Tsakos Energy Navigation Limited (NYSE:TNP) Q4 2023 Earnings Call Transcript

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Climent Molins : I wanted to start by asking about your fleet positioning. You already provided some commentary on it, but over the past couple of years, you’ve pursued quite an aggressive plan to renew a fleet and the recent Beacon acquisition further improved the age profile. You mentioned you’re working on several additional opportunities with newbuildings. And I was wondering, should we expect the size of the fleet to grow further or will the other side of the fleet be sold in conjunction with additional acquisitions?

Nikolas Tsakos: Well, we are looking this is an ongoing growing concern as a company. However, in the strong market environment, we are looking, we have a lot of vessels approaching graduation years from the TEN academy and we will wish them they will be very profitably graduating for the rest of the fleet. I think we were able by selling the 9 vessels last year and part of this year, we added $160 million net to our cash reserve, which we have used to further grow the fleet. And I think the growth is significant, selling 9 vessels and actually replacing them with double that. So the answer is, there will be growth, but there will be also this investment of the first generation vessels.

Climent Molins : I also wanted to ask about the Neo Energy, which supposedly came off contract in February. Could you talk a bit about the prospects for the vessel?

Nikolas Tsakos: Well, the Neo Energy has been one of our luckiest vessels since she was built on February 7, 2007. She has always been and I think she earned up to last month one of our highest time charters for a year and a half in excess of $115,000 a day. And we believe that she will maintain to be one of our likeliest vessels and you will hear an announcement soon.

Climent Molins : And final question from me. On the dividend side, you mentioned you expect to distribute another dividend later this year. Could you provide some commentary on the amount you expect to distribute?

Nikolas Tsakos: Well, I think our Chairman who is responsible for the dividend. Takis?

Takis Arapoglou : Well, we are in the approaching the middle of the year. We felt that $0.60 represents what our performance last year and how things are looking right now. The second installment of the dividend depends on the rest of the year and we cannot really make any predictions. So, because we’re not allowed. But we are confident that our performance will continue to be strong.

Operator: [Operator Instructions] I’m showing no further questions in the queue. I would like to pass the call back over to management for any closing remarks.

Nikolas Tsakos : Well, from our side, we would like to take the opportunity and thanks our shareholders for their support. The management being the main shareholder is working to achieve the results for all of us. Regardless of the geopolitical situation that we are facing, just by the fundamentals, we are seeing that the market which is under built and it’s maintaining this. Less than 7% of the fleet is on order, and on top of that, an aging fleet and a shadow fleet, which we do not expect to see within the normal trading route. So we can conservatively say that we are looking for another couple of years of significant growth, and then we are placing the company to take advantage of that. From our side, we would like again to pass our support to all the victims of the Delaware tragic incident, and wish everybody happy and peaceful Easter going forward. And thank you very much.

Operator: Thank you. That does conclude today’s teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.

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