Tsakos Energy Navigation, an owner of more than 50 tankers and three LNG carriers on the water, saw business slow down in the three months to September.
Net income dropped at an annual pace of 39% in the third quarter to $31.2m, according to an earnings release on Thursday.
This was the Nikolas Tsakos-led company’s lowest profit reading in six quarters.
Management said it was nevertheless pleased with the performance in the third quarter, which it described as a “traditionally cyclical low of the year”.
Things are already looking up in the run-up to winter, with “stronger-than-usual” rates in the spot and long-term charter markets, according to chief operating officer George Saroglou.
“We … have already begun to take advantage of the strong rates,” he said.
Helped by robust profitability earlier in the year, net income between January and September was still at a comfortable $268m, up 160% year on year.
That performance, however, was flattered by $81.2m in gains from the sale of eight older MR and handysize product tankers.
As tanker values remain elevated, the company said on Tuesday that it will keep looking for opportunities to offload ageing ships.
“As interest in older tonnage is on the increase, TEN will actively continue to divest some of its first-generation vessels,” the earnings statement said.
TEN is replacing these ships with a gradual intake of newbuildings. It took delivery of two LNG dual-fuel aframaxes in September and October and began employment immediately.
Between 2024 and early 2026, the company is set to take delivery of eight more newbuildings — from MRs to aframaxes, suezmaxes and DP2 shuttle tankers.
