Tsakos Energy Navigation Ltd · NYSE:TEN
Tsakos Energy Navigation — Investor Presentation (April 2019)
20 slides from Tsakos Energy Navigation's investor presentation, April 2019
Slide 1: TEN Ltd
TEN Ltd Established 1993 April 2019
Slide 2: 68 Vessels - Diversified Tanker Fleet
68 Vessels - Diversified Tanker Fleet CRUDE TRADING PRODUCTS DP2/LNG 50 13 5 6.2m 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 74,000d
Slide 3: Our Company at a Glance
Our Company at a Glance Established Brand Value Industrial breadth Publicly listed since 1993 63% of fleet in contracts with upside potential (spot related Young Fleet – 8.4yrs av. age and re-charters in 2019) Owner of choice for world’s oil Blue-chip clients majors Secured LT revenues
Slide 4: Operational Highlights
Operational Highlights
Slide 5: Successful Countercyclical Growth
Successful Countercyclical Growth 1 yr VLCC TC Rates $192m 1993-1996 $100,000 $105m $85m $28m $90,000 $130m + $65m $80,000 $125m $50m $70,000 $115m Jul. 15 Fleet from 4 vessels in 1993 $60,000 $50m (start of Company – $150m May. 04 Oct. 10 Oslo Stock Exchange) to $50,000 Jan/Apr. 14 12 in 1996 Mar.
Slide 6: Well-Balanced Fleet – Emphasis on Secured Contracts
Well-Balanced Fleet – Emphasis on Secured Contracts CRUDE TANKERS COATED TANKERS Dwt Built Yard Hull Ice Class/Other Dwt Built Yard Hull Ice Class/Other VLCC 1 Hercules 300,000 2017 South Korean DH 37 Proteas 117,055 2006 South Korean DH 1A LR2 2 Ulysses 300,000 2016 South Korean DH 38 Promitheas 11
Slide 7: 65% of Fleet with Upside Potential (Spot, P/S & Re-charters)
65% of Fleet with Upside Potential (Spot, P/S & Re-charters) 2019 Open for Upside Potential Re-charter N N B B N N B B N N B B N N B B N N B B N B N B N N B B N N B B N N B B N B Av. TC Employment 2.3 years => $1.2 Billion in Minimum Secured Revenues 33 Secured Contracts 2 COA 18 Profit Share Contra
Slide 8: Industrial Model - Strategic Alliances – Repeat Business
Industrial Model - Strategic Alliances – Repeat Business Top 10 Customers (in alphabetical order) 1. BP 2. CHEVRON 3. EQUINOR (ex-Statoil) 4. FLOPEC 72% of Rev. 5. HMM 6. HYUNDAI GLOVIS 7. KOCH 8. LUKOIL 9. PETROBRAS 10. SHELL Long-Term, Blue-Chip, Customer Base Consisting of Major Global Energy Com
Slide 9: Low 2018 B/E Rates - Secured Contracts – Expense Coverage
Low 2018 B/E Rates*- Secured Contracts – Expense Coverage *Breakeven rates after Operating Expenses, G&A, Interest and Depreciation 2 VLCC $450,000,000 $26,438 Spot 11(1) SUEZMAX $400,000,000 $19,371 17(2) AFRAMAX $350,000,000 $18,683 AFRAMAX $300,000,000 3 LR2 $19,946 11 PANAMAX $250,000,000 LR1 $1
Slide 10: Financial Highlights
Financial Highlights
Slide 11: Solid Performance - Stellar Banking Record
Solid Performance - Stellar Banking Record (1)(2) Excludes non-cash items (impairment charges and gains/losses on vessel sales) $14.0m per month Reduction in Total Debt for 2019 Low Cost Operator - Lowest G&A vs. Peer Group Average 10
Slide 12: Healthy Dividend Payments Through Market Cycles
Healthy Dividend Payments Through Market Cycles TEN has always paid a dividend irrespective of market cycles; $10.81 per share in total dividends since NYSE listing in 2002 Long-term nature of Company’s employment policy to known industrial concerns provides cash flow sustainability and visibili
Slide 13: Attractive Valuation – Upside Potential
Attractive Valuation – Upside Potential All-Time High (12/07/2007): $38.90 Analyst Coverage 1. Morgan Stanley Equal weight 2. JP Morgan Overweight All-Time Low (12/27/2018): $2.63 3. Wells Fargo Market Perform 4. Jefferies Buy 5. Stifel Buy 6. Seaport Global Buy Av. Analyst Target Price: $4.36 7. Be
Slide 14: Positive Market Fundamentals
Positive Market Fundamentals
Slide 15: Demand Strong – Positive L/T Outlook
Demand Strong – Positive L/T Outlook Strong potential of China and India with a combined population BARRELS OF OIL PER CAPITA PER ANNUM (Source: BP Statistical Review of World Energy June 2018) of 2.5 billion in a world of 7.0 billion. Their per capita oil consumption is at extremely low levels an
Slide 16: Low Tanker Orderbook vs. Fleet Over 15 Years Old
Low Tanker Orderbook vs. Fleet Over 15 Years Old Total Orderbook of 445 tankers to join the fleet over the next three years vs. 980 vessels in fleet over 15 years of age that are expected to depart the competitive fleet in the same timeframe (This does NOT include 1,418 vessels in the 10-14 year a
Slide 17: Tanker Scrapping High…Could Increase More Due to IMO 2020
Tanker Scrapping High…Could Increase More Due to IMO 2020 Scrapping levels, in terms of dwt, at 10yr highs 178 vessels (>10,000dwt) of 20.8 million total dwt scrapped in 2018 compared to 102 vessels and 40 vessels of 9.4 and 2.5 million dwt for 2017 and 2016 respectively 16 Source: Clarkson Rese
Slide 18: Favorable Market Prospects
Favorable Market Prospects 17
Slide 19: WHY TEN
WHY TEN: 1 One Of The Most Established International Tanker Companies In The World 2 Public Since 1993 (NYSE Since 2002) 3 Tried and Tested in All Shipping Cycles - Owner of Choice to Oil Majors Upside Potential + $1.2bil in Min. Secured Revenues + Extra Profits 4 Through Profit Share 5 Solid Balanc
Slide 20: Company Contact
Company 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 Av. , Athens 175 64, Greece Tel: +30210 940 7710, Fax: +30210
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