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TEN Ltd. saw its net profit more than double during the first nine months of 2023, reaching $272 million, which was $166 million more than the net profit of the first nine months a year prior.
The company has benefited from a continued strong tanker market and generated gross revenues of $669 million during the period, $79 million more than in the first nine months of 2022, it said in a press release.
“We are pleased with the company’s performance during the traditionally cyclical low of the year and have already begun to take advantage of the strong rates, both for long-term and spot business, currently in evidence as we enter the winter months”, George Saroglou, president and COO of TEN, commented.
The company said that the average time charter equivalent (TCE) per ship per day for the first nine months of this year amounted to $37,262, which was 38 percent higher than the 2022 nine-month level, while utilization reached 95.6 percent from 93.7 percent in the 2022 equivalent period assisted by a meaningful decrease in vessels operating in the spot market.
The third quarter of 2023 reflected the seasonal softness the tanker markets experienced, from the lofty levels of the prior quarters, as many refiners entered their maintenance season ahead of the upcoming winter period, TEN said.
TEN said its fleet, half of which was operating under market-related contracts, generated $187 million in revenues and produced an operating income of $53 million resulting in a net income of $31 million. Adjusted EBITDA in the 2023 third quarter amounted to a healthy $92 million, from $103 million in the 2022 third quarter which included, on average, seven more vessels, it said.
Fleet utilization reached 96.1 percent, after an increase of vessels in time-charter employment.
TEN said it has chartered or renewed more than 26 vessels in the first nine months of 2023, in various fixed or market-related contracts, at significantly higher rates, bringing the total secured revenue backlog to over $1.4 billion.
With the orderbook currently at historically low levels, the creation of new, long-haul trades as a result of geopolitical tensions and the lack of yard capacity for new vessels, TEN sees a cushion against overbuilding the sector, which has been the single most important factor to destabilize the tanker markets, it said.
As winter months approach, stronger than usual charter rates have appeared both for spot and long-term business while asset prices continued to remain firm despite the lack of activity during the summer months.
TEN said it will actively continue to divest some of its first-generation vessels and aim to replace them with younger tonnage, either on the second-hand or newbuilding front.
Interest in long-term business from significant oil concerns remains strong and continues to be the main driver for TEN going forward, the company said.
“With sector fundamentals well in our favor and with interest for long-term contracts on the increase, we remain confident that TEN will continue to present a compelling proposition to those seeking a longer-term participation in the global energy trades through companies that have withstood the test of time,” Saroglou said.
To contact the author, email andreson.n.paul@gmail.com
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