Q4 2024 Tsakos Energy Navigation Ltd Earnings Call
Unknown Executive: Mr. Takis Arapoglu, Chairman of the Board, Mr. Nikolas Tsakos, Founder and CEO, Mr. Paul Durham, Chief Financial Officer, Mr. George Saroglou, President and Chief Operating Officer, and Mr. Harrys Kosmatos. CO CFO of At this time all participants are on a listen only mode.
Arab Lu Chairman of the board Mr. Nikolas, Tsakos, founder and CEO, Mr. Paul Durham, Chief Financial Officer, Mr. George <unk>, President and Chief operating Officer, and Mr. Harris Cosmopolis C O CFO of the company.
At this time all participants are in a listen only mode there'll be a presentation followed by a question and answer session at which time if you wish to ask a question. Please press star one on your telephone keypad and wait for your name to be announced I must advise that this conference is being recorded today.
Unknown Executive: There will be a presentation followed by a question and answer session, at which time if you wish to ask a question, please press star one on your telephone keypad and wait for your name to be called.
Unknown Executive: I must advise that this conference is being recorded.
Nicolas Bornozis: And now I'd like to pass the floor over to your host, Mr. Nikolas Bornozis, President of Capital Link and Investor Relations Advisor to Tsakos Energy Navigation. Please go ahead. Thank you very much and good morning to all of our participants.
Speaker Change: And now I'd like to pass the floor over to your host Mr. Nikolas prognosis President of capital Link Investor Relations advisor to Tsakos Energy navigation. Please go ahead.
Speaker Change: Thank you very much and good morning to all of our participants I'm Nicolas <unk> President of capital link in the Investor Relations advisor to Tsakos energy navigation.
Nicolas Bornozis: I'm Nikolas Bornozis, President of CapitaLink and Investor Relations Advisor to Tsakos Energy Navigation 210.
Nicolas Bornozis: This morning, the company publicly released its financial results for the 12 months and fourth quarter ended December 31st, 2024. In case we do not have a copy of today's earnings release, please call us at 212-661-7566 or email us at 10 at capitallink.com and we'll have a copy sent to you, emailed to you right away. Please note that parallel to today's conference call, there is also a live audio and slide webinar. 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.
Speaker Change: This morning, the company publicly released its financial results for the 12 months and fourth quarter ended December 31 2024.
Speaker Change: In case, we do not have a copy of today's earnings release, please call us at 2126617566 or email us at the capital link Dot Com and we will have a copy center U E mailed to you right away.
Speaker Change: 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 Dot G. E. M M Dot G or the conference call will follow the presentation slides. So please we urge you to access the presentation slides on the.
Speaker Change: The company's website.
Nicolas Bornozis: 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.
Speaker Change: 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 appropriate button you can move to the next or to the previous slide on your own.
Speaker Change: At this time I would like to read the Safe Harbor statement. This conference call and slide presentation of the webcast contains certain forward looking statements within the meaning of the safe Harbor provision of the private Securities Litigation Reform Act of 1995.
Nicolas Bornozis: At this time, I would like to read the Safe Harbor Statement. This conference call and slide presentation of the webcast contains 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 tense business prospects and results of operations.
Speaker Change: Investors are cautioned that such forward looking statements involve risks and uncertainties, which may affect ten's business prospects and results of operations. So before passing the floor to the chairman I would like to congratulate the company for the transformational milestone transaction to build nine shuttle tankers.
Nicolas Bornozis: So before passing the floor to the chairman, I would like to congratulate the company for the transformational milestone transaction to build nine shuttle tankers with secured 15 year employment. This transaction solidifies TEN's profitability and growth for many years ahead. And by the way, it also proves how TEN's prudent capital allocation has enabled the company not only to move fast to close this transaction, but also to finance the equity portion required at this stage with your own funds without stretching the company's balance.
Speaker Change: 15 year employment.
Speaker Change: This transaction solidifies tens profitability and growth for many years, okay and by the way. It also proves how tens prudent capital location has enabled the company not only to move fast to close the transaction, but also to finance the equity portion of required at this stage.
Speaker Change: Your own funds without stretching the company's balance sheet and now at this moment I would like to pass the floor to Mr. Tackett startup of law chairman of cycles energy navigation. Please go.
Takis Arapoglou: And now, at this moment, I would like to pass the floor to Mr. Takis Arapoglou, Chairman of Tsakos Energy Navigation. Please, Mr. Arapoglou, go ahead. Thank you. Thank you, Nikolas. Good morning and good afternoon to everyone. and thank you all for joining our call today for the fourth quarter 2024 and full year 2024 results. As you've seen, excellent results from a market that continues to demonstrate strong fundamentals. a record 21 vessel expansions that will result in a fleet of Proforma 82 vessels. and $4 billion of contracted fixed revenues. confirming the unique and robust industrial model of 10.
Speaker Change: Go ahead.
Tackett: Thank you thank you nikolas.
Speaker Change: Good morning, and good afternoon to everyone.
Speaker Change: And thank you all for joining our call today for the fourth quarter.
Speaker Change: 2024, and the full year.
Speaker Change: 2040 votes.
Speaker Change: As you have seen excellent results from a market that continues to demonstrate.
Speaker Change: Strong fundamentals.
Speaker Change: A record 21 vessel expansion.
Speaker Change: What are the results.
Speaker Change: So the pro forma two vessels.
Speaker Change: And 4 billion of contracted picture.
Speaker Change: Revenues Oh.
Speaker Change: Oh, sorry.
Speaker Change: Make them robust industrial model.
Speaker Change: The milestone.
Takis Arapoglou: The Milestone 9 DP-2 Shuttle Tanker deal was $1.3 billion with Transpetro. firmly establishes them among a very select group of leaders in the shuttle tanker business. and demonstrates once more. the commitment we have in servicing the needs of our customers. fully justifies our strategy of maintaining ample liquidity. And it also shows that it allows us to comfortably enter into such a creative, mega-sized transaction. The sale of one more of our oldest vessels generates, again, cash for the company and the S&P activity of 10 in this front will continue in order to maintain a young fleet and generate additional cash.
Speaker Change: Nine a DP two shuttle tanker deal worth.
Speaker Change: One $3 billion with travelers petrol.
Speaker Change: Firmly establishes then among a very select group of leaders in the shuttle tanker business and demonstrates once once more.
Speaker Change: The commitment we have in servicing the needs of our customers.
Speaker Change: Fully justifies our strategy of maintaining ample liquidity.
Speaker Change: And it's also shows but it allows us to comfortably and 32, such as Mega size transactions.
Speaker Change: The sale of a one on one more of our oldest vessels generate again cash for the company in the S&P excuse me he'll spend.
Speaker Change: In this front will continue in order to maintain a young fleet and generate additional cash.
Speaker Change: All of this.
Takis Arapoglou: All this I think confirms the textbook nature of tens management that allows it to continue paying dividends uninterruptedly. since inception, oblivious, I would say, to the cyclical nature of the Martian.
Speaker Change: I think confirms the textbook nature of expense management that allows it to continue paying dividend uninterrupted.
Speaker Change: Since inception oblique news I would say.
Speaker Change: The cyclical nature of the market.
Takis Arapoglou: So once again, congratulations to Nikos Tsakos and the team. for this excellent performance, which no doubt will continue. keeping them in the forefront of the energy transportation business going forward.
Speaker Change: So once again, congratulations to Nikolas tsakos and the team.
Speaker Change: For this excellent performance was which no doubt will continue.
Speaker Change: Do you intend in the forefront of the energy transportation business going forward.
