Tsakos Energy Navigation Ltd (TEN) 2024 Q1 法說會逐字稿

Thank you for standing by, ladies and gentlemen, and welcome to Tsakos (technical difficulty) conference call on the first quarter 2024 financial results. We have with us today Mr. Takis Arapoglou, Chairman, Board; Dr. Nikolas Tsakos, President and CEO; Mr. Paul Durham, Chief Financial Officer; and Mr. George Saroglou, Chief Operating Officer of the company. (Operator Instructions) I must advise you this conference is being recorded today.

女士們、先生們，感謝你們的耐心等待，歡迎參加有關 2024 年第一季財務業績的 Tsakos（技術難度）電話會議。今天與會的還有董事會主席 Takis Arapoglou 先生；總裁兼首席執行官 Nikolas Tsakos 博士； Paul Durham 先生，財務長；以及公司營運長 George Saroglou 先生。（操作員指示）我必須告訴您，今天的會議正在錄製。

I will now pass the floor over to Nicolas Bornozis, President of Capital Link, Investor Relations Adviser for Tsakos Navigation. Please go ahead, sir.

現在我將發言權交給 Capital Link 總裁、Tsakos Navigation 投資人關係顧問 Nicolas Bornozis。請繼續，先生。

Thank you very much, and good morning to all of our participants. I am Nicolas Bornozis of Capital Link, Investor Relation Adviser to Tsakos Energy Navigation. This morning, the company publicly released its financial results for the first quarter ended March 31, 2024. If you do not have a copy of today's earnings release, please call us at 212 661 7566 or e-mail us at ten@capitalink.com, and we will have a copy for you e-mailed right away. Please note that parrel with 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.

非常感謝大家，並向所有參與者早安。我是 Capital Link 的 Nicolas Bornozis，Tsakos Energy Navigation 的投資人關係顧問。今天上午，該公司公開發布了截至2024年3月31日的第一季財務業績。如果您沒有今天的收益發布副本，請致電 212 661 7566 或發送電子郵件至 ten@capitalink.com，我們將立即透過電子郵件為您提供副本。請注意，與今天的電話會議相呼應的是，還有現場音訊和幻燈片網路廣播，可以在公司網站首頁 www.tenn.gr 上存取。

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 presentation, the webcast 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.

電話會議將在演示幻燈片之後舉行，因此我們強烈建議您訪問公司網站上的簡報幻燈片。請注意，電話會議結束後，網路廣播簡報的幻燈片將在公司網站上提供並存檔。另請注意，簡報的幻燈片和網路廣播是用戶控制的，這意味著透過點擊正確的按鈕，您可以自行移至下一張或上一張幻燈片。

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. And before turning the floor over to the Chairman, I'd like to mention that we also have today with us as part of the management team, Mr. Harrys Kosmatos, the Co-Chief and Financial Officer and congratulations Mr. Kosmatos for your new role. And at this moment, I would like to pass the floor to Mr. Arapoglou, the Chairman of Tsakos Energy Navigation. Please go ahead, sir.

這時，我想讀安全港聲明。本次電話會議和網路廣播的幻燈片簡報包含 1995 年《私人證券訴訟改革法案》安全港條款含義內的某些前瞻性陳述。請投資人注意，此類前瞻性陳述涉及風險和不確定性，可能會影響 TEN 的業務前景和營運績效。在請主席發言之前，我想提一下，今天我們還有管理團隊成員、聯合首席執行官兼財務官哈里斯·科斯馬托斯 (Harrys Kosmatos) 先生，並祝賀科斯馬托斯先生擔任新職務。角色。現在我想請察科斯能源導航公司董事長阿拉波格魯先生發言。請繼續，先生。

Thank you, Nicolas. Good morning, and good afternoon to all, and thank you again for joining our call today for Q1 results. Despite, as you've seen a historically low utilization of 91% just over, mainly due to a large number of drydockings that we decided to do. We continue to deliver operational excellence on the back of a very positive market based on strong shipping fundamentals and geopolitical events, which are both expected to continue in the foreseeable future our very comfortable equity generating ability and cash position allows us to double our semi-annual dividend from last year's.

