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Edited Transcript of TNP earnings conference call or presentation 6-Sep-19 12:30pm GMT

Q2 2019 Tsakos Energy Navigation Ltd Earnings Call

Athens Oct 3, 2019 (Thomson StreetEvents) -- Edited Transcript of Tsakos Energy Navigation Ltd earnings conference call or presentation Friday, September 6, 2019 at 12:30:00pm GMT

TEXT version of Transcript

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Corporate Participants

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* Efstratios-Georgios A. Arapoglou

Tsakos Energy Navigation Limited - Independent Chairman of the Board

* George V. Saroglou

Tsakos Energy Navigation Limited - COO & Executive Director

* Nikolas P. Tsakos

Tsakos Energy Navigation Limited - Founder, CEO, President & Executive Director

* Paul Durham

Tsakos Energy Navigation Limited - CFO & CAO

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Conference Call Participants

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* Christopher Warren Robertson

Jefferies LLC, Research Division - Equity Associate

* J. Mintzmyer

Value Investor's Edge - Lead Researcher

* Nicolas Bornozis

Capital Link, Inc. - President

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Presentation

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Operator [1]

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Thank you for standing by, ladies and gentlemen, and welcome to Tsakos Energy Navigation conference call on the second quarter 2019 financial results. We have with us Mr. Takis Arapoglou, Chairman of the Board; Mr. Nikolas Tsakos, President and CEO; Mr. Paul Durham, Chief Financial Officer; and Mr. George Saroglou, Chief Operating Officer of the company. (Operator Instructions) I must advise you that this conference is being recorded today.

And now I pass the floor to Mr. Nicolas Bornozis, President of Capital Link, Investor Relation Adviser of Tsakos Energy Navigation. Please go ahead, sir.

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Nicolas Bornozis, Capital Link, Inc. - President [2]

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Thank you very much, and good morning to all of our participants. I am Nicolas Bornozis of Capital Link, Investor Relations Adviser to Tsakos Energy Navigation.

This morning, the company publicly released its financial results for the second quarter and 6-month period of 2019. In case we do not have a copy of today's earnings release, please call us at (212) 661-7566 or email us at ten@capitallink.com and we will have a copy for you e-mailed right away.

Please note that parallel to today's conference call, there is also a live audio and slide webcast which can be accessed on the company's website on the front page at www.tenn.gr. The conference call will follow the presentation slides, so please, we urge you to access the presentation slides on the company's website. Please note that the slides of the webcast presentation will be available and archived on the website of the company after the conference call. Also, please note that the slides of the webcast presentation are user-controlled. And that means that by clicking on the proper button, you can move to the next or to the previous slide on your own.

At this time, I would like to read the safe harbor statement. This conference call and slide presentation of the webcast contain certain forward-looking statements within the meaning of the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties which may affect TEN's business prospects and results of operations. Such risks are more fully disclosed in TEN's filings with the Securities and Exchange Commission.

And now I will turn the floor over to Mr. Takis Arapoglou, the Chairman of the Board of Tsakos Energy Navigation. Mr. Arapoglou, please go ahead, sir.

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Efstratios-Georgios A. Arapoglou, Tsakos Energy Navigation Limited - Independent Chairman of the Board [3]

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Thank you, Nicolas. Good morning, everyone. Thank you for joining our call today.

I would say very positive performance, 1 of perhaps only 2 positive performances in the sector, if I'm not mistaken, with over 40% increase in EBITDA year-on-year to $120 million. At the same time, TEN reduced debt by $140 million, repaid a $50 million pref, continued pay dividends of all kinds and maintained a very healthy cash position while continuously improving operational excellence.

TEN continues to invest in growing the fleet in a measured way, as per our stated strategy, both in the conventional tanker sector as well as in LNG, the latter being in the core of our strategy going forward as we've said many times.

On behalf of the Board of TEN, once again, congratulations to Nikolas Tsakos and the team, not only for the results but also for positioning the company so well for an upturn in the market as expected so thanks again, Niko, and over to you.

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Nikolas P. Tsakos, Tsakos Energy Navigation Limited - Founder, CEO, President & Executive Director [4]

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Thank you, Chairman. We are glad that we are able to maintain our profitability in a challenging environment. I think we're very glad that our -- as you kindly said, I think TEN is consistently one of the very few companies in our peer group that maintains profitability regardless of the cycles.

