UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of June, 2017
Commission File Number 001-31236
TSAKOS ENERGY NAVIGATION LIMITED
(Translation of registrants name into English)
367 Syngrou Avenue, 175 64 P. Faliro, Athens, Greece
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
TSAKOS ENERGY NAVIGATION LIMITED
FORM 6-K
This report on Form 6-K is hereby incorporated by reference into the following Registration Statements of the Company:
| Registration Statement on Form F-3 (No. 333-206852) initially filed with the SEC on September 9, 2015; |
| Registration Statement on Form F-3 (No. 333-196839) initially filed with the SEC on June 17, 2014, as amended; |
| Registration Statement on Form F-3 (No. 333-184042) initially filed with the SEC on September 21, 2012, as amended; |
| Registration Statement on Form F-3 (No. 333-159218) initially filed with the SEC on May 13, 2009; |
| Registration Statement on Form F-3 (No. 333-111615) filed with the SEC on December 30, 2003; |
| Registration Statement on Form S-8 (No. 333-183007) initially filed with the SEC on August 2, 2012, as amended; |
| Registration Statement on Form S-8 (No. 333-134306) initially filed with the SEC on May 19, 2006, as amended; |
| Registration Statement on Form S-8 (No. 333-104062) filed with the SEC on March 27, 2003; and |
| Registration Statement on Form S-8 (No. 333-102860) filed with the SEC on January 31, 2003. |
EXHIBIT INDEX
99.1 | Earnings Release, dated May 12, 2017, for the three month period ended March 31, 2017, and related table |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: June 2, 2017
TSAKOS ENERGY NAVIGATION LIMITED | ||
By: | /s/ Paul Durham | |
Paul Durham | ||
Chief Financial Officer |
Exhibit 99.1
TSAKOS ENERGY NAVIGATION LIMITED (TEN) 367 Syngrou Avenue, 175 64 P. Faliro, Hellas Tel: 30210 94 07 710-3, Fax: 30210 94 07 716, e-mail: ten@tenn.gr Website: http://www.tenn.gr | ||
Press Release
May 12, 2017
TEN LTD REPORTS FIRST QUARTER 2017 PROFITS AND DECLARES DIVIDEND
$17.5 million net income for Q1 2017 or $0.16 earnings per share
77% of Fleet on Long-Term Employment
$1.4 billion in minimum contracted future revenues
RECENT HIGHLIGHTS
| Net income of $17.5 million or $0.16 per share. |
| EBITDA of $61.6 million. |
| 77% of total fleet on long-term charters with minimum revenues of $1.4 billion and average charter employment of 2.5 years. |
| Maintaining outstanding fleet utilization at 97.2%. |
| 4% reduction in vessel daily operating expenses. |
| All 15 newbuildings on long-term contracts. Twelve vessels already delivered, three in the next three quarters. |
| Pro-forma fleet of 65 vessels, totaling 7.2 million dwt, consisting of 45 tankers that trade in the crude space, three shuttle tankers, 15 tankers carrying products and two LNG vessels. |
| Uninterrupted dividend distributions since inception. New dividend of $0.05 per common share declared for payment on July 14, 2017. |
Athens, Greece May 12, 2017-TEN, Ltd (TEN) (NYSE: TNP) (the Company) today reported results (unaudited) for the quarter ended March 31, 2017.
Q1 2017 Summary Results
Revenues, net of voyage expenses totaled $108.2 million, approximately $8.5 million more than in the first quarter of 2016, in part due to the delivery of new vessels.
Net income in the first quarter 2017 was $17.5 million, or $0.16 per share, net of preferred dividends.
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Fleet utilization of 97.2% contributed to higher revenue. TEN has maintained a 95% plus utilization consistently. A remarkable accomplishment in a cyclical industry.
Since the beginning of 2017, TEN has taken delivery of four vessels, namely the VLCC Hercules I in January, the aframax crude carriers Marathon TS and Sola TS in February and April respectively, and its third shuttle tanker, the DP2 Lisboa in March, which started its time-charter in May, 2017.
Depreciation and dry-docking amortization costs increased by $6.1 million due to the introduction of new vessels into the fleet. No vessels were disposed of during the period, although there remains an expectation to sell certain older, for TENs standards, vessels during the course of the year.
Average daily operating costs per vessel decreased by 4% to $7,584 from $7,890 in the first quarter of 2016, mainly as a result of cost effective operations by our affiliated technical managers.
TENs daily average overhead expense per vessel was reduced by 5% to $1,139. G&A fell 12% from the first quarter 2016, mainly due to reduced promotional and miscellaneous expenses.
Interest and finance costs totaled $11.9 million, an increase over the first quarter of 2016 mainly due to reduced capitalized interest upon the completion of new vessels, increased indebtedness due to those new vessels and increases in the LIBOR rate, offset partly by gains on interest rate swaps.
