TEN

Image source: The Motley Fool. Thursday, Sept. 10, 2026 at 10:00 a.m. ET Chairman of the Board - Takis Arapoglou Founder and Chief Executive Officer - Nikolas Tsakos President and Chief Operating Officer - George V. Saroglou Chief Financial Officer - Harrys Kosmatos Operator: Thank you for standing by, ladies and gentlemen, and welcome to the Tsakos Energy Navigation conference call on the second quarter 2026 financial results. We have with us Mr. Takis Arapoglou, Chairman of the Board, Mr. Nikolas Tsakos, Founder and CEO, Mr. George V. Saroglou, President and Chief Operating Officer, and Mr. Harrys Kosmatos, CFO of the company. At this time, all participants are in a listen-only mode. There will be a presentation followed by a question and answer session. At which time, if you wish to ask a question, please press star one on your telephone keypad and wait for your name to be announced. I must advise you that this conference is being recorded today. Now I pass the floor to Mr. Nicolas Bornozis, President of Capital Link and Investor Relations Advisor to Tsakos Energy Navigation Ltd. Please go ahead, sir. Nicolas Bornozis: Thank you very much, and good morning to all of our participants. I am Nicolas Bornozis, President of Capital Link and Investor Relations Advisor to Tsakos Energy Navigation. This morning, the company publicly released its financial results for the six months and second quarter ended June 30, 2026. In case you do not have a copy of today's earnings release, please call us at 212-661-7566 or email us at [email protected] and we will have a copy for you emailed right away. Please note that parallel to today's conference call, there is also a live audio and slide webcast, which can be accessed on the company's website on the front page at www.tenn.gr. The conference call will follow the presentation slides, so please we urge you to access the presentation slides on the company's website. Please note that the slides of the webcast presentation will be available and archived on the website of the company after the conference call. Also, please note that the slides of the webcast presentation are user-controlled, and that means that by clicking on the proper button, you can move to the next or to the previous slide on your own. At this time, I would like to read the safe harbor statement. This conference call and slide presentation of the webcast contain certain forward-looking statements within the meaning of the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties which may affect TEN's business prospects and results of operations. At this moment, I would like to pass the floor to Mr. Arapoglou, the Chairman of Tsakos Energy Navigation. Before doing that, I would like to congratulate the company for the record revenue performance, and it seems that you are on course to break the $1 billion revenue target for the year. So Mr. Arapoglou, the floor is yours. Takis Arapoglou: Thank you, Nicolas. Good morning and good afternoon to all. Thank you for joining our call today, presenting second quarter first half results of TEN. Once again, congratulations to Nikolas Tsakos and the team for the stellar results as briefly described by Mr. Bornozis. Our model, TEN's model, has proven that it works even in weak markets, no surprise that it works so well also in this market where current market conditions are very favorable. It is a great opportunity for TEN to continue generating cash from operations, to continue from selling all the vessels to renew the fleet and generate more cash to fund a record order book, as you have seen in the press release, keep cash for contingencies. Perhaps if the board decides, repay, redeem, the Series E Preferred Shares. Nobody knows. It is a next year issue. More importantly, rewarding our investors. I want to emphasize this because during the calendar year 2026, we paid dividends of $0.60 and $1 for a total of $1.60 per share. It is obvious that this can only go higher, if approved by the board and if current conditions are maintained. This is a solid yield of very close to 4%, and it is a generous payout, compared to other companies in the sector. We want to underline that we want to reward our shareholders for staying with us, who have actually benefited also from a nearly doubling of the stock price in the last two years. Finally, TEN is making use of the strong market and of the high time charter rates to lock in high returns for its fleet. Up to now, the total of forward committed earnings is approaching $3.5 billion. This is a great cushion and great base to look forward to continued success in the next two to three years. Once again, congratulations to Nikolas Tsakos and the team for the stellar results. Sincere wishes for continued success. Thank you very much. Nikos Tsakos, the floor is yours. I pass on the floor to you. Thank you. Nikolas Tsakos: Chairman, thank you very much for your kind words, and hopefully we will continue this trend. Before that, of course, from all of us here in TEN and the family, we all remember 9/11. We all have been living in the U.S. and New York for the last 45 years. Many of us around this table were there 25 years ago. Our original office in New York is just on Rector Street, two blocks south of Ground Zero. Just to remind you that we were the first company to go public after 9/11. We went public in March 2002, and we were actually on a road show after Labor Day originally in 2001 before these terrible events. It is, I would say, very much into our mind and in our hearts, and we do not forget 9/11. Well, on a happier note, I have to say that this is a record-breaking period for our results in many segments. But looking back at it seems that even after the first 6 months, which have been very profitable, the second part is even stronger. The appetite of the major oil companies and all the charter is unprecedented. I have never seen that in my 30-plus years in business. A year ago, I would be happy when we said we had business for 1, 2, or 3 years for our existing ships. Right now, charterers are there to take anything which is 10 years or younger for up to 7 years and their appetite. So we are actually balancing this luxury problem to have together with our commercial department. We are making sure that TEN is taking advantage of the highs and at the same time secures long-term employment for a rainy day as they say. It is actually also very rewarding to see that we had our largest new building program of 26 vessels started 2 years ago. We have already taken delivery of 7 of those ships, and the valuation of those ships has already increased by at least 30%. So I think our $3 billion new building program value today close to $3.8 billion, $3.9 billion and growing on a monthly basis. So we are very well in the money. We took the decision to rebuild a big part of our fleet at the time where new building values were, I would say, more logical. So looking forward, we are looking for a good year. As the Chairman said, we are looking to increase the dividend for our shareholders, and we always make this announcement after our strategy meeting in November. So looking forward for an increase of that and hopefully the market will maintain its strength right now. And for more details, I will ask Mr. Saroglou, our President, to give us what has happened in the first 6 months and subsequent events. George Saroglou: Thank you, Nikos. We are very pleased today to report another profitable quarter. Excluding capital gains, this is a record-breaking quarter and first half for net income. We maintain a steady course in the most turbulent geopolitical environment in recent memory. The year started with the political developments in Venezuela and escalated with the war in the Middle East and the closure of the Strait of Hormuz. The Strait of Hormuz experienced its most severe disruption in modern history, effectively halting normal global oceangoing commerce. The world was hoping for a resolution following the signing of a ceasefire agreement, which quickly unraveled halfway through the 60-day period it was supposed to last. There is a U.S. naval blockade that tries to manage the safe passage of tankers in and out of this narrow, high-risk area. We have attacks on oceangoing vessels that attempt to cross the straits on their own or with the protection of the U.S. Navy. Vessels have been attacked, and seafarers serving on board have been injured and killed while trying to do their job and keep the world and global commerce going. Our company continues to avoid the Strait of Hormuz. Our thoughts and prayers are with all the seafarers that are stranded inside the area and have to endure every day the unnecessary stress and psychological mental fatigue for which they are not responsible. Tanker market fundamentals were strong even before geopolitics took center stage at the end of February. 