NEW YORK, Jan. 24, 2023 (GLOBE NEWSWIRE) — Capital Hyperlink hosted a presentation by the senior administration of TEN Ltd. (NYSE: TNP) on Thursday, January 12, 2023. Through the 45-minute session, Dr. Nikolas P. Tsakos, Founder, President & CEO, Paul Durham, CFO, George Saroglou, Chief Working Officer and Harrys Kosmatos, Company Growth Officer, described the sturdy tanker market, the present state of the corporate’s fleet, and its dividend coverage as a part of Capital Hyperlink’s Firm Presentation Sequence.

A replay of the complete session of the presentation and the in depth Q&A may be accessed at:
https://www.youtube.com/watch?v=yZKsCkb4Y6M

Highlights from TEN Ltd. session on the Capital Hyperlink Presentation Sequence embody the next:

TEN Ltd. is likely one of the largest and most well-established impartial vitality transporters on the earth. With a various fleet of 73 fashionable vessels, together with each crude oil and oil-product in addition to LNG transportation. This consists of 7 newbuilds. TEN Ltd maintains a buyer base consisting of main international vitality corporations.

TEN’s Fleet
Dr. Nikolas P. Tsakos, CEO, confused that TEN is targeted on capitalizing not solely on durations when the market is powerful, but in addition when it lags. He acknowledged that the corporate’s present technique consists of chartering its vessels within the spot market, for brief time period durations, when the market may be very sturdy.

The corporate has “taken benefit of the tough occasions” to order its first 4 inexperienced, dual-fuel ships, Dr. Tsakos stated, with the order backed by very long time charters from one of many firm’s most important purchasers.

When it comes to chartering, 40 of TEN’s 66 vessels on the water, or 61%, have market publicity, or a mix of spot and time constitution, together with revenue sharing.

A complete of 44 of 66 vessels on the water, or 67%, are in safe income contracts, or mounted time charters and time charters with revenue sharing. “Because of this TEN is capturing the optimistic tanker market fundamentals that prevail right now, George Saroglou, COO, acknowledged.

“We’ve got a easy working mannequin—we attempt to have our time constitution vessels generate income to cowl the corporate’s money wants, the vessel working bills, finance bills, overheads, chartering prices and commissions,” defined George Saroglou.

“We let the income from spot score vessels opportunistically contribute to the profitability of the corporate,” he continued.

George Saroglou confused the corporate’s dedication to maintaining working prices low and utilization charges excessive. At the moment, TEN’s fleet utilization sits at practically 94%. This determine is kind of excessive, contemplating that quite a few dry dockings for ship surveys which have taken place.

The corporate can also be anticipating a complete of six newbuilds to be delivered from 3Q23 till 2Q25. Of those new vessels, 4 might be dual-fuel LNG, and “signify the corporate’s entrance into inexperienced transport,” Saroglou stated.

TEN has historically been lively within the S&P market specializing in fleet renewal. “We’re trying to promote 7 or 8 of our older technology ships,” Dr. Tsakos acknowledged. “That will give us a really large capital achieve and enhance for the yr 2023.”

Posed to Cut back Debt at “Accelerated Tempo”
“Primarily based on the optimistic quarterly outcomes via the previous yr, it’s clear that the annual numbers might be sturdy,” Paul Durham, CFO acknowledged of 2022.

Within the nine-month interval of 2022, the corporate’s web revenue amounted to over $100 million. This development has resulted in more healthy money reserves for the corporate, which have grown by over $200 million in comparison with the earlier yr. This might assist the corporate to scale back excellent debt “at an accelerated tempo,” Durham acknowledged. “Already, previously six years, excellent debt has fallen by about $500 million…and it continues to shrink” he famous. “We nonetheless count on our income to develop into 2023 because the market continues to stay agency,” he stated.

When requested in regards to the firm’s dividend coverage, Tsakos highlighted that TEN has “by no means stopped paying a dividend, even in very, very tough occasions when the corporate may “legitimately” put a cease on such funds as a few of its friends did. When occasions are good, our coverage has at all times been to distribute between 25 and 50% of our web revenue, relying on capital wants on the time, and I believe we is not going to change that coverage,” he continued. The corporate is just not taking a look at this stage, to purchase again shares. As a substitute, Dr. Tsakos stated, a desire can be for dividend will increase.

Market Situations Bullish Attributable to Favorable Provide, Demand Situations
The present market is “very favorable” for tanker house owners on each the provision and demand facet, Harrys Kosmatos, Company Growth Officer, stated expressing his confidence, notably when it comes to demand. “International oil demand has recovered” within the wake of the pandemic, and has even exceeded pre-pandemic ranges, Harrys Kosmatos identified. China’s reopening will doubtless propel this demand even additional, he famous, because the nation may develop into, as soon as once more, a “main oil importer”.

Kosmatos argued that Russia’s invasion of the Ukraine has created “a brand new and probably lasting development” in oil markets, particularly the creation of recent buying and selling patterns and the elongation of transport routes on account of Europe’s ban on Russian oil imports. Attributable to these laws, Europe now has to import oil from additional distances, notably the US, West Africa, and the Arabian Gulf. “The short-term voyages from Russia have been changed by longer haul trades and the rising ‘new’ Russian trades, notably to India and China because it reopens, are carried out by older vessels, acquired by “non-western” entities, that up till just lately competed within the worldwide business area with everyone else,” Kosmatos famous. This sample, which successfully removes provide from the “western” markets, is a development that TEN expects “may final for the foreseeable future,” he continued.

Moreover, the sector is dealing with one of many lowest orderbooks in latest reminiscence, below 4%, whereas practically 10% of the present international fleet is over 20 years outdated, and 24% over 15 years outdated. “Consequently, we could possibly be confronted with a scenario the place some segments within the tanker market may expertise detrimental development. Detrimental development towards an rising international oil demand…ought to translate to a sustainable sturdy market surroundings.” Kosmatos asserted.

CAPITAL LINK – DISCLAIMER
Capital Hyperlink is internet hosting a collection of on-line Company Shows, whereby the Senior Administration groups of main listed maritime corporations current their enterprise growth, technique, development prospects, and general sector outlook. The shows are roughly 45 minutes and encompass an organization presentation adopted by reside Q&A between firm administration and webinar individuals. All shows within the collection may be accessed at https://webinars.capitallink.com/2023/company_presentation/.

The webinars, together with those talked about above, are strictly for informational and academic functions and shouldn’t be relied upon. They don’t represent a proposal to purchase or promote securities or funding recommendation or recommendation of any sort. The views expressed should not these of Capital Hyperlink which bears no accountability for them.

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