TEN Ltd Reports Strong Results for the Third Quarter and Nine Months Ended September 30, 2022

Source: www.gulfoilandgas.com 11/22/2022, Location: Europe

- 600% increase in nine-month operating income
- Three-fold net income rise to $103 million in first nine months of 2022
- 50% increase in dividend payment. Total payments of $500 million since 2002
- New strategic partnership with major energy company
- Market fundamentals remain positive

TEN, Ltd reported results (unaudited) for the nine months and third quarter ended September 30, 2022.

In the first nine months of 2022, TEN’s modern and diversified fleet generated gross revenues of $590 million, $183 million higher than the 2021 first nine-months, reflecting the strength of the tanker markets. Operating income climbed to $134 million, a six-fold increase.

Net income for the first nine months of 2022 exceeded $103 million or $2.77 per share.

Adjusted EBITDA reached $236 million in the 2022 first nine months, $150 million higher than the 2021 nine-month level.

Average TCE per ship per day for the first nine months of this year amounted to $27,075, 60% higher than the 2021 nine-month level while utilization reached 93.7% after 14 vessels completed their dry dock earlier than scheduled to be ready for market improvements.

Average daily operating expenses per vessel remained competitive at $8,345, slightly higher than the 2021 nine-month level.

Depreciation and amortization combined were 3.5% lower from the 2021 nine-month period at $103.4 million.

During the first nine months of this year, debt payments amounted to $332 million, further lowering related interest payments while maintaining solid cash reserves of over $200 million.

TEN enjoyed a strong third quarter with gross revenues of $224 million, $92 million higher than the 2021 third quarter, and operating income of $67 million, with the same number of vessels between the two periods.

Net income attributable to TEN during the 2022 third quarter reached $51.3 million, a 300% increase from last year, or $1.48 per share.

Adjusted EBITDA amounted to $103 million in the 2022 third quarter, over five times higher than the 2021 third quarter.

Despite five vessels completing their dry-docking this third quarter, fleet utilization increased to 94.3%, resulting in an average TCE per vessel per day of $32,085, 105% higher from the equivalent 2021 period.

Depreciation and amortization combined were 1.3% lower from the 2021 third quarter at $35.8 million.

Daily vessel operating expenses, reflecting global inflationary pressures, dry-docking expenses and the introduction of two newly acquired LNG and shuttle tanker vessels with inherently higher costs, averaged a still competitive $8,915 in the 2022 third quarter.

Following the deliveries from South Korea of the LNG “TENERGY” in January 2022 and the DP2 shuttle tanker “PORTO” in July 2022, in November 2022 TEN took delivery of the 2020 South Korean built VLCC, “DIAS I”, the third in TEN’s fleet.

In addition, this month TEN was awarded a maximum 15-year contract, for up to three shuttle tanker vessels by a major energy concern. This brings the company’s DP2 shuttle tanker fleet to seven units, all of them on long-term accretive contracts.

TEN’s Board of Directors has approved a dividend of $0.15 per common share to be paid on December 20, 2022 to holders of record as of December 14, 2022. This distribution reflects the second payment for 2022 which is in line with TEN’s semi-annual dividend policy and represents a 50% increase from the prior dividend of $0.10 per common share paid in July 2022. Inclusive of this upcoming distribution, TEN will have paid common shareholders half a billion dollars in dividends since its 2002 NYSE listing.

With favorable market fundamentals, and with an orderbook continuing to linger at historical low levels and yard capacity tight for at least the next three years, the backdrop for a sustainable strong tanker market has been set. The geopolitical events that have led to an increase in ton miles, together with the global oil demand approaching pre-covid levels could further substantiate this fact.

In this environment, TEN’s modern and diversified fleet is well placed to take advantage of strong spot rates and secure long-term accretive employments to major end users.

Building on the tanker market strength management will also consider the strategic divestment of some of its earlier generation tankers, both in the crude and product space, and reinvest part, or all, of any potential gains for newer generation vessels.

TEN’s presence and expansion in the more specialized sectors like shuttle tankers and LNG is expected to continue as management is actively exploring attractive opportunities in both of these segments for longer-term industrial transactions.

“Having safely navigated through the rocky waters of recent years, TEN is well placed to take advantage of the medium to long-term positive fundamentals in the tanker sector,” George Saroglou, COO of TEN commented. “Our mix of strategic long-term accretive transactions and upside exposure ensures positive results, a strong balance sheet, liquidity for expansion and continuous dividends,” Mr. Saroglou concluded.

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