TEN’s new crude hope

Tsakos Energy Navigation spoke of its belief in a tentative crude tanker market rebound as it reported a marginal second quarter profit today.

New York-listed TEN, which has added two suezmaxes this year, says the crude market recovery has displayed “elements of sustainability” in 2014.

TEN says crude rates in the first and early second quarter could be described as “booming.”

It also draws confidence from the reduced orderbook, slowing deliveries, and the emergence of contango in the oil price that may spur floating storage activity, all at a seasonal low point for the market.

TEN added: “The on-going geopolitical issues in the Ukraine and the Middle East undoubtedly instil some nervousness in the markets, but so far these tensions, no matter how disturbing they are in their own right, have supplemented the uplift in crude rates and could potentially lead to further rate increases in the foreseeable future.

“The geopolitical shifts of late, could give rise to the creation of new longer routes which could aid the ton-mile demand dynamics.”

TEN’s comments came as it reported a profit of $200,000 for the second quarter, beating the $1.5m loss seen a year ago.

Adjusted for one off items, its loss per share of $0.02 was in line with what analysts on Wall Street had projected.

In the first half, TEN recorded a profit of $14.8m overturning a loss of $1.21m a year ago.

Nikolas Tsakos, chief executive of the shipowner, said: "The first six months result reinforced our strategy of focusing our versatile and diversified fleet in the crude sector.

“The well timed acquisitions of the modern suezmax crude tankers Euro and Eurovision, together with our decision to trade our product carriers in the dirty and crude markets will continue to add value to our bottom line.”

He added: “Having used the storm of the last years to our advantage, we emerged a much larger and stronger company.

“We are optimistic that our positive results will enable us to continue with our dividend policy and will also be reflected in our share price going forward.”