(RTTNews) - Friday, oil transporter Tsakos Energy Navigation Ltd. (TNP: News ) reported a significantly lower profit for the third quarter, hurt by revenue declines due to lower freight market and fewer operating days. However, the company's third-quarter profit came as a surprise for analysts, who were expecting a loss of two cents. Quarterly revenue also surpassed the analysts' estimate.

The Athens, Greece-based company's third-quarter net income tumbled to $2.11 million or $0.06 per share from $40.98 million or $1.08 per share a year ago.

On average, nine analysts polled by Thomson Reuters estimated a loss of $0.02 per share for the quarter. Analysts' estimates typically exclude special items.

The company attributed the decline in net income to the lower freight rate market and to fewer operating days due to the accelerated dry-docking of six vessels following management's decision to bring certain dry-dockings scheduled for 2010 forward in order to have more vessels available next year when the freight market is expected to improve.

Revenues for the third quarter dropped to $106.20 million from $158.83 million for the third quarter of 2008. Analysts expected revenues of $80.91 million for the quarter.

Net revenues, net of commissions and voyage expenses, decreased to $82.78 million from $124.35 million in the same quarter of 2008.

The time charter equivalent per ship per day dropped to $21,116 in the third quarter of 2009 from $33,732 in the third quarter of 2008.
Operating income for the quarter declined to $17.70 million from $56.81 million in the year-earlier quarter.

Total expenses eased to $88.50 million from $102.02 million in the same quarter of 2008.

For the nine-month period, the company reported a net income of $45.34 million or $1.22 per share from $175.32 million or $4.60 per share in the similar period of 2008. Revenue for the period dropped to $346.69 million from $466.99 million a year ago.

The company signed two contracts with Sungdong yard in South Korea for the construction of two suezmaxes, which are ships capable of transiting the Suez Canal fully loaded, to be delivered in the third quarter of 2011.

In addition, the company has also agreed to sell its 2002-built suezmax tanker Pentathlon by mid-November, with the option to acquire a sister suezmax for the same price.

TNP is losing $0.15 or 0.99%, and is currently trading at $14.94 on a volume of 58 thousand shares on the New York Stock Exchange.

To receive FREE breaking news email alerts for Tsakos Energy Navigation Ltd ASA and others in your portfolio

by RTT Staff Writer

For comments and feedback: contact editorial@rttnews.com