Tsakos Energy’s top line
Tsakos Energy Navigation (TNP) earns its revenue through crude tankers and product tankers in both the spot market and the time charter market. The company posted revenue of $109 million in 3Q16—9% lower than last quarter’s revenue of $120 million and 23% lower than $141 million recorded in 3Q15.
Net revenues fell
Along with a fall in revenues, Tsakos Energy Navigation’s net revenues also fell. In 3Q16, the net revenues were $81.8 million—compared to $118 in the previous quarter and $109 million in 3Q15.
Factors that contributed to lower revenues
It’s important to note that 3Q16 wasn’t good to the crude tanker industry. Along with the usual summer factors, new additions to the global fleet, lower refinery production, and the falling oil supply were the prominent reasons for weak industry crude tanker rates.
Company-specific factors like redeployment and dry docking of the LNG carrier Neo Energy—the major earner in the previous quarter, and four scheduled dry dockings impacted the company’s revenue.
Tsakos is securing more long-term time charter contracts. In the future, we should see more stable revenues for the company. Also, the company is expected to take delivery of seven newbuilds in the coming year. It will add to the company’s revenue.
Most of the crude (DBO) tanker companies already released their third quarter earnings.