Five-fold increase in net income Y-o-Y

Strong quarterly revenues of $190 million

$300 million debt reduction from 2016 peak

New deliveries add a minimum of $180 million in time-charter equivalent revenues during charter period

TEN’s crew health and safety remains a priority

ATHENS, Greece, Sept. 23, 2020 (GLOBE NEWSWIRE) -- TEN, Ltd (TEN) (NYSE: TNP) (the “Company”) today reported results (unaudited) for the quarter and six months ended June 30, 2020.

SIX MONTHS 2020 SUMMARY RESULTS
Net income in the first half of 2020 amounted to $69.2 million excluding non-cash one-off charges or $52.7 million if such non-cash charges are included. Earnings per share for this six-month period were $1.64 compared to a $(0.66) loss per share for the same period of 2019.

Gross revenues in the first half of 2020 amounted to $369.7 million, 27.0% higher than in the first half of 2019, mainly due to the strong rates following the widening contango in the oil markets that started in the first quarter.

The daily time charter equivalent rate per vessel increased by 36% over the equivalent 2019 period to $27,689. Operating income, before the impairment charges and loss on vessel sales totaled $118.2 million compared to $46.8 million in the first six months of 2019, a 153% increase.

Adjusted EBITDA (Earnings before interest, taxes, depreciation and amortization) increased to $186 million, 55% higher than in the first six months of 2019.

Total cash reserves were $262 million, as at June 30, 2020.

Vessel operating expenses decreased by 1.3% while depreciation and dry-docking amortization costs remained at similar levels as in the first half of 2019.

Total debt outstanding as at June 30, 2020 stood at $1.47 billion, $74.7 million lower from the level at the end of 2019 and about $300 million lower from its peak in 2016.

Four vessels were sold in the 2020 six-month period generating about $30 million free cash after repaying nearly $44 million of debt and maintained TEN’s young fleet profile.

Finance costs in the first six months of 2020 increased by $8.6 million to $47.5 million mainly due to approximately $16 million in non-cash negative bunker hedge valuations.

Q2 2020 SUMMARY RESULTS
Following a solid first quarter, second quarter net income amounted to $49.6 million excluding non-cash losses on a vessel sale and impairment charges. Including these non-cash items, net income was still a healthy $31.5 million and earnings per share were $1.07 from $(0.72) in the 2019 second quarter.

Accordingly, TEN’s voyage revenues increased 32.5% to $190.8 million in the second quarter of 2020 with the fleet achieving 95.7% utilization. TEN’s fleet had one vessel less on average in this second quarter compared to the 2019 second quarter due to the sale of a vessel in June 2020.

The average daily TCE per vessel generated by the fleet was $28,767, approximately $9,000 more than the prior year second quarter.

Operating income during the quarter reached $46.9 million, 147% higher than the equivalent quarter of 2019.

Adjusted EBITDA totaled $98.0 million, up $42.2 million or 75% from the 2019 second quarter.

Total vessel operating expenses decreased by $3.4 million or 7.3% due to efficient cost management and the strengthening of the US dollar against the Euro which had a positive impact on crew costs. On an average daily per vessel basis, operating expenses per ship per day fell to $7,457, a 5.7% reduction.

A modest increase in G&A expenses was mainly due to sundry office expenses and professional fees, while management fees per vessel stayed basically the same, as they have done for over ten years.

Finance costs declined by $7.4 million or 34.7% mainly due to $2.2 million positive bunker hedge valuations and to loan interest decreases following renewed pricing terms on the occasion of refinancing certain loans. Interest costs were also partially reduced by the reduction in total average outstanding debt by $68 million since the end of the prior year second quarter.

CORPORATE STRATEGY & OUTLOOK
The first half of 2020 has been a rollercoaster of sentiments for our industry and the world in general. The year started with optimism on the one hand and justifiable concerns on the other due to the new emission regulations imposed by the IMO and the endless debates on the use of scrubbers, something that TEN has avoided and saved significant unnecessary capital expenditure.

Within weeks however, all this faded away with the spread of the Covid-19 pandemic, affecting everyday life as never before. This combination of events caused volatility leading to wide contango spreads that resulted in a strong tanker market, which TEN’s modern fleet took full advantage of.

In this unprecedented environment, TEN has managed to safeguard the health of its seafarers, increase profitability through high utilization and continue its path to growth and modernization

Following the sale of four vessels with an average age of fourteen years, the Company has taken delivery of a series of three new vessels (two aframaxes and one suezmax), with an additional suezmax to follow in the fourth quarter with long-term employment. All vessels are chartered to a major oil company for a minimum period of five years that will add $180 million in time charter equivalent revenues. Concurrently, the Company was awarded a long-term accretive contract for up to three suezmax DP2 shuttle tankers by a major utility company.

