Revenues, net of voyage expenses (bunker, port expenses and commissions), for the same period were $99.1 mill, about $17 mill up on the 3Q16.
The revenue rise was mainly due to the delivery of three vessels, new charters of the two LNGCs and a high utilisation rate of 98%. In addition, during 4Q16, the seasonally strong quarter, the tanker markets saw a promising improvement, as certain of the factors that had depressed rates for most of 2016 dissipated, such as oil supply disruptions.
In October and November, 2016, TEN took delivery of Aframax newbuildings ‘Leontios H’ and ‘Parthenon TS’, both employed under long-term charters. In addition, in October, 2016, the LNGC ‘Maria Energy’ was delivered and placed on a timecharter with escalating options until mid-2018, when it is expected that higher rates may be available.
TEN’s balance sheet remained strong with cash balances at $197.8 mill as of 31st December, 2016. As at the year-end, TEN had undrawn bank facilities totalling $194.3 mill, specifically relating to the seven vessels then under construction, of which $99.6 mill has since been drawn for the 2017 deliveries to date (Aframax ‘Marathon TS’, shuttle tanker ‘Lisboa’ and VLCC ‘Hercules I’).
EBITDA in 4Q16 amounted to $53.7 mill.
Meanwhile, TEN’s net income for last year was $55.8 mill. Operating income in 2016 amounted to $89.8 mill and EBITDA was $205.1 mill. All the vessels, apart from the 2007-built LNGC ‘Neo Energy’, currently on a floating storage employment, generated positive EBITDA in the year.
The daily TCE for the fleet averaged $20,412 for the full year. Vessel operating expenses, on a daily average per vessel basis for 2016, decreased by 2.1% to $7,763 from $7,933 in 2015.
On January, 2017, TEN took delivery of the VLCC ‘Hercules I’ from Hyundai Heavy Industries, which was subsequently chartered for a period of up to 18 months to a North American oil company.
In February, 2017 the Aframax ‘Marathon TS’ was delivered from Daewoo Mangalia, the fifth in a series of nine Aframaxes built against long-term contracts for a Norwegian oil major.
On 10th March, 2017, the company took delivery of the DP2 Suezmax shuttle tanker ‘Lisboa’ from Sungdong Shipbuilding. She was built against an eight year contract, with an option to extend to 11 years, to a major European oil concern and gross revenues from this employment, may reach $200 mill over its maximum potential duration.
“The industrial nature of our recent charters fits in well with the company’s strategy in building and operating vessels to accommodate the long-term needs of international oil concerns,” said Nikolas Tsakos, TEN President and CEO and current chairman of INTERTANKO. “With our entire newbuilding programme chartered on long-term accretive employment to first class end-users, TEN’s new phase will be in full force within 2017.
“The long-term business further solidifies our balance-sheet, ensures TEN’s continued profitability and dividend distribution. This should ultimately be reflected in our share’s true valuation,” Tsakos concluded.