謝謝你，尼古拉斯。大家早安，下午好，再次感謝您今天參加我們的電話會議，以了解第一季的結果。儘管如此，正如您所看到的，利用率處於歷史低位，僅為 91%，這主要是由於我們決定進行大量進塢。在基於強勁的航運基本面和地緣政治事件的非常積極的市場的支持下，我們繼續提供卓越的運營，預計這兩種情況將在可預見的未來繼續下去，我們非常舒適的股本生成能力和現金狀況使我們能夠將半年度業績翻倍去年的股息。

In addition, we are mainly making use of the good market, and we're using opportunities in the S&P side of the business to sell all tonnage and buy new modern green vessels, reducing the age of our fleet, and positioning ourselves to capture accretive business that comes our way from demanding blue-chip clients. The result of all this is the steady increase of our stock price in recent months as the market recognizes our robust business model, and this does makes us very happy.

此外，我們主要利用良好的市場，並利用標準普爾業務方面的機會出售所有噸位併購買新的現代綠色船舶，減少我們船隊的年齡，並定位自己以獲取增值我們的業務來自要求嚴格的藍籌客戶。這一切的結果是，隨著市場認可我們穩健的商業模式，我們的股價近幾個月來穩步上漲，這確實讓我們感到非常高興。

So once again, well deserved. Congratulations to Nikolas Tsakos and his team and best wishes for maintaining TEN's stellar performance going forward. Thank you, and over to you, Nikos Tsakos.

所以再一次，當之無愧。恭喜 Nikolas Tsakos 和他的團隊，並祝福 TEN 繼續保持出色的表現。謝謝你，尼科斯·察科斯。

Thank you, Chairman. And yeah, as well, we're going to have a new ticker starting as of July 1. We will get TEN, we will finally be TEN after almost 22 years where our ticker belongs to another company, which are right now has moved from the stock exchange. So I see this as a good sign, though the previous ticker, which took us from $3 and change in 2019 to -- in excess of $30 last month were my initials, but I'd rather sacrifice my initials for a much closer identification for the company. As you said, the first quarter, which has been a strong profitable quarter with a springboard for us for what we are going to do, we took a lot of our vessels out of service to prepare them for the better days. We look at ships, prepare them for sales.

謝謝主席。是的，我們也將從 7 月 1 日起推出新的股票代號。我們將得到 10，在近 22 年後，我們最終將成為 10，我們的股票代碼屬於另一家公司，而該公司現在已從證券交易所轉移。因此，我認為這是一個好兆頭，儘管之前的股票行情從2019 年的3 美元變為上個月超過30 美元的股票是我的姓名縮寫，但我寧願犧牲我的姓名縮寫，以便更接近地識別公司。正如你所說，第一季是一個盈利強勁的季度，為我們接下來要做的事情提供了跳板，我們讓很多船隻停止運營，為更好的日子做好準備。我們考察船舶，為銷售做好準備。

And of course, we took delivery of a very large, about 14 vessels of a very large number of ships. And at the same time, we were able to increase our cash position. Looking at it today, we, we're above $450 million, approaching $0.5 billion in liquidity as we're finishing the second quarter. And we're expecting a much better quarter. Although, I have to say that even the first quarter is a very healthy quarter, but we're looking at a much better quarter. We're already at the latter part of the second quarter. So I can see a much better quarter coming. And third and fourth quarter, where we'll have the whole tonnage into action. I think we will see it even later time.

當然，我們也接收了數量非常大的船舶中約 14 艘的船舶。同時，我們能夠增加現金部位。今天來看，第二季即將結束時，我們的流動性已超過 4.5 億美元，接近 5 億美元。我們預計會有一個更好的季度。雖然，我必須說，即使第一季也是一個非常健康的季度，但我們正在尋找一個更好的季度。我們已經進入第二季的後半段了。所以我可以看到一個更好的季度即將到來。第三和第四季度，我們將全力投入行動。我想我們稍後會看到它。

So looking for a record year for 2024, as we did last year, what makes us very positive is the unpresented in my 30-year, 30-plus year history of within the business and presented demand by the major oil companies for any quality asset that is out there. And I mean, we get calls, and we deal only with the major oil companies and the first-class end users or government bodies. And the costs we get even during the festive time of Posidonia, which we're all recovering still down in Greece in the last couple of weeks. We are getting -- we were cornered that any time and ask to provide a tonnage for long-term employment. It's a good situation.

因此，正如我們去年所做的那樣，我們期待2024 年創紀錄的一年，令我們非常樂觀的是，在我30 年、30 多年的業務歷史中未曾出現過的情況，以及主要石油公司對任何優質資產的需求那是在外面。我的意思是，我們接到電話，我們只與主要石油公司和一流的最終用戶或政府機構打交道。即使在波西多尼亞節期間，我們所獲得的成本也在過去幾週內繼續在希臘恢復。我們隨時都會被逼得走投無路，並要求提供一定的噸位用於長期就業。這是一個很好的情況。

It's not always have been that way, although TEN has fared well even at that times we did not want to see any of our ships. And I believe we will see this on for trade on our share price. And this has been the most active period in the last five years, I can recall commercially for our business. And again, I want to thank men and women on board the ships because they -- by keeping the propellers running, they make things happen and they give us the opportunity to share with our loan contracts and of course, our people on land and not offices.