2026 was forecasted to be another year with growth in global oil demand, while tonnage supply remained very balanced. The effect of the war in the Middle East and the ongoing closure in the Straits of Hormuz resulted in elevated crude and product prices that affected global oil demand. Despite higher prices, these geopolitical events have significantly added to the market strength. The tanker freight market has gone from strength to strength and TEN's diversified fleet with each new charter renewal and the fleet's market exposure to spot and profit-sharing rates will continue to further benefit from this unprecedented market dislocation. This is basically what we have done in the 33-year history we have as a public company. This is what basically we say in slide number 1 on page 4, that we managed since 1993 to turn every crisis the world has faced into a growth opportunity. Today, we have an 81-vessel fleet and we are one of the largest energy transporters in the world with a very young, diversified, and versatile pro forma fleet of 81 vessels. In slide 4, we list this pro forma fleet of all conventional tankers, both crude and product carriers. The red color shows the vessels that trade in the spot market, and we have currently 10 tankers trading spot and our new buildings under construction. With light blue, we have the vessels that are on time charter with profit-sharing. We have 13 vessels. With dark blue, the vessels that are on fixed-rate time charters. We have 39 vessels. In the next slide, we list the pro forma diversified fleet, which consists of our four LNG vessels, 2 in the water, plus 2 new buildings, and our 16-vessel shuttle tanker fleet. We are one of the largest shuttle tanker operators in the world with a fleet with young and technologically advanced vessels. Nikolas Tsakos: Do your next 26. George Saroglou: On July 28th, we took delivery of the DP shuttle tanker, Anfield, from Samsung Heavy Industries in South Korea, the third in a series of 12 DP2 shuttle tankers under construction at that yard. The vessel commenced a 10-year employment to a U.S. oil major with charter options to extend until the vessel's 20th-year anniversary. Assuming charterers employ the vessel to the maximum duration, the expected gross revenue should approach $500 million. Following the Anfield delivery, we have seven shuttle tankers in full operation. If we combine the two slides and account only for the current operating fleet of 62 vessels, we have 23 vessels or 37% of the operating fleet with market exposure, spot and time charter with profit-sharing. While 52 vessels or 84% of the fleet is in secured revenue, which is time charters and time charters with profit-sharing. In the next slide, we list our clients with whom we do repeat business through the years, thanks to our industrial model. ExxonMobil is the largest revenue client. Equinor, Shell, Chevron, TotalEnergies, and BP follow. The left side of the next slide presents the all-in break-even cost for the various vessel types we operate in TEN. Our operating model is very simple. We try to have our time charter vessels generate revenue to cover the company's cash expenses, paying for the vessel operating and finance expenses for overheads, chartering costs, and commissions, and let revenue from the spot and profit-sharing trading vessels to contribute to the profitability of the company. Thanks to the profit-sharing element, for every $1,000 per day increase in spot rate, we have $0.11 positive impact on the annual earnings per share based on the number of vessels that currently the company has exposure to spot rates, which is 23 vessels. We have a solid balance sheet with strong cash reserves. The fair market value of the pro forma of the fleet is approximately $4.9 billion against $2 billion debt, and net debt-to-capital is around 44.5%. Fleet renewal and investing in eco-friendly vessels has been key to our operating model. Since January 1st of 2023, we have further upgraded the quality of the fleet by divesting from our third-generation conventional tankers, replacing them with more energy-efficient new buildings and modern secondhand tankers, including, of course, dual-fuel vessels. In summary, we sold 20 vessels with an average age of 17.3 years and capacity of 2 million deadweight ton and replaced them with 35 contracted and modern acquired vessels with an average age of 0.5 years and 4.8 million deadweight ton. We announced today the sale of two 2006-built Suezmax tankers to independent third parties for net proceeds of $100 million. Prior to the sale, as previously reported, the vessels were part of a sale and leaseback structure. TEN repurchased them for cash upon maturity of their lease at a significant discount to fair market value. As we continue to transition our fleet to greener and dual-fuel vessel, we must note of our well-timed new building program and how well is in the money today. Our old 26 new building vessels that were contracted in 2003 are today at much lower levels than current new building prices. In a new building program of approximately $3.1 billion cost, we have today at least a 30% appreciation in value, even before some of these vessels are delivered to the company. Tanker market fundamentals have remained strong with a global order book still at a level equal to about 40% of the number of vessels that are 50 years of age or older, and CPRs operate at full capacity. While at the same time, geopolitical conflicts continue to increase ton-mile dislocation, and that provides further support to an already robust tanker market. With that, I will pass the floor to Harrys Kosmatos, who will walk us through the financial performance of the first half. Harry? Harrys Kosmatos: Thank you, George. Let me start with a brief summary of our six-month results. A favorable tanker market fundamentals continues geopolitical tensions, along with the ever-present trading inefficiencies that have been created, continue to propel the market to levels that, on the one hand, incentivize owners with a long-term outlook to fix for longer periods as demand for term tonnage remains unabated. While on the other, encourage the divestment of vessels of all ages for lofty profits. TEN, since the beginning of the year, has been active on both fronts and has reaped the benefits of such an extraordinary confluence of circumstances. The results of the first half and second quarter of 2026 are a vivid reflection of that. Benefiting from a modern, versatile, and efficiently operated fleet, catering in its majority to the long-term needs of our clients, fleet utilization in the first six months of 2026 was almost identical to the 2025 first half level, at 96.5%, despite having six ships undergoing scheduled dry docks from five in last year's first half. As a result of the fleet operating at almost full capacity with an employment policy inclined towards long-term charters with upside optionality through vessels operating under spot and profit-sharing contracts, gross revenues during the first half of 2026 increased to well over half a billion dollars, $551 million to be exact, or $161 million above the 2025 first half level. This was accomplished with an average fleet of 63.5 vessels, just a vessel and a half above the 2025 first half fleet. Quite an achievement. Of interest, profit-sharing arrangements contributed $71 million of revenue during the first half of 2026, compared to $10 million in the 2025 same period. This substantial increase occurred despite a 22% decline in actual operating days under market-related contracts, while available days on fixed-rate time charters rose by 23% over the corresponding periods. The time charter equivalent rate per ship per day impacting the above results, and by extension reflecting the continuous robustness of the tanker markets and operational efficiency of the fleet, reached $43,503 per day from $30,754 per day in the 2025 first half, a 41% increase. Fleet voyage expenses in the first half of 2026 climbed to about $82 million from $68 million in last year's first half. The result, to a large extent, of increases in bunker prices of about 25%, impacting vessels operating spot. Vessel operating expenses during the 2026 first half reached $111 million from $102 million in the 2025 same period, a modest unexpected increase. The result of the slightly bigger fleet, higher dry docking expenses, and the customary inflationary pressures. On a per ship per day basis, this translated to $10,298, about a quarter of the TCE rate mentioned above. Depreciation amortization expenses, again, driven by the increased size of the fleet, which included the delivery of two MR product tankers and the repatriation of two Suezmax tankers from five-year operating leases, came in at $90 million from $83 million in last year's first half. General and administrative expenses at $27 million from $23 million in the 2025 first half reflected a somewhat higher management performance-based compensation from the 2025 first half level and inflationary pressures. As a result of all the above, TEN for the first half of 2026 generated operating income of $273 million from $111 million in last year's first half, inclusive of a $38 million and a $3.6 million of capital gains, respectively. An increase of 146%. Despite an increase in our financial obligations related to the growth of the fleet, $2.1 billion at the end of June 2026 from $1.8 billion at the end of June 2025, increase in finance costs fell by $5.6 million, the result of lower global interest rates and lower spreads on new and refinance loans. Interest income, on the other hand, remained similar to last year's equivalent period at $5.6 million. Reflecting the performance outlined above, the result of commercial and operational efficiencies as well as positive market fundamentals, the net income generated by the company reached one of the highest levels in recent memory. $228 million from $64.5 million in the equivalent 2025 first half, a 253% increase. If we're to exclude the capital gains recorded in both 2026 and 2025 first half period, as some of you are accustomed in doing, the 2026 first half net income experienced a 112% increase from the 2025 first half, or in dollar terms, $129 million more. In terms of EPS, earnings per share, $7.12 