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Why Tsakos Energy Navigation’s Revenue Rose 19% in 4Q16

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Aug. 18 2020, Updated 6:13 a.m. ET

Tsakos Energy Navigation’s top line

Tsakos Energy Navigation (TNP) earns its revenue through crude oil tankers and product tankers in both the spot market and the time charter market. The company posted revenue of $130.0 million in 4Q16, which was 19.0% higher than $109.0 million in 3Q16 and 9.0% lower than $143.0 million in 4Q15.

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Net revenues fell

Tsakos Energy Navigation’s net revenues also rose from the previous quarter. In 4Q16, its net revenues were $99.1 million, which was $17.0 million more than 3Q16.

Factors that contributed to higher revenues

It’s important to note that the fourth quarter is seasonally a strong quarter. In 4Q16, tanker rates improved since certain factors that had a negative impact on rates slowly disappeared.

Revenues also increased due to some company-specific factors. The company added nine vessels before and during the quarter, which contributed ~$15.0 million in revenues.

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A look at the future

Tsakos secured many long-term time charter contracts in 2016. In the first quarter of 2017, the company took delivery of four vessels. All these vessels are employed under long-term contracts, which should be positive for 1Q17 revenue. Four more Aframax tankers are expected to be delivered in 2017.

Revenues for peers

Most crude oil (DBO) tanker companies have already released their fourth quarter earnings. Here are some of the results:

  • Teekay Tankers (TNK) posted revenue of $117.0 million in 4Q16, which is 30.0% lower YoY (year-over-year).
  • DHT Holdings’ (DHT) revenue fell 16.0% YoY to $66.9 million in 4Q16.
  • Nordic American Tankers’ (NAT) revenue fell 32.0% YoY to $52.0 million in 4Q16.
  • Euronav’s (EURN) revenue in 4Q16 was $146.0 million, which was 36.0% lower YoY.
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