Must-know: An overview of Tsakos Energy Navigation (Part 6 of 7)
As of March 31, 2014, Tsakos (or TNP) recorded a cash balance of $203.9 million compared to $171.7 million as of December 31, 2013. Meanwhile, its net cash from financing activities has increased to $62.9 million from $6.6 million in the same quarter last year.
Despite the company’s net cash from financing activities increasing, indicating probable external financing, its net debt to capital has fallen compared to the same quarter last year. TNP has also maintained its consistent dividend levels.
TNP’s dividend payments have exceeded the company’s original initial public offering (or IPO) price of $7.50 per share. Currently, investors have a total of $9.825 per share in dividends—including May and August distributions. This is 31% higher than their original $7.50 IPO investment. This reflects the company’s ability to invest capital with attractive returns which is supported by the company’s strategy of investing in medium and long-term charters, and investing in the lower part of the shipping cycles. TNP skillfully manages its cash flow which generates higher returns for shareholders.
Recently, Tsakos’ Board of Directors announced its regular quarterly cash dividend of $0.50 per share for its 8% Series B Preferred Shares and $0.55469 per share for its 8.875% Series C Preferred Shares for the period April 30, 2014–June 29, 2014. Dividend is payable on July 30, 2014, to all holders of record of Series B Preferred Shares as of July 29, 2014, and of Series C Preferred Shares as of July 25, 2014.
Overall, Tsakos has an effective management to maintain its cash balance, dividend payments, and net debt to capital level. With investment at low-cycle levels there’s no definite way that TNP would lose significant money.
The company has peers like DHT Holdings Inc. (DHT), Teekay Tankers Ltd. (TNK), Navios Maritime Acquisition (NNA), and Nordic American Tankers (NAT) while the Guggenheim Shipping ETF (SEA) tracks the shipping companies.
Finally, let’s learn about the leverage, liquidity levels, and valuations of TNP.
Browse this series on Market Realist:
- Part 1 - Overview: Tsakos Energy Navigation
- Part 2 - Must-know: Tsakos’ fleet structure and investments
- Part 3 - Why the chartering strategy supports growth and dividend
- Investment & Company Information