6-K - TEN - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of July 2020

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 on Form F-3 (No.<br>333-234279) filed with the SEC on October 21, 2019;
•	Registration Statement on Form F-3 (No.<br>333-219569) filed with the SEC on July 28, 2017;
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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>333-159218) initially filed with the SEC on May 13, 2009, as amended;
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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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EXHIBIT INDEX

99.1	Tsakos Energy Navigation Limited financial results for the three months ended March 31, 2020 and 2019
99.2	Reverse Share Split Disclosure

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: July 30, 2020

TSAKOS ENERGY NAVIGATION LIMITED
By:	/s/ Paul Durham
	Paul Durham
	Chief Financial Officer

EX-99.1

Exhibit 99.1 ****

June 11, 2020

First Quarter 2020Summary Results

Tsakos Energy Navigation Limited’s (the “Company” or “TEN”) gross revenues for the first quarter of 2020 came in at approximately $180 million, $32 million higher than in the 2019 first quarter.

Operating income doubled to $54.7 million from $27.8 million in the 2019 first quarter.

Net income was $21.2 million, which takes into account the impact of non-cash items. Earnings per share, after non-cash bunker hedges and preferred stock dividends, increased to $0.12 in the first quarter of 2020 from $0.01 in the first quarter of 2019.

EBITDA amounted to about $90 million in the first quarter of 2020, 40% higher than in the 2019 first quarter. See the reconciliation of EBITDA to net income included elsewhere herein.

The daily average TCE per vessel reached $26,629 in the first quarter of 2020 compared to $21,054 in the first quarter of 2019.

This performance was a reflection of the strong market that started in the latter months of 2019 and continued into the first and second quarter of 2020. As a result, TEN once again benefited by chartering its vessels on long-term contracts hence securing future earnings and allowing the fleet to achieve a high fleet utilization, reaching 97% with only one vessel undergoing scheduled dry docking.

Fleet operating expenses increased modestly to $45.5 million from $43.3 million in the first quarter of 2019, partly due to the size of the fleet and calculated increases in provisions and stores taken onboard vessels for precautionary reasons as the Covid-19 pandemic began to spread, threatening access to terminals.

On a daily average per vessel basis, operating expenses were once again controlled to about $7,900 in the first quarter of 2020 due to strict cost checks.

G&A expenses increased by $1.17 million mainly due to a slightly higher fleet from the first quarter of 2019.

Depreciation and amortization combined were about $0.5 million lower in the first quarter of 2020 than in the 2019 first quarter due to vessel sales.

In the first quarter of 2020, interest and finance costs reached $33.6 million, which included hedge related payments and $16.0 million non-cash negative changes in bunker valuations. These non-cash items have already reversed due to the rebalancing of the oil market in terms of oil production and expected to have a positive impact on the balance sheet going forward.

Actual bank loan interest payments fell by $4.4 million in the first quarter of 2020 due to lower interest rates and declining outstanding loans from scheduled repayments and vessel sales.

By the end of the 2020 first quarter, total outstanding indebtedness fell by a net $53.5 million and correspondingly TEN’s net debt to capital declined to 46.5%. Concurrently, TEN’s cash balances reached a level well beyond earlier expectations, with cash reserves at a healthy $221 million as of March 31, 2020.

In January 2020, TEN took delivery of the newbuilding aframaxCaribbean Voyager which immediately commenced its five-year bareboat employment to a US oil major, sistership to theMediterranean Voyager delivered in October 2019 to the same charterer for identical employment.

Dividend – Common Shares Following the March 24, 2020 announcement of a 5 cents per common share dividend, the Company’s Board of Directors have subsequently approved to increase, for this time, that amount by 50% and pay a total of 7.5 cents per common share on June 26, 2020. The record date has been set for June 22, 2020 with ex-dividend date June 19, 2020.

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
	March 31 (unaudited)
	2020			2019
STATEMENT OF OPERATIONS DATA
Voyage revenues	$	178,899		$	147,046
Voyage expenses		32,711			31,566
Charter hire expense		5,140			2,669
Vessel operating expenses		45,488			43,324
Depreciation and amortization		34,828			35,285
General and administrative expenses		7,603			6,436
Gain on sale of vessel		(1,638	)		—
Total expenses		124,132			119,280
Operating income		54,767			27,766
Interest and finance costs, net		(33,593	)		(17,593	)
Interest income		391			774
Other, net		408			(29	)
Total other expenses, net		(32,794	)		(16,848	)
Net income	****	21,973	****	****	10,918	****
Less: Net (income) loss attributable to the noncontrolling interest		(752	)		311
Net income attributable to Tsakos Energy Navigation Limited	$	21,221	****	$	11,229	****
Effect of preferred dividends		(10,207	)		(10,204	)
Net income attributable to common stockholders of Tsakos Energy NavigationLimited	$	11,014	****	$	1,025	****
Earnings per share, basic and diluted	$	0.12		$	0.01
Weighted average number of common shares, basic and diluted		95,613,804			87,604,645

