6-K
TSAKOS ENERGY NAVIGATION LTD (TEN)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OFFOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of December 2021
Commission File Number 001-31236
TSAKOS ENERGY NAVIGATION LIMITED
(Translation of registrant’s name into English)
367 SyngrouAvenue, 175 64 P. Faliro, Athens, Greece
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
TSAKOS ENERGY NAVIGATION LIMITED
FORM 6-K
This report on Form 6-K is hereby incorporated by reference into the following Registration Statements of the Company:
| • | Registration Statement (Form F-3<br>No. 333-240253) filed with the SEC on July 31, 2020; |
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| • | Registration Statement on Form F-3 (No.<br>333-234279) filed with the SEC on October 21, 2019; |
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| • | Registration Statement on Form F-3 (No.<br>333-206852) filed with the SEC on September 9, 2015; |
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| • | Registration Statement on Form F-3 (No.<br>333-111615) filed with the SEC on December 30, 2003; |
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| • | Registration Statement on Form S-8 (No.<br>333-183007) initially filed with the SEC on August 2, 2012, as amended; |
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| • | Registration Statement on Form S-8 (No.<br>333-134306) initially filed with the SEC on May 19, 2006, as amended; |
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| • | Registration Statement on Form S-8 (No.<br>333-104062) filed with the SEC on March 27, 2003; and |
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| • | Registration Statement on Form S-8 (No.<br>333-102860) filed with the SEC on January 31, 2003. |
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The press release issued by Tsakos Energy Navigation Ltd. on December 16, 2021 reporting results for the third quarter and nine months ended September 30, 2021 is attached hereto as Exhibit 99.1.
EXHIBIT INDEX
| 99.1 | Press Release, dated December 16, 2021 |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: December 17, 2021
| TSAKOS ENERGY NAVIGATION LIMITED |
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| By: /s/ George<br>Saroglou |
| George Saroglou |
| Operating Officer |
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EX-99.1
Exhibit 99.1
December 16, 2021
THIRDQUARTER 2021 SUMMARY RESULTS
Tsakos Energy Navigation Limited’s (the “Company” or “TEN”) voyage revenues totaled $131.6 million for the third quarter of 2021 with utilization at about 90%, as nine vessel surveys were brought forward and took place during the 2021 third quarter. Non-cash items of $36.4 million, contributed to a third quarter net loss of $25.0 million.
Total operating expenses, due to stringent controls, fell by 9%. This led to a daily opex per vessel dropping by about $600 to $7,332.
The drastic reduction of $115.0 million of our total debt since the end of 2020, positive bunker hedge valuations, cash gains and decreases in interest margins on certain loans that were refinanced at attractive terms, resulted in lowering finance costs by 40%, to $8.2 million.
NINE MONTHS ENDED SEPTEMBER 30, 2021 SUMMARY RESULTS
The inclusion of non-cash items of $113.0 million contributed to a net loss of $49.5 million for the nine months ended September 30, 2021. TEN, due its balanced employment policy, generated $407.0 million in gross revenues in a market that continued to be soft and only recently has shown signs of recovery, starting from LNG and product carriers.
Fleet utilization was at about 91% in the 2021 nine months, a relatively low level, after taking into account the 17 vessels that went through dry docking at various stages during the period, with some earlier than scheduled for tactical employment policy reasons. As a result, average TCE per ship per day for the first nine months of 2021 amounted to $17,089, a still satisfactory level given the demanding market conditions encountered.
Finance costs fell by 63% to $22.8 million, due to lower loan interest rate margins and positive bunker hedging movements. Also, during the 2021 nine-month period, outstanding debt was reduced by $115.0 million, further lowering related interest payments whilst maintaining solid cash reserves.
During the 2021 nine months, the Company disposed of three vessels for $53.2 million which released $21 million of free cash after repayment of related debt. These sales incurred a non-cash loss of $5.8 million.
SUBSEQUENT EVENTS
TEN has secured time charter contracts with an average of three years for 10 of its vessels, including four dual-fuel LNG powered Aframax crude carrier newbuildings, which together with the LNG newbuilding to be delivered in January 2022 and the Aframax DP2 Shuttle Tanker scheduled for delivery in the second quarter of 2022, are expected to generate, going forward, minimum gross revenues of about $500 million.
CORPORATE AFFAIRS
The Company’s ATM program for both preferred and common shares was $14.4 million during the third quarter of 2021 and $31.9 million thereafter. As of today, there are outstanding 22,996,795 common shares and 15,001,863 publicly traded preferred shares.
