Tsakos Energy Navigation TNP operates a fleet of 46 tankers of varying sizes in both crude and petroleum product transport. About 75% of the fleet is on fixed charters or charters with profit share and min payments. The balance earns on the spot market.
For 2008 TNP reported earnings of $5.33 per share and paid a dividend (semi-annual) for the year of $1.75. The company has about $1.5 billion of debt but has a record amount of cash on hand of $320 million.
During the conference call management reinforced that they plan to stick with their policy of paying dividends of 25% to 50% of earnings. The companys charter policy and future locked in revenues bodes well for 2009 distributions at something near the 2008 rates. TNP has been increasing dividends at an excellent rate since starting a payout in 2002.
The tanker market has a set of serious challenges over the next couple of years. New build tankers on order would probably flood the market if they were all built and paid for. However, the current financial situation makes financing the majority of these ships on order problematic and the current tanker rates would further encourage the cancellation of orders. Spot tanker rates have softened considerably over the last few weeks and product shippers are lucky to earn their operating costs in the current market.
Tsakos Energy Navigation would be an interesting investment to someone who believes the company can generate the revenues they are projecting even in a tough market and maintain the current dividend payout.
Tsakos Energy Navigation year end results
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Tsakos Energy Navigation TNP operates a fleet of 46 tankers of varying sizes in both crude and petroleum product transport. About 75% of the fleet is on fixed charters or charters with profit share and min payments. The balance earns on the spot market.
For 2008 TNP reported earnings of $5.33 per share and paid a dividend (semi-annual) for the year of $1.75. The company has about $1.5 billion of debt but has a record amount of cash on hand of $320 million.
During the conference call management reinforced that they plan to stick with their policy of paying dividends of 25% to 50% of earnings. The companys charter policy and future locked in revenues bodes well for 2009 distributions at something near the 2008 rates. TNP has been increasing dividends at an excellent rate since starting a payout in 2002.
The tanker market has a set of serious challenges over the next couple of years. New build tankers on order would probably flood the market if they were all built and paid for. However, the current financial situation makes financing the majority of these ships on order problematic and the current tanker rates would further encourage the cancellation of orders. Spot tanker rates have softened considerably over the last few weeks and product shippers are lucky to earn their operating costs in the current market.
Tsakos Energy Navigation would be an interesting investment to someone who believes the company can generate the revenues they are projecting even in a tough market and maintain the current dividend payout.