Nikolas Tsakos: So thank you, and over to Nikolas Tsakos. Yes, good afternoon and good morning for everybody. Thank you for The recent period has been a milestone period, as you mentioned, for the company. It's one of those periods where we leap up to our next stage. And we've done that back in 2007. when we became the largest ice class operating fleet in the world. A few years later, in 2014, we became the largest operator for Equinor, one of the most prestigious and demanding end-users in the world. Last year we became the largest dual fuel vessel operator, just helping our greener side of moving our vessels and keeping our environmental footprint.
Speaker Change: So thank you and.
Niko Tsakos: Over to Niko Tsakos.
Speaker Change: Thanks.
Speaker Change: Yes.
Speaker Change: Good afternoon, and good morning to everybody. Thank you for.
Speaker Change: With words.
Speaker Change: The recent periods has been milestone figure that you mentioned for the company. It's one of those periods where we.
Speaker Change: We live up to our mixed states and we've done that back and to.
Speaker Change: 2007.
Speaker Change: When we became the largest the ice cluster.
Speaker Change: I think one of the world.
Speaker Change: A few years later.
Speaker Change: It was in 14, we became the largest about April.
Speaker Change: Oh for ethanol.
Speaker Change: The most prestigious.
Speaker Change: And demanding.
End users.
Speaker Change: The world.
Speaker Change: Last year, we became the largest the dual fuel.
Speaker Change: Vessel, operator, just helping out.
Speaker Change: Getting their side.
Speaker Change: Moving to our veterans and keeping up.
Speaker Change: Mental footprint.
Nikolas Tsakos: in line, and that was by the acquisition of a large fleet of modern dual fuel vessels. And the Brazilian transaction, as we call it big in Brazil, is a transaction that would stand in a mix then for sure the most modern view, the most modern. We have the shuttle tanker DT2 operator and it complements our existing fleet, which we started in 2012, with four vessels already in the water, three being delivered very early next month. So we have April, July and then in 2026, all the vessels are being built, I would say, in the most superior shuttle tanker South Korean yard.
Speaker Change: Yeah.
Speaker Change: In line and that was by the acquisition of a large fleet of modern dual.
Speaker Change: Fewer vessels.
Speaker Change: And in.
Speaker Change: The Brazilian transaction as we call it the big in Brazil is a transaction, but oh.
Speaker Change: Then.
Speaker Change: It makes them for.
Speaker Change: For sure the most modern view are the most modern.
Speaker Change: Yeah.
Speaker Change: Yeah, It's hospital.
Speaker Change: Operator.
Speaker Change: Operator.
Speaker Change: With.
Speaker Change: It complements our existing.
Speaker Change: So we started in 202012.
Speaker Change: With four vessels in the water being delivered.
Speaker Change: Yeah.
Speaker Change: And next month. So we have the April July and then in <unk>.
Speaker Change: The six all the vessels are being built I would say in the most superior southern Pangea South Korea on the yard.
Nikolas Tsakos: we had to compete with parties who had lower rates, more competitive rates than us, but they were building ships in other yards in the Far East, including China, where the expectation was not there. So our experience, our long-term commitment to the segment, our training center, which is the only one that produces seafarers, with accreditation from the Nautical Academy of the UK, has given us the chance to be successful. in achieving a positive result. Well, but in the meantime, we were still running business, always looking at extending with extended 21 new businesses with our major oil companies.
Speaker Change: We have to compete with Barclays.
Speaker Change: Had been cdos or lower rates more competitive rates.
Speaker Change: But they were bringing in.
Speaker Change: In the novel yards in the far east, including China, where the expertise was not good so our.
Speaker Change: Our experience.
Speaker Change: Our long term goal.
Speaker Change: Now to the segment a training center, which is the only one that produces seafarers and with a quotation from multiple academy.
Speaker Change: The UK and that has given us the terms are too.
Speaker Change: This successful.
Speaker Change: In assuming unfortunately very well.
Speaker Change: But in the meantime, we're we're still running the business are always looking at it.
Speaker Change: Extending was extended Wednesday, one a new businesses with a major oil companies.
Nikolas Tsakos: As you may know, about 70% of our business is held by the six or seven very prestigious end users. We try to avoid employing our ships to operators or traders. We do it sometimes on the spot market, but long term, we focus on the people who need to know and appreciate our service. Also, we have been active and will still be active in the S&P sensitive purchase market.
Speaker Change: You may know about 70% of our business is held by the six or seven.
Speaker Change: Everybody perceives and users, we try to avoid and blowing our chipset to operators.
Speaker Change: Oh traders, we do it sometimes from the spot market, but long term, we focus on the people who need to know and appreciate all of our services.
Speaker Change: I also have been active and we'll still be active in the.
Speaker Change: It's going to beep sensors, such as Margaret just yesterday, we delivered one of our 2009 you'd be foolish, whereas Max's are for the capital gain after so many years since 2009 and a pretty important.
Nikolas Tsakos: Just yesterday, we delivered one of our 2009 beautiful Swiss maxis for the capital gain after so many years, since 2009, and we're offering $30 million of cash. We're also in the market for two more similar transactions from now up to the end of the second quarter. So, in the meantime, we do not lose track of the day-to-day business. are very positive.
Speaker Change: $30 million of cash.
Speaker Change: We're also in the market.
Speaker Change: Two more similar transactions from now to then.
Speaker Change: The second quarter.
Speaker Change: The new <unk>.
Speaker Change: We do not lose track of the day to day business.
Speaker Change: And the fundamentals.
Speaker Change: Although unfortunately.
Nikolas Tsakos: We are a company that has perhaps right now the largest new building program from any work year group. A very specialized 21 vessel.
Speaker Change: We are a company that has perhaps right now the largest.
Speaker Change: We broke ground for many of our peer group.
Speaker Change: That is specialized 21 vessels.
Speaker Change: The program all of our programs.
Nikolas Tsakos: All of our program is financed and there's significant competition from banks to finance, so one thing I have to make clear, we've been always criticised for keeping enough cash but When transactions like this are there, we can achieve those transactions much better than any of our peer groups without really putting strain on our balance sheet or ever having to use to raise equity. So this mega transaction is fully financed by internal equity and in bank debt, which is competing at very attractive terms for our business. Still, I have to say I'm very proud about our team.
It's financed them, there's significant competition from banks too.
Speaker Change: To finance for one thing I have to make a clear we've been always criticized will keep enough cash but.
Speaker Change: When transactions like this out there we've got a seamless transaction she must be taken by many of our peers.
Speaker Change: Group without really putting a strain on our balance sheet or ever having disease.
Speaker Change: Raise equity sure.
Speaker Change: Mega transaction is 45 minutes.
Speaker Change: Definitely equity and in bank debt, which.
Speaker Change: With this competing.
Speaker Change: It's a very attractive terms.
Speaker Change: For our own business.
Speaker Change: Yeah.
Speaker Change: Wonderful.
Speaker Change: I have to say I'm very proud of the most of it has been a very.
Nikolas Tsakos: It has been a very international, global transaction that we were able to achieve.
Speaker Change: The international Global.
Speaker Change: Well, that's actually what I need.
Speaker Change: So let's see what we have stated.
Nikolas Tsakos: What we're still disappointed is that our share price is half of what it was a year ago when I was here in the United States. Our company was much smaller. Our company had much less prospects. Right now, with the 21 vessels, a 36% dynamic expansion. 82 vessels in the water very soon. And we have doubled our medium to long term receivables from 2 billion to 4 billion within the last two months with these transactions. Well, we hope, as the major shareholders here who know the value of our company, that very soon our share price will be where it should be.
Speaker Change: This appointment is.
Speaker Change: But our share price, it's half of what it was a year ago. When I was here in the United States.
