TEN reaps the rewards

Jun 07 2019


Following a strong fourth quarter of 2018, tanker and LNGC owner, TEN continued to enjoy positive results recording a net income of $11.2 mill for the first quarter of this year on the back of firming rates.

Gross revenues totaled $147 mill, some 17% higher than reported for 1Q18, due to the improved rates, employment at 97% utilisation and the re-positioning of Suezmaxes and Aframaxes into the spot market that generated an additional $18.4 mill in revenue over that achieved by the same vessels in 1Q18.

As market conditions improved, profit share arrangements were activated and generated a further $4.3 mill in revenue

In addition, the two LNGCs produced almost $3 mill more in revenues compared to the same quarter of 2018, due to the significant rise in their long-term employment rates.

During the period, TEN’s fleet averaged a TCE of $21,054 per day, compared to $17,771 per day in 1Q18, an 18.5% increase.

In 1Q19, 73% of the fleet was employed on secured revenue contracts, again generating enough cash to cover operating expenses, charter-in costs, overheads and finance expenses for all the vessels in the fleet.

Operating Income was $27.8 mill, five times greater than in 1Q18. EBITDA was $64.1mill, nearly 53% higher over the same period.

Daily operating expenses per vessel fell by 7% to $7,522, due to savings on stores and repairs, in line with the company’s proactive management practices, as well as the strengthening of the US dollar.

In 2018,TEN’s average timecharter revenues exceeded the spot market by 40% and in 1Q19 by 5%. A further 9% decrease in operating expenses was also recorded for 1Q19.

The market prospects going forward places TEN in an ideal position to take advantage of the positive environment that is shaping up, due to the declining orderbook and IMO 2020 disruptions.

“With cash flow generation clearly better, compared to the 2018 first quarter and market dynamics shaping favourably, TEN’s ability to capture the expected market upside remains strong,” George Saroglou, TEN COO commented. “TEN’s employment strategy resulting to almost full fleet utilisation, coupled with the second phase of our fully financed fully employed organic growth, allow us to remain confident for the future and to continue rewarding our shareholders with attractive dividends.”

 

 

 



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