Tsakos Energy Navigation

What sets Tsakos apart

  • Their fleet of 52 ships are among the newest available. The company has commissionned them from the best known shipyards in Korea and Japan.
  • In 2008 TEN carried 492 million Bbl of oil (or 8 days of the world's seaborne trade.)
  • TEN's safety record: never a drop spilled in their record of 2.5 billion ton miles.
  • TEN is #1 in ice class shipping with 27 ice class vessels, about 5% of the world's total.
  • US oil imports of 110 million Bbl corresponding to 10 days of US seaborne oil imports.

Trading Data



Daily Average Trading Volume
Q1 2008 259,938
Q2 2008 171,690
Q3 2008 185,797
Q4 2008 271,955
Tsakos Energy Navigation Ltd. (TNP) Tsakos Energy Navigation Ltd. (TNP)

Organizational Details

Tsakos is a specialty company involved in the energy and shipping industries through its focus on the global transportation of energy products. The company was originally incorporated as the Maritime Investment Fund Limited in 1993 as an exempted company under the laws of Bermuda. In the same year, it was listed on the Bermuda and Oslo Stock Exchanges, although the Oslo listing was discontinued in 2005 and the shares are no longer actively traded in Bermuda. The company name was changed to Tsakos Energy Navigation Limited in July 2001 to enhance brand recognition in the tanker industry, particularly among potential clients for charter contracts. The company completed an IPO on the NYSE in March 2002 in and the NYSE is the only market on which the shares are currently actively traded.

Fleet Statistics

Fleet Statistics as of December 31, 2008
Handy Size LNG VLCC Suez Max AfraMax Pana Max Handy Max Total
Average # vessels 8.0 1.0 3.0 10.0 9.4 6.7 6.0 44.1
Vessels at Year End 8 1 3 10 15 3 6 46
Vessels on Order 0 0 0 0 4 0 0 4
DWT at Year End ('000) 297.7 85.6 899.6 1,639.3 1,259.6 351.2 318.5 5,341.9
Average Fleet Years 2.7 10.3 13.7 4.4 4.4 8.0 3.7 6.3

Corporate Vision

Objective

The primary objective is to maintain and expand its leading edge role as a safe and cost-efficient operator of modern and well-maintained tankers providing services that satisfy the range of charter services of major international customers.

Strategy

The company strategy is focused on pro-actively working to meet customer charter needs that will foster the frequency of charter renewals among its group of clients.

Maintaining a quality fleet that meets increasingly stringent environmental regulations and addresses the concerns about liability for oil pollution is one aspect of addressing client needs.

Business

The business of Tsakos is primarily shipping but the company generates revenue from two major activities:
  • Transportation of international crude oil, petroleum and liquefied natural gas products on three different charter arrangements:
    • Voyage or “Spot” given rate per unit of cargo
    • Time per diem for period of time
  • Bareboat fixed amount for a specified period Strategic acquisition of new vessels and disposition of assets that no longer meet fleet quality standards.

Financial Ratios

Financial Ratios Trailing 12-months
Ratios per Share 2004 2005 2006 2007 2008
Price/Earnings 4.2 4.7 3.9 6.5 5.8
Price/Book
Dividend Yield
Payout Ratio
Return on Equity (%) 22.8 31.1 32.2 24.2 23.7
Debt/Equity
Book Value 12.88 15.83 19.84 22.45 24.52
Price/Cash Flow 4.2 4.7 3.9 6.5 5.8
Quarterly EPS US$
2006 2007 2008
Q1 2.19 1.16 1.72
Q2 1.73 0.98 1.82
Q3 2.33 1.31 1.08
Q4 4.05 1.36 0.74

Financial Statistics

Financial Statistics as of December 31, 2008
Income Statement Items 2004 2005 2006 2007 2008
Voyage Revenues ($ m) 318.3 295.6 427.7 500.6 623.0
Gain on Sales of Vessels* ($m) 13.6 34.5 38.0 68.9 34.6
Operating Income ($m) 145.5 154.8 205.2 249.7 278.8
Net Income ($m) 50.1 143.3 161.8 196.4 203.0
Dividends** - Annual Total - $ 0.83 1.05 1.37 1.73 1.75
EPS – Diluted ($) 3.76 4.09 5.15 4.79 5.33
Weighted Ave Shares –FD (m) 38.2* 39.6 38.1 38.2 38.0
*Operating vessels only; ** Paid semi-annually only
Balance Sheet
2004 2005 2006 2007 2008
Assets ($ m) 938.0 1,089.2 1969.9 2362.8 2602.3
Liabilities 418.5 482.0 1214.4 1508.3 1691.6
Stockholders' Equity 519.5 607.2 755.5 854.5 910.7

Management

Nikolas P. Tsakos: President, CEO since 1993
Sole Shareholder:
  • Tsakos Energy Management Limited
Director
  • Director of Cyprus Bank quoted on Athens Exchange
George V. S. Saroglou: COO and Director since 1996 Director/shareholder
  • Panasystems SA
Paul Durham: CFO and Director since 1999
Michael G. Jolliffe: Director and Deputy Chairman Since 1993
Chairman:
  • StealthGas Inc. - listed on Nasdaq
Mr Jolliffe is also a director with a variety of companies in shipping, oil, textiles, telecommunications and transportation.
D. John Stavropoulos: Chairman Since 1993
Chairman:
  • Aspis Bank

Outside Directors:
  • William A. O'Neil: Director since 2004, also director of the Panama Canal Authority, lives in Oxford
  • Peter Nicholson: Director since 1999
  • Francis T. Nusspickel: Director since 2004, lives in New Jersey
  • Aristedes A. N. Patrinos: Director since 2006
  • Richard Paniginian: Director since 2008

Competitors

The main difference between Tsakos and its competitors is that TEN has a very new fleet that meets its customers' demands.
It is difficult to separate companies based on market share as the tanker industry is very fragmented. No company controls more than 3-4% of the market so monopoly of a sector by any company is difficult to achieve.

Customers

Tsakos deals with all the major energy companies and strongly adheres to a policy of maintaining excellent relationships with their customers, a philosophy that is imbedded in their customer service activities and client retention.

Risks

Since energy is the company's only cargo, profits are dictated by conditions that affect demand and prices for these commodities.
Annualized Returns as of March 31, 2009
1 Yr 3 Yrs 5 Yrs
TNP -51.2 -5.1 -15.4
NYSE -43.2 -15.4 -5.5
Baltic Dry Index ? ? ?

Contact Details

Tsakos Energy Navigation Limited
367 Syngrou Avenue
175 64 Athens, Greece
Tel: 30 210 940 7710
http://www.tenn.gr/

George V. Saroglou, COO - gsaroglou@tenn.gr
Paul Durham, CFO - pdurham@tenn.gr

Company Ownership

TEN was founded by Nikolas Tsakos and other family and related parties who formed the control group. As of 2009, the percentage of shares held by these insiders was 40%. Directors and officers of the company held 1.1%. Institutions and mutual funds held 49% of the available float.

Share Statistics 2008

Shares Outstanding: 37.1 million
Options Outstanding: 1.0 million units reserved since 2004 for options and restricted stock units that, in 2008, diluted earnings by $494,286 or 7 cents a share.
Shares Repurchased and Cancelled: 392,400
Financings in 2008: None
Stock Split: 2/1 split in 2007; Years restated