in the first half of this year from $1.70 in last year's first half. In other words, a 318% increase. Adjusted EBITDA for the period was higher by $131 million from the 2025 first six months and reached $324 million, a 68% increase. Cash at the end of June 2026 stood at $466 million, $179 million above the June 30, 2025 level, and $168 million above cash balances at year-end of 2025. Now let's go quickly on our Q2 results. Following the above pattern, and again by operating the fleet of 63.5 vessels from 62 in last year's second quarter, with 4 vessels on dry dock to 3 in the 2025 same period, gross revenues climbed to $298 million from $193 in the 2025 second quarter, a $105 million increase. Voyage expenses during the second quarter of 2026 increased to $52 million from $32 million in the corresponding 2025 second quarter, primarily reflecting higher bunker prices affecting vessels operating in the spot market. Spot market employment accounted for approximately 12% of total fleet operating days during the 2026 second quarter. Operating expenses on the 63.5 vessels in the fleet were at $57.7 million or a $5 million reduction from the 2025 second quarter, primarily due to the slightly larger fleet and an extra vessel over the 3 that underwent special service in the second quarter of 2025. Depreciation and amortization expenses for the 2026 second quarter period were $46.3 million from $42.1 million in the 2025 second quarter, the result of a marginally larger fleet and the reintroduction of the 2 straight months as mentioned earlier. General and administrative expenses during the 2026 second quarter reached $14.8 million from $13.2 million in the 2025 second quarter, a marginal $1.6 million increase. Interest and finance costs in the second quarter came in lower from the 2025 second quarter, $22.6 million from $25 million, or a $2.3 million reduction. On the other hand, interest income during the 2026 second quarter was marginally higher than the 2025 equivalent period at $3.4 million. Reflecting the above performance, the net income for the second quarter of 2026 after a $38 million capital gain climbed to $139.3 million from $26.8 million in last year's second quarter, which unlike this one, had no gains or losses recorded. In terms of EPS, the above figures translate to $4.40 for this year's second quarter compared to $0.67 in last year's second quarter, a 557% increase. In ending, adjusted EBITDA for the second quarter of 2026 was 81% higher from the 2025 second quarter to reach $170.4 million or $76.5 million higher. With this, I'll pass it back to Nikolas. Thank you. Nikolas Tsakos: Thank you, Harrys. I think that has been a very detailed presentation of the growth of the company. We've been operating a similar size ship. If you go back, George, to the slide of over the years, and you will see that we have been operating a fleet of a similar size for the last 10 years. Where do you see the financial statistics of There you go. Harrys Kosmatos: Slide 10. Nikolas Tsakos: I think we've been operating a fleet of around 60 to 65 vessels for the last 10 years. There you can see the big effect, the growth of the cash, the growth of earnings, the growth of EBITDA. Hopefully, 2026 will be a milestone year where I think as Nicolas Bornozis said, the company will be exceeding in revenues the billion dollars significantly and of course, a very strong EBITDA. With this, I would like to open the floor for any questions. Operator: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. Thank you. Our first question comes from line of Poe Fratt with Alliance Global Partners. Please proceed with your question. Poe Fratt: Hello. Harry, I would just like to clarify the profit-sharing contribution for the second quarter. I think I heard you say that the first half contribution was $71 million, and I had the first quarter contribution at $40 million. So was the second quarter contribution $31 million? Harrys Kosmatos: No. You rightly heard the contribution for the first half of 2026 was $71 million, seven one, $71 million. While last year it was $10, 4.5 and kind of $5.6 million. That was the profit-sharing received at the same period last year. So effectively, we generated seven times more the profit-sharing that we did this time last year. Poe Fratt: Yeah. Harrys Kosmatos: Perhaps as an interesting tidbit is that for the entire 2025 period, the profit share was at $46 million. So you can imagine at $70 million in the first half that things are looking rosier. Poe Fratt: Yeah. I just wanted to clarify what the contribution was in the second quarter. Harrys Kosmatos: Oh, yeah, sorry. In the second quarter of 2026, it was $30.5 million. Correct. Poe Fratt: Okay, great. Harrys Kosmatos: It was 4 and $30.5. Poe Fratt: Yep, that is helpful. Can you help me understand the outlook for the second half of the year from a profit-sharing standpoint? It looks like some of the VLs may have moved on to profit-sharing agreements, so relative to the second quarter, should we see the profit-sharing contribution increase or stay about the same? Any color would be helpful on the profit-sharing contribution. Nikolas Tsakos: Well, we are expecting significant increase in profit sharing for the second half of the year. We have renegotiated drastic increases in minimums. Also, the profit-sharing arrangements are much more favorable to the owners. As I said, the charterers are very eager to employ good quality vessels, so they are much more giving. Of course, at the same time, it is a win-win situation because, as you know, the refinery margins are on all-time highs. So our clients, and we are very happy about that, are making very good returns, so they are not stingy in sharing some of their returns with us, the transporters. Harrys Kosmatos: No, look, it’s very positive, Paul, because we have 13 vessels today on a profit-sharing arrangement, nine of which are of the bigger sizes, Suezmaxes and VL. So we have seven Suezmaxes and two VLs in the profit-sharing arrangement. So as you can imagine, we expect that the profit sharing will be quite meaningful going forward. Nikolas Tsakos: We’ll be able to offer 30 for Thanksgiving, it seems this year. Poe Fratt: I hope with a lot of stuffing. When you look at the asset sales program, you sold two in August. Can you just highlight the gain that you’re going to report in the third quarter from those sales? Then more importantly, what other assets might you sell over the second half of the year looking into the first half of 2027? Nikolas Tsakos: Well, as I said, we look at those vessels. All the vessels that are in the list have been built by then on behalf of our clients who are still the same, the Exxons, the Chevrons, the Totals 20 years ago or 15 years ago. So they’re very good quality ships. I have to drag them out of our new building department because they get sentimental with this. But actually, the next sale is going to be, I will be sentimental also because it’s a vessel that is older than my kids. So I think it’s one of our older ships, the Andes, which was built around 2003. So she’s going to be the next one to go. And of course, for further trading, she has been trading for one of the big majors since she was built, and the major wants the vessel up to now, keeps on chartering the vessel up to now at very healthy rates. But I think there is always a time to when someone becomes of legal age of 21 and over, we let them go. Poe Fratt: Got you. Can you just talk about your appetite for new builds? I thought I heard you say that new build pricing has moved up where it is less, maybe I thought I heard you say less reasonable than it was. What should we expect on the new building side as we look out over the next 12 months? Nikolas Tsakos: Well, for us as a company, we are actually very busy right now absorbing one of our largest growths. I think a big milestone of 26 vessels with a cost of $3.2 billion. We still have to take over 19. I think we are going to see a huge effect to our earnings to our revenues because three VLs are coming in. Of course our VLs, less than a year ago, we contracted them, and they have almost, I would say, doubled in price since then. So today, if we decided not to sell them as contracts, we would almost double the price that we ordered them. The same goes for all our 26 new buildings. So I think we are not right now, to be correct, we are looking again at vessels with long employment, specialized vessels like the shuttle tankers against accretive long-term contracts. But I think we are very well placed. We are in a good place, and we still have 19 new buildings that are well into the money to take delivery of. Poe Fratt: Great. I think you said that 30% higher than your $3.1 billion stated program, so closer to market value is $4 billion. Great. Nikolas Tsakos: Yeah. Poe Fratt: Thank you. I'll turn it back. Nikolas Tsakos: Thank you. Poe Fratt: Thanks, sir. Operator: As a reminder, if you would like to ask a question, press star one on your telephone keypad. Our next question comes from the line of Climent Molins with Value Investor's Edge. Please proceed with your question. Climent Molins: Hi, good afternoon, and thank you for taking my questions. Nikolas Tsakos: Hi. Climent Molins: You hint at higher distribution going forward, which makes sense considering your financial position and the free cash flow you are currently generating. In the past, you had mentioned potentially declaring, let's say, supplemental dividends as net proceeds from asset sales rolling. Could you give us an update on this front? It is