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TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
Selected Consolidated Financial and Other Data
(In Thousands of U.S. Dollars, except share, per share and fleet data)
| Three months ended | Nine months ended | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30 (unaudited) | September 30 (unaudited) | ||||||||||||
| STATEMENT OF OPERATIONS DATA | 2021 | 2020 | 2021 | 2020 | |||||||||
| Voyage revenues | $ | 131,562 | $ | 142,834 | $ | 406,991 | $ | 512,503 | |||||
| Voyage expenses | 54,113 | 37,242 | 148,979 | 105,363 | |||||||||
| Charter hire expense | 8,806 | 5,471 | 21,250 | 16,033 | |||||||||
| Vessel operating expenses | 41,158 | 45,246 | 128,810 | 133,440 | |||||||||
| Depreciation and amortization | 36,356 | 33,144 | 107,207 | 102,477 | |||||||||
| General and administrative expenses | 7,464 | 6,591 | 21,935 | 21,859 | |||||||||
| Loss on sale of vessels | — | — | 5,817 | 3,050 | |||||||||
| Impairment charges | — | — | — | 13,450 | |||||||||
| Total expenses | 147,897 | 127,694 | 433,998 | 395,672 | |||||||||
| Operating income (loss) | (16,335 | ) | 15,140 | (27,007 | ) | 116,831 | |||||||
| Interest and finance costs, net | (8,189 | ) | (13,485 | ) | (22,757 | ) | (60,958 | ) | |||||
| Interest income | 175 | 28 | 502 | 538 | |||||||||
| Other, net | 110 | (140 | ) | (83 | ) | 377 | |||||||
| Total other expenses, net | (7,904 | ) | (13,597 | ) | (22,338 | ) | (60,043 | ) | |||||
| Net income (loss) | **** | (24,239 | ) | **** | 1,543 | **** | **** | (49,345 | ) | **** | 56,788 | **** | |
| Less: Net income attributable to the noncontrolling interest | (769 | ) | (123 | ) | (150 | ) | (2,668 | ) | |||||
| Net income (loss) attributable to Tsakos Energy Navigation Limited | $ | (25,008 | ) | $ | 1,420 | **** | $ | (49,495 | ) | $ | 54,120 | **** | |
| Effect of preferred dividends | (8,555 | ) | (9,204 | ) | (24,934 | ) | (28,268 | ) | |||||
| Undistributed income to Series G participants | — | — | — | (1,370 | ) | ||||||||
| Deemed dividend on Series C preferred shares | — | (2,493 | ) | — | (2,493 | ) | |||||||
| Deemed dividend on partially redeemed Series G convertible preferred shares | (457 | ) | — | (2,170 | ) | — | |||||||
| Net income (loss) attributable to common stockholders of Tsakos Energy Navigation Limited,basic | $ | (34,020 | ) | $ | (10,277 | ) | $ | (76,599 | ) | $ | 21,989 | **** | |
| Net income (loss) attributable to common stockholders of Tsakos Energy Navigation Limited,diluted | $ | (34,020 | ) | $ | (10,277 | ) | $ | (76,599 | ) | $ | 24,013 | **** | |
| Earnings (Loss) per share, basic | $ | (1.72 | ) | $ | (0.55 | ) | $ | (4.05 | ) | $ | 1.16 | ||
| Earnings (Loss) per share, diluted | $ | (1.72 | ) | $ | (0.55 | ) | $ | (4.05 | ) | $ | 1.16 | ||
| Weighted average number of common shares, basic | 19,791,139 | 18,605,661 | 18,890,734 | 18,937,444 | |||||||||
| Weighted average number of common shares, diluted | 19,791,139 | 18,605,661 | 18,890,734 | 20,681,143 | |||||||||
| BALANCE SHEET DATA | September 30 | December 31 | |||||||||||
| 2021 | 2020 | ||||||||||||
| Cash | 115,627 | 171,771 | |||||||||||
| Other assets | 280,305 | 276,362 | |||||||||||
| Vessels, net | 2,510,870 | 2,615,112 | |||||||||||
| Advances for vessels under construction | 79,024 | 49,030 | |||||||||||
| Total assets | $ | 2,985,826 | $ | 3,112,275 | |||||||||
| Debt, net of deferred finance costs | 1,386,752 | 1,500,357 | |||||||||||
| Other liabilities | 247,287 | 230,100 | |||||||||||
| Stockholders’ equity | 1,351,787 | 1,381,818 | |||||||||||
| Total liabilities and stockholders’ equity | $ | 2,985,826 | $ | 3,112,275 | |||||||||
| Three months ended | Nine months ended | ||||||||||||
| OTHER FINANCIAL DATA | September 30 | September 30 | |||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||
| Net cash from operating activities | $ | 4,617 | $ | 45,098 | $ | 35,204 | $ | 187,179 | |||||