情況並非總是如此，儘管即使在我們不想看到我們的任何一艘船的時候，十號也表現得很好。我相信我們會在我們的股價上看到這一點。我記得，這是過去五年來我們業務最活躍的時期。再次，我要感謝船上的男男女女，因為他們通過保持螺旋槳運轉，讓事情發生，他們讓我們有機會分享我們的貸款合同，當然還有我們陸地上的人，而不是其他人。

Looking -- as I said, looking forward, it seems that the stars are aligned too for this period of time as long as our industry. Other than the LNG segment, which I would say is the only grossly overbuild side of the business with 60% of the order book out there, every other aspect of our business -- any other segment of the energy business is well balanced. And some -- and we're ordering ship in some segments that there is no -- not any growth. And with that, yes, please, I will ask George to give us more detailed developments. Thank you.

展望——正如我所說，展望未來，只要我們的產業在這段時間裡，星星似乎也是對齊的。除了液化天然氣部門（我想說液化天然氣部門是該業務中唯一嚴重過度建設的部分，佔訂單量的 60%）之外，我們業務的所有其他方面 - 能源業務的任何其他部門都非常平衡。還有一些——我們在某些​​領域訂購了船舶，但沒有——沒有任何增長。接下來，是的，我會請喬治向我們提供更詳細的進展。謝謝。

Thank you very much, Nikolas. Good morning to all of you joining our earnings call today. 2024 continues to be another good year for tankers. As the factors that elevated freight rates in the last two years since 2002 continue. Key takeaways for TEN during the first quarter of '24, which was one of the busiest quarters in TEN's history as far as fleet renewal and volume of S&P transactions is concerned. First of all, we took delivery of the company's last two dual fuel LNG powered Aframax tankers in a series of four newbuildings that were built against long-term employment to a major energy concern. We started taking delivery of the first in a series of five high-spec environmentally friendly tankers from Viken. The delivery of the remaining four took place during the second quarter of 2024.

非常感謝你，尼古拉斯。今天參加我們財報電話會議的所有人早安。 2024 年對於油輪來說仍然是另一個好年。自2002年以來近兩年運費上漲的因素仍在持續。TEN 在 2024 年第一季的主要收穫是，就機隊更新和標準普爾交易量而言，這是 TEN 歷史上最繁忙的季度之一。首先，我們接收了該公司最後兩艘雙燃料液化天然氣動力阿芙拉型油輪，這是一系列四艘新船的一部分，這些新船是為了長期從事主要能源問題而建造的。我們開始接收 Viken 一系列五艘高規格環保油輪中的第一艘。其餘四架於 2024 年第二季交付。

Two of the five tankers are dual fuel LNG powered Aframaxes with the four that TEN purposely built for another client, the company has now six dual fuel LNG powered Aframax tankers fully operational. This is one of the largest, if not the largest concentration of LNG-powered Aframaxes. These six vessels mark TEN's entrance into green tankers. At the same time, we continue the sale of older -- third-generation vessels. Since the start of 2023, we sold eight tankers that were built between 2005 and 2007. From January of this year, the company took advantage and sold more vessels. We started by announcing the sale of a 2005 build Suezmax tanker in January. And since then, four more vessels have been sold, another 2005 build Suezmax, two Aframaxes, one built in 2007 and the other in 2008 (technical difficulty) in 2007.

五艘油輪中的兩艘是雙燃料液化天然氣動力阿芙拉型油輪，其中四艘是十號專門為另一家客戶建造的，該公司現在有六艘雙燃料液化天然氣動力阿芙拉型油輪全面投入營運。這是最大的（如果不是最大的）液化天然氣動力阿芙拉型油輪集中地之一。這六艘船標誌著TEN進入綠色油輪領域。同時，我們繼續銷售較舊的第三代船舶。自 2023 年初以來，我們銷售了 8 艘 2005 年至 2007 年間建造的油輪。從今年1月開始，該公司抓住時機，增加了船舶銷售量。我們首先宣佈在 1 月出售一艘 2005 年建造的蘇伊士型油輪。此後，又售出了四艘船，另一艘是2005 年建造的蘇伊士型油輪，兩艘阿芙拉型油輪，一艘是2007 年建造的，另一艘是2008 年建造的（技術難度） 。

