPERATIONS 2021 2020 2021 2020DATA Voyage $ 131,562 $ 142,834 $ 406,991 $ 512,503 revenues Voyage 54,113 37,242 148,979 105,363 expensesCharter hire 8,806 5,471 21,250 16,033 expenseVesseloperating 41,158 45,246 128,810 133,440 expensesDepreciationand 36,356 33,144 107,207 102,477 amortizationGeneral andadministrative 7,464 6,591 21,935 21,859 expensesLoss on sale - - 5,817 3,050 of vesselsImpairment - - - 13,450 chargesTotal expenses 147,897 127,694 433,998 395,672 Operating (16,335 ) 15,140 (27,007 ) 116,831 income (loss) Interest andfinance costs, (8,189 ) (13,485 ) (22,757 ) (60,958 )netInterest 175 28 502 538 incomeOther, net 110 (140 ) (83 ) 377 Total other (7,904 ) (13,597 ) (22,338 ) (60,043 )expenses, netNet income (24,239 ) 1,543 (49,345 ) 56,788 (loss) Less: Netincomeattributable (769 ) (123 ) (150 ) (2,668 )to thenoncontrollinginterestNet income(loss)attributableto Tsakos $ (25,008 ) $ 1,420 $ (49,495 ) $ 54,120 EnergyNavigationLimited Effect ofpreferred (8,555 ) (9,204 ) (24,934 ) (28,268 )dividendsUndistributedincome to - - - (1,370 )Series GparticipantsDeemeddividend onSeries C - (2,493 ) - (2,493 )preferredsharesDeemeddividend onpartiallyredeemed (457 ) - (2,170 ) - Series G convertiblepreferredsharesNet income(loss)attributableto commonstockholders $ (34,020 ) $ (10,277 ) $ (76,599 ) $ 21,989 of TsakosEnergyNavigationLimited, basicNet income(loss)attributableto commonstockholders $ (34,020 ) $ (10,277 ) $ (76,599 ) $ 24,013 of TsakosEnergyNavigationLimited,dilutedEarnings(Loss) per $ (1.72 ) $ (0.55 ) $ (4.05 ) $ 1.16 share, basicEarnings(Loss) per $ (1.72 ) $ (0.55 ) $ (4.05 ) $ 1.16 share, dilutedWeightedaverage number 19,791,139 18,605,661 18,890,734 18,937,444 of commonshares, basicWeightedaverage numberof common 19,791,139 18,605,661 18,890,734 20,681,143 shares,diluted BALANCE SHEET September 30 December 31 DATA 2021 2020 Cash 115,627 171,771 Other assets 280,305 276,362 Vessels, net 2,510,870 2,615,112 Advances forvessels under 79,024 49,030 constructionTotal assets $ 2,985,826 $ 3,112,275 Debt, net ofdeferred 1,386,752 1,500,357 finance costsOther 247,287 230,100 liabilitiesStockholders' 1,351,787 1,381,818 equityTotalliabilitiesand $ 2,985,826 $ 3,112,275 stockholders'equity Three months ended Nine months endedOTHER September 30 September 30FINANCIAL DATA 2021 2020 2021 2020Net cash fromoperating $ 4,617 $ 45,098 $ 35,204 $ 187,179 activitiesNet cash (usedin) provided $ (1,890 ) $ (86,375 ) $ 18,676 $ (70,274 )by investingactivitiesNet cash (usedin) provided $ (26,010 ) $ 21,217 $ (110,024 ) $ (78,183 )by financingactivities TCE per ship $ 15,668 $ 20,451 $ 17,089 $ 25,351 per day Operatingexpenses per $ 7,332 $ 7,927 $ 7,665 $ 7,757 ship per dayVesseloverhead costs $ 1,248 $ 1,117 $ 1,227 $ 1,232 per ship perday 8,580 9,044 8,892 8,989 FLEET DATA Average numberof vessels 65.0 64.1 65.8 64.8 during periodNumber ofvessels at end 65.0 65.0 65.0 65.0 of periodAverage age offleet at end Years 10.0 9.2 10.0 9.2 of periodDwt at end ofperiod (in 7,209 7,119 7,209 7,119 thousands) Time charteremployment - Days 1,938 2,030 5,959 6,953 fixed rateTime charterand pool Days 930 1,225 3,100 4,448 employment -variable ratePeriodemployment coa Days 272 58 695 234 at marketratesSpot voyageemployment at Days 2,220 2,171 6,592 5,261 market ratesTotal 5,360 5,484 16,346 16,896 operating daysTotal 5,980 5,898 17,884 17,749 available daysUtilization 89.6 % 93.0 % 91.4 % 95.2 % Non-GAAP MeasuresReconciliation of Net income (loss) to Adjusted EBITDA Three months ended Nine months ended September 30 September 30 2021 2020 2021 2020 Net income(loss)attributableto Tsakos $ (25,008 ) $ 1,420 $ (49,495 ) $ 54,120 EnergyNavigationLimitedDepreciationand 36,356 33,144 107,207 102,477 amortizationInterest 8,189 13,485 22,757 60,958 ExpenseLoss on sale - - 5,817 3,050 of vesselsImpairment - - - 13,450 chargesAdjusted $ 19,537 $ 48,049 $ 86,286 $ 234,055 EBITDA The Company reports its financial results in accordance with U.S. generallyaccepted accounting principles (GAAP). However, management believes thatcertain non-GAAP measures used within the financial community may provide usersof this financial information additional meaningful comparisons between currentresults and results in prior operating periods as well as comparisons betweenthe performance of Shipping Companies. Management also uses these non-GAAPfinancial measures in making financial, operating and planning decisions and inevaluating the Company?s performance. We are using the following Non-GAAPmeasures:

(i) TCE which represents voyage revenue less voyage expenses is divided by thenumber of operating days less 182 days lost for the third quarter and 609 daysfor the nine-month of 2021 and 226 days for the prior year quarter and 618 daysfor the nine-month, respectively, as a result of calculating revenue on aloading to discharge basis.

(ii) Vessel overhead costs are General & Administrative expenses, which alsoinclude Management fees, Stock compensation expense and Management incentiveaward.

(iii) Operating expenses per ship per day which exclude Management fees,General & Administrative expenses, Stock compensation expense and Managementincentive award.

(iv) Adjusted EBITDA. See above for reconciliation to net income (loss).

Non-GAAP financial measures should be viewed in addition to and not as analternative for, the Company?s reported results prepared in accordance withGAAP.

The Company does not incur corporation tax.