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Analysts Expect Tsakos Energy Navigation’s Revenue to Fall 18%

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Revenue estimates

Wall Street analysts expect Tsakos Energy Navigation’s (TNP) net revenue to be $107 million in 4Q17. Its revenue was $96.9 million in the previous quarter and $130.6 million in 4Q16. It would be an 18% fall YoY (year-over-year) and a 10.4% rise quarter-over-quarter.

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Revenue sources

Tsakos Energy Navigation earns its revenue by operating crude oil tankers, including VLCCs (very large crude carriers), Suezmax vessels, Aframax vessels, and product tankers. The company operates its vessels in the spot market and the time charter market.

Long-term estimates

Crude oil tanker rates have taken a hit in 2017. OPEC’s (Organization of the Petroleum Exporting Countries) oil production cut and fleet growth are some of the major reasons behind the fall in tanker rates. So a fall in crude oil tanker companies’ 2017 revenues isn’t surprising. Analysts estimate that Tsakos Energy Navigation’s fiscal 2017 revenues will be $416.5 million, which is 13.5% lower than $481.7 million in 2016.

Of Tsakos Energy Navigation’s 65 vessels, 49 of them have fixed contracted revenues. On the other hand, its peers have larger fleets in the spot market and experienced greater falls in their 2017 revenues. For 1Q18, analysts expect Tsakos Energy Navigation’s revenue to be $111.3 million.

Peers

  • Euronav’s (EURN) 2017 revenue was $513 million, which was 24.9% lower year-over-year.
  • DHT Holdings’ (DHT) 2017 revenue was $241 million, which was 16.8% lower YoY.
  • Teekay Tankers’ (TNK) 2017 revenue was $431 million, which was 18% lower YoY.
  • Nordic American Tankers’ (NAT) 2017 revenue was $154 million, which was 34.6% lower YoY.
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