In total, since 2023, 13 vessels have been sold with an average age of 17.5 years and have been replaced with 21 vessels that have doubled the deadweight capacity of the vessels that were disposed and an average age of just one year. Part of the 21-vessel growth initiative is with purpose-built newbuilding vessels to fit existing transportation requirements of the company's long-term clients. Since the start of 2024, we have started -- we have signed six newbuilding contracts for one shuttle tanker and five LR1 tankers. This brings our current newbuilding order book to 12 vessels. The freight market was strong last year and remains strong as we speak. We continue to renew time charters at higher time charter base rates. Oil majors continue to fix vessels forward, which is a testament to a market that is expected to sustain current freight levels. The order book continues to be low due to the uncertainty of availability and affordability of alternative fuels other than biofuels and LNG currently. Many yards report availability after 2027.

自2023年以來，共有13艘船舶被出售，平均船齡為17.5年，並被21艘船舶所取代，這些船舶的載重噸位翻了一番，平均船齡僅為一年。21 艘船舶成長計畫的一部分是專門建造新造船，以滿足公司長期客戶的現有運輸需求。自 2024 年初以來，我們已經簽署了六份新建合同，涉及一艘穿梭油輪和五艘 LR1 油輪。這使得我們目前的新造船訂單達到 12 艘。貨運市場去年表現強勁，目前仍維持強勁。我們繼續以較高的期租基本費率續簽期租。石油巨頭繼續修復船舶，這證明市場預計將維持當前的貨運水準。由於目前生物燃料和液化天然氣以外的替代燃料的可用性和承受能力存在不確定性，訂單量持續較低。許多船廠報告 2027 年後可用。

We continue to experience the largest change in trade flows to ongoing crude and oil product movements as a result of western sanctions on Russia seaborne oil and more recently, changes in the crossings in the Red Sea and Suez Canal as a result of the Houthis attacks on merchant vessels. And as we have said in previous calls, most of these changes appear to be permanent. At the same time, global oil demand continues to grow. 2024 is expected to be another record year for global oil demand. We expect demand to reach approximately 103 million barrels per day versus approximately close to 102 million barrels per day in 2023.

由於西方對俄羅斯海運石油的製裁，以及最近因胡塞武裝襲擊紅海和蘇伊士運河的過境點，我們繼續經歷原油和石油產品流動的最大變化。正如我們在先前的電話會議中所說，大多數變化似乎是永久性的。同時，全球石油需求持續成長。預計 2024 年全球石油需求將再創新高。我們預計需求將達到約 1.03 億桶/日，而 2023 年需求將接近每天 1.02 億桶。

Let's go to the slides of our presentation. If we start with slide 3, we see that since inception in 1993, we have faced five major prices and each time the company came out stronger, thanks to its operating model. The average company growth is 21% in terms of total deadweight tonne.

讓我們看一下簡報的幻燈片。如果我們從投影片 3 開始，我們會看到，自 1993 年成立以來，我們已經面臨過五次主要價格上漲，而每次公司都因為其營運模式而變得更加強大。以總載重噸計算，公司平均成長率為 21%。

In slide 4, we see the company's fleet growth and capital markets and capital -- in slide 4, we see the fleet and its current employment profile. The slide has all the 5x Viken tankers that are now fully integrated and operational. We have a pro forma fleet of 62 tankers, 29 out of the 62 or 47% of the fleet -- for 47% of the fleet in the water have market exposure, a combination of both COAs and time charter with profit sharings, 52 of the 62 vessels or 82% are in secured contracts, fixed time charters, time charters, and time charters with profit sharing. This means that TEN is well positioned to continue capturing the positive tanker market fundamentals.

在投影片 4 中，我們看到了公司的機隊成長以及資本市場和資本——在幻燈片 4 中，我們看到了機隊及其當前的就業狀況。該滑梯擁有所有 5 艘 Viken 油輪，現已完全整合並可運作。我們擁有一支由62 艘油輪組成的預計船隊，62 艘中的29 艘，佔船隊的47%，因為47% 的海上船隊擁有市場敞口，結合了COA 和定期租船與利潤分享，其中52 艘油輪擁有市場敞口。這意味著 TEN 處於有利地位，可以繼續抓住積極的油輪市場基本面。

In slide 5, we see the company's fleet growth and capital market access since inception. We raised capital for growth, not at the top of the market, but at times when asset prices were usually low. In this slide, the numbers in the blue boxes represent the company's common share offerings and in red, the series of preferred share offering since the company New York Stock Exchange listing. The first three preferred series totaling $188 million of Par value, the Series B, C, and D, plus a private placed preferred instrument of $35 million initial Par value have been fully redeemed, saving the company in excess of $18 million per year of coupon payments for all retired preferred shares.