Cash balances amounted to $160.1 million as of March 31, 2017. TENs balance sheet has been further strengthened with $115.0 million gross proceeds from an offering of preferred shares which closed in April.
Net debt to capital at March 31, 2017 was 54%. Earnings before interest, depreciation and amortization (EBITDA) in the first quarter of 2017 amounted to $61.6 million. All vessels generated a positive EBITDA, except for two vessels undergoing dry-docking in the period.
TEN posted another profitable quarter in a challenging market environment. This is the best proof of managements performance in executing a clearly defined strategy that takes into account the numerous and very complex parameters at play. Prudence and early preemptive action, together with ever increasing efficiency in managing costs, allows TEN to produce steady sustainable earnings and best in class results, Mr. Takis Arapoglou, Chairman of the Board stated. This has been a steady pattern throughout the 24 years since TENs inception, allowing it to navigate effectively and efficiently through all business cycles, to consistently reward its shareholders, while adhering to strict corporate governance guidelines and adapting to evolving regulatory environments. Today, TEN has a fleet of 65 modern vessels, covering the whole spectrum from conventional crude and product tankers to higher value added DP shuttle tankers and LNG carriers. This unique fleet profile reflects TENs strategy to offer one platform serving all the needs of its prestigious client base. This new industrial model ensures stability, sustainable earnings and continued value creation for the shareholders, Mr. Arapoglou concluded.
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Dividend Common Shares
The Company will pay a dividend of $0.05 per common share on July 14, 2017 to shareholders of record as of July 11, 2017. Inclusive of this payment, TEN will have distributed a total of $10.51 per share in uninterrupted dividends to its common shareholders since the Companys listing on the NYSE in March 2002.
Strategy & Outlook
As expected, oil barrels from Nigeria, Libya, Iran and the rejuvenation of the US shale industry is filling the void the OPEC (and non-OPEC) cuts have created in the markets. As a result, oil prices continue to remain at attractive levels to stimulate global demand and by extension seaborne tanker trade. With oil prices at attractive levels and a low orderbook environment, we expect a long term upward momentum in freight rates. TEN, with the majority of the fleet in secured and flexible contracts and a notable presence in the spot market, would be a prime beneficiary of this expected uplift.
In line with the programmed deliveries, in January 2017 the VLCC Hercules I was delivered from Hyundai Heavy Industries in South Korea and was subsequently chartered for a period of up to 18 months. In February and April 2017, the aframax tankers Marathon TS and Sola TS were delivered from Daewoo Mangalia Heavy Industries, the fifth and sixth in a series of nine aframaxes built against long-term contracts. In March 2017, the Company took delivery of its third DP2 shuttle tanker Lisboa from Sungdong Shipbuilding in South Korea. The vessel was built against an eight year contract, with an option to extend to eleven years. In addition, the Company recently initiated a strategic partnership with a major US oil company starting with the chartering of three suezmaxes and one VLCC.
TENs 15-vessel newbuilding program is nearing completion with the final three aframax tankers expected to be delivered in the coming months. In the second half of the year, with all vessels delivered and 77% of the fleet on full utilization contracts, TENs industrial shipping strategy will be at full throttle.
ABOUT TSAKOS ENERGY NAVIGATION
TEN, founded in 1993, is one of the first and most established public shipping companies in the world today. TENs pro-forma fleet, including three Aframax tankers under construction, consists of 65 double-hull vessels, constituting a mix of crude tankers, product tankers and LNG carriers, totalling 7.2 million dwt. Of these, 45 vessels trade in crude, 15 in products, three are shuttle tankers and two are LNG carriers.