Speaker Change: The company was much smaller companies have their much less prospects right now with the 21 vessels at 56.
Speaker Change: The same dynamic expansion.
Speaker Change: 82 vessels in the water very soon.
Speaker Change: We have doubled.
Speaker Change: Our medium to long term receivables from 2 billion to 4 billion within the last two months with these transactions.
Speaker Change: Well, we hope as the.
Speaker Change: A major shareholders here, who know the value of our company.
Speaker Change: As soon as oil price.
Speaker Change: It will be what it should be I mean, our book value.
Nikolas Tsakos: I mean, our book value is in excess of 3 billion dollars. However, for at least another 50 years.
Speaker Change: It's in excess of $3 billion.
Speaker Change: However.
Speaker Change: But including venue transactions.
Speaker Change: Our market value was even higher than that and I'll, let definitely that is one five.
Speaker Change: So if you divide this by certainly you can see that the cobalt them love them.
Speaker Change: Price will be should be closer to $50, then 16 or 17, but again, we know the value of our company and hopefully.
Speaker Change: Others will identify the use.
Speaker Change: Three years of continuous dividend as the chairman said.
Speaker Change: He's going to go for at least.
Speaker Change: Another physically and without the.
George Saroglou: And with that, I would ask Mr. Kosmatos or George to please give us Mr. Saroglou. Our President to give us his detailed report. Thank you. Thank you very much, Nikos. We are very pleased to report today another profitable quarter and profitable year. There is a slide presentation that we will try. following. We can look at it later on as well.
Speaker Change: I would ask.
Speaker Change: And this does cause Martha through George to give us.
Speaker Change: Hum.
Speaker Change: The president will give us a sense of the.
Speaker Change: Did they report thank you.
Speaker Change: Yeah.
Speaker Change: Thank you very much Nicolas.
Speaker Change: We're very pleased to report today and now here.
Speaker Change: During the quarter and profitable year.
Speaker Change: There is a slide presentation on that.
Speaker Change: Right.
Speaker Change: Okay. Okay.
Speaker Change: Well, let's go straight to slide number four which shows the growth of our company since inception in 1993 tenths of dogs.
George Saroglou: Let's go straight to slide number four, which shows the growth of the company since inception in 1993 in terms of deadweight tons. As you can see here, we have turned every major crisis the world has faced. Growth Opportunity for TEMP thanks to our operating model. have a counter cyclical approach in investing in fleet growth by raising equity when we need it. and not usually when our share price is at the top in order to fund growth projects. This is what slide 5 shows. It has served us very well so far. In blue you see the equity offerings in common shares since 1993.
Speaker Change: As you can see here, we have seven every major crisis, they want as fast and hard.
Speaker Change: Growth of alternative for them, thanks to our Oh Beth anything.
Speaker Change: Martin.
Speaker Change: We have and counter cyclical approach in investing in fleet growth by raising equity when we need it.
Speaker Change: There's usually at the bottom most of the tanker market.
Speaker Change: And not to you usually when our share price is at the top in order to fund growth projects.
Speaker Change: This is what slide five shows has shared with us.
Speaker Change: Very much so far.
Speaker Change: You see the equity offerings and common shares since 90 to 93.
Unknown Executive: Unknown Executive, Climent Molins, Nicolas Bornozis, Harrys Kosmatos, Anuwat Srikajornratkul, Tsakos Energy Navigation Navigation Since 2013, we have issued six series of preferred shares. and we have already redeemed, as we speak, four of them at par. The four that we have redeemed have a par value of approximately $225,000.
Speaker Change: In red the offerings.
Speaker Change: And preferred shares and as you can see since 2015, we have issued six series folks inside of chess.
Speaker Change: And we have already.
Speaker Change: As we speak for all of them at par.
Speaker Change: Uh huh.
Speaker Change: We haven't seen kind of a par value of approximately $225 million.
George Saroglou: We have announced today a major transaction in... Subtle Tanker Sector. And this is a milestone deal with Transpetro Petrobras in Brazil. We are building nine state-of-the-art DP-2 shuttle tankers that will complement the four that are already in operation, and three that we are building for a total performance shuttle fleet of 16 tankers. a landmark transaction that makes them one of the largest subtle tanker operators in the world today. and all 16 vessels are fixed on long employment to major energy companies including of course Trans-Petro-Energy. since in the last two years. January 1st of 2023. We have upgraded the quality of the fleet.
Speaker Change: We have announced today and major.
Speaker Change: Transaction and us.
Speaker Change: The tanker sector.
Speaker Change: And.
Speaker Change: This is a milestone deal with transparent how.
Speaker Change: Petrobras in Brazil.
Speaker Change: We are building nine state of the art two shuttle tankers that complements the four that are already in operation and three that we are building for the Tulsa pro forma shuttle fleet of 16 tankers.
Speaker Change: <unk> and landmark transaction that makes them one of the largest shuttle tanker operators in the world today.
Speaker Change: And on 16 vessels are fixed on long employments to major energy.
Speaker Change: Companies, including of course time, sometimes as Hell.
Speaker Change: Since the last few years since January 23, we have upgraded the quality of the fleet.
George Saroglou: by divesting from our first generation conventional tanker. replacing them with more energy-efficient new buildings and modern second-hand tanks. including dual fuel vessels and we are very proud. have today, one of the largest, being one of the largest owners of fuel fuel energy powered Aframax tankers. Slide 6 lists the conventional pro-forma fleet, divided between crew and product tankers, spread in a row. from large VLCCs to the smaller handy-sized tanks. We have nine new buildings that we expect to take delivery from the second quarter of this year until the third quarter of 2028. You can see various colors in this slide.
Speaker Change: By divesting from our first generation conventional tankers.
Speaker Change: Placing them with more energy efficient new builds you'd be links and modern secondhand tankers, including dual fuel vessels.
Speaker Change: And we're very proud.
Speaker Change: Today, one of the Lucky being one of the largest owners of LNG.
Speaker Change: And then ZIP powered aframax tankers.
Vessels in the water.
Speaker Change: Slide six conventional pro forma fleet divided between crude and product tankers spreading.
Speaker Change: From labs, we have seen since the restaurant and have decided to tankers.
Speaker Change: We have nine new buildings that we expect to take delivery from the second quarter of this year and 10%.
Speaker Change: 1028.
Speaker Change: And you see the colors in the slides, that's called our notes and new building vessels, but onshore.
George Saroglou: The red color denotes the new building vessels, but also the vessels that we operate today in the sports market. With dark blue we list the vessels under fixed time charters and with light blue the vessels with time charters with profit sharing. In the next slide, which has the Proforma specialized fleet. We list the 16 shuttle tankers, and on top of that slide, we list the companies to LNG carrier. We carry it. We combine the two slides and account only for the current operating fleet of 61 vessels. 29 vessels or 48% of the operating fleet has marked exposure.
Speaker Change: Vessels have to be open to it today in the spot market.
Speaker Change: We start no we miss the vessels and their fixed time charters and with.
Speaker Change: The vessels with time charters with profit sharing.
Speaker Change: And the next slides, which has had pro forma specialized fleet.
Speaker Change: We leased the six inch up a bank cash and on top of it on top of that slide.
Speaker Change: Company store and Lindsay Cardamom patios.
Speaker Change: If we combine that those types and account for them at all for the kind of a pet anything slip of 61 vessels.
Speaker Change: 29 vessels of 48% of.
Speaker Change: St has market exposure.