Looking ahead and despite the challenges the world has faced, a silver lining is developing on the horizon; the demand for energy is coming back but more importantly the supply of new tonnage has completely dried up, the contango effect has returned and expectations for a strong market after a seasonally slow quarter are becoming more likely. China is importing sizeable quantities of crude, locked-down Asian recycling yards are coming back to business and the recent emergence of congestion at various terminals in the Far East are promising signs.

TEN continues to build value for its shareholders through the payment of dividends, adding another $0.375 cents (split adjusted) per common share on June 26^th, 2020 and its ongoing buy-back program for common shares has so far to this date surpassed $8 million since inception. As previously mentioned, management’s intention to redeem at par the $50 million Series C preferred remains intact and a relevant press release will be issued in due course to that effect.

TEN continues to give priority to environmental issues and has successfully managed the transition to low sulfur fuel without experiencing irreparable adverse issues, thanks to our seasoned and efficient technical managers. However, management’s top priority remain that of the wellbeing of the Company’s seafarers, both physically and mentally and tremendous efforts are being made for the timely and safe repatriation to their families, something that is not straightforward in today’s challenging environment.

“During TEN’s four-decade history, the Company has faced major world crises but always succeeded in navigating its way through stronger, thanks to the unwavering commitment of our seafarers and associates around the world. This will be the case again. We wish everyone to stay safe and healthy during this challenging period”, Mr. George Saroglou, COO of TEN commented.

CONFERENCE CALL
As previously announced, today, Wednesday, September 23, 2020 at 9:00 a.m Eastern Time, TEN will host a conference call to review the results as well as management's outlook for the business. The call, which will be hosted by TEN's senior management, may contain information beyond that which is included in the earnings press release.

Conference Call details:
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1877 55 39962 (US Toll Free Dial In), 0808 2380 669 (UK Toll Free Dial In) or +44 (0)2071 928592 (Standard International Dial In). Please quote "Tsakos" to the operator.

A telephonic replay of the conference call will be available until Wednesday, September 30, 2020 by dialing 1866 331 1332 (US Toll Free Dial In), 0808 2380 667 (UK Toll Free Dial In) or +44 (0)3333 00 9785 (Standard International Dial In). Access Code: 90295809#

Simultaneous Slides and Audio Webcast:
There will also be a simultaneous live, and then archived, slides webcast of the conference call, available through TEN's website (www.tenn.gr). The slides webcast will also provide details related to fleet composition and deployment and other related company information. This presentation will be available on the Company's corporate website reception page at www.tenn.gr. Participants for the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

ABOUT TEN
Founded in 1993 and celebrating this year 27 years as a public company, is one of the first and most established public shipping companies in the world. TEN’s diversified energy fleet currently consists of 67 double-hull vessels in the water, and one LNG carrier, one suezmax tanker and up to three suezmax DP2 shuttle tankers under construction, constituting a mix of crude tankers, product tankers and LNG carriers, exceeding 8.0 million dwt.

ABOUT FORWARD-LOOKING STATEMENTS
Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those predicted by such forward-looking statements. TEN undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.

For further information, please contact:
Company
Tsakos Energy Navigation Ltd.
George Saroglou
COO
+30210 94 07 710
gsaroglou@tenn.gr

Investor Relations / Media
Capital Link, Inc.
Nicolas Bornozis
Markella Kara
+212 661 7566
ten@capitallink.com

TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
Selected Consolidated Financial and Other Data
(In Thousands of U.S. Dollars, except share, per share and fleet data)
			Three months ended								Six months ended
			June 30 (unaudited)								June 30 (unaudited)
	STATEMENT OF OPERATIONS DATA		2020				2019				2020				2019
	Voyage revenues	$	190,770			$	144,020			$	369,669			$	291,064
	Voyage expenses		35,412				35,191				68,120				66,755
	Charter hire expense		5,421				2,698				10,561				5,367
	Vessel operating expenses		42,705				46,072				88,194				89,396
	Depreciation and amortization		34,503				34,260				69,331				69,543
	General and administrative expenses		7,665				6,797				15,269				13,233
	Loss on sale of vessels		4,688				-				3,050				-
	Impairment charges		13,450				-				13,450				-
	Total expenses		143,844				125,018				267,975				244,294
	Operating income		46,926				19,002				101,694				46,770
	Interest and finance costs, net		(13,881	)			(21,262	)			(47,474	)			(38,855	)
	Interest income		120				1,773				511				2,547
	Other, net		108				(2	)			517				(31	)
	Total other expenses, net		(13,653	)			(19,491	)			(46,446	)			(36,339	)
	Net income (loss)		33,273				(489	)			55,248				10,431
	Less: Net (income) loss attributable to the noncontrolling interest		(1,794	)			794				(2,545	)			1,106
	Net income attributable to Tsakos Energy Navigation Limited	$	31,479			$	305			$	52,703			$	11,537
	Effect of preferred dividends		(9,422	)			(10,204	)			(19,064	)			(20,408	)
	Undistributed income to Series G participants		(1,653	)			-				(2,219	)			-
	Deemed dividend on Series B preferred shares		-				(2,750	)			-				(2,750	)
	Net income (loss) attributable to common stockholders of Tsakos Energy Navigation Limited	$	20,404			$	(12,649	)		$	31,420			$	(11,621	)
	Earnings (Loss) per share, basic and diluted	$	1.07			$	(0.72	)		$	1.64			$	(0.66	)
	Weighted average number of common shares, basic and diluted		19,087,556				17,550,394				19,105,159				17,535,743
	BALANCE SHEET DATA		June 30				December 31
			2020				2019
	Cash		262,169				197,770
	Other assets		233,488				261,607
	Vessels, net		2,601,217				2,633,251
	Advances for vessels under construction		63,671				61,475
	Total assets	$	3,160,545			$	3,154,103
	Debt, net of deferred finance costs		1,460,538				1,534,296
	Other liabilities		220,536				147,488
	Stockholders' equity		1,479,471				1,472,319
	Total liabilities and stockholders' equity	$	3,160,545			$	3,154,103
			Three months ended								Six months ended
	OTHER FINANCIAL DATA		June 30								June 30
			2020				2019				2020				2019
	Net cash from operating activities	$	90,241			$	45,366			$	147,696			$	84,604
	Net cash provided by (used in) investing activities	$	(6,442	)		$	(12,014	)		$	16,103			$	(32,844	)
	Net cash used in financing activities	$	(48,099	)		$	(32,520	)		$	(105,017	)		$	(79,700	)
	TCE per ship per day	$	28,767			$	19,783			$	27,689			$	20,418
	Operating expenses per ship per day	$	7,457			$	7,911			$	7,672			$	7,717
	Vessel overhead costs per ship per day	$	1,297			$	1,167			$	1,288			$	1,142
			8,754				9,078				8,960				8,859
	FLEET DATA
	Average number of vessels during period		64.9				64.0				65.1				64.0
	Number of vessels at end of period		64.0				64.0				64.0				64.0
	Average age of fleet at end of period	Years	9.2				8.7				9.2				8.7
	Dwt at end of period (in thousands)		6,961				6,936				6,961				6,936
	Time charter employment - fixed rate	Days	2,412				2,272				4,923				4,665
	Time charter employment - variable rate	Days	1,488				1,554				3,223				3,228
	Period employment (coa) at market rates	Days	87				273				176				453
	Spot voyage employment at market rates	Days	1,669				1,526				3,090				2,854
	Total operating days		5,656				5,625				11,412				11,200
	Total available days		5,908				5,824				11,851				11,584
	Utilization		95.7	%			96.6	%			96.3	%			96.7	%
	Non-GAAP Measures
	Reconciliation of Net income to Adjusted EBITDA
			Three months ended								Six months ended
			June 30								June 30
			2020				2019				2020				2019
	Net income attributable to Tsakos Energy Navigation Limited		31,479				305				52,703				11,537
	Depreciation and amortization		34,503				34,260				69,331				69,543
	Interest Expense		13,881				21,262				47,474				38,855
	Loss on sale of vessels		4,688				-				3,050				-
	Impairment charges		13,450				-				13,450				-
	Adjusted EBITDA	$	98,001			$	55,827			$	186,008			$	119,935
	The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP measures used within the financial community may provide users of this financial information additional meaningful comparisons between current results and results in prior operating periods as well as comparisons between the performance of Shipping Companies. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company’s performance. We are using the following Non-GAAP measures:
	(i) TCE which represents voyage revenue less voyage expenses is divided by the number of operating days less 192 days lost for the second quarter and 392 days for the first half of 2020 and 124 days for the prior year quarter of 2019 and 214 days for the first half of 2019, respectively, as a result of calculating revenue on a loading to discharge basis.
	(ii) Vessel overhead costs are General & Administrative expenses, which also include Management fees, Stock compensation expense and Management incentive award.
	(iii) Operating expenses per ship per day which exclude Management fees, General & Administrative expenses, Stock compensation expense and Management incentive award.
	(iv) EBITDA. See above for reconciliation to net income.
	Non-GAAP financial measures should be viewed in addition to and not as an alternative for, the Company’s reported results prepared in accordance with GAAP.
	The Company does not incur corporation tax.