	March 31		December 31
	2020		2019
BALANCE SHEET DATA
Cash		220,851		197,770
Other assets		234,029		261,607
Vessels, net		2,655,529		2,633,251
Advances for vessels under construction		49,200		61,475
Total assets	$	3,159,609	$	3,154,103
Debt, net of deferred finance costs		1,481,080		1,534,296
Other liabilities		214,520		147,488
Stockholders’ equity		1,464,009		1,472,319
Total liabilities and stockholders’ equity	$	3,159,609	$	3,154,103
	Three months ended
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	March 31
	2020			2019
OTHER FINANCIAL DATA
Net cash from operating activities	$	57,453		$	39,238
Net cash provided by (used in) investing activities	$	22,546		$	(20,830	)
Net cash provided by (used in) financing activities	$	(56,918	)	$	(47,179	)
TCE per ship per day	$	26,629		$	21,054
Operating expenses per ship per day	$	7,886		$	7,522
Vessel overhead costs per ship per day	$	1,279		$	1,117
		9,165			8,639
FLEET DATA
Average number of vessels during period		65.3			64.0
Number of vessels at end of period		65.0			64.0
Average age of fleet at end of period	Years	9.0			8.5
Dwt at end of period (in thousands)		6,998			6,936
Time charter employment - fixed rate	Days	2,511			2,393
Time charter employment - variable rate	Days	1,735			1,674
Period employment (coa) at market rates	Days	89			180
Spot voyage employment at market rates	Days	1,421			1,328
Total operating days		5,756			5,575
Total available days		5,943			5,760
Utilization		96.9	%		96.8	%

Non-GAAP Measures

Reconciliation of Net income to Adjusted EBITDA

	Three months ended
	March 31
	2020			2019
Net income attributable to Tsakos Energy Navigation Limited	$	21,221		$	11,229
Depreciation and amortization		34,828			35,285
Interest Expense		33,593			17,593
Gain on sale of vessel		(1,638	)		—
Adjusted EBITDA	$	88,004		$	64,107

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 200<br>days lost for the first quarter of 2020 and 90 days for the prior year quarter of 2019 as a result of calculating revenue on a loading to discharge basis.
(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)	EBITDA. See above for reconciliation to net income.
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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.

EX-99.2

Exhibit 99.2

Reverse Share Split Disclosure

On July 1, 2020, Tsakos Energy Navigation Limited (the “Company”) effected a one-for-five (1-for-5) reverse share split of its authorized common shares, with a corresponding increase in the par value per share to $5.00 per share. The reverse share split reduced the number of authorized common shares from 175,000,000 common shares, with a par value of $1.00 per share, to 35,000,000 common shares, with a par value of $5.00 per share, and reduced the number of outstanding common shares from 93,905,410 common shares to 18,781,049 common shares. No fractional shares were issued in connection with the reverse share split. Shareholders who would otherwise have been entitled to receive a fractional share of the Company’s common shares after the reverse share split received a cash payment in lieu of such fractional share. No other terms of the Company’s common shares were affected by the reverse share split.

As the $175,000,000 authorized share capital of the Company related to common shares remained unchanged after the reverse share split, the stated capital on the Company’s consolidated balance sheet attributable to the common shares was unchanged as a result of the reverse share split.

All share and earnings (loss) per share information has been retroactively adjusted to reflect the reverse share split. The effect of the reverse share split on per share amounts and the weighted average number of common shares issued and outstanding for each of the quarters ended March 31, 2020 and 2019, and each of the five fiscal years ended December 31, 2019 are as follows.

	Three Months Ended March 31,				Year Ended December 31,
	2020		2019		2019			2018			2017			2016		2015
Earnings (loss) per share, basic	$	0.58	$	0.06	$	(1.58	)	$	(7.63	)	$	(0.95	)	$	2.35	$	8.43
Weighted average number of shares, basic		19,122,761		17,520,929		17,751,585			17,422,327			16,942,714			16,981,016		17,165,519
Earnings (loss) per share, diluted	$	0.58	$	0.06	$	(1.58	)	$	(7.63	)	$	(0.95	)	$	2.35	$	8.43
Weighted average number of shares, diluted		20,867,193		17,520,929		17,751,585			17,422,327			16,942,714			16,981,016		17,165,519