George Saroglou: Ports and Time Charters with Profit Sharing, while 51% or 84% of the fleet is in Secured Revenue Contracts, which means Time Charters and Time Charters with Profit Sharing. Our biggest client. for both conventional and the specialized segment of the fleet are the names you see in slide. These are blue sheet names with whom we do repeat long term business. The largest client of all, today's ExxonMobil. without yet accounting of the deal that we announced with Petrobras in Brazil. The left side of the next slide. shows you the all-in break-even cost for the type of vessels we operate.
Speaker Change: Spot and time charter with profit sharing.
Speaker Change: 51% or 4% of the fleet is insecure.
Speaker Change: Contact, which means bank charters and thanks charters with profit sharing.
Speaker Change: Yeah.
Speaker Change: Our biggest clients.
Speaker Change: Both conventional and expand spend their specialized segment of the fleet are the names you see on slide eight.
Speaker Change: Blue Chip names with whom we do repeat hometown business a lot.
Speaker Change: Client before today's Exxon Mobil.
Speaker Change: Without counting all the deals that.
Speaker Change: First we announced with Petrobras in Brazil.
Speaker Change: The left side of the next five.
Speaker Change: Shows you that the all in breakeven cost for the type of vessels we operate.
George Saroglou: We have a simple operating model. We try to have our time-shutter vessels generate revenue to cover the company's cash expenses, which means paying for the vessel operating expenses, finance expenses. overheads, chartering costs and commissions, and we let the revenue from the spot trading vessel contribute to the profitability of the company. Thanks to the profit sharing element, every $1000 per day increase in spot rate has a positive impact of 12 cents. and the annual earnings per share based on the number of 10 vessels that currently operate in the spot market.
Speaker Change: And we have a simple operating model, we try from time charter vessels generate revenue to cover the company's cash expenses, which means paying.
Speaker Change: For the rationalizing expenses finance expenses.
Speaker Change: Hence chartering costs and commissions and we let the revenue.
Speaker Change: The spot trading vessels.
Speaker Change: Contributing to the profitability of the company.
Speaker Change: Actually the profit sharing element every $1000 a day increase in spot rates as the positive impact of defense and the annual earnings per share based on the number of 10 vessels currently operating in the spot market and with that I will pass the first question with Michael as well.
Harrys Kosmatos: With that, I will pass the floor to Harrys Kosmatos, who will walk us through the financial performance of the quarter and a year. Thank you George, thanks. On behalf of our CFO Paul Durham and myself, hello and welcome to our call. During 2024, TEN's fleet averaged approximately 2 vessels more compared to 2023, reaching 62 vessels in the water, as a result of the divestment of 5 older tankers, 2 Suez Maxis, 2 Afra Maxis and 1 LMG carrier, and the acquisition and or delivery of 9 vessels, namely 5 modern tankers from Norway's Viking crew. the repurchase and termination of two SEL and ISPAC transactions involving two Suez MAXs and the delivery of two dual-fuel LNG Afro-MAXs.
Speaker Change: Can you walk us through the financial performance for the fourth of the year.
Speaker Change: Got it.
George: Thank you George Thanks.
Speaker Change: Behalf of Oh, CFO, Paul down myself, Hello, and welcome to our call.
Speaker Change: During two instant four tenths fleet operates approximately two vessels more compared to 'twenty to 'twenty three reaching six two vessels in the water.
Speaker Change: As a result of the divestment of five all the tankers, two suezmax and Aframax and one LNG carrier and the acquisition and the delivery of nine vessels, namely five modern tankers from Norway speaking truth.
Speaker Change: The repurchase and the termination of two sale and leaseback transactions involving two suezmax it and the delivery of two dual fuel LNG from access.
Speaker Change: Despite the slight increase during the year 15 vessels underwent scheduled dry dockings, Hawaii fleet performed well position. The ball you changed all of which led to average fleet utilization for the year to settle a 92, 5%.
Harrys Kosmatos: Despite this fleet increase during the year, 15 vessels underwent scheduled dry dockings, while three performed repositioning voyages, all of which led to average fleet utilization for the year to settle at 92.5%. from 96.3% in 2023, a still healthy level nonetheless. Resulting from the above and combined with a somewhat softening in the tanker market, TEN still generated $804 million in gross revenues and $279 million in operating income, the latter after $49 million in capital gains from the sales mentioned above. TCE per se per day during the 12-month period, which was naturally impacted by the dry dockings, settled at a still healthy $32,550, thanks to a large step to the number of operating days on long-term secure revenue contracts corresponding to the long-term needs of our clients.
Speaker Change: From 96, 3% in 2023.
Speaker Change: Healthy level Nonetheless.
Speaker Change: I'm from the bolt and combined with a somewhat softening in tanker market can still generated $804 million in gross revenues and $279 million in operating income.
Speaker Change: Later, after and 49 million and capital gains from the sale mentioned Nepal.
Speaker Change: TCE per ship per day during the 12 month period, which was not impacted by the bright darkness settled but they're still healthy 32550, thanks to a large extent because the number of operating days on a long term secured revenue contracts corresponding to the long term nature of our clients. Thank.
Harrys Kosmatos: 82% in 2024 compared to 77% in 2023. As a result, net income for 2024 was at $176 million, equating to $5.03 per common share, and adjusted EBITDA for the year at $400. Fleet operating expenses of $198 million modestly increased in line with the larger number and size of vessels in the fleet after the various acquisitions and divestments during the year. Operating expenses per ship per day, however, were about 3% lower from the 2023 levels at 9,350. Thanks again to efficient management performed by 10 technical experts on shore and onboard diversity. Total debt and other financial liabilities at the end of the year were at $1.8 billion, which compares favorably to both the book and fair value of the fleet, $3 billion and just about $4 billion at the end of the year respectively.
Speaker Change: 72% in 'twenty to 'twenty, four compared to seven 7% in 2023.
Speaker Change: As a result net income from 'twenty to 'twenty four.
Speaker Change: It's up $107 6 million equating to $5.03 per common share and adjusted EBITDA for the year of 400 million.
Speaker Change: Fleet operating expenses of 109 million modestly increased in line with the larger number and size of vessels in the fleet after the various acquisitions and divestments during the year.
Speaker Change: Operating expenses for Super Day, However, we're about 3% lower from the 'twenty two 'twenty three levels at 9350, Thanks again to efficient modest performed by tense technical experts on sort of non voice the vessels.
Speaker Change: Total debt another financial liabilities at the end of the year, we're up 1.8 billion, which compares favorably to both the book and fair value of the fleet 3 billion in just about 4 billion at the end of the year respectively.
Speaker Change: At the same time net debt to capital remained at a comfortable 45%.
Harrys Kosmatos: At the same time, net debt to capital remained at a comfortable 45%. Interest and finance costs for 2024 and reflecting the larger fleet size both in terms of vessels and vessel types as well as continuing elevated global interest rates despite recent cuts was at 112 million from 100 million in 2023 a manageable increase. However, this inevitable and controlled cost increase was nullified and more as a result of the $4 million in reduced preferred coupon payments from amounts paid during 2023, $5 million in savings in forward bare-bottom hire from the repurchase of two Suez Marxism leasing contracts in the summer of 2024, and $15 million in interest increase.
Speaker Change: Interest and finance costs for 2024, and reflecting the larger fleet size. Both in terms of vessel send vessel types as well as continuing elevated global interest rates. Despite recent cuts.
Speaker Change: 112 million from $100 million in 2023 and monitor both increased.
Speaker Change: However, this inevitable and control cost increase was nullified them more as a result of the $4 million and reduce preferred coupon payments from my mom's paid during 'twenty to 'twenty three.
Speaker Change: 5 million savings in forward bareboat hire from the repurchase of two suezmax or some recent contracts in this almost 24 and $50 million in interest income.