obviously a discussion for the board, but any color you can give us? Nikolas Tsakos: Sure. Well, I think our intention is to significantly reward or increase the reward to our shareholders because I think as our chairman said, we like to share. Being the major shareholders ourselves, we like to share the upside pari-passu with them. So we are looking forward for a nice dividend announcement after our strategy meeting in November. On the special dividend, we did it a couple of times, but we were told off by the analyst because it complicates, and I think rightly so, it complicates. They do not know if this is something that is going to be recurrent or not. So I would rather add or increase the normal semi-annual dividends because we need to keep our analysts happy and less confused rather than doing a special dividend. They felt that was something that was a one-time event and got wasted, whereas when you have a company that has significant cash flow, significant cash, as Harry, I think, referred to our cash since the six months has also grown in a big way. Down the road, we have our perpetual preferred, which is $120 million at 9.25%, and we are considering that actually taking this out. It's not an obligation, but I think it will be a very good use of cash. It will add anywhere to between $0.30 and $0.40 to the bottom line, just by saving on the high coupon. And of course, continue to invest in our new building program. Climent Molins: Yeah. Taking off the preferred definitely makes sense. A special dividend is not that confusing, but obviously it's a board decision, so we'll see. I have another question on the dividend. Is there any appetite to potentially move to a quarterly payment schedule? All your peers follow that model, so I was wondering whether this is something you'd consider. Nikolas Tsakos: Well, we actually have moved, I think about 10 years ago, from a quarterly dividend to a semi-annual dividend because for many reasons, for logistical purposes. Shipping is a little operationally a more complicated business. We are not land block, we're not land-based. It's not that we have five or 10 factories in various states that they produce. We have ships all over. Sometimes a voyage takes more than a quarter. So, I think it's more appropriate for shipping, and I think even the President of the United States referred to it about a year ago, saying that the quarterly dividends takes a lot of time, from management time, CFO time, and also it does not portray the actuality of the business. I think the short answer is we would maintain the semi-annual dividend because I'd rather be able to give a big semi-annual dividend just rather than smaller quarterly ones. Operator: Does that complete your question? Climent Molins: Yeah. Operator: Our next question comes from the line of Poe Fratt with Alliance Global Partners. Please proceed with your question. Poe Fratt: Thanks for taking the follow-up. Nikos, on the last couple of calls, you've talked about potentially doing a restructuring of the company and maybe carving out the shuttle tankers or other assets that are in long-term charters. Can you update us on any progress on that plan? Nikolas Tsakos: Well, I think restructuring is something that our company, for 33 years, we have never had to do. I think perhaps replanning could be the word because I guess I'm taking the opportunity from what you said to say that TEN is perhaps one of the very few companies that we have never restructured or renegotiated any of our loans in the last 33 years. We've been paying our obligation, paying dividend continuously, paying our lenders continuously, and then maintaining a steady ship. The company is looking at ways to add more value. We will not reduce the size of the fleet. We might consider, again, closer to the end of our new building program, to carve out a small part of our fixed, I would say, the long-term fleet, about 20 vessels, but within TEN. It will be within TEN. We are approached by a lot of investors who would like to participate in what we say, and I think it's on page 5, which is called TEN Special. It's like a pizza. You see the 20 vessels there, and those ships have very long employments, 10, 15, 20 years. They appeal to some shareholders that would like to invest into that, but everything would happen within TEN. TEN would maintain at least 60%, 70% of the fleet. So the ships will not be out of the company. Poe Fratt: Great. Thank you. Operator: We have no further questions at this time. Mr. Tsakos, I'd like to turn the floor back over to you for closing comments. Takis Arapoglou: Nikos, on the last comment, I'd like to just add, if I may, that this is not at the top of our list right now. It's not something that. Nikolas Tsakos: Yes Takis Arapoglou: we would expect any development Nikolas Tsakos: Yes Takis Arapoglou: in the near future. Nikolas Tsakos: Yes. Takis Arapoglou: Let's make that clear. Nikolas Tsakos: Exactly. It's not on the top of our list, but it is another way that we might consider to prove the hidden value of those ships that have the very long employment. But always, if something happens, will be within TEN. So really, TEN shareholders will not be affected at all. The fleet will maintain its big size, but perhaps a big shareholder will more specifically invest as a minority holder in these assets. But again, as the chairman said, this is more food for thought at this stage. Thank you, Chairman. Takis Arapoglou: Thank you. Nikolas Tsakos: And with that, again, I would like to wish everybody a good beginning of the new season. We are looking at a healthy period from now to the end of the year. We are actually literally operating in an operational minefield. Not only we have to maintain a steady course but geopolitical events, mainly in the Middle East, are making the daily business change as we speak, and the decisions we have to make. Always with the responsibility to our seafarers, our crews, and of course, the safety of the vessel, the safety of the environment, because those ships are carrying huge quantities of oil, and we do not want to put them in danger. Saying this, these circumstances have created an unprecedented strong market. I think rates right now in the Gulf area, which as you know, has been also attacked by the Houthis. It sounds like a movie. The Houthis are close to $800,000 a day, approaching $1 million a day for a VLCC in the Gulf. This is uncharted territory, which we are taking advantage of carefully and steadily. We would like the world to be completely peaceful, even if we did not make the returns that we are making, because it will make the sustainability of our business going forward much better. In the meantime, we are taking advantage of the situation. We are one of the biggest companies in Venezuela. Our vessel was the first vessel to lift legal cargos finally from Venezuela. The Russian situation also is putting almost 25% of the world fleet out of the market. We are looking at least for the next year, at good and growing prospects. The management will be attending the Capital Link and other events at the end of the month. We would like to be able to see as many of you live in the United States and also Europe. With that, we would like again to thank you for your support, and as we said, always remember 9/11 as a very special day for the world and of course, for us and the company. Thank you very much. Operator: Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a wonderful day. Before you buy stock in Tsakos Energy Navigation, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Tsakos Energy Navigation wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $410,024!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,372,815!* Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of September 10, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Tsakos Energy Navigation (TEN) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Gross Revenues (H1 2026): $551 million, up $161 million from H1 2025. Gross Revenues (Q2 2026): $298 million, up $105 million from Q2 2025. Profit Sharing Revenue (H1 2026): $71 million, versus $10 million in H1 2025. Time Charter Equivalent Rate: $43,503 per ship per day in H1 2026, up 41% from $30,754 in H1 2025. Fleet Utilization (H1 2026): 96.5%, nearly flat versus H1 2025. Voyage Expenses (H1 2026): ~$82 million, up from $68 million in H1 2025. Vessel Operating Expenses (H1 2026): $111 million, up from $102 million in H1 2025; $10,298 per ship per day. Depreciation & Amortization (H1 2026): $90 million, up from $83 million in H1 2025. General & Administrative Expenses (H1 2026): $27 million, up from $23 million in H1 2025. Operating Income (H1 2026): $273 million, up 146% from $111 million in H1 2025 (including $38 million and $3.6 million capital gains, respectively). Net Income (H1 2026): $228 million, up 253% from $64.5 million in H1 2025. Net Income Excluding Capital Gains (H1 2026): Up 112% versus H1 2025, or $129 million more. EPS (H1 2026): $7.12, up 318% from $1.70 in H1 2025. Adjusted EBITDA (H1 2026): $324 million, up 68% (up $131 million) from H1 2025. Net Income (Q2 2026): $139.3 million, up from $26.8 million in Q2 2025 (after $38 million capital gain). EPS (Q2 2026): $4.40, up 557% from $0.67 in Q2 2025. Adjusted EBITDA (Q2 2026): $170.4 million, up 81% (up $76.5 million) from Q2 2025. Voyage Expenses (Q2 2026): $52 million, up from $32 million in Q2 2025. Operating Expenses (Q2 2026): $57.7 million, down $5 million from Q2 2025. Depreciation & Amortization (Q2 2026): $46.3 million, up from $42.1 million