Tsakos Energy Navigation, a US-listed owner of about 70 vessels on the water or under construction, raised its dividend by 50% after reporting yet another profitable quarter on Wednesday.
It will pay a dividend of $0.90 per share for the second half of the year, up from $0.60 per share in the first half.
Chief operating officer George Saroglou said: “We are pleased to report another profitable quarter, which, despite being impacted by various repositioning voyages and three dry-dockings, allowed TEN to reward its shareholders with a [2024] dividend payment 50% higher than the one paid for 2023 operations.”
The stock closed at $22.97 per share in New York trading on Tuesday, down from a multi-year high of $31.48 in June.
This gives it a market value of $678m, which compares poorly with the $2.93bn net value of its fleet as of the end of June.
The company increased its dividend payment after announcing net income of $76m for the second quarter, up 26% from the same period of 2023.
This year’s result included $32m in capital gains stemming from the lucrative sale of some of its older vessels.
This is the 10th consecutive quarter in which TEN is in the black.
The $300.2m profit that it clocked up in 2023 was the highest ever in its 30 years as a listed company — first in Oslo and since 2002 in New York.
Asked by analysts in a conference call later on Wednesday if he was planning any share buybacks alongside dividend increases, chief executive Nikolas Tsakos said that at this stage of his company’s development, he prefers the latter.
“We’d rather pay our shareholders to stay rather then send them home with a cheque,” he said.
TEN’s fleet consists of 60 tankers and two LNG vessels on the water, as well as 12 tankers under construction due for delivery between 2025 and 2028.
Its latest order for five LR1 ships due in 2027 and 2028, unveiled in June, cost about $350m in total, Tsakos said.
Since the beginning of 2023, TEN has contracted or acquired 21 newbuildings and modern secondhand tankers.
It has funded part of this expansion drive by offloading older vessels. The Greek owner has raised about $400m from 13 ship sales since early 2023 — 12 tankers and one LNG carrier.
It disclosed on Wednesday that during the summer it triggered options to buy back a pair of 18-year-old suezmax sister ships already in its fleet — the 163,200-dwt Alaska and Archangel (both built 2006).
TEN said the termination of this leasing arrangement generated about $5m in forward hire savings.