Harrys Kosmatos: Qatar Bank, as of December 31st, 2024, was at just under $350 million, a very healthy level despite having paid $258 million for common and preferred dividends, growth projects and the exercise of the above leasing repurchase option.
Speaker Change: Got some box as of December 31st 2010 before it wasn't just under 350 million at very healthy level, despite having paid $258 million for common and preferred dividends growth projects and the exercise of the above.
Speaker Change: With purchase options.
Speaker Change: Results for the fourth quarter of 'twenty 'twenty four were equally attractive considering we've got four of the Houston vessels under one dry docking during the year happened in this quarter.
Harrys Kosmatos: Results for the fourth quarter of 2024 were equally attractive, considering that four of the 15 vessels that underwent dry docking during that year happened in this quarter. A fleet of 62 vessels, as opposed to about 60 in the fourth quarter of 2023, generated gross revenues of $188 million and operating income of $42 million, compared to $220 million and $57 million in the fourth quarter of 2023, respectively. Unlike the 2023 fourth quarter, no impairment charges were recorded during this 2024 fourth quarter. Fleet operating expenses for the fourth quarter of 2024 and despite the four bright documents mentioned above in the larger fleet size were at 51 million, just 1.3 million higher the 2023 fourth quarter level.
Speaker Change: Our fleet of 62 vessels as opposed to about 60 in the fourth quarter of 2023 generated gross revenues of 109 million and operating income of 42 million compared to 220 million and $57 million in the fourth quarter of 2023, respectively.
Speaker Change: Unlike the 'twenty to 'twenty three fourth quarter no impairment charges were recorded during the 'twenty 'twenty four.
Foster.
Speaker Change: Operating expenses for the fourth quarter of 'twenty 'twenty, four and despite the four dry dockings messing, the bulk and the largest fixed size. We're at $51 million, just $1 3 million higher than 2023 fourth quarter level. However, operating expenses per shipping day were marginally lower from the 'twenty to 'twenty three.
Harrys Kosmatos: However, operating expenses per ship a day were marginally lower from the 2023 fourth quarter at $9,480. TCE per seat per day closed a quarter, 3.2 times higher the above office number at 30,107. The resulting net income for the fourth quarter of 2024 was at 19.3 million, producing EPS of 42 cents, reflecting the somewhat softer market driven by lower Asian oil imports, lower fleet utilization compared to 2023 fourth quarter, and the 4 million increase in depreciation amortization charges the larger fleet entailed. adjusted EBITDA, finished the quarter at $85 million.
Speaker Change: It's closer at 9400 and Nike.
Speaker Change: TCE per ship per day closed at quarter 3.2 times higher yeah ballpark number.
Speaker Change: 1107.
Speaker Change: The resulting net income for the fourth quarter of 'twenty 'twenty four was up 19.2 million producing EPS of 42 cents, reflecting the somewhat softer market driven by lower ethanol imports lower utilization compared to 2022 fourth quarter, and the $4 million increase in depreciation and amortization charges.
Speaker Change: The largest fleet in town.
Speaker Change: Adjusted EBITDA finished the quarter at eight 5 million.
Speaker Change: Supported by the aforementioned result is in line and in line with its semiannual dividend policy. When you pay a common stock dividend of 6% in July 25 identical to the level paid in July 'twenty to 'twenty four.
Harrys Kosmatos: Supported by the aforementioned results, TEN is in line, and in line with its semi-annual dividend policy, will pay a common stock dividend of $0.60 in July 2025, identical to the level paid in July 2024.
Speaker Change: And then it gets broken that to highlight.
Harrys Kosmatos: In ending, it is pertinent to highlight. What George mentioned earlier, the tent today is facing, is undergoing its largest growth phase in its history with 21 vessels on order, nine of which and Nikolas Bornozis.
Speaker Change: George mentioned earlier.
Speaker Change: Today is facing is undergoing its largest growth states in its history with 21 vessels on order none of which.
Speaker Change: The deep into solid tankers on 50 year contracts, a prospect of Petrobras as recently announced which in their own lives contributing double intense minimum revenue backlog from 2 billion to 4 billion why it turned it into one of the largest subtle tanker owners in the world.
Nick: And with this I'll turn it back to Nick for the closing remarks. Thank you.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Yeah.
Nikolas Tsakos: Well, thank you, Harry and George, for putting the details on and some... Putting some numbers on the board. And as we said, it is a... a very significant period of growth. We are starting the delivery and yesterday was the very successful sea trials and I don't know if you guys have a picture, it was received overnight from South Korea, from the Athens 2004, the first of the two total energy vessels to be delivered on the 28th of April, followed by the next one on the 28th of June, which will be the Paris 2024, so we're keeping our Olympian names for those state-of-the-art ships.
Speaker Change: Well, thank you very for Android phone.
Speaker Change: They have drawn and some.
Speaker Change: Putting some numbers on the board.
Speaker Change: And as we said that it is oh.
Speaker Change: A very significant period of growth.
Speaker Change: We are starting.
Delivery and yesterday was the very successful seatbelts and I don't know if you guys have a picture of what.
Speaker Change: We received overnight from South Korea.
Speaker Change: Since 2000 and for the.
Speaker Change: Personal debt to total energy vessels to be delivered on the 20th waiver two followed by the next one and.
Speaker Change: Oh June which will be the bodies.
Speaker Change: But as to 2024.
Speaker Change: What are you keeping Olympian names what does the state of the art Zips.
Speaker Change: And those ships will be identical sister vessels to the ones that we are going to win in South Korea.
Nikolas Tsakos: And those ships will be identical sister vessels to the ones that we are going to build in South Korea, which might have a significant higher cost than other yards, between 15 to 20 percent. But there are ships that are going to be with us for a very, very long time. The Pendakno, which she was just shown yesterday, she was another sumption vessel, which from 2009, and the new buyers were very impressed with her condition. And then the next is the amphitheater. It seems we had a big Liverpool fan crowd when she was named and she will be delivered in 2026.
Speaker Change: Which might have there.
Speaker Change: We've begun higher of course than the other yards.
Speaker Change: The 20%, but there are ships that are going to be with us for a very very long time dependent up the road.
Speaker Change: Just shown yesterday, she was another assumption lesson, which oh from 2009 and the new buyers.
Speaker Change: Very impressed with the.
Speaker Change: Condition.
Speaker Change: And then the next is the the honest truth.
Speaker Change: It seems like the big Liverpool fun crowd, when she was named and it wouldn't be.
Speaker Change: It would be 26 and as soon as those ships.
Nikolas Tsakos: And as soon as those ships will be in the water, 2027 and 2028, identical sister vessels, upgraded versions, environmentally friendly ones. are going to follow. So it's going to be a very exciting period, very accretive transactions that will add at least, will almost double when the company will be in full force. As I said, we are the company with the lowest, or I would say, let's put it positively, with the highest concentration of Japanese and Korean vessels. More than 90% of our vessels are Korean and Japanese, and if you put it on deadweight tons, in deadweight tons, it is at 95%.
Speaker Change: What do you mean, the work they're doing different to seven in terms of the NDA.
Speaker Change: Identical sister vessels upgraded versions of environmentally friendly.
Speaker Change: Now going to follow.
Speaker Change: So it's going to be.
Speaker Change: It's exciting.
Speaker Change: Very accretive transactions.
Speaker Change: At least.
Speaker Change: We will almost double our EBITDA window company will be in full force.
Speaker Change: I think I said, we are we are a company we are the company with the lowest well I would say, let's put reported the highest concentration.
Speaker Change: Police and Korean vessels more than 90% overall.
Speaker Change: Although lessons.
Speaker Change: Sure.
Speaker Change: Korean and Japanese and you can put it on a deadweight ton deadweight.
