Operating income for 1H14 was $33 mill compared to $18.3 mill in 1H13, an 80% increase.
This improvement was primarily due to the increase in crude tanker rates in the first quarter 2014. Full operation of the two new shuttle tankers also contributed to increased revenue.
The average daily TCE rate per vessel increased by 12.9% to $20,418, compared to $18,090 in 1H13.
Vessel operating expenses for 1H14 amounted to $71.4 mill, an increase over the previous year’s figures for the same period, much of which was due to the addition of the two new shuttle tankers.
Depreciation and drydocking amortisation costs were $50.2 mill, an increase from the 1H13, due to the addition of the shuttle tankers and a recent Suezmax acquisition.
Interest and finance costs decreased in 1H14 to $18.1 mill, compared to $20 mill in the 1H13, mainly due to the expiry of interest rate swaps.
Revenues for the second quarter of this year, net of voyage expenses and commissions, were $73.6 mill, an increase of 2.9% over 2Q13.
The vibrant crude transportation market during the first quarter of this year, which contributed to the best quarter in revenues since early 2010, subsided during much of the 2Q14, before reviving in the last weeks to provide renewed confidence for the third quarter.
TEN’s fleet continued to operate at almost full utilisation at 98%, the same as in the similar period of last year. The company operated a fleet of 48.2 vessels on average in 2Q14, compared to 47.8 vessels in 2Q13, the additions being primarily due to the two newly delivered suezmax DP2 shuttle tankers, which started their long-term charters in May and June 2013.
The 2Q14 average daily operating costs per vessel amounted to $7,971, compared to $7,728 in 2Q13, the increase being mostly due to the addition of the two new shuttle tankers, which have higher operating costs than conventional vessels and to a 5% fall in the US dollar against the Euro, which negatively impacted crew costs.
Depreciation and drydocking amortisation costs combined totalled $25.3 mill in 2Q14, which was almost the same as in 2Q13.
Operating income of $8.5 mill for 2Q14 was slightly down from 2Q13, despite the improvement in revenue, because of the increase in operating expenses.
The 2Q14 ended in a small net profit of $0.2 mill, compared to a $1.5 mill net loss in 2Q13.
TEN’s liquidity at 30th June, 2014 remained, and continues to remain, strong. Total cash was $238 mill, compared to $172 mill at the end of 2013. Total indebtedness amounted to $1.36 bill, $17.8 mill less than at the end of 2013, after a new loan of $42 mill relating to the acquisition of the Suezmax ‘Eurovision’ in June 2014 and scheduled repayments of $59.8 mill since the beginning of the year.
EBITDA for 2Q14 was $34.1 mill, similar to that of 2Q13. For 1H14, EBITDA was $83 mill compared to $68.1 mill in 1H13. All the vessels generated positive EBITDA in the first six months of 2014.
“The first six months result reinforced our strategy of focusing our versatile and diversified fleet in the crude sector. The well timed acquisitions of the modern Suezmax crude tankers ‘Euro’ and ‘Eurovision’, together with our decision to trade our product carriers in the dirty and crude markets will continue to add value to our bottom line,” said Nikolas Tsakos, TEN’s president & CEO. “Having used the storm of the last years to our advantage, we emerged a much larger and stronger company. We are optimistic that our positive results will enable us to continue with our dividend policy and will also be reflected in our share price going forward,”