| Net cash (used in) provided by investing activities | $ | (1,890 | ) | $ | (86,375 | ) | $ | 18,676 | $ | (70,274 | ) | ||
| Net cash (used in) provided by financing activities | $ | (26,010 | ) | $ | 21,217 | $ | (110,024 | ) | $ | (78,183 | ) | ||
| TCE per ship per day | $ | 15,668 | $ | 20,451 | $ | 17,089 | $ | 25,351 | |||||
| Operating expenses per ship per day | $ | 7,332 | $ | 7,927 | $ | 7,665 | $ | 7,757 | |||||
| Vessel overhead costs per ship per day | $ | 1,248 | $ | 1,117 | $ | 1,227 | $ | 1,232 | |||||
| 8,580 | 9,044 | 8,892 | 8,989 | ||||||||||
| FLEET DATA | |||||||||||||
| Average number of vessels during period | 65.0 | 64.1 | 65.8 | 64.8 | |||||||||
| Number of vessels at end of period | 65.0 | 65.0 | 65.0 | 65.0 | |||||||||
| Average age of fleet at end of period | Years | 10.0 | 9.2 | 10.0 | 9.2 | ||||||||
| Dwt at end of period (in thousands) | 7,209 | 7,119 | 7,209 | 7,119 | |||||||||
| Time charter employment - fixed rate | Days | 1,938 | 2,030 | 5,959 | 6,953 | ||||||||
| Time charter and pool employment - variable rate | Days | 930 | 1,225 | 3,100 | 4,448 | ||||||||
| Period employment coa at market rates | Days | 272 | 58 | 695 | 234 | ||||||||
| Spot voyage employment at market rates | Days | 2,220 | 2,171 | 6,592 | 5,261 | ||||||||
| Total operating days | 5,360 | 5,484 | 16,346 | 16,896 | |||||||||
| Total available days | 5,980 | 5,898 | 17,884 | 17,749 | |||||||||
| Utilization | 89.6 | % | 93.0 | % | 91.4 | % | 95.2 | % | |||||
| Non-GAAP Measures | |||||||||||||
| Reconciliation of Net income (loss) to Adjusted EBITDA | |||||||||||||
| Three months ended | Nine months ended | ||||||||||||
| September 30 | September 30 | ||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||
| Net income (loss) attributable to Tsakos Energy Navigation Limited | $ | (25,008 | ) | $ | 1,420 | $ | (49,495 | ) | $ | 54,120 | |||
| Depreciation and amortization | 36,356 | 33,144 | 107,207 | 102,477 | |||||||||
| Interest Expense | 8,189 | 13,485 | 22,757 | 60,958 | |||||||||
| Loss on sale of vessels | — | — | 5,817 | 3,050 | |||||||||
| Impairment charges | — | — | — | 13,450 | |||||||||
| Adjusted EBITDA | $ | 19,537 | $ | 48,049 | $ | 86,286 | $ | 234,055 |
The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP measures used within the financial community may provide users of this financial information additional meaningful comparisons between current results and results in prior operating periods as well as comparisons between the performance of Shipping Companies. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company’s performance. We are using the following Non-GAAP measures:
| (i) | TCE which represents voyage revenue less voyage expenses is divided by the number of operating days less 182<br>days lost for the third quarter and 609 days for the nine-month of 2021 and 226 days for the prior year quarter and 618 days for the nine-month, respectively, as a result of calculating revenue on a loading to discharge<br>basis. |
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| (ii) | Vessel overhead costs are General & Administrative expenses, which also include Management fees, Stock<br>compensation expense and Management incentive award. |
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| (iii) | Operating expenses per ship per day which exclude Management fees, General & Administrative expenses,<br>Stock compensation expense and Management incentive award. |
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| (iv) | Adjusted EBITDA. See above for reconciliation to net income (loss). <br> |
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Non-GAAP financial measures should be viewed in addition to and not as an alternative for, the Company’s reported results prepared in accordance with GAAP.
The Company does not incur corporation tax.