We are looking at an environment that -- it's promising, and we are preparing the company with that in mind. However, we continue to maintain our policy of chartering our vessels and building vessels against long-term, accretive employments that ensure a very strong utilization. We are at 97% utilization in a challenging market for the first 6 months, and this has not changed even in last year when the market was even poorer than is today.

The future looks promising. A lot of disruptions are -- will be happening in the next couple of quarters, and seasonality will help. Already, the futures market also indicates that we're going to be seeing a much healthier 2020 and the remaining 2019.

As we speak today, we are -- we have 32 of our vessels on fixed employments. 20% -- 20 of our vessels in fixed and profit-sharing arrangements, including contracts of affreightment; and 16 vessels in the spot market. I think this mix has enabled us, for the first 6 months, to outperform the market by about 10% on the 6-monthly basis, but even stronger in the last quarter where the market was weaker, about 38%. And this gives us the confidence that when the market will be growing and going further, the company will be able to profit and increase the bottom line even further, which hopefully at some stage, will have to be reflected on our share price.

What we are doing right now? We are in the final -- concluding a very large -- one of the largest newbuilding programs with first-class, long-term employment on every single vessel that any tanker company had. We have already taken delivery of 16 vessels.

We have reduced debt by more than $0.25 billion in the last 18 months, which means that the company flows a lot of cash flow to maintain repaying a very -- a dividend and also reducing our debt. And allows us income for -- and allows us a liquidity for growth.

In the last month, we have, as we stated before, increased our exposure of the LNG sector. And again, talking about state-of-the-art vessels with long-term employments.

So we are positioning the company in a situation ready to take advantage of the market that we expect to be much stronger in the second half of the year and 2020. And I think with this, I will ask Mr. Saroglou to give us a much more detailed analysis of where we've been in the last 6 months.

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George V. Saroglou, Tsakos Energy Navigation Limited - COO & Executive Director [5]

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Thank you very much, Nikos, and good morning to you all. We are very pleased to report a profitable second quarter and first 6 months of 2019 operations as a result of a better freight market environment that started during the fourth quarter of 2018.

As we said, we are one of the very few companies in the peer group, if not the only one, that reported profitable operations in the first 6 months of the year. The recovery in both the tanker and LNG markets helped the company to recharter the 2 LNG vessels in the fleet at much higher accretive rates, above the average all-in breakeven for both vessels. We continue to charter and recharter 13 vessels so far since the start of the year, taking advantage of the appetite by oil majors and the company's clients to fix vessels forward.

Last 3 year, the company built 20 vessels, including the 1 option 1 LNG order we announced today against long-term industrial business. TEN is in the final stages of this 19-vessel growth program undertaken at competitive levels during the lower levels of the previous cycle. So these 15 ships have been successfully delivered, financed and employed on long-term, accretive charters to first-class end users. Within this year and 2020, the remaining 4 vessels are fully financed and chartered to an oil major concerned for a minimum of 5 years, will complete the company's current expansion and secure revenues going forward.

On the LNG newbuilding front, we ordered 1 option 1 170,000 -- 174,000 cubic meter vessel for delivery in 2021. With this order, the company's LNG pro forma fleet rises to 4 vessels. We expect for this -- including the option, we expect for this vessel to follow the same employment path as of the other 2 vessels and be employed on time charter with major international natural gas and trading companies. Already, we -- discussions have started to be in place. And we hope and expect to announce, as time progresses, similar charters like the ones that we have on our other 2 LNG vessels.

During the first half of the year, we had -- we concluded a deal with a major end user for 4 vessels, and we have expanded a strategic relationship with a national -- or for national oil concern by selling them 2 vessels.

Moving to the online presentation, in Slide 3. We see the company's versatile and modern fleet spanning across all vessel types and sizes in crude product tankers and specialized categories like LNG and shuttle tanker. Thanks to the company's employment strategy that has a bias towards medium- to long-term time charters with a combination of fixed rates, profit sharing and min/max rate, TEN is able to outperform the average spot market indices.

Slide 4. The left side presents the all-in breakeven costs for the various vessel types that we operate in the company. As you can see, the cost base is low. In addition to the low shipbuilding cost, we must highlight the purchasing power of TCM and the continuous cost control efforts by management to maintain a low OpEx for the fleet. In the first half of the year, OpEx is down 3%. Low general and administrative expenses while keeping a very high fleet utilization quarter after quarter, again, almost 97% for both the second quarter and the first half of the year, which we believe qualifies as full as -- employment.