in Q2 2025. General & Administrative Expenses (Q2 2026): $14.8 million, up from $13.2 million in Q2 2025. Interest & Finance Costs (Q2 2026): $22.6 million, down from $25 million in Q2 2025. Interest Income (Q2 2026): $3.4 million, marginally higher than Q2 2025. Cash Balance (June 30, 2026): $466 million, up $179 million year-over-year and $168 million above year-end 2025. Debt: $2.1 billion at end of June 2026, up from $1.8 billion at end of June 2025. Net Debt to Cap: ~44.5%. Fleet Fair Market Value: ~$4.9 billion pro forma. Dividends (Calendar 2026): $0.60 and $1.00 paid, totaling $1.60 per share; yield close to 4%. Forward Committed Earnings: Approaching $3.5 billion. New Building Program: 26 vessels, ~$3.1 billion cost, at least 30% value appreciation; seven vessels delivered to date. Fleet Composition: 81-vessel pro forma fleet; 62 operating vessels; 23 vessels (37%) with market exposure (spot and profit-sharing); 52 vessels (84%) in secured revenue. Fleet Renewal: Sold 20 vessels (avg age 17.3 years, 2 million DWT); replaced with 35 contracted/modern acquired vessels (avg age 0.5 years, 4.8 million DWT). Vessel Sales: Two 2006-built Suezmax tankers sold for net proceeds of $100 million. Spot Rate Sensitivity: Every $1,000/day increase in spot rate yields $0.11 positive annual EPS impact (based on 23 vessels with spot exposure). Warning! GuruFocus has detected 8 Warning Signs with TEN. Is TEN fairly valued? Test your thesis with our free DCF calculator. Release Date: September 10, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record-breaking financial performance: First half 2026 net income surged 253% to $228 million, with earnings per share up 318% to $7.12, driven by strong tanker market fundamentals and operational efficiency. Strong revenue growth and profit-sharing contributions: Gross revenues exceeded $551 million in the first half, up $161 million year-over-year, while profit-sharing arrangements contributed $71 million, a sevenfold increase from the prior year. Robust balance sheet and liquidity: Cash reserves stood at $466 million, up $179 million from June 2025, with net debt to capitalization at a healthy 44.5%, providing financial flexibility for fleet renewal and shareholder returns. Attractive dividend and shareholder rewards: The company paid $1.60 per share in dividends during 2026, yielding nearly 4%, and management indicated potential for further increases, supported by strong cash flow and a commitment to reward shareholders. Strategic fleet renewal and newbuilding program: The company has a 26-vessel newbuilding program valued at approximately $3.1 billion, already appreciated by at least 30%, with long-term charters securing nearly $3.5 billion in forward committed earnings, ensuring future growth and stability. Geopolitical and operational risks: The ongoing closure of the Strait of Hormuz and attacks on vessels in the Middle East create significant operational hazards, potentially disrupting trade routes and increasing insurance and security costs. Rising voyage expenses: Fleet voyage expenses increased to $82 million in the first half of 2026 from $68 million in the prior year, primarily due to a 25% rise in bunker prices, impacting profitability for spot-operated vessels. Dependence on spot market exposure: With 23 vessels (37% of the operating fleet) exposed to spot and profit-sharing markets, earnings remain volatile and subject to fluctuations in tanker rates, which could decline unexpectedly. Higher operating and administrative costs: Vessel operating expenses rose to $111 million, and general and administrative expenses increased to $27 million, reflecting inflationary pressures and performance-based compensation, which may continue to pressure margins. Uncertainty regarding preferred stock redemption and restructuring: The potential redemption of the Series E preferred stock (costing $120 million at 9.25%) and discussions about carving out a portion of the fleet introduce uncertainty, with no clear timeline and potential impacts on capital allocation. Q: Can you clarify the profit-sharing contribution for the second quarter and provide an outlook for the second half of the year? A: CFO Theoharrys Kosmatos confirmed the second quarter profit-sharing contribution was $30.5 million, bringing the first-half total to $71 million, which is seven times higher than the same period last year. CEO Nikolas Tsakos added that the company expects a significant increase in profit sharing for the second half of the year, as they have renegotiated contracts with much higher minimums and more favorable profit-sharing arrangements, especially with 13 vessels (including nine larger ones) on such agreements. Q: Can you provide an update on the company's asset sales program and which vessels might be sold next? A: CEO Nikolas Tsakos stated that the company continues to look at selling vessels, noting they are high-quality ships built for major clients. He identified the next vessel to be sold as the "Andes," built around 2003, which has been trading for a major oil company. He framed the sale as a natural part of the fleet's lifecycle, saying, "when someone becomes of legal age of 21 and over, we let them go." Q: What is the company's appetite for new build vessels given the current market prices? A: CEO Nikolas Tsakos explained that the company is currently focused on absorbing its existing new building program of 26 vessels, which cost $3.2 billion and is now worth significantly more. He noted that new build prices have increased, making them less attractive. While not actively ordering, they are looking at specialized vessels with long-term employment, like shuttle tankers. He emphasized that the remaining 19 new buildings to be delivered are "well into the money." Q: Can you give an update on the potential for higher distributions or supplemental dividends from asset sale proceeds? A: CEO Nikolas Tsakos stated the intention is to "significantly reward or increase the reward to our shareholders," with a dividend announcement expected after the November strategy meeting. He explained a preference for increasing the regular semiannual dividend over a special dividend, as analysts find special dividends confusing and non-recurrent. He also mentioned the company is considering redeeming its $120 million perpetual preferred stock with a 9.25% coupon, which would save on interest and add $0.30-$0.40 to the bottom line. Q: Would the company consider moving to a quarterly dividend payment schedule like some of its peers? A: CEO Nikolas Tsakos said the company would maintain its semiannual dividend schedule. He explained that shipping is operationally complex, with voyages sometimes lasting more than a quarter, making a semiannual schedule more appropriate. He added that he would "rather be able to give a big semiannual dividend just rather than smaller quarterly ones." Q: Can you update us on the potential restructuring of the company, such as carving out the shuttle tankers or other assets? A: CEO Nikolas Tsakos clarified that the company has never restructured in its 33-year history and is not planning to do so now. He mentioned that they might consider carving out a small part of the long-term fleet (about 20 vessels) into a separate entity closer to the end of their new building program, but any such move would happen within TEN, with the company maintaining at least 60-70% of the fleet. Chairman Efstratios Arapoglou added that this is not at the top of their list and is more "food for thought" at this stage. Q: What is the outlook for the tanker market in the second half of the year and into 2027? A: CEO Nikolas Tsakos described the current market as "unrepresented strong," with rates in the Gulf area for VLCCs approaching $1 million a day. He noted that geopolitical events, such as the situations in Venezuela and Russia, are creating trading inefficiencies and supporting the market. He stated, "we are looking at least for the next year at good and growing prospects," while acknowledging the operational risks and the company's careful approach to ensure the safety of its seafarers and vessels. Q: What is the status of the company's new building program and its impact on the fleet? A: COO George Saroglou provided an update, stating the company has taken delivery of seven of the 26 new buildings. He highlighted that the valuation of these ships has already increased by at least 30%, making the $3.1 billion program worth close to $3.8-$3.9 billion today. He also noted the recent delivery of the DP shuttle tanker "Anfield," which commenced a 10-year employment with a US oil major, with expected gross revenue approaching $500 million. Q: Can you provide more details on the company's financial performance for the first half and second quarter of 2026? A: CFO Theoharrys Kosmatos reported record results, with first-half net income reaching $228 million, a 253% increase from the prior year. This was driven by a 41% increase in the time charter equivalent rate to $43,503 per day and a $71 million contribution from profit-sharing arrangements. For the second quarter, net income was $139.3 million, or $4.40 per share, a 557% increase year-over-year, primarily due to a $38 million capital gain and strong market fundamentals. Q: What is the company's strategy regarding its fleet composition and market exposure? A: COO George Saroglou explained that the company's industrial model is to have its time charter vessels cover cash expenses, while revenue from spot and profit-sharing vessels contributes to profitability. He noted that of the 62 operating vessels, 23 (37%) have market exposure through spot or profit-sharing contracts, while 52 (84%) are in secured revenue through time charters. He highlighted that for every $1,000 per day increase in spot rates, there is a $0.11 positive impact on annual EPS. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