Speaker Change: <unk> don't if these are at 90, 595%.
Nikolas Tsakos: We have always been believers that quality has a cost, and that's why we have these results as we speak.
Speaker Change: We have always been believers the quantity has of course, so that's why we have well we have the results as we speak I mean without that we'd like.
Unknown Executive: And with that, I would like to open the floor for any questions. Thank you. Confirmation, tell them to indicate your line is in the question.
Speaker Change: The open the floor for any.
Speaker Change: Two questions.
Speaker Change: Thanks at this time, we'll be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad.
Speaker Change: A confirmation tone will indicate your line is in the question queue.
Unknown Executive: You may press star 2 if you'd like to remove your question from the For participants using speaker equipment, it may be necessary to pick up your handset before pressing the start button. One moment, please, while we poll for questions.
Speaker Change: You May press star two if you'd like to remove your question from the queue.
Speaker Change: I guess I'm, just using speaker equipment, it may be necessary to pick up your handset before pressing the star keys, one moment, please while we poll for questions.
Poe Frat: Our first question comes from Poe Frat with Alliance Global Partners. Please proceed with your question.
Poe Fratt: Our first question comes from Poe Fratt with Alliance Global Partners. Please proceed with your question. Good afternoon. I had a congratulations on the shuttle tanker deal getting all nine done. I had a question about the structure of the how they're going to be operated. My understanding is that Transpetro is going to be providing the crews and operating the shuttle tankers under a bare boat charter. Is this the first time they've done this? And, you know, do you think that what's their capacity to be able to provide the crews for those? And then is there a potential where you would, you know, if they can't provide the crews by 2027, would you be able to step in and do the crewing on those shuttle types?
Poe Frat: Good afternoon.
Speaker Change: Congratulations on the shuttle tanker <unk>.
Poe Frat: Getting all nine mm gun.
Poe Frat: I had a question about the structure of the how they're gonna be operated.
Poe Frat: My understanding is that transpired through is going to be.
Poe Frat: Providing the crews and operating the trains the M C.
Poe Frat: Settled tankers under bareboat charter.
Speaker Change: Is this the first time they've done this and you know do you think that what's their capacity to be able to provide the crews were those and then is there a potential where you would you know if they cant provide the crews by 2027 would you be able to step in and do the Crue nanos.
Poe Frat: That's another shuttle tankers.
Poe Frat: Well I I have to say that.
Nikolas Tsakos: Well, I have to say that's a very, very correct and to the point operational question. And I think, yes, you're very right. They have been operating, as I said, currently we have four vessels working for, in Brazilian waters, in which we also train in our Greek and Rio facilities, Brazilian crew. The lack of highly educated or trained. of the world, which is a global phenomenon, it's not just in Brazil, and that's why companies like us, we run our own academy, so we take these young men and women, quite a big number of women, which is, I would say, an untapped source of seafarers, just less than 5% of the world's seafarers are women, and we train them from 18 up to when they enter the service.
Poe Frat: Everybody is very correct.
Speaker Change: Important operational question.
And I think you'll like.
Poe Frat: Right.
Poe Frat: It's been operating.
Speaker Change: As I said currently we have four medicines working for in Brazilian waters, which we also train.
Speaker Change: Great.
Speaker Change: Legal facilities.
Speaker Change: But I'll give you on group.
Speaker Change: The lack of Oh for hi.
Speaker Change: David well trained.
Speaker Change: Seafarers as it's a global phenomenon just in Brazil.
Speaker Change: And that's why companies like us we have our own Oh.
Speaker Change: Metabolism and shall we say.
Speaker Change: Young men and women, who was the big number of women.
Speaker Change: I would say Oh I'm.
Speaker Change: Oh sure.
Speaker Change: Superb.
Speaker Change: Less than 5% of the words the shippers are women.
Speaker Change: Yeah.
Speaker Change: And we thank them from 18 up when they enter.
Speaker Change: Service.
Speaker Change: So there's a very good probability that we would closely cooperate with both of them separately and I would say one of the reasons that.
Nikolas Tsakos: So there's a very good probability that we will closely cooperate with Transpetrol, and I would say one of the reasons that we were awarded, to our surprise initially, but for and run those ships. So I'll be visiting very often that part of the world with our team. And our aim is to closely cooperate in actually running those ships which will be a pleasure for us and it will be very prudent for us because we will be able also to maintain our investment in the quality that we would like.
Speaker Change: We were awarded.
Speaker Change: Some people are surprised when you said about putting any surprise on my investment is a oh that would be based on capacity to two months.
Speaker Change: And and run those ships so.
Speaker Change: I'll be visiting very often part of the world with our team and our aim is to close in the cooperative and that's really running those ships would you wouldn't be a pleasant for us.
Speaker Change: It will be very prudent for us because we wouldn't be able to maintain our our investment and the quality that we.
Speaker Change: We would like.
Speaker Change: So the short answer to your question is yes.
Poe Fratt: So the short answer to your question is yes. Okay, great. And then on the asset sales front, it looks like you sold the Pentathlon Suez Max at 2009 vintage. You have four older Suez Maxes that are older than 2009. You talked about two potentially pending transactions. Can you give us some flavor on what assets might be under contract right now to be sold in the second quarter? Yes, I mean, you are correct. Some of our older ships, however, they are chartered long term to the major oil companies like Exxon and BP. Because of their I-class features, they get a significant premium for almost the 20 years we operate them, but they could be candidates age-wise, although they're in excellent condition.
Speaker Change: Okay, Great and then on the asset sales front. It looks like you sold the you know the pin pads and one suezmax at 202.
Speaker Change: 2019, I'm, sorry, 2009 vintage.
Speaker Change: Tour older Suezmax is that are you know older than 2009, you talked about to potentially pending transactions can you give us some flavor on what assets might be you know might be under contract right now to be sold in the second quarter.
Yes.
Speaker Change: You are correct some of our older ships. However, they all start with long term to the major oil companies like Exxon and BP.
Speaker Change: Because of the ice class features they they get a significant premium for them.
Speaker Change: Does it bring to us.
Speaker Change: And.
Speaker Change: That would be candidates age wise in excellent condition and then we have the of course, the innovation more offer amongst the.
Nikolas Tsakos: And then we have our first generation Afromax, the 2007 and 2008 ones, and we expect to be up to 30 million, including the recent offer of net proceeds for the same. So that's why I said the mega-transaction, because of our strong liquidity and the sales subsistence are coming, would not affect our balance sheet. It's fully funded. There is no requirement for raising equity. And we will still maintain a very, very strong liquidity going through that. We will be looking for the first-generation aquamaxes and first-max going forward.
Speaker Change: The 2007 and eight.
Speaker Change:
Speaker Change: We expect to be able to net closer hunger and medium.
Speaker Change: The recent says Oh, well what else is quoted as saying so that's why I said, the mega transaction because of our strong liquidity and the central government will not affect our balance sheet, which will be funded.
Speaker Change: There is no requirement for raising equity.
Speaker Change: And so we will still maintain very strong liquidity.
Speaker Change: Growing through that.
Speaker Change: We wouldn't be looking more for the first one there is nothing much interest amongst going forward.
Speaker Change: Great. Thank you.
Unknown Executive: Great, thank you. Thank you very much. As a reminder, if you'd like to ask a question, please press star 1 on your television. One moment, please, while we poll for questions.
Speaker Change: Thank you very much.
Speaker Change: As a reminder, if you'd like to ask a question. Please press star one on your telephone keypad one moment, please while we poll for questions.
Speaker Change: Our next question comes from Collyn that Marlin <unk> with value Investor's edge. Please proceed with your question.