在投影片 5 中，我們看到了該公司自成立以來的機隊成長和資本市場進入情況。我們不是在市場頂部，而是在資產價格通常較低的時候籌集成長資金。在這張幻燈片中，藍色方框中的數字代表該公司的普通股發行，紅色方框中的數字代表該公司自紐約證券交易所上市以來的一系列優先股發行。面額總計 1.88 億美元的前三個優先系列（B、C 和 D 輪），加上初始面值 3500 萬美元的私募優先工具已全部贖回，為公司每年節省超過 1800 萬美元的息票所有退休優先股的付款。

In the next slides, we see the company's current and long-term clients. As you see, we have a blue-chip customer base consisting of all major global energy companies, refineries, commodity traders, with Equinor currently topping the list as our largest charter with 13 vessels hold on long-time charters.

在下一張投影片中，我們看到了該公司的現有和長期客戶。如您所見，我們擁有由全球所有主要能源公司、煉油廠、大宗商品貿易商組成的藍籌客戶群，其中 Equinor 目前位居榜首，是我們最大的租船公司，擁有 13 艘長期租船合約。

On slide 7, the left side presents the all-in breakeven cost for the various vessel types we operate in TEN. Our operating model is simple. We try to have our time charter vessels generate revenue to cover our company's cash expenses. That means sale for the company's vessel operating expenses, finance expenses, overheads, chartering costs, and commissions, and we let revenue from the spot trading vessels to contribute to the profitability of the company.

在投影片 7 上，左側顯示了我們在 TEN 營運的各種船舶類型的全部損益平衡成本。我們的營運模式很簡單。我們試圖讓我們的定期租船產生收入來支付我們公司的現金支出。這意味著出售公司的船舶營運費用、財務費用、管理費用、租船費用和佣金，我們讓現貨交易船舶的收入為公司的利潤做出貢獻。

Fleet utilization as a result of the eight vessels undergoing scheduled maintenance and repairs during the first quarter of 2024 was 91.3% versus 96.1% in the prior year quarter. And thanks to the profit-sharing element for every $1,000 per day increase in spot rates, this has a positive $0.14 impact in annual EPS based on the number of TEN vessels that currently have exposure in spot rates. Managing debt is an integral part of the company's strategy and capital allocation. The company's debt as this slide shows, peaked in December of 2016. Since then, we have repaid $250 million of debt and repeated $211 million in three series of preferred shares, plus a privately placed preferred instrument.

2024 年第一季度，8 艘船舶進行定期維護和修理，船隊利用率為 91.3%，而去年同期為 96.1%。由於即期運價每天每增加 1,000 美元的利潤分享元素，根據目前參與即期運價的 10 艘船舶數量，這會對年度每股收益產生 0.14 美元的正面影響。債務管理是公司策略和資本配置的一個組成部分。正如這張幻燈片所示，該公司的債務在 2016 年 12 月達到頂峰。從那時起，我們已經償還了 2.5 億美元的債務，並透過三個系列的優先股以及私募優先工具重複發行了 2.11 億美元的債務。

Sale and purchase activity is also important. It's a cornerstone of TEN's strategy and the resulting fleet modernity, a key element of our operating model. The left side of the slide shows the divestments in tankers since January 1, 2023. We sold 13 vessels totaling 1 million deadweight tonne having an average age of 17.5 years. On the right side of the slides, under growth, we have the number of vessels we are currently building and acquired since January 1, 2023, 21 vessels in total, eco-friendly greener tankers. TEN has currently a newbuilding program of 12 tankers consisting of three DP2 shuttle tankers for delivery in '25 and '26, one vessel; two eco-friendly scrubber-fitted Suezmaxes for delivery also in 2025; two scrubber-fitted MR tankers for delivery in early '26; and five LR1 product tankers for delivery in 2027, one vessel and 2024, four vessels. And we have taken delivery of four DF LR2 newbuildings and five ex-Viken tankers with a combined average age of one year and 2.3 million deadweight tons. We more than doubled the cargo capacity of the fleet with new more environmentally friendly eco build tankers.