300% plus increase in six-month net income to $7.12 per share Record revenues of $550 million in first half of 2026 Net income of $4.40 per share in Q2 2026 $3.6 billion in minimum contracted revenue Dynamic growth of 26 vessels under construction, seven of which already delivered $1.50 in common stock dividends paid in 2026 Tanker Market Fundamentals Remain Strong ATHENS, Greece, Sept. 10, 2026 (GLOBE NEWSWIRE) -- TEN, Ltd (NYSE: TEN) (the “Company”) today reported results (unaudited) for the six months and the second quarter ended June 30, 2026. FIRST HALF 2026 SUMMARY RESULTSTEN's fleet generated record gross revenues of $551.4 million, an increase of $161.0 million compared to the first half of 2025. Adjusted EBITDA for the first half of 2026 was at approximately $324.1 million from $193.2 million in the first six months of 2025. The net income for the first half of 2026 reached $228.1 million (including $38 million in capital gains), equivalent to $7.12 per share from $1.70 per share in the equivalent 2025 six-month period, an increase of 318%. Fleet utilization remained unchanged from the corresponding period in 2025 at 96.5%. The average Time Charter Equivalent (TCE) per vessel per day for the first half of 2026 rose to $43,503, compared with $30,754 in the first half of 2025, representing a 41% increase, driven by the continued strength of the tanker markets. Vessel operating expenses rose modestly and in line with expectations to $111.0 million, from $102.3 million in the first half of 2025, primarily due to six vessels undergoing scheduled drydocking’s, one being an LNG carrier during the first half of 2026. Total operating expenses per vessel per day remained at a still competitive $10,298. Depreciation and amortization totaled $90.4 million, attributable to the operation of newer and larger vessel classes to the fleet. Total bank debt as of June 30, 2026 was $2.0 billion from $1.8 billion at December 31, 2025, reflecting fleet growth. TEN’s cash balances increased to $466.1 million, $168.0 million higher than the end of December 2025. Interest and finance costs for the first half of 2026 amounted to $43.4 million, $5.6 million lower than the 2025 first-half level, the result of lower spreads and lower global interest rates achieved on new and refinanced loans. These costs were partially offset by interest income received in the first half of 2026 of $5.6 million. Q2 2026 SUMMARY RESULTSTEN’s gross revenues during the second quarter of 2026 reached $298.4 million, an increase of $105.1 million, or 54%, over the corresponding period in 2025. Adjusted EBITDA for the second quarter of 2026 increased to $170.4 million, 81% higher than the 2025 second quarter level. Net income in the second quarter of 2026 reached $139.3 million (inclusive of $38 million capital gains), equivalent to $4.40 per share, from $0.67 per share in the second quarter of 2025 which had no capital gains, an increase of 500% plus. Average TCE per vessel per day in the second quarter of 2026 reached $46,100, 50% higher than the equivalent 2025 period, supported by high fleet utilization rates of nearly 95% amid favorable market fundamentals and geopolitical disruptions. Fleet operating expenses amounted to $57.7 million, just $5.0 million above the second quarter 2025 level, primarily due to four vessels, including two suezmax tankers, undergoing scheduled drydocking’s during the quarter, compared with three in the corresponding 2025 period. As a result, operating expenses per vessel per day in the second quarter of 2026 were $10,640. Depreciation and amortization expenses during the second quarter of 2026 were in line with the increased number of vessels in the fleet at $46.3 million. Consistent with the first half trend, interest and finance costs in the second quarter of 2026 decreased by $2.3 million from the corresponding 2025 period to settle at $22.6 million, benefiting from lower borrowing spreads and lower global interest rates, while interest income totaled $3.4 million. SUBSEQUENT EVENTS As previously announced, on July 28, 2026, TEN took delivery of the DP2 suezmax shuttle tanker Anfield DP from Samsung Heavy Industries Co., Ltd in South Korea, the third in a series of 12 DP2 shuttle tankers under construction at that yard. The vessel commenced a 10-year employment to a US oil major, with charter options to extend the charter until the vessel’s 20th year anniversary. Assuming charterers employ the vessel to the maximum duration, the expected gross revenues should approach $500 million. As part of its ongoing fleet renewal program, in August 2026 TEN concluded the sale of two 2006-built suezmax tankers, the Alaska and Archangel, for net proceeds of $100 million. CORPORATE AFFAIRS – COMMON STOCK DIVIDEND In July 2026, TEN distributed to common shareholders a second semi-annual dividend, amounting to $1.00 per share, following a $0.50 per share payment in February 2026. A total distribution of $1.50 per share in 2026. The Company intends to announce the first semi-annual dividend payment of 2027 in November 2026. Since the Company’s NYSE listing in 2002, TEN has consistently demonstrated its commitment to reward shareholders, and will have distributed, until the end of 2026 over $1.0 billion in cumulative common and preferred share dividends. CORPORATE AFFAIRS – SERIES E PREFERRED SHARES The Company’s 9.25% Series E Preferred Shares become redeemable at the election of the Company on May 28, 2027, and the Company currently expects that it may elect to redeem, all or a portion of, such Series E Preferred Shares on the above stated date. This disclosure does not constitute a notice of redemption, and there can be no assurance as to the amount, if any, of the Series E Preferred Shares that will be redeemed. CORPORATE STRATEGYGeopolitical developments around the globe continue to dictate the pace of the ongoing tanker rally which, coupled with favorable market fundamentals, is creating promising conditions for a sustained healthy market going forward. Taking advantage of the increased ton-mile demand dislocations TEN secured attractive long-term employment to meet client requirements while solidifying the Company’s significant revenue backlog. In addition, and in line with the stated fleet renewal strategy and considering the size of the new building program, the majority of which ordered against long-term employment, TEN continues to divest from older vessels. The sale of the 2016-built VLCC Ulysses and the two 2006-built suezmax tankers Alaska and Archangel, are a testament to that approach. With a substantial cash balance of $466 million as of June 30, 2026, which has continued to grow thereafter, the Company remains well positioned to continue its fleet renewal and increasingly reward its shareholders. “These results underscore the strength of TEN's diversified fleet and flexible employment strategy which along with vessel sales, affords us the ability to generate healthy cash flows to reward our shareholders, while continuing our dynamic fleet modernization,” stated Mr. George Saroglou, President of TEN. “The company’s well-timed growth program, the largest in its history, will propel TEN going forward and solidify its position as a first-choice partner to the major energy concerns,” Mr. Saroglou concluded. TEN’s CURRENT NEWBUILDING PROGRAM ABOUT TEN LTD.Founded in Bermuda in 1993 and celebrating 33 years as a public company, 24 of which on the NYSE, TEN is one of the first and most established public shipping companies in the world. TEN's diversified pro-forma energy fleet currently consists of 81 vessels, totaling approx. 10.5 million dwt. FORWARD-LOOKING STATEMENTSExcept for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those predicted by such forward-looking statements. TEN undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. Conference Call Details:As announced previously, today, Thursday, September 10, 2026, at 10:00 a.m. Eastern Time, TEN will host a conference call to review the results as well as management's outlook for the business. The call, which will be hosted by TEN's senior management, may contain information beyond what is included in the earnings press release. Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 877- 405- 1226 (US Toll-Free Dial In) or +1 201-689-7823 (US and Standard International Dial In). Please quote “Tsakos” to the operator and/or conference ID 13762392.Click here for additional participant International Toll-Free access numbers. Alternatively, participants can register for the call using the call me option for a faster connection to join the conference call. You can enter your phone number and let the system call you right away. Click here for the call me option. Simultaneous Slides and Audio Webcast:There will also be a live, and then archived, webcast of the conference call and accompanying slides, available through the Company’s website. To listen to the archived audio file, visit our website www.tenn.gr and click on Webcasts & Presentations under our Investor Relations page. Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast. For further information, please contact: Tsakos Energy Navigation Ltd.George SaroglouPresident & COO+30210 94 07 [email protected] Investor Relations / MediaCapital Link, Inc.Nicolas Bornozis/ Markella Kara+212 661 [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributed record-breaking results to a 'stellar' market environment where geopolitical tensions, specifically the closure of the Strait of Hormuz, have significantly increased ton-mile dislocation. The company is executing a massive $3.1 billion fleet renewal program involving 26 newbuildings, with management noting that these assets have already appreciated by approximately 30% since contracting. Strategic positioning focuses on a 'balanced' model, using fixed-rate charters to cover all-in break-even costs while utilizing spot and profit-sharing contracts to capture market upside. Management highlighted an unprecedented appetite from major oil companies, who are now seeking long-term charters of up to 7 years for vessels aged 10 years or younger. Operational safety remains a priority amid regional conflicts; the company continues to avoid the Strait of Hormuz to protect seafarers despite the resulting market tightness. The divestment strategy involves selling older 'third-generation' vessels at high valuations to fund the transition toward a greener, dual-fuel, and more energy-efficient fleet. Management expects a significant increase in profit-sharing revenue for the second half of 2026 due to renegotiated higher minimums and favorable market-related contract terms. The company is targeting total annual revenues to exceed $1 billion for the first time, supported by a forward committed earnings cushion of approximately $3.5 billion. A dividend increase is anticipated following the November strategy meeting, as management aims to reward shareholders while maintaining a solid yield near 4%. Management is considering the redemption of Series E Preferred Shares in 2027, which could potentially add $0.30 to $0.40 to the bottom line by eliminating high-coupon obligations. The delivery of 19 remaining newbuildings, including three VLCCs, is expected to provide a substantial boost to future earnings and revenue capacity. Geopolitical volatility in the Middle East and Venezuela has created an 'operational minefield,' requiring constant tactical adjustments to ensure vessel and crew safety. The company recorded a $38 million capital gain in Q2 2026 from vessel sales, contributing to the significant jump in reported net income. Management clarified that while they have explored 'carving out' a portion of the long-term fleet into a specialized internal unit, this is currently 'food for thought' and not a near-term priority. Inflationary pressures and higher bunker prices for spot-trading vessels contributed to a rise in voyage and operating expenses during the first half of the year. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed Q2 profit-sharing was $30.5 million and expects a 'significant increase' in the second half of the year. The optimism is driven by 13 vessels currently on profit-sharing arrangements, nine of which are large-capacity Suezmaxes and VLCCs. The company plans to sell the 'Andes' (built 2003) next as part of its ongoing fleet modernization, despite the vessel still commanding healthy rates from majors. Management emphasized that they are selling vessels as they reach 'legal age' (21 years) to maintain a young, efficient fleet profile. Management explicitly rejected moving to a quarterly dividend, preferring the current semi-annual schedule for logistical and operational reasons. They argued that semi-annual payments better reflect the reality of shipping cycles where single voyages can exceed a three-month quarter. Management clarified that any potential carve-out of long-term assets would remain within the TEN corporate structure, with the company TEN will maintain its large fleet size and ensure that any potential strategic developments, such as a minority holder investing in specific assets, will not affect TEN shareholders. The Chairman emphasized this is not a top-priority development for the near future but a potential way to highlight 'hidden value' for specific investors.

Interested in Tsakos Energy Navigation Ltd? Here are five stocks we like better. Record profitability: First-half net income rose to $228 million, or $7.12 per share, while second-quarter net income reached $139.3 million. Adjusted EBITDA increased 68% in the first half to $324 million, supported by stronger tanker rates and profit-sharing revenue. Strong tanker demand and contracted coverage: First-half time-charter-equivalent rates climbed 41% to $43,503 per vessel per day, and profit-sharing revenue surged to $71 million. TEN reported approximately $3.5 billion in forward committed earnings, with 84% of its operating fleet covered by time-charter arrangements. Fleet renewal and shareholder returns: TEN’s newbuilding program has appreciated by at least 30%, while the company maintains approximately $4.9 billion in fleet value against $2 billion of debt. Management is considering a higher regular dividend and potentially redeeming $120 million of high-coupon preferred shares, but any fleet-investment structure involving outside investors remains preliminary. 3 Value Stocks Flying Under the Radar—For Now Tsakos Energy Navigation (NYSE:TEN) reported record second-quarter and first-half results for 2026, citing stronger tanker markets, higher profit-sharing income and continued demand for long-term vessel charters. For the six months ended June 30, net income rose to $228 million, or $7.12 per share, from $64.5 million, or $1.70 per share, in the prior-year period, according to CFO Harrys Kosmatos. The first-half result included $38 million in capital gains. Excluding capital gains, management said net income increased by $129 million, or 112%, from the 2025 first half. → Morgan Stanley Eyes Good Things Ahead for Meta After $18 Billion Legal Settlement 2 Wrecked Stocks Keeping Cars on the Road Ready for Repair Second-quarter net income totaled $139.3 million, or $4.40 per share, compared with $26.8 million, or $0.67 per share, a year earlier. The quarter’s results also included the $38 million capital gain. Adjusted EBITDA reached $170.4 million in the quarter, up 81% year over year, while first-half adjusted EBITDA rose 68% to $324 million. First-half gross revenue increased to $551 million from $390 million a year earlier, despite the company operating an average fleet of 63.5 vessels, only about 1.5 vessels more than in the comparable period. Fleet utilization was 96.5%, nearly unchanged from the prior year despite six vessels undergoing scheduled dry dockings. → Tesla’s Robotaxi Launch Wasn’t the Moment Investors Expected Auto Equipment Makers Growing Sales, Earnings After Slow 2020 The company’s time-charter-equivalent rate rose 41% to $43,503 per vessel per day in the first half, from $30,754 per day in the year-earlier period. Second-quarter revenue climbed to $298 million from $193 million. Profit-sharing arrangements contributed $71 million of first-half revenue, compared with $10 million in the same period of 2025. Kosmatos said second-quarter profit-sharing revenue was $30.5 million, and noted that the first-half amount already exceeded the $46 million earned from profit-sharing arrangements during all of 2025. → Despite Post-Earnings Drop, Wall Street Analysts Eye New Highs for Broadcom Stock President and COO George Saroglou said tanker fundamentals had been strong before geopolitical events intensified, with oil-demand growth forecast for 2026 and vessel supply remaining balanced. He said disruptions tied to the Middle East conflict and the closure of the Strait of Hormuz had further strengthened freight markets, while TEN continued to avoid the strait. CEO Nikolas Tsakos said charterers were seeking vessels 10 years old or younger for employment periods of as long as seven years. He said the company was balancing efforts to capitalize on high current rates while securing long-term employment for its fleet. TEN said it had an 81-vessel pro forma fleet spanning conventional crude and product tankers, LNG carriers and shuttle tankers. Of the company’s 62 currently operating vessels, 23, or 37%, had market exposure through spot-market or profit-sharing arrangements. Meanwhile, 52 vessels, or 84% of the operating fleet, had secured revenue through time charters and time charters with profit-sharing provisions. The company reported approximately $3.5 billion in forward committed earnings. Chairman Takis Arapoglou said this backlog provides a base for continued performance over the next two to three years. On July 28, TEN took delivery of the DP shuttle tanker Anfield, the third of 12 DP2 shuttle tankers under construction at Samsung Heavy Industries. The vessel began a 10-year charter to a U.S. oil major, with options that could extend employment through its 20th anniversary. Saroglou said gross revenue could approach $500 million if the charterer uses the vessel for the maximum duration. The company has sold 20 vessels since Jan. 1, 2023, with an average age of 17.3 years and combined capacity of 2 million deadweight tons. It has replaced them with 35 contracted newbuildings and acquired modern vessels with an average age of 0.5 years and total capacity of 4.8 million deadweight tons, management said. TEN also announced the sale of two 2006-built Suezmax tankers to independent third parties for net proceeds of $100 million. Tsakos said the company expected its older vessel, the Andes, built around 2003, to be the next vessel sold. Management said its 26-vessel newbuilding program, contracted two years ago at an approximate cost of $3.1 billion to $3.2 