Climent Molins: Our next question comes from Climent Molins with Value Investors Edge. Please proceed with Hi, thank you for taking my question. I wanted to start by following up on Paul's question on selling the other side of the You mentioned decisionally to make space for new eco-friendly vessels. And I was wondering, generally speaking, does that refer to the vessels you have already ordered or are you looking into adding additional tonnage over the coming months? I mean, we are always looking at strategic opportunities, but I was referring to the 21 vessels that we have ordered currently. And I think we are the, we have currently the largest renewal program for many of our fields going forward.
Collyn: Hi, Thank you for taking my questions.
I wanted to start by following up on both question on selling the older sites off the street.
Collyn: You mentioned did you actually I don't need to make space for new eco friendly vessels.
Collyn: And I was wondering generally speaking does this refer to the vessels you'll have already ordered.
Collyn: Are you looking into adding additional tonnage over the coming months.
Collyn: I mean, we are always looking at strategic opportunities, but I was referring to the 21 vessels, but we have order got it.
Collyn: And I think we are in the.
Collyn: We have currently the largest renewal program for many of our peer group.
Collyn: So going forward.
Speaker Change: That's helpful. Thank you.
Climent Molins: That's helpful. Thank you.
Climent Molins: And shifting toward the recent shuttle tanker orders, is there any appetite to hedge the interest rate risk on the financing you secure for the shuttle tanker? Yes, that's a very good point, and we have a death... We are very, very focused on that part of the business.
Speaker Change: And shifting toward the recent shuttle tanker orders is there any appetite to hedge the interest rate risk on the financing you secure for the shuttle tankers.
Speaker Change: Yeah, that's a very good point and we have a desk.
Speaker Change: Oh for <unk>.
Speaker Change: Two.
Speaker Change: Ladies and gentlemen, sitting in the press the button and looking on a daily basis.
Speaker Change: To find ways to make the financing even cheaper. So yes, we are looking on a daily basis. They are proposing to me and to our CFO welcome structures.
Speaker Change: Got you can penetrate the uplift or yeah, I mean, we're very very focused on that.
Speaker Change: And that's part of the business.
Makes sense. Thank you.
Climent Molins: Makes sense. Thank you.
Unknown Executive: The Maria Energy is coming off contract in May. Could you talk a bit about how you plan to employ the vessel going forward? Are you willing to lock in a term contract despite the mediocre rates offered for LNG carriers? And secondly, is the sale of the vessel potentially in the cards? What would you like to point about the card? Whether you could consider selling the Maria Energy? Perhaps, perhaps. Yeah, just to refresh, the Maria Energy, by the name of my late sister, is one of our luckiest ships. The vessel is fixed forward from May 2026 for 12 to 15 years at a very, very, very accretive rate.
Speaker Change: The Maria energy is coming off contract in May.
It could be about how you plan to employ the vessels going forward are you willing to looking at term contract. Despite the mediocre rates offered for LNG carriers.
Speaker Change: And secondly is the sale of the vessel potentially in the cards.
Speaker Change: What would your scoring well the cards.
Speaker Change: Whether you would consider selling did Murray energy.
Speaker Change: Perhaps perhaps.
Speaker Change: Yeah, just two.
Speaker Change: Press the Maria energy.
Speaker Change: The name of my leg.
Speaker Change: He was running about like used if the vessel is.
Speaker Change: Fixed portwood from Maine.
Speaker Change: Glenn.
Speaker Change: Six or 12 months in the year.
Speaker Change: Yes.
Speaker Change: And then maybe a crazy right.
Nikolas Tsakos: to a major end-user. So, what we have to do from May until next May is to cover a year of her operation. And before, she's going to be delivered to a very, very long employment that actually will take her to the end of her life, earning a humongously high double-digit IRR and return of equity that when we build the ship, we never calculated it would be as big as that. So, perhaps we have not communicated that yet to the market, or perhaps we did it a long time ago, but she started from 2026.
Speaker Change: Hum major end user.
Speaker Change: So what do we have to do for them and maybe even the next may you spoke of a year okay.
Speaker Change: Good operational before she is going to be delivered to a very very long blow them that actually will take them to the end of your life.
Speaker Change: Irwin.
Speaker Change: The mortgage.
Speaker Change: Uh huh.
Speaker Change: Did I hear a lot and we thought it would be that the.
Speaker Change: When we build the simply another country.
Speaker Change: As big as that so, but how can you, perhaps we have not communicated that but to get to the market through perhaps we did a long time ago.
Speaker Change: So you start with from 2013 ships.
Speaker Change: In 2014, I think that bill, but it might be sidelined.
Nikolas Tsakos: In 2040, I think I'll be over my retirement age, but I'll be following the developments.
Speaker Change: H Mcdonough before looking develops.
Speaker Change: That's very interesting and helpful. Thank you.
Unknown Executive: That's very interesting and helpful. Thank you.
Unknown Executive: And final question from me. I wanted to ask about the dividend. You reiterated last year's 60 cents semiannual distribution. And I was wondering, should the market improve going forward? Would there be any appetite to potentially raise the second semiannual payment? Yeah, I mean, that's what we've been doing. We always have the first dividend. is the result of the year we just had, the year we just reported, and it was 60 cents last year. We maintained exactly 60 cents for the July semiannual dividend, and if you recall last year in December, we upped it, because the market was very, very strong, to 90.
Speaker Change: Final question from me.
Speaker Change: I wanted to ask about the dividend you reiterated last years 60 cents semi annual distribution.
Speaker Change: And I was wondering should the market improve going forward would there be any appetite to potentially raise the second semiannual payment.
Speaker Change: Yeah.
Speaker Change: We've been doing Willis Willis come the first dividend.
Speaker Change: As a result of the of.
Speaker Change: Over the year, we just had.
Speaker Change: It was just reported and Oh it was.
Speaker Change: 60.
Speaker Change: 16, 67 last year, we maintain exactly 60 sentence was the July semi annual dividend and if you recall last year in December we up it's because the market was very very strong to 290.
Nikolas Tsakos: Hopefully we can do the same, having such a big backlog of employment, and at least have the same dividend. So that's what we'll do.
Speaker Change: Hopefully we can do the same you know, having such a big backlog of employment and at least from the same dividend.
Speaker Change: So that's what we do we have started the meeting in October by that time, we have a good view of the nine first nine months of the year and as we did last year, where hopefully we can do.
Nikolas Tsakos: We have our strategy meeting in October. By that time, we have a good view of the first nine months of the year, and as we did last year, we're hoping we can do. and others.
Speaker Change: Yeah.
Speaker Change: The 19th century, or even more but let's let's let's.
Speaker Change: So that's how we operate.
Speaker Change: Makes sense that's everything for me. Thank you for taking my questions.
Unknown Executive: Makes sense.
Unknown Executive: That's everything from me. Thank you for taking my question. Thank you.
Speaker Change: Thank you.
Speaker Change: Yeah.
Speaker Change: As a reminder, if you'd like to ask a question. Please press star one on your telephone keypad one moment, please while we poll for questions.
Unknown Executive: As a reminder, if you'd like to ask a question, please press star 1 on your telephone. One moment, please, while we poll for questions.
Speaker Change: Our next question comes from Paul Frat with Alliance Global Partners. Please proceed with your question.
Poe Fratt: Our next question comes from Poe Fratt with Alliance Global Partners. Please proceed with your question. Just two quick ones about operating, you know, the operating stats. I think Harris mentioned you had 15 dry docks in the 2024 timeframe.
Just two quick ones about operating you know the operating.