銷售和購買活動也很重要。它是 TEN 策略的基石，也是由此產生的車隊現代化的基石，也是我們營運模式的關鍵要素。幻燈片左側顯示了自 2023 年 1 月 1 日以來油輪的撤資情況。我們出售了13艘船舶，總噸位為100萬載重噸，平均船齡為17.5年。幻燈片右側的「成長」部分顯示了自 2023 年 1 月 1 日以來我們目前正在建造和採購的船舶數量，總共 21 艘環保型綠色油輪。TEN目前有一個由12艘油輪組成的新建計劃，其中包括三艘DP2穿梭油輪，將在'25和'26交付，一艘船；兩艘配備洗滌器的環保蘇伊士型油輪也將於 2025 年交付；兩艘配備洗滌器的 MR 油輪將於 26 年初交付； 5艘LR1成品油輪將於2027年交付1艘，2024年交付4艘。我們也接收了四艘DF LR2新造船和五艘前Viken油輪，平均船齡為一年，平均載重噸為230萬載重噸。我們透過新型更環保的生態建造油輪將船隊的貨運能力增加了一倍以上。

This slide highlights the company's financial performance since 2004. As the fleet was growing through the years so did the company's cash position, always maintaining strong cash reserves to manage the ups and downs of the shipping cycle. We have maintained strong profitability with the task through the last two years, generating record profits, and we have kept manageable debt levels throughout this 20-year periods. The first five months of '24 have given TEN the opportunity to further upgrade the quality and earnings power of the fleet. We expect the new additions to contribute positively in the overall financial performance of the company, starting from the second half of this year.

這張投影片重點介紹了該公司自 2004 年以來的財務表現。隨著船隊逐年成長，公司的現金狀況也不斷成長，始終保持強勁的現金儲備，以應對運輸週期的起伏。過去兩年，我們在這項任務中保持了強勁的盈利能力，創造了創紀錄的利潤，並且在這 20 年期間，我們一直保持可控的債務水平。2024 年的前五個月給了 TEN 進一步提昇機隊品質和獲利能力的機會。我們預計，從今年下半年開始，新增人員將為公司的整體財務表現做出積極貢獻。

In addition to paying down debt, dividend continuity is important for common shareholders and management. TEN has always paid a dividend irrespective of the market cycle. Our dividend policy is semi-annual. Last year, we paid $0.30 in June, a special dividend of $0.40 in October, and $0.30 in December. This year, we announced $0.60 per share to be paid July 18, to shareholders of record on July 12. Inclusive of this upcoming dividend, which is double the first semi-annual dividend of 2023, TEN has distributed over $800 million of common and preferred share dividends, $546 million of which to common shareholders since the company 2002 New York Stock Exchange listed.

除了償還債務外，股息連續性對於普通股股東和管理層也很重要。無論市場週期如何，TEN 始終支付股息。我們的股利政策是半年一次。去年，我們在 6 月支付了 0.30 美元，在 10 月支付了 0.40 美元的特別股息，在 12 月支付了 0.30 美元。今年，我們宣布將於 7 月 18 日向 7 月 12 日登記在冊的股東支付每股 0.60 美元。包括即將到來的股息（這是2023 年首次半年度股息的兩倍），自2002 年在紐約證券交易所上市以來，TEN 已派發了超過8 億美元的普通股和優先股股息，其中5.46 億美元分配給了普通股股東。

Global oil demand continues to grow despite financial and geopolitical headwinds, the International Energy Agency expects global oil demand to grow by approximately 1 million barrels per day to approximately 103 million barrels per day. It's going to be another record year after last year. Most of the growth is coming from Asia and Asia Pacific region, mainly India and China. On the supply side, most of the growth in 2024 is expected to come from non-OPEC plus countries like Brazil, the United States of America, Guyana, Canada, Mexico, and Norway. The majority of the additional supply is in the Atlantic Basin, while demand growth continues to be concentrated in the Pacific, boosting long-haul tanker demand.

儘管面臨金融和地緣政治阻力，全球石油需求仍持續成長，國際能源總署預計全球石油需求將成長約100萬桶/日，達到約1.03億桶/日。繼去年之後，今年將再創紀錄。大部分成長來自亞洲和亞太地區，主要是印度和中國。在供應方面，預計 2024 年的大部分成長將來自巴西、美國、圭亞那、加拿大、墨西哥和挪威等非 OPEC+ 國家。大部分新增供應來自大西洋盆地，而需求成長持續集中在太平洋地區，因此提振了長途油輪需求。

As global oil demand continues to grow, let's look at the forecast for the supply of tankers. The order book as of May 24, stands at 10% or 577 tankers over the next three years. The figures below represents a low number of newbuildings. At the same time, a big part of the fleet almost 42% with over 15 years and 893 tankers or almost 60% of the fleet are currently over 20 years.

