Tsakos Energy Navigation Ltd · NYSE:TEN

Tsakos Energy Navigation — Q2 2015 Earnings Presentation

19 slides from Tsakos Energy Navigation's earnings presentation, Jul 31, 2015

  1. Slide 1: Q2 2015 Earnings Conference Call

    TEN Ltd Tsakos Energy Navigation July 31, 2015 Q2 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  65 vessels (pro forma) - excluding Shuttle NB option  Active fleet utilization in 6mo 2015 at 98.5%  50 in operation (incl. 2 x suezmax acquisitions)  49.8% of remaining 2015 and 39.7% of 2016 available  2 x VLCC under construction days in secured revenue (incl. Pools/CoAs)  9

  4. Slide 4: Q2 2015 Highlights

    Q2 2015 Highlights  Net income of $41.3 million or $0.45 per diluted share, compared to a $0.2 million in Q2 2014  Operating income of $49.2 million vs. $8.5 million in Q2 2014. An almost six fold increase  Healthy liquidity at June 30, 2015 of $288 million  Pro-forma fleet of 65 vessels, totali

  5. Slide 5: Fleet Composition – 65 vessels (pro-forma)

    Fleet Composition – 65 vessels (pro-forma) CRUDE TRADING PRODUCTS DP2/LNG 47 13 5 6.0m 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 2 NB 1 300,000 2016 Hyundai Samho DH 2 P

  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 Q2 Breakeven Rates vs. Spot Market 3 Tanker Rates Remain Strong… VLCC $10,230 Current Spot Rates 13 SUEZMAX $16,670 VLCC $68,406 17 AFRAMAX $17,935 Suezmax $35,149 3 AFRAMAX LR2 $19,325 Aframax $30,657 11 PANAMAX LR1 $14,350 Panamax $24,511 6 HANDYMAX MR $17,600 LR2 $50,694 7 HANDYSIZE MR $13,10

  9. Slide 9: Vessel Employment Details (as of July 31, 2015)

    Vessel Employment Details (as of July 31, 2015) 1 1 11 22 15 TC (Fixed) TC (P/S) CoA (Spot Related) Pool (Spot Related) Spot Secured Employment (28 vessels) Flexible Employment (35 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 669 tankers (210 of which MRs or 31%) vs. 729 vessels (252 of which MRs or 35%) in fleet over 15 years of age  48% of current tanker orderbook are product tankers 700 650 600 550 Number of Ships 500 450 400 350 300 250 200 150 100

  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 July) 2016 Pure Spo

  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 sale & purchase of modern tonnage  Acquisition of 2 x suezmaxes  Acquisition of 2 x VLCC resales  Sale of 1 x Suezmax  Sale of 1 x Handy  Sinc

  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 $10.115/share in dividends (incl. Dec. 2015 distribution) or $415 million in total, 35.0% higher over their original $7.50 IPO investment plus…. Stock Price (7/30/15)  A

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

    Attractive Valuation – Notable Discount to NAV Net Asset Value (July 2015) Analyst Coverage (July 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 Outperform 5. UBS Buy 6. Jefferies Bu

  16. Slide 16: Income Statement

    Income Statement Three months ended June 30 (unaudited) STATEMENT OF OPERATIONS DATA 2015 2014 Voyage revenues $ 154,020 $ 112,396 Voyage expenses 35,248 38,766 Vessel operating expenses 37,144 34,922 Depreciation and amortization 27,155 25,314 General and administrative expenses 5,302 4,914 Total e

  17. Slide 17: Balance Sheet

    Balance Sheet BALANCE SHEET DATA June 30 December 31 2015 2014 Cash 287,983 214,441 Other assets 163,675 96,548 Vessels, net 2,110,841 2,199,154 Advances for vessels under construction 263,759 188,954 Total assets $ 2,826,258 $ 2,699,097 Debt 1,404,425 1,418,336 Other liabilities 99,000 102,849 Stoc

  18. Slide 18: Other Financial / Fleet Data

    Other Financial / Fleet Data Three months ended OTHER FINANCIAL DATA June 30 2015 2014 Net cash from operating activities $ 42,105 $ 8,108 Net cash used in investing activities $ (32,794) $ (63,175) Net cash provided by financing activities $ 69,846 $ 88,463 TCE per ship per day $ 26,721 $ 17,163 Op

  19. Slide 19: Tsakos Energy Navigation, Ltd contact details

    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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