billion, had appreciated by at least 30% in value. Seven vessels have been delivered, while 19 remain to be taken over. Tsakos estimated the program’s current value at roughly $3.8 billion to $3.9 billion. Saroglou said the pro forma fleet’s fair market value was approximately $4.9 billion, compared with $2 billion in debt, resulting in net debt to capital of around 44.5%. Cash at the end of June was $466 million, up $179 million from June 30, 2025. Management said it was focused on absorbing the large newbuilding program rather than pursuing broad additional vessel orders, though Tsakos said the company could consider specialized vessels tied to long-term, accretive employment contracts. On shareholder returns, Arapoglou said TEN paid dividends totaling $1.60 per share during calendar 2026 and that a higher payout could be considered if market conditions remain favorable and the board approves. Tsakos said the company expected to discuss a dividend increase following its November strategy meeting, while preferring to increase regular semiannual dividends rather than issue special dividends. Tsakos also said the company was considering redeeming $120 million of perpetual preferred shares carrying a 9.25% coupon, though he emphasized that redemption was not an obligation. He estimated that eliminating the preferred dividend could add between $0.30 and $0.40 to the bottom line. In response to an analyst question, Tsakos said the company could eventually consider allowing outside investors to take a minority interest in a group of roughly 20 vessels with long-term employment, while keeping those assets within TEN. He said the company would retain at least 60% to 70% of the fleet under such an arrangement. Arapoglou cautioned that a potential transaction was not a priority and that management did not expect developments in the near future. Tsakos characterized the idea as “food for thought” and said any structure would be designed so that TEN shareholders would not be affected by a reduction in fleet size. Tsakos Energy Navigation Ltd. (NYSE: TEN) is an international shipping company specializing in the transportation of crude oil and refined petroleum products. Founded in 1993 by Nikolas P. Tsakos, the company has built a reputation for operating a modern, well-maintained fleet of double-hull tankers. Tsakos Energy Navigation is organized around both ownership and technical management of vessels, offering chartering, commercial operations and crew services under one umbrella. The company’s fleet consists primarily of very large crude carriers (VLCCs), Suezmax and Aframax tankers, as well as medium-range (MR) and Handy product carriers. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Tsakos Energy Navigation Q2 Earnings Call Highlights" was originally published by MarketBeat. 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This article first appeared on GuruFocus. Release Date: May 21, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Tsakos Energy Navigation Ltd (NYSE:TEN) reported a significant increase in net income, reaching $89 million, a 136% increase from the previous year. The company achieved a high fleet utilization rate of 98.3%, indicating efficient operations. TEN has a strong cash reserve and a solid balance sheet, with the fair market value of the operating fleet exceeding $4.6 billion. The company announced a dividend of $1 per common share, a 67% increase from the previous year. TEN has a diversified fleet with a mix of spot market exposure and secured revenue contracts, providing stability and growth opportunities. Geopolitical tensions, such as the war in Iran and the closure of the Strait of Hormuz, have created operational challenges. The company faces potential delays in transit through the Panama Canal due to increased traffic. There is a risk of increased operating expenses due to currency fluctuations, particularly the weakening of the dollar. The geopolitical environment remains turbulent, which could impact future operations and profitability. TEN's fleet renewal and modernization efforts require significant capital investment, which could strain financial resources. Warning! GuruFocus has detected 7 Warning Signs with TEN. Is TEN fairly valued? Test your thesis with our free DCF calculator. Q: How do you envision the future of the shuttle tanker segment within Tsakos Energy Navigation? Is there a possibility of it becoming a separate entity? A: Currently, the shuttle tanker segment is an integral part of Tsakos Energy Navigation. We are focused on operational aspects, such as ensuring successful sea trials and deliveries. No decision has been made to separate it, but we remain open to suggestions and will consider future opportunities. Q: What are the employment opportunities for the new LNG vessels, given the current market conditions? A: The LNG market is currently in turmoil, but we are monitoring it closely. We have the flexibility to wait for favorable conditions due to our diversified fleet. We are not dependent on the LNG market alone, allowing us to take smaller, strategic steps based on technological developments. Q: Can you explain the strategy behind using road trucks to load the Afromax cargo, as mentioned in the release? A: This strategy was implemented to bypass risky areas like the Hormuz Strait. It involved loading from the Eastern Mediterranean using 7,800 trucks over two weeks. This out-of-the-box approach ensured the safe continuation of the energy supply chain. Q: What is the impact of cargo switching to the Atlantic on global trade flows, particularly concerning the Panama Canal? A: The rerouting through the Panama Canal has increased tone mile distances and activity in the Atlantic. This new routing, such as West Africa to the Far East via the Panama Canal, was unforeseen six months ago. If current conditions persist, we may see more delays in canal transits. Q: How has profit sharing impacted the first quarter results, and what are the expectations moving forward? A: In the first quarter alone, profit sharing revenues exceeded $40 million, matching the total profit sharing revenue for the entire previous year. We are confident that this positive trajectory will continue to rise. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Tsakos Energy Navigation (TEN) is drawing attention after Q1 2026 earnings, with net income of US$88.84 million and earnings per share of US$2.72, supported by higher dividends and a sizeable contracted revenue backlog. See our latest analysis for Tsakos Energy Navigation. The stock has cooled slightly after earnings, with a 1 day share price return of 4.18% down. However, a 30 day gain of 11.11% and a 90 day rise of 36.79% suggest momentum has been building alongside the strong results. A 1 year total shareholder return of 154.67% and a 5 year total shareholder return approaching 5x highlight how much recent income and dividend news sits within a longer stretch of strong wealth creation for holders. If this kind of earnings driven move has your attention, it can be a good moment to see what else is moving and check out 35 power grid technology and infrastructure stocks With earnings strong, dividends higher and the share price already up very sharply over the past year, the key question now is simple: is Tsakos Energy Navigation still priced at a discount, or are markets already baking in future growth? At a last close of $42.61 against a narrative fair value of $46, the current price sits below what the most followed model considers reasonable, and that view rests heavily on contracted cash flows and fleet upgrades. Read the complete narrative. Curious how a declining revenue and earnings path can still line up with a higher fair value than today. The key lies in margins, contract mix and the profit multiple this narrative leans on. Result: Fair Value of $46 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, you also need to weigh its reliance on oil transport and relatively high net debt, which could pressure earnings if freight markets or financing conditions weaken. Find out about the key risks to this Tsakos Energy Navigation narrative. While the consensus narrative suggests Tsakos Energy Navigation is around 7.4% undervalued at $46 fair value, the SWS DCF model lands in a very different place. The model estimates a future cash flow value of $14.12 per share, well below the current $42.61 price. That difference raises a simple question: which set of assumptions do you trust more? Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Tsakos Energy Navigation for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 49 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. Given the mixed signals in this story, it makes sense to check the underlying data yourself, weigh both the concerns and the upside, and then review the 3 key rewards and 3 important warning signs. If Tsakos Energy Navigation has sharpened your focus, use this momentum to scan for other opportunities that match your style instead of stopping with a single stock. Target potential mispricings by checking out 49 high quality undervalued stocks that combine solid fundamentals with attractive P/E and cash flow metrics. Strengthen your income stream by reviewing 10 dividend fortresses designed for investors who care about yield and consistency. Prioritize resilience by focusing on 66 resilient stocks with low risk scores that score well on balance sheet strength and business stability. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include TEN. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]