隨著全球石油需求持續成長，我們來看看油輪供應的預測。截至 5 月 24 日，未來三年的訂單量為 10%，即 577 艘油輪。下圖代表新造船數量較少。同時，船隊中的很大一部分（近 42%）船齡超過 15 年，而 893 艘油輪（船隊中近 60%）目前船齡超過 20 年。

The next slide shows the scrapping activity since 2018. We believe scrapping activity will pick up as the global fleet gets older and all the tankers are getting out of favor for long-term business by major charters. And with that, I will ask Paul to walk you through the financial highlights of the first quarter. Paul?

下一張幻燈片顯示了 2018 年以來的報廢活動。我們認為，隨著全球船隊老化，所有油輪都不再受到主要包租公司的長期業務青睞，拆解活動將會增加。接下來，我將請保羅向您介紹第一季的財務亮點。保羅？

Thank you. And first, I'd just like to say how happy I am to be with my colleagues in a long, long time.

謝謝。首先，我想說，能與我的同事們長期在一起，我感到多麼高興。

It's been a long time.

已經很久了。

It feels like a long time. Thank you, George. Since the beginning of 2024, we have been very active on the sale and purchase front, which enabled us to divest from some of our first-generation tankers and replaced them with new ones in the high-end green technology. From the sale of our older vessels, we generated $200 million, which together with the strong cash flow fleet has earned, enabled -- and enabled us to retain very solid cash reserves. During this time, while engaging in this green ship initiative, we took eight vessels for our scheduled maintenance and repairs. And necessary activity, which should fade away into the second quarter. The result of this was a natural drop in fleet -- join.

感覺好像很久了。謝謝你，喬治。自2024年初以來，我們在銷售和採購方面一直非常活躍，這使我們能夠剝離一些第一代油輪，並用高端綠色技術的新油輪取代它們。透過出售舊船，我們獲得了 2 億美元的收入，再加上船隊強勁的現金流，我們贏得了、使我們能夠保留非常堅實的現金儲備。在此期間，在參與這項綠色船舶倡議的同時，我們帶了八艘船進行定期維護和修理。以及必要的活動，這些活動應該會在第二季逐漸消失。這樣做的結果就是艦隊自然下降——加入。

Shall I continue?

我要繼續嗎？

Yeah, please.

是的，請。

Okay great. It's like -- it takes two to tango, so let's continue the tango. So let me take it over from here. So as Paul started saying, the result of this maintenance created this natural growth in utilization from 96.4% in the same quarter of 2023 to 91.3% this quarter. Despite these actions, voyage revenues totaled $201 million and operating income, including a $16.2 million in capital gains from a vessel sale settled at $76.2 million. The result in net income reached $54 million, which translates to $1.06 in earnings per share.

好的，太好了。就像——探戈需要兩個人，所以讓我們繼續探戈。那麼就讓我從這裡接手吧。正如 Paul 開始所說，這次維護的結果使利用率自然增長，從 2023 年同一季度的 96.4% 增長到本季度的 91.3%。儘管採取了這些行動，航程收入和營業收入總計達 2.01 億美元，其中包括以 7,620 萬美元結算的船舶出售所得的 1,620 萬美元資本收益。淨利潤達到 5,400 萬美元，相當於每股收益 1.06 美元。

Operating expenses continue to be somewhat influenced by inflationary pressures and reached $48.6 million, similar to the 2023 first quarter, which did have approximately two vessels more on average. Operating expenses per ship per day were at about $9,400, not far off the 2023 first quarter with the average TCE time-charter equivalent per ship per day at around $33,400, so a big notable difference. Still healthy number but impacted by the reduction in vessels and the steep drydockings and repairs evident in the quarter, as mentioned earlier.

營運費用繼續在一定程度上受到通膨壓力的影響，達到 4,860 萬美元，與 2023 年第一季類似，平均增加了約兩艘船。每艘船每天的營運費用約為 9,400 美元，與 2023 年第一季的情況相差不遠，平均每艘船每天的 TCE 期租當量約為 33,400 美元，因此存在很大的顯著差異。如前所述，這一數字仍然健康，但受到船舶數量減少以及本季明顯的乾船塢和維脩大幅增加的影響。

EBITDA at the end of the first quarter of 2024 was at about $101 million and expected to return to higher levels once the new vessels begin to generate their lucrative returns. From the beginning of Q1 of 2024, we have seen a distinct continuation of demand for our vessels, and we expect this to help further build our cost reserves going forward. As the tanker market fundamentals continue to remain firm and assisted by the various geopolitical events around the globe, we are confident that TEN will continue to be the main beneficiary. And I think that concludes the summary from the financial point of view. So over to you (multiple speakers) Nikolas.