Speaker Change: I think Harry mentioned get 15 dry docks in the 2024 time frame how many do you expect in 2025 and then also your it looks like your G&A expenses were up in the second half of the year I think because of incentive comp can you give us sort of an.
Nikolas Tsakos: How many do you expect in 2025? And then also, it looks like your G&A expenses were up in the second half of the year, I think because of incentive comp. Can you give us sort of an idea of how the 2025 G&A expense line looks? Yes, we are looking almost at the dry document. which considering that we operate a fleet in the water of 60 vessels, that's what you would expect. It's a five-year cycle. Sometimes when the ships are built, I mean, it is kind of not hard for someone to figure it out because it's every five years since the vessels.
Speaker Change: Idea of how the 2025 G&A expense line looks.
Speaker Change: Yeah, So I mean, we.
Speaker Change: We are looking to order more subtle, but I look a month.
Speaker Change: With considering that we operate.
Speaker Change: Well in the water or.
Speaker Change: 60 vessels, that's what you would expect you know, it's a five year cycle, sometimes when the ships are being built.
Speaker Change: I mean, it is a kind of a north card for someone who can figure it out because it's every five years since the restrooms are.
Nikolas Tsakos: So if a vessel is built in 2010, she will have 15, 20, and 25 special surveys.
Speaker Change: The vessel is built in 2010, so it will help you.
Speaker Change: Brian.
Speaker Change: <unk>.
Speaker Change: Okay.
Speaker Change: Based on survey since the.
Unknown Executive: As far as we expect the GNA to drop significantly, we had the pleasure to distribute a big number or a significant number of shares to our personnel on the ships and in our offices last year. And I think that has created a good team feeling for them. So they're all now trying to make sure we get the share price back to about $30, which it should be. Great, thank you. We have reached the end of the question and answer session.
Speaker Change: As far as we expect the G&A.
Speaker Change: Due to drop significantly we've had the pleasure of industry.
Speaker Change: Big number or a significant number of first store, but from then on.
Speaker Change: On the ships and in our offices.
Speaker Change: Last last year.
Speaker Change: That created a good.
Speaker Change: It didn't.
Speaker Change: Feeling for them, so they're all or no.
Speaker Change: I have to make sure we get the share price, but well above $30, which it.
Speaker Change: Should be.
Speaker Change: Yeah.
Speaker Change: Great. Thank you.
Speaker Change: Yeah.
Nikolas Tsakos: We have reached the end of the question and answer session I'd now like to turn the call back over to Mr. Nikolas Tsakos.
Nikolas Tsakos: I'd now like to turn the call back over to Mr. Nikolas. Well, again, thank you for listening in. It has been a very exciting and one of those game changers, as a lot of the international retirement financial press has called out transactions going forward.
Nikolas Tsakos: Well again, thank you for listening in.
Speaker Change: It has been a very exciting and one of those are game changers.
Nikolas Tsakos: A lot of the national multifamily.
Speaker Change: Multi family finance impress us pull those transactions going forward.
Nikolas Tsakos: We tend to do this every now and then to put the company next phase but we always do it prudently and without putting the house for sale. So we are, the company is very well funded. The company can even do a similar transaction going forward without having to raise extra equity, and we are in an environment... that the underlying day-to-day market is going, is maintaining strength. Right now, the AFRAMAX is, you know...
Nikolas Tsakos: We tend to do this every now and then you can put the company.
Nikolas Tsakos: So its next phase, but we always do it prudently and without.
Nikolas Tsakos: Hum.
Nikolas Tsakos: Putting the houseware show. So we are the company's ready well funded the company can even do a similar transaction going forward without having to raise the extra extra it would be and we are in an environment.
Nikolas Tsakos: But the underlying data and the market is going is maintaining strength.
Nikolas Tsakos: Right now we offer them access.
Nikolas Tsakos:
Nikolas Tsakos: My son, he is 22 and he is training to be a broker in one of the famous brokerage houses. So for him it's very exciting to see that the winner of this week are the AfroMaxis. So AfroMaxis today are in the 70,000 range. So the ones we have in profit share and the ones that are on the spot are really enjoying that. And Suez Max is not far behind in the 50,000 range. Last week the VLs were in the 50s. So it's a very, very lively and strong market with the rates being very accretive, mainly for companies like that, that have a low cost and a low break-even.
Nikolas Tsakos: My son, who is going to be doing things like training to be a broker and we wanted to be famous Brooklyn is houses. So forgive me, it's very exciting to see that.
Nikolas Tsakos: The winter was weak.
Nikolas Tsakos: Of the opera amongst them, so often amongst us today or in the 70000 range.
So the ones that we haven't brought the children, who wasn't going to spot or.
Nikolas Tsakos: We have been enjoying button suezmax is not quite a behind in the 50000 plus.
Nikolas Tsakos: The reality is we're in the business.
Nikolas Tsakos: Very ready.
Lively and strong market.
Nikolas Tsakos: With the rates being very accretive mainly for companies like that that are in.
Nikolas Tsakos: No of course, and a low breakeven and so we're looking at the well balanced market.
Nikolas Tsakos: So we're looking at a well-balanced market.
Nikolas Tsakos: and the geopolitical events around the world. starting with the Houthis attacking the world's fleet and I think a very good defense of the United States and Greece and all the allies that are protecting our seafarers are going to open up further, hopefully, our oceans. And of course, the increased part of the presence of a decaying gray fleet, and we've seen two incidents in the last month of gray ships actually being abandoned and creating, putting environmental danger in the market, allows to enjoy healthy rates of carbon dioxide. going forward. And again, just to reiterate that 60% of our business is done by external largest clients, followed by Equinor, followed by Chevron, Total, Petrobras, of course, and BP.
Nikolas Tsakos: The geopolitical situation.
Nikolas Tsakos: The geopolitical events around the world.
Nikolas Tsakos: I'm sorry.
Nikolas Tsakos: It would be.
Nikolas Tsakos: What is affecting.
Nikolas Tsakos: The words fleet and I think they're very good defense, hopefully, the United States, and and Greece, and there'll be a life event like a bad thing.
Nikolas Tsakos: First of all.
Nikolas Tsakos: When broken up a further hopefully our oceans.
Nikolas Tsakos: And so of course, the increased parts of Florida, the presence overseas game get a blip and we've seen two incidents in the last month of Green ships are actually being abandoned and creating the they're putting their environmental danger in the market.
Nikolas Tsakos: Allows.
Nikolas Tsakos: Main street.
Nikolas Tsakos: Shipping companies like ourselves to them.
Nikolas Tsakos: Enjoy it when it comes to your rates are.
Nikolas Tsakos: Going forward.
Nikolas Tsakos: And again just to reiterate that 60% of our business is done by extra not allowed to supply followed but Ecuador.
Nikolas Tsakos: I followed by.
Nikolas Tsakos: By several proton.
Nikolas Tsakos: Peso, but also of course in between so we are in a sense of the floating pipelines.
Nikolas Tsakos: So we are, in a sense, the floating pipelines of very, very demanding end users. And we are getting...
Nikolas Tsakos: I'm very very demanding end users than we are.
Nikolas Tsakos: Got it.
Nikolas Tsakos: They worked with us and hopefully we would see this as the world moves to a surprise like with last year and we thought they would like.
Nikolas Tsakos: And with that, I would like to thank all of you for listening in. Thank you very much. This concludes today's conference. You may disconnect your lines at this time, and we thank you for your.
Nikolas Tsakos: We thank all of you for listening and thank you very much.
Nikolas Tsakos: Okay.
Nikolas Tsakos: Yeah.
Nikolas Tsakos: This concludes today's conference you may disconnect your lines at this time and we thank you for your participation.
Nikolas Tsakos: Okay.