Tsakos Energy Navigation Ltd · NYSE:TEN

Tsakos Energy Navigation — Q1 2015 Earnings Presentation

19 slides from Tsakos Energy Navigation's earnings presentation, May 22, 2015

  1. Slide 1: Q1 2015 Earnings Conference Call

    TEN Ltd Tsakos Energy Navigation May 22, 2015 Q1 2015 Earnings Conference Call

  2. Slide 2: Forward-looking statements

    This presentation may contain forward-looking statements that are not based on historical fact, including without limitation, statements containing the words “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions. Because these forward-looking statemen

  3. Slide 3: Corporate Facts

    Corporate Facts  63 vessels (pro forma) - excluding Shuttle NB option  Active fleet utilization in Q1 2015 at 99.3%  50 in operation  9 x Aframax crude carriers under  43% of 2015 and 31% of 2016 available days in secured construction (w/employment) revenue contracts (including CoAs / Pools) 

  4. Slide 4: Q1 2015 Highlights

    Q1 2015 Highlights  Net income of $37.3 million or $0.42 per diluted share, compared to a $14.6 million for Q1 2014. A 156% increase  Operating income of $45.7 million vs. $24.5 million for Q1 2014. An 87% increase  Healthy liquidity as of May 2015 of around $290 million  Pro-forma fleet of 63 v

  5. Slide 5: Fleet Composition – 63 vessels (pro-forma)

    Fleet Composition – 63 vessels (pro-forma) CRUDE TRADING PRODUCTS DP2/LNG 44 14 5 5.3m dwt 0.6m dwt 0.7m dwt VLCC Suezmax Aframax Aframax LR Panamax Handymax Handysize DP2 Shuttle LNG One World Trade 1,100 900 850 850 750 615’ 570’ 900 750 1,775 300,000dwt 160,000dwt 100,000dwt 100,000dwt 74

  6. Slide 6: Modern & Diversified Fleet – 73% of 2015 Days in Market Indexed Contracts

    Modern & Diversified Fleet – 73% of 2015 Days in Market Indexed Contracts CRUDE TANKERS Dwt Built Yard Hull Ice Class/Other COATED TANKERS Dwt Built Yard Hull Ice Class/Other VLCC AFRAMAX - LR2 1 Millennium 301,171 1998 HHI DH 1 Proteas 117,055 2006 HHI DH 1A SUEZMAX 2 Promitheas 117,055 2006 HHI DH

  7. Slide 7: Long-Term Strategic Alliances

    Long-Term Strategic Alliances 2014 Top Customers (in alphabetical order) 1. BG 2. BP 3. CHEVRON 4. EXXONMOBIL 5. FLOPEC 78% 6. HMM 7. LITASCO 8. PETROBRAS 9. SHELL 10. STATOIL Long-term, blue-chip, recurring customer base consisting of major global energy companies Transporter of Choice for Major Oi

  8. Slide 8: Tanker Rates Remain Strong…

    Low Q1 Breakeven Rates vs. Spot Market 1 Tanker Rates Remain Strong… VLCC $10,725 Current Spot Rates 12 SUEZMAX $16,540 VLCC $81,211 17 AFRAMAX $17,353 Suezmax $57,589 3 AFRAMAX LR2 $18,545 Aframax $42,804 11 PANAMAX LR1 $14,985 Panamax $20,508 6 HANDYMAX MR $15,846 LR2 $28,831 8 HANDYSIZE MR $11,54

  9. Slide 9: Vessel Employment Details (as of May 22, 2015)

    Vessel Employment Details (as of May 22, 2015) 2 1 10 20 17 TC (Fixed) TC (P/S) CoA (Spot Related) Pool (Spot Related) Spot Secured Employment (30 vessels) Flexible Employment (33 vessels) 9