TEN's flexible chattering strategy ensures that most of the time, the company outperforms the spot market. And this helps the company maintain an impeccable debt service record and meet all our obligation irrespective of where we are in the market cycle. Thanks to the profit-sharing element, that's a big portion of the fleet, TEN benefits further when market conditions improve further, as we expect the market to do going forward. Based on the current conditions and the number of vessels operating in the spot market and in time charter with profit sharing, for every $1,000 increase in spot market rates, we have a positive $0.06 impact on annual EPS.

Debt reduction is an integral part of the company's strategy. Debt fixed at around $1.7 billion at the end of 2017. And in the last 18 months, we have reduced the company's debt by $221 million, taking down the net debt-to-capital ratio at the end of the second quarter of 2019 at below 50%. At the end of July, the company fully redeemed the highly successful $50 million Series B preferred shares.

Despite the headwind from the U.S./China trade war and its potential spillover effect to the rest of the world, global oil demand continues to grow. The latest forecast from the International Energy Agency calls for 1.1 million barrels per day oil demand growth this year and 1.3 million next year. The USA is now the biggest crude oil producer and U.S. crude oil exports continue to grow. This, combined with geopolitical tensions, supply disruptions, the U.S.-led sanctions against Venezuela and Iran and OPEC production cuts are positive for tonne miles and global fleet utilization as substitute barrels travel longer distances to reach importers, refiners and consumers.

We had a longer than usual refinery maintenance season in the first half of 2019 as global refineries were preparing for IMO 2020 low purpose fuel oil switch. However, global refinery throughputs are picking up and expected to require another, on average, 1 million barrels per day of more crude oil than they did in the first half of the year.

On the supplier front, the order book is at 7.7%, and this is a low number compared to historical level. A big part of the fleet is over 15 years. And environmental regulations, starting with retrofitting water ballast treatment systems and scrubbers to comply with IMO 2020, create delays as scrubber retrofitting takes longer than initially forecasted. While shipyard works at full capacity to meet retrofitting requirements, which could keep longer a big part of the global fleet in shipyards rather than trading. And this could push more tankers approaching or above 20 years to go for scrapping. Last year was one of the highest scrapping years of records. This year, scrapping, as expected, is slower. But with more than 1,000 tankers older than 15 years and forced environmental regulations, we could see a pickup in scrapping, especially for those vessels approaching for above 20 years.

The graph on the right side of the slide is a forecast from Fearnleys, a well-known ship broker from Norway. As you can see, VLCC rates are expected to trend higher and reach multiyear highs going forward. We are also very positive about the market prospects and expect a strong market for all vessel categories. This environment, we believe that the company's fleet is well positioned to capture any market opportunity that will be presented.

That concludes the operational part of our presentation. Paul will walk you through the financial highlights for the second quarter and first half. Paul?

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Paul Durham, Tsakos Energy Navigation Limited - CFO & CAO [6]

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Thank you, George. Well, after a profitable quarter 1, TEN continued on a profitable path in quarter 2 despite difficulties arising from refinery disruption; fleet overcapacity; OPEC cost -- cuts; and of course, seasonal factors. Nevertheless, TEN was able to generate a net income of $300,000, a considerably better result from that loss of over $9 million in the prior quarter 2.

For the half year, there was net income of $11.5 million compared to $21.5 million loss in the first 6 months of 2018, a $33 million positive reversal. The profit was mainly due to an increased revenue by 16% in quarter 2 and the half year over the prior periods, partly due to new accretive time charters, including those of the LNG carriers. Increased long-haul voyages helped our spot vessels to earn freight at an average 30% more than in the prior quarter 2. Daily TCE per vessel in quarter 2 and 6 months averaged over $20,000, well above average market rates due to our time charters, but again, generated enough to pay operating overhead and finance cash costs.

Operating income increased fivefold from the prior quarter 2 to reach $19 million despite some increase in OpEx due to timing and higher maintenance and fares, offset by a stronger dollar. Otherwise, average daily OpEx per vessel stayed well under $8,000, while other expenses remained stable or fell from those of the prior quarter 2.

Finance costs were up by $6.5 million in quarter 2 mainly due to bunker hedge losses and negative noncash movements in valuations. However, loan interest remained stable, with interest rate increases being offset by a substantial $142 million reduction in outstanding debt in the past year. In quarter 2 itself, net debt was reduced by $52 million, leaving cash balances of $193 million at the end of the half year with our net debt-to-capital at 48%.

EBITDA in quarter 2 amounted to $56 million, 33% higher than in the prior quarter 2; and $120 million for the 6 months, a 43% increase. On top of the significant reduction in outstanding loans, we also redeemed the Series B preferred stock in July, with $50 million return to stockholders.

