Greek tanker owner Tsakos Energy Navigation (TEN) has posted higher than expected profits and confirmed it is on the hunt for acquisitions.
The NYSE-listed company reported net income of USD37.3 million for the first quarter 2015, up 156% from USD14.6 million in the same quarter last year. Earnings per share of USD0.42 topped the analyst consensus forecast for earnings of USD0.36/share.
Time charter equivalent rates averaged USD25,591/day in the latest quarter, up 18.6% from the same period in 2014. There has been “further strengthening so far this quarter”, the company said.
Market conditions are “now allowing management to closely consider attractive opportunities for growth”, according to TEN. “All projects that are accretive to TEN’s bottom line are candidates for consideration.”
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The company was also considering divesting some of its older tankers “to maintain the young age profile, create positive capital gains, and generate cash for future investments”, it said.
“Looking ahead, the existing supply-demand equilibrium, together with the low price of oil, enforces our belief that we are finally in the midst of a long-term up-cycle in the tanker industry,” said TEN president and chief executive officer Nikolas Tsakos. “If tanker owners refrain from the speculative newbuilding frenzy of the past, the current positive cycle will be prolonged.”