Tsakos Energy Navigation Limited (TNP: Quote), a provider of seaborne crude oil and petroleum product transportation services, reported Friday a loss for its first quarter, compared to prior year's profit as higher costs offset the benefit of increased revenues. The company added that it remains optimistic about its long term prospects.
For its first quarter, net loss attributable to the company was $8.81 million or $0.19 per share, compared to prior year's profit of $9.29 million or $0.20 per share.
The company attributed the loss to the general state of the freight market along with high bunker and interest rate swap costs, exceptional dry-dock repair costs on five vessels, and continued losses on the two older VLCCs which are held for sale. The prior year's results were benefited by net gain on sale of vessels of $5.80 million.
Tsakos noted that the loss, excluding the year-end impairment charges, was an improvement of about 50 percent sequentially mainly due to better than expected market rates.
Voyage revenues climbed to $102.23 million from prior year's $99.20 million. Revenues, net of commissions and voyage expenses amounted to $66.2 million in the first quarter.
The company noted that EBITDA amounted to $26.2 million with all the vessels generating positive EBITDA with the exception of the LNG carrier which was in dry dock and the two VLCCs which are held for sale.
Looking ahead for the second quarter, Tsakos said it is seeing some improvement in the suezmax and VLCC rates, which should allow the VLCC La Madrina to cover much of its costs prior to its sale.
Tsakos added that it remains optimistic for the long-term prospects of the tanker industry and will continue to position the company both in terms of assets and employment patterns to benefit from an expected recovery in freight rates.
Nikolas Tsakos, President & Chief Executive Officer said, "TEN is prepared to take advantage of low market opportunities whilst making sure to comfortably navigate through current choppy waters."
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by RTT Staff Writer
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