Where Will Tsakos Energy’s Earnings Stand in 2Q17?



TNP’s earnings estimates

As we discussed in the previous part of this series, Wall Street analysts expect a 9.2% YoY (year-over-year) fall in Tsakos Energy Navigation’s (TNP) 2Q17 revenues. The analysts’ EBITDA (earnings before interest, tax, depreciation, and amortization) estimate for 2Q17 is $58 million, which would mean a 5.8% drop from $62 million in the previous quarter.

For 3Q17, TNP’s EBITDA estimate stands at $57 million, with the estimates for 2017 and 2018 are $246.9 million and $286.8 million, respectively, compared with TNP’s 2016 EBITDA of $203 million.

Based on its 1Q17 EBITDA, TNP’s EBITDA margin was 44.8%. Based on its estimated revenue and its estimated EBITDA, its estimated 2Q17 EBITDA margin is now 57%.

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The 2Q17 EBITDA performances of TNP’s peers are as follows:

  • Teekay Tankers (TNK) recorded 2Q17 EBITDA of $26.14 million—58% lower YoY.
  •  DHT Holdings (DHT) recorded 2Q17 EBITDA of $36.7 million, which was lower than its $63.7 million in 2Q16.
  • Gener8 Maritime (GNRT) recorded EBITDA of $38.1 million—46% lower YoY.
  • Nordic American Tankers (NAT) recorded 2Q17 EBITDA of $15.1 million—61% lower than its 2Q16 EBITDA of $39.06 million.

Analysts also expect TNP’s EPS (earnings per share) to fall and are now forecasting EPS of $0.03, compared with $0.16 in 1Q17.


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