  10. Slide 10: Positive Market Outlook

    Positive Market Outlook BARRELS OF OIL PER CAPITA PER ANNUM (Source: BP Statistical Review of World Energy June 2014  Strong potential of China and India with a combined population of 2.5 billion in a world of 7.0 billion. Their per capita oil consumption is at 25 22 extremely low levels and have a

  11. Slide 11: Tankers over 15 years old vs. Delivery Schedule

    Tankers over 15 years old vs. Delivery Schedule  Total Orderbook of 682 tankers (250 of which MRs or 37%) vs. 685 vessels (245 of which MRs or 36%) in fleet over 15 years of age  54% of tanker orderbook are product tankers 700 650 600 550 500 Number of Ships 450 400 350 300 250 200 150 100 50 0 Cu

  12. Slide 12: Secured Revenues and Solid Spot Exposure

    Secured Revenues (TC, TCPS, COA, POOL) and Solid Spot Exposure Based on employable dates and includes vessels under time charter, time charter with profit share (only minimum rate) and Pool/CoAs (Subject to deliveries and potential changes in TEN’s chartering policy ) 2015 (as of May) 2016 Pure Spot

  13. Slide 13: Sale & Purchase Activity – Capital Gains

    Sale & Purchase Activity – Capital Gains  Sale & Purchase activity integral to operations – Close to 100 transactions - realizing actual value  Timely acquisitions of modern tonnage  Since 2003 TEN has generated capital gains from its sale & purchase activity close to $280 million  $25 million a

  14. Slide 14: Continuous Dividend Payments

    Continuous Dividend Payments  Dividend payments far in excess of original IPO price of $7.50/share  Today investors have gotten $10.06/share in dividends (incl. Sep. 2015 distribution) or $410 million in total, 34.1% higher over their original $7.50 IPO investment plus…. Stock Price (5/21/15)  Ab

  15. Slide 15: Attractive Valuation – Notable Discount to NAV

    Attractive Valuation – Notable Discount to NAV Net Asset Value (May 2015) Analyst Coverage (May 2015): NAV (Fair Value): $11.35/share 1. Morgan Stanley Overweight NAV (Book Value): $12.05/share 2. JP Morgan Overweight 3. Wells Fargo Outperform 4. Credit Suisse Neutral 5. UBS Buy 6. Jefferies Buy 7.

  16. Slide 16: Income Statement

    Income Statement Three months ended March 31 (unaudited) STATEMENT OF OPERATIONS DATA 2015 2014 Voyage revenues $ 148,867 $ 130,288 Voyage expenses 34,550 39,008 Vessel operating expenses 35,979 36,500 Depreciation and amortization 26,088 24,855 General and administrative expenses 6,554 5,427 Total

  17. Slide 17: Balance Sheet

    Balance Sheet BALANCE SHEET DATA March 31 December 31 2015 2014 Cash 209,827 214,441 Other assets 101,377 96,548 Vessels, net 2,175,516 2,199,154 Advances for vessels under construction 231,793 188,954 Total assets $ 2,718,513 $ 2,699,097 Debt 1,409,363 1,418,336 Other liabilities 103,593 102,849 St

  18. Slide 18: Other Financial / Fleet Data

    Other Financial / Fleet Data Three months ended OTHER FINANCIAL DATA March 31 2015 2014 Net cash from operating activities $ 55,443 $ 18,763 Net cash used in investing activities $ (43,855) $ (47,614) Net cash (used in)/provided by financing activities $ (13,925) $ 62,945 TCE per ship per day $ 25,5

  19. Slide 19: Tsakos Energy Navigation, Ltd

    TSAKOS ENERGY NAVIGATION, LTD For more information please contact: Paul Durham: Chief Financial Officer pdurham@tenn.gr George Saroglou: Chief Operating Officer gsaroglou@tenn.gr Harrys Kosmatos: Corporate Development Officer hkosmatos@tenn.gr Tsakos Energy Navigation, Ltd 367 Syngrou Avenue Athens

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