Tsakos third quarter profit rises

Tsakos Energy Navigation 3rd-Quarter Profit Increases on Larger Fleet, Capital Gains
Nov 5th, 2007
(AP)

Greek tanker owner Tsakos Energy Navigation Ltd. reported higher third-quarter net income Monday as an expanded fleet and a large capital gain lifted earnings above Wall Street expectations.

Net income for the three months ended Sept. 30 rose to $50 million, or $2.61 per share, from $44.5 million, or $2.33 per share, during the same period a year earlier. The latest quarter included capital gains of $31.8 million, compared with similar gains of just $13.3 million a year ago.

Revenue increased to $122.5 million from $115.2 million a year ago.

Analysts polled by Thomson Financial forecast earnings excluding items of $1.12 per share on revenue of $106 million.

Tsakos' fleet grew to an average of 43.6 vessels during the quarter, compared with 37.1 a year ago. That increased revenue after commissions and costs by 3.9 percent, the company said, though depreciation and financing costs also increased.

The company did say its time charter equivalent per ship per day was $26,467 in the third quarter of 2007, down from $29,779 in the third quarter of 2006.

Tsakos said that though the seasonally weak third quarter, when refiners scale back crude demand ahead of the switch-over to heating oil, has ended, spot rates for both crude and product tankers have not yet reached the levels typically expected for the seasonally strong fourth quarter.

Tsakos shares rose $3.58, or 5.4 percent, to $69.56 in midday trading.