So all in all, we are pleased with the results of the first 6 months given the difficult market. And we remain optimistic for the rest of 2019 and beyond based on low inventories, completed refinery maintenance, high U.S. oil exports and reduced tanker deliveries, recognizing that we are approaching a period of probable disruption that may reduce the availability of tankers, but in turn, will have a positive effect on returns.

And now I'll hand the call back to Niko.

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Nikolas P. Tsakos, Tsakos Energy Navigation Limited - Founder, CEO, President & Executive Director [7]

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Thank you, Paul, for another quarter of positive, positive news. And we are, as I said, glad being one of the very few in our peer group, if not the only one that is positive this quarter and for the first 6 months. We are able to achieve this by tight control on the actual assets, maintaining operating expenses and utilization at very high rates. And our chartering strategy gives us the ability to outperform the spot market significantly.

This -- the first 6 months, we have a 36% outperformance of the spot market that has enabled the company to be profitable. Our VLCCs performed significantly better than the spot market in the first 6 months. The same with our Suezmaxes, Aframaxes, Panamaxes. In every single sector that we participate, we have to outperform the market significantly with a total average of 36% in that growth.

Also, a very important part of our business has to do with reducing debt. And I think as Mr. Saroglou said, George said, reducing debt and repaying our initial Series B preferred was one of the highlights of the first 6 months. And we're still realizing a very strong liquidity. But also, interest rate reduction is very positive for our business. Just to put it in perspective, every 1% reduction in interest rate is almost $15 million straight down to our bottom line, so that's a very significant number going forward.

On the growth side, our long-term strategic relationships are maintained. Our operational excellence is appreciated by the end users that would rather do business with companies with a long-term, solid profile like ourselves. Four vessels with a strategic relationship to a U.S. major oil company with very long employments starting this quarter and going -- well, I guess starting next or fourth quarter and 1 vessel every quarter foregoing. And of course, then the expansion in the LNG sector continues. And a lot of accretive business in the backlog as we speak, which gives us the very positive feeling that the market is expected to go from strength to strength, at least in the medium to near future.

And with this, I would like to open the floor for any questions that you may have.

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Questions and Answers

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Operator [1]

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(Operator Instructions) Our first question for today is from James Mintzmyer from Value Investors.

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J. Mintzmyer, Value Investor's Edge - Lead Researcher [2]

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Congratulations on the LNG order.

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Nikolas P. Tsakos, Tsakos Energy Navigation Limited - Founder, CEO, President & Executive Director [3]

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Thank you.

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J. Mintzmyer, Value Investor's Edge - Lead Researcher [4]

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Yes. So I'm looking at the timing of your installment payments for, you have 2 Aframaxes, 2 Suezmaxes and 1 option 1 LNG. Is that correct? And then also, what is the timing of those installments, both for the rest of 2019, 2020 and then 2021?

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Paul Durham, Tsakos Energy Navigation Limited - CFO & CAO [5]

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Well, to date, we paid for the 4 vessels. I think $25 million we've paid already out of our pocket. We expect to pay another $55 million from our pocket in the remainder of the year -- I beg your pardon, $5 million for the remainder of the year. And drawdowns we shall have from our banks, providing pre-financing -- pre-delivery financing. Drawdowns will amount to $45 million by the end of the year. And future drawdowns within the year, we have $26 million. And going into 2020, we have a further $122 million, and that's being provided by the delivery date.

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Nikolas P. Tsakos, Tsakos Energy Navigation Limited - Founder, CEO, President & Executive Director [6]

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So I think, actually, from equity, it's another $5 million for the rest.

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George V. Saroglou, Tsakos Energy Navigation Limited - COO & Executive Director [7]

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In addition to the $25 million already paid.

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Nikolas P. Tsakos, Tsakos Energy Navigation Limited - Founder, CEO, President & Executive Director [8]

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In addition to the $25 million already paid.

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J. Mintzmyer, Value Investor's Edge - Lead Researcher [9]

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Okay, so I'm hearing $5 million additional equity a year. And what's the amount you anticipate? I know all the financing's probably not wrapped up yet, especially for the LNG carriers, but what's the amount of equity that you anticipate spending in 2020 and then 2021 for those vessels?

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Nikolas P. Tsakos, Tsakos Energy Navigation Limited - Founder, CEO, President & Executive Director [10]

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I think that the only -- the finances wrap up for all the other vessels with a queue of financiers for the LNGs. So we expect perhaps another $40 million of equity within -- between 2020 and '21 for the LNG carrier.

