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TEN Ltd Reports Increased Profits for First Quarter 2019

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200% Y-o-Y Improvement in Net Income

$1.2 Billion in Minimum Contracted Revenues over 2.2 years Average TC Duration

Expanded Strategic Relationship with a State Oil Producer for Two Panamax Tankers Adds $31 million in Minimum Gross Revenues

ATHENS, Greece, June 06, 2019 (GLOBE NEWSWIRE) -- TEN, Ltd (TEN) (TNP) (the “Company”) today reported results (unaudited) for the quarter ended March 31, 2019.

Q1 2019 Summary Results
Following the strong fourth quarter of 2018, TEN continues to enjoy positive results in the first quarter of 2019 with a net income of $11.2 million as a result of improved rate conditions, following the healthy market recovery experienced at the end of 2018.

Gross revenues totaled $147.0 million, 17.0% higher than in the 2018 first quarter due to improved rates, full employment at 97% and the positioning of suezmax and aframax tankers in the spot market that generated an additional $18.4 million in revenue over that achieved, by the same vessels, in the first quarter of 2018.

As market conditions improved, profit share arrangements were activated and generated a further $4.3 million in revenue. In addition, the two LNG carriers produced almost $3.0 million more in revenues compared to the first quarter of 2018 due to the significant rise in their long-term employment rates.

TEN’s fleet averaged $21,054 per day in time charter equivalent earnings compared to $17,771 per day in the first quarter of 2018, an 18.5% increase.

During the first quarter of 2019, 73% of the fleet was employed on secured revenue contracts, again generating enough cash to cover operating expenses, charter-in costs, overhead and finance expenses for all the vessels in the fleet.

Operating Income was at $27.8 million, five times greater than in the 2018 first quarter and EBITDA (Earnings before interest, taxes, depreciation and amortization) was $64.1 million, nearly 53% higher over the same period.

Overall, vessel expenses fell significantly by $4.2 million, a 9% drop, while daily operating expenses per vessel also fell by 7% to $7,522, due to savings on stores and repairs, in line with the Company’s proactive management practices, as well as the strengthening of the US dollar. G&A costs also experienced a reduction by 6%.

Interest and finance costs were reduced by 2% to $17.6 million from the 2018 first quarter. Although global interest rates have increased over the preceding twelve months, the average outstanding debt over that period has fallen by $150 million, keeping overall loan interest at similar levels from the 2018 first quarter.

Total cash balances amounted to $192 million with net debt to capital at March 31, 2019 at a healthy 47.9%. TEN is servicing its debt impeccably while sustaining a healthy dividend.

Dividend – Common Shares
Following the $0.05 per share dividend paid on May 30, 2019, the Company’s Board of Directors approved the reintroduction of semi-annual dividend payments to be made on the second and fourth quarter of each calendar year. The Company’s existing dividend payout policy will remain unchanged.

Corporate Strategy & Outlook
TEN’s employment strategy aims to outperform the market at high and low cycles. In 2018, the Company’s average time-charter revenues exceeded the spot market by 40% and in the first quarter of 2019 already by 5%. At the same time, immense attention is being paid in maintaining costs under control with a further 9% decrease of operating expenses in the first quarter of 2019.

Debt reduction remains on the forefront of TEN’s priorities. Compared to the first quarter of 2018, total debt has been reduced by $150 million, equivalent to $2 per share value creation.

TEN is in the final stages of its 19-vessel growth program undertaken at competitive levels during the low levels of the cycle. Of 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 four vessels, all fully financed and chartered to major oil concerns for a minimum of five years, will complete the Company’s current expansion and secure revenues going forward.

Concurrently with the above, our strong balance sheet allows management to explore further accretive opportunities in the LNG and Shuttle tanker sector.

The market prospects going forward due to the declining orderbook and IMO 2020 disruptions, places TEN in an ideal position to take advantage of the positive environment that is shaping up.

“With cash flow generation clearly better compared to the 2018 first quarter and market dynamics shaping favorably, TEN’s ability to capture the expected market upside remains strong,” Mr. George Saroglou, COO of TEN commented. “TEN’s employment strategy resulting to almost full fleet utilization coupled with the second phase of our fully financed fully employed organic growth, allow us to remain confident for the future and to continue rewarding our shareholders with attractive dividends,” Mr. Saroglou concluded.

TEN’s Growth Program

#

Name

Type

Delivery

Built

Financed

Employment

1

HN5033

Aframax

Oct. 2019

South Korea

Yes

Yes

2

HN5036

Aframax

2020

South Korea

Yes

Yes

3

HN8041

Suezmax

2020

South Korea

Yes

Yes

4

HN8042

Suezmax

2020

South Korea

Yes

Yes

Conference Call:
As previously announced, today, Thursday, June 6, 2019 at 09:00 a.m. Eastern Time, TEN will host a conference call to review the results as well as management's outlook for the business. The call, which will be hosted by TEN's senior management, may contain information beyond that which is included in the earnings press release.