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COMPANYS GROWTH TIME-TABLE
# |
Vessel Name |
Type |
Dwt |
Delivery |
Status |
LT Contracts | ||||||
1 | Ulysses | VLCC | 300,000 | May 2016 | Delivered | Yes | ||||||
2 | Elias Tsakos | Aframax | 112,700 | June 2016 | Delivered | Yes | ||||||
3 | Thomas Zafiras | Aframax | 112,700 | Aug 2016 | Delivered | Yes | ||||||
4 | Leontios H | Aframax | 112,700 | Oct 2016 | Delivered | Yes | ||||||
5 | Parthenon TS | Aframax | 112,700 | Nov 2016 | Delivered | Yes | ||||||
6 | Sunray | Panamax LR1 | 74,200 | Aug 2016 | Delivered | Yes | ||||||
7 | Sunrise | Panamax LR1 | 74,200 | Sep 2016 | Delivered | Yes | ||||||
8 | Maria Energy | LNG | 93,616 | Oct 2016 | Delivered | Yes | ||||||
9 | Hercules I | VLCC | 300,000 | Jan 2017 | Delivered | Yes | ||||||
10 | Marathon TS | Aframax | 112,700 | Feb 2017 | Delivered | Yes | ||||||
11 | Lisboa | DP2 Shuttle | 157,000 | Mar 2017 | Delivered | Yes | ||||||
12 | Sola TS | Aframax | 112,700 | Apr 2017 | Delivered | Yes | ||||||
13 | Oslo TS | Aframax | 112,700 | Q2 2017 | TBD | Yes | ||||||
14 | Stavanger TS | Aframax | 112,700 | Q3 2017 | TBD | Yes | ||||||
15 | Bergen TS | Aframax | 112,700 | Q4 2017 | TBD | Yes |
LT: Long-Term
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TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
Selected Consolidated Financial and Other Data
(In Thousands of U.S. Dollars, except share, per share and fleet data)
Three months ended March 31, 2017 (Unaudited) |
||||
STATEMENT OF OPERATIONS DATA |
||||
Voyage revenues |
$ | 138,242 | ||
|
|
|||
Voyage expenses |
30,083 | |||
Vessel operating expenses |
40,011 | |||
Depreciation and amortization |
32,291 | |||
General and administrative expenses |
6,110 | |||
|
|
|||
Total expenses |
108,495 | |||
|
|
|||
Operating income |
29,747 | |||
|
|
|||
Interest and finance costs, net |
(11,864 | ) | ||
Interest income |
118 | |||
Other, net |
(145 | ) | ||
|
|
|||
Total other expenses, net |
(11,891 | ) | ||
|
|
|||
Net Income |
17,856 | |||
Less: Net income attributable to the noncontrolling interest |
(377 | ) | ||
|
|
|||
Net Income attributable to Tsakos Energy Navigation Limited |
$ | 17,479 | ||
|
|
|||
Effect of preferred dividends |
(3,969 | ) | ||
Net income attributable to common stockholders of Tsakos Energy |
||||
Navigation Limited |
$ | 13,510 | ||
Earnings per share, basic and diluted |
$ | 0.16 | ||
|
|
|||
Weighted average number of common shares, basic and diluted |
83,966,533 | |||
|
|
March 31 2017 |
||||
BALANCE SHEET DATA |
||||
Cash |
160,140 | |||
Other assets |
188,325 | |||
Vessels, net |
2,909,409 | |||
Advances for vessels under construction |
100,222 | |||
|
|
|||
Total assets |
$ | 3,358,096 | ||
|
|
|||
Debt, net of deferred finance costs |
1,810,317 | |||
Other liabilities |
120,963 | |||
Stockholders equity |
1,426,816 | |||
|
|
|||
Total liabilities and stockholders equity |
$ | 3,358,096 | ||
|
|
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Three months ended March 31 2017 |
||||||||
OTHER FINANCIAL DATA |
||||||||
Net cash from operating activities |
$ | 54,454 | ||||||
Net cash used in investing activities |
$ | (146,636 | ) | |||||
Net cash provided by financing activities |
$ | 50,616 | ||||||
TCE per ship per day |
$ | 20,917 | ||||||
Operating expenses per ship per day |
$ | 7,584 | ||||||
Vessel overhead costs per ship per day |
$ | 1,139 | ||||||
|
|
|||||||
8,723 | ||||||||
FLEET DATA |
||||||||
Average number of vessels during period |
59.6 | |||||||
Number of vessels at end of period |
61.0 | |||||||
Average age of fleet at end of period |
Years | 7.5 | ||||||
Dwt at end of period (in thousands) |
6,216 | |||||||
Time charter employment - fixed rate |
Days | 2,055 | ||||||
Time charter employment - variable rate |
Days | 1,340 | ||||||
Period employment (pool and coa) at market rates |
Days | 268 | ||||||
Spot voyage employment at market rates |
Days | 1,551 | ||||||
|
|
|||||||
Total operating days |
5,214 | |||||||
Total available days |
5,364 | |||||||
Utilization |
97.2 | % |
The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP measures used within the financial community may provide users of this financial information additional meaningful comparisons between current results and results in prior operating periods as well as comparisons between the performance of Shipping Companies. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Companys performance. We are using the following Non-GAAP measures:
(i) TCE which represents voyage revenues less voyage expenses divided by the number of operating days.
(ii) Vessel overhead costs are General & Administrative expenses, which also include Management fees, Stock compensation expense and Management incentive award.
(iii) Operating expenses per ship per day which exclude Management fees, General & Administrative expenses, Stock compensation expense and Non-GAAP financial measures should be viewed in addition to and not as an alternative for, the Companys reported results prepared in accordance with GAAP.
The Company does not incur corporation tax.
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Non-GAAP Measures
Reconciliation of Net Income to EBITDA
Three months ended March 31, 2017 |
||||
(Unaudited) | ||||
Net Income attributable to Tsakos Energy Navigation Limited |
17,479 | |||
Depreciation and amortization |
32,291 | |||
Interest Expense |
11,864 | |||
|
|
|||
EBITDA |
$ | 61,634 | ||
|
|