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J. Mintzmyer, Value Investor's Edge - Lead Researcher [11]

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So what's the -- kind of wrapping up on that, what's the target leverage for those vessels? It sounds to me like it's in the 70%, 80% range. Is that about right?

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Nikolas P. Tsakos, Tsakos Energy Navigation Limited - Founder, CEO, President & Executive Director [12]

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We try to be conservative. As you know, we have a conservative balance sheet and we'd rather keep it closer to 70% rather than the 80%.

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J. Mintzmyer, Value Investor's Edge - Lead Researcher [13]

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Excellent. And then the other question I have similar is on your debt facilities. I know you've targeted refinancing the balloons, but you plan to pay down your regular amortization payments. Can you remind me what the remaining amortization payments are for the rest of 2019, also for 2020 and scheduled for '21?

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Nikolas P. Tsakos, Tsakos Energy Navigation Limited - Founder, CEO, President & Executive Director [14]

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We have the balance, Paul?

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Paul Durham, Tsakos Energy Navigation Limited - CFO & CAO [15]

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Right. Our scheduled repayments for the remainder of 2019 are $84 million. Going into 2020, we're going -- do you want to hear our future years as well? Okay. So for the remainder of this year, we have scheduled $84 million to pay.

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J. Mintzmyer, Value Investor's Edge - Lead Researcher [16]

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And then do you -- available for 2020 or 2021 yet?

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Paul Durham, Tsakos Energy Navigation Limited - CFO & CAO [17]

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So 2020, we have $166 million. And these are scheduled payment, not balloons. Going to 2021, we have $141 million. And if we're going into '22, we got another $128 million.

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J. Mintzmyer, Value Investor's Edge - Lead Researcher [18]

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Excellent. And then final question for me. We talked a little bit about scrubbers in the call and how those are adding some delays. I know previous calls, you mentioned that there might be some customers that would pay for the scrubbers as part of their charters. Has there been any deals made on that? Like, how many of your fleets are tied up on scrubbers?

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George V. Saroglou, Tsakos Energy Navigation Limited - COO & Executive Director [19]

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Well, as I said, we have -- or we will have about 8 vessels, including the newbuilds with the scrubbers, all of them paid by the charters in -- for the time that we will retrofit them and the cost.

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J. Mintzmyer, Value Investor's Edge - Lead Researcher [20]

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Fantastic. So no CapEx expected for the scrubbers, is that correct?

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Nikolas P. Tsakos, Tsakos Energy Navigation Limited - Founder, CEO, President & Executive Director [21]

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No CapEx at all. The opposite, we will be earning money sitting at the yard while this is happening. So actually, it will be more profitable because we will not have any oil consumption.

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Operator [22]

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(Operator Instructions) The next one is from Randy Giveans from Jefferies.

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Christopher Warren Robertson, Jefferies LLC, Research Division - Equity Associate [23]

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This is Chris Robertson on for Randy. So Nikolas mentioned operating expense control and the utilization rate that was strong in the quarter. So looks like you're able to achieve close to a 97% utilization rate. Do you expect similar results for the remainder of the year? And will any IMO 2020 preparation cut into that? Any disruptions there regarding the changeover in fuels?

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Nikolas P. Tsakos, Tsakos Energy Navigation Limited - Founder, CEO, President & Executive Director [24]

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Well, if you go back to -- I would say even to the last 5 or 10 years history, you'll see we average well about -- above the 95%. 85% is the industry average. So 97% we expect to be a very constant number. If you -- and as I said in the previous answer, the reason we will maintain this is because our -- the time we will be taking for the scrubber installations are going to be paid. So there will be no downtime, it will be paid by the charterers. So yes, we expect to maintain -- because of a little bit a chartering profile, we have to maintain the same high utilization going forward.

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Christopher Warren Robertson, Jefferies LLC, Research Division - Equity Associate [25]

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Got you. And can you talk a little bit about the operational plans to make the changeover in fuels?

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Nikolas P. Tsakos, Tsakos Energy Navigation Limited - Founder, CEO, President & Executive Director [26]

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Yes. And I have a big team that can say much more things than I do, but they are away from the speaker right now. Yes, I think we are preparing -- at least in the mid -- that we are preparing the ships during the passage in order of cleaning the tanks. And so we do not have any off-hire. If we have any scheduled delays, if we haven't scheduled the repairs, these repairs are going to be used at the same time to clean the tanks for the low sulfur. So we do not really expect any major delays in what we will be doing in the preparation. And having 70% of the fleet with long-term employment, it helps very, very, very much because we have the cooperation of the charterers because they are actually the owners of the products that we burn.