Conference Call details:
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 877 55 39962 (US Toll Free Dial In), 0808 2380 669 (UK Toll Free Dial In) or +44 (0)2071 928592 (Standard International Dial In). Please quote "Tsakos" to the operator.

A telephonic replay of the conference call will be available until Thursday June 13, 2019 by dialing 1 866 331 1332 (US Toll Free Dial In), 0808 2380 667 (UK Toll Free Dial In) or +44 (0)3333 00 9785 (Standard International Dial In). Access Code: 90295809#

Simultaneous Slides and Audio Webcast:
There will also be a simultaneous live, and then archived, slides webcast of the conference call, available through TEN's website (www.tenn.gr). The slides webcast will also provide details related to fleet composition and deployment and other related company information. This presentation will be available on the Company's corporate website reception page at www.tenn.gr. Participants for the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

ABOUT TSAKOS ENERGY NAVIGATION
TEN, founded in 1993 and celebrating this year 26 years as a public company, is one of the first and most established public shipping companies in the world. TEN’s diversified energy fleet currently consists of 68 double-hull vessels, including two aframax and two suezmax tankers under construction, constituting a mix of crude tankers, product tankers and LNG carriers, totaling 7.5 million dwt. Of the proforma fleet today, 48 vessels trade in crude, 15 in products, three are shuttle tankers and two are LNG carriers.

Company
Tsakos Energy Navigation Ltd.
George Saroglou, COO
+30210 94 07 710
gsaroglou@tenn.gr

Investor Relations / Media
Capital Link, Inc.
Nicolas Bornozis
Markella Kara
+212 661 7566
ten@capitallink.com



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 (unaudited)

STATEMENT OF OPERATIONS DATA

2019

2018

Voyage revenues

$

147,046

$

125,725

Voyage expenses

31,566

27,276

Charter hire expense

2,669

2,678

Vessel operating expenses

43,324

47,535

Depreciation and amortization

35,285

35,811

General and administrative expenses

6,436

6,831

Total expenses

119,280

120,131

Operating income

27,766

5,594

Interest and finance costs, net

(17,593

)

(17,945

)

Interest income

774

321

Other, net

(29

)

(335

)

Total other expenses, net

(16,848

)

(17,959

)

Net income (loss)

10,918

(12,365

)

Less: Net loss attributable to the noncontrolling interest

311

450

Net income (loss) attributable to Tsakos Energy Navigation Limited

$

11,229

$

(11,915

)

Effect of preferred dividends

(10,204

)

(6,642

)

Net income (loss) attributable to common stockholders of Tsakos Energy Navigation Limited

$

1,025

$

(18,557

)

Income (Loss) per share, basic and diluted

$

0.01

$

(0.21

)

Weighted average number of common shares, basic and diluted

87,604,645

86,324,241

BALANCE SHEET DATA

March 31

December 31

2019

2018

Cash

191,754

220,526

Other assets

165,152

138,924

Vessels, net

2,797,040

2,829,447

Advances for vessels under construction

36,782

16,161

Total assets

$

3,190,728

$

3,205,058

Debt, net of deferred finance costs

1,559,696

1,595,601

Other liabilities

131,573

102,680

Stockholders' equity

1,499,459

1,506,777

Total liabilities and stockholders' equity

$

3,190,728

$

3,205,058

Three months ended

OTHER FINANCIAL DATA

March 31

2019

2018

Net cash from operating activities

$

39,238

$

24,582

Net cash used in investing activities

$

(20,830

)

$

(441

)

Net cash used in financing activities

$

(47,179

)

$

(48,538

)

TCE per ship per day

$

21,054

$

17,771

Operating expenses per ship per day

$

7,522

$

8,126

Vessel overhead costs per ship per day

$

1,117

$

1,168

8,639

9,294

FLEET DATA

Average number of vessels during period

64.0

65.0

Number of vessels at end of period

64.0

65.0

Average age of fleet at end of period

Years

8.5

8.0

Dwt at end of period (in thousands)

6,936

7,237

Time charter employment - fixed rate

Days

2,393

2,407

Time charter employment - variable rate

Days

1,674

1,732

Period employment (coa) at market rates

Days

180

354

Spot voyage employment at market rates

Days

1,328

1,131

Total operating days

5,575

5,624

Total available days

5,760

5,850

Utilization

96.8

%

96.1

%

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 Company’s 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 less 90 days lost as a result of calculating revenue on a loading to discharge basis for the first quarter of 2019 and 84 days for the first quarter of 2018.

(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 Management incentive award.

Non-GAAP financial measures should be viewed in addition to and not as an alternative for, the Company’s reported results prepared in accordance with GAAP.

The Company does not incur corporation tax.