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Christopher Warren Robertson, Jefferies LLC, Research Division - Equity Associate [27]

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Got you. And then with regards to the reduction of the vessel OpEx, was that fairly low-hanging fruit? And what additional steps could the technical managers take in coming quarters to maybe drive that down further?

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Nikolas P. Tsakos, Tsakos Energy Navigation Limited - Founder, CEO, President & Executive Director [28]

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Well, I think for us, we are -- first of all, we are running a fleet at a utilization of 97%. And at the same time, we are -- we have, on average, the lowest, at least on the tanker owners, OpEx and G&A expenses in the industry. We have a vertical operation, so we actually -- whatever happens on a ship, it does not happen in India or somewhere else, it happens within the premises that we all operate where the company is headquartered. So we are able to have very quick reaction and on-hand control. And that's why we would like to also appreciate the efforts of our seafarers and our ship managers and -- that are cooperating so close with the commercial department to try and keep operating expenses even lower. And I think what will help a little bit more will be a stronger dollar, which we should not exclude.

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Christopher Warren Robertson, Jefferies LLC, Research Division - Equity Associate [29]

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Got you. And last question for me. Regarding the Aframax tankers. Are any of the crude tankers operating in the product tanker trade? What trade do you think will benefit more in the lead-up to IMO implementation? And any update on the lightering activity in the U.S. or Latin American markets with your Aframax tankers?

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Nikolas P. Tsakos, Tsakos Energy Navigation Limited - Founder, CEO, President & Executive Director [30]

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Well, yes, that's a very good question. And I think if we can go -- if you go to page of our fleet, you will see that we have, right now, the 3 of our vessels, which are the Proteas, Promitheas, Propontis, that are Aframaxes trading clean right now. And which is -- I would say it's a market which is getting a lot of positive news because of the different dislocations of high- and low-sulfur crudes. So we have 3 of those ships trading on the Aframaxes in the clean trade.

And it's a very good question, which -- we believe that initially perhaps, the product market might get an early start in the positive environment because of the dislocations of the various refinery -- the refineries. However, in order for refineries to produce the right product, they would have to find the right crudes. So I think the crude market then will follow also.

And I will give you very quick example, [looking at oil]. The U.S. refineries, because you are used to actually crack, heavier crudes are better preferred for producing low sulfur than, let's call them, the Western European refineries. So we might see product coming -- to come from the United States to Europe, the low-sulfur product. Then of course in order to -- and also, we might see lighter crudes. We also like lighter crudes that will have to be used to mix with the heavier crudes that we have, the Russian crudes, which are heavier. So the crude market will also take -- I think will have an advantage of longer tonne miles. So I think the whole segment will have a dislocation and disruption, but will be positive for supply.

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Operator [31]

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Thank you very much. Gentlemen, there are no further questions waiting. I'll hand the call back to you for closing remarks. Thank you.

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Nikolas P. Tsakos, Tsakos Energy Navigation Limited - Founder, CEO, President & Executive Director [32]

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Thank you. Chairman?

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Efstratios-Georgios A. Arapoglou, Tsakos Energy Navigation Limited - Independent Chairman of the Board [33]

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Well, as Nikos Tsakos said earlier, we remain optimistic going forward, totally focused on our strategy which has been paying off the way it has been executed. In October, we have our new strategy meeting. We will review as appropriate, and of course, let you know of any changes in the next results call.

So thank you very much from me. Over to you, Niko.

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Nikolas P. Tsakos, Tsakos Energy Navigation Limited - Founder, CEO, President & Executive Director [34]

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Well, thank you, Chairman. And I think looking forward to meet face-to-face with our shareholders in -- we have a big week in London next week with London Maritime Week. And I think Capital Link -- the Capital Link event with a lot of chance to see our European investors or whether from the United States, is in London. And then in October, we have the LNG Conference in Houston, which coincides with, again, with the various events -- Capital Link events in New York, where the team will be there.

And in the meantime, we hope to be able to maintain and be able to give you good news in November when we report our 9 months results and hopefully come up with even better, better results going forward. And again, thank you for your support, and looking forward to a healthy second half of the year. Thank you.

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Operator [35]

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Thank you very much. Ladies and gentlemen, that does conclude our conference for today. Thank you all for participating. You may now disconnect your lines.