2024 年第一季末的 EBITDA 約為 1.01 億美元，一旦新船開始產生豐厚的回報，預計將恢復到更高水準。從 2024 年第一季開始，我們看到對船舶的需求明顯持續，我們預計這將有助於進一步建立我們未來的成本儲備。由於油輪市場基本面持續保持堅挺，並受到全球各種地緣政治事件的推動，我們有信心 TEN 將繼續成為主要受益者。我認為這從財務角度總結了這一點。現在就交給你了（多名發言者）尼可拉斯。

Thank you, guys. And I think it's good to give -- to let our shareholders know that how busy we have been, and I think this has been one of the longest presentations by our President because we have been so busy. But because we better -- yeah, it's better to be accurate than do nothing. But as I said, I think we used this period of time as a springboard of our next phase, which is very clearly to be one of the first, if not the first company, to run the most environmental fleet out there. And we did this before, we were about 30 years younger for those who have such a long memory.

感謝你們。我認為讓我們的股東知道我們有多忙是件好事，我認為這是我們總統最長的演講之一，因為我們一直很忙。但因為我們更好——是的，準確總比什麼都不做要好。但正如我所說，我認為我們利用這段時間作為下一階段的跳板，很明顯，我們將成為第一家（如果不是第一家）運營最環保車隊的公司之一。我們以前也這麼做過，對於那些記憶力這麼長的人來說，我們年輕了大約30歲。

And the reason TEN is around today was a very quick reaction to the OPA 90. And that was a big change of the industry's design -- that was the biggest real structural change in our industry's design since the ancient years. And we were the first company to have a fully double-double fleet way before the -- reduced the due time, the obligatory due time. And we're looking to do the same with our fleet with the help of our clients. I think -- and in the meantime, make significant profits. And with that, I would like to open the floor to any questions that you may have. Thank you.

TEN 之所以能出現在今天，是因為對 OPA 90 的快速反應。這是產業設計的一個巨大變化——這是自古以來我們行業設計中最大的真正結構性變化。我們是第一家擁有完全雙雙機隊的公司，早於縮短了交貨時間，即強制性交貨時間。我們希望在客戶的幫助下對我們的機隊做同樣的事情。我認為——同時，賺取可觀的利潤。接下來，我想回答大家可能提出的任何問題。謝謝。

(Operator Instructions) Climent Molins, Value Investor Edge.

（操作員指令）Climent Molins，價值投資者優勢。

Good morning or well afternoon. Thank you for taking my questions. I wanted to start by asking about the recent order for five LR1s. Should we think about it as fleet renewal? Or is there a plan to increase your exposure to that subsegment? And secondly, do you plan to fix those vessels on medium-term contracts before delivery? Or would you be comfortable trading them on spot?

早安或下午好。感謝您回答我的問題。我想先詢問最近五架 LR1 的訂單。我們是否應該將其視為機隊更新？或是否有計劃增加您在該細分市場的曝光度？其次，您是否計劃在交付前根據中期合約修復這些船舶？或者您願意當場交易它們嗎？

Very well. I think that's a really good point. And if you look at the -- our fleet use that our President was presenting, you see that we have vessels there, well, we still have the Andes, which is, it's kind of our oldest vessel was built before most of my children weren't even born. Now, I'm an empty nester, but we have the full measure of their performance, and that is, of course, a big candidate per se, but it has performed very well. For us being built in (inaudible) in Japan. And you see that we have a significant fleet build between 2008 and 2016 with [Selecao] So it is a category of ships that we believe they have been profitable for us.

很好。我認為這是一個很好的觀點。如果你看看我們總統介紹的我們的艦隊用途，你會發現我們在那裡有船隻，好吧，我們仍然有安第斯山脈，也就是說，這是我們最古老的船隻，是在我的大多數孩子出生之前建造的甚至還沒出生。現在，我是一個空巢老人，但我們對他們的表現有充分的衡量，當然，這本身就是一個大候選人，但它表現得非常好。對我們來說，我們是在日本建造的（聽不清楚）。您會看到，我們在 2008 年至 2016 年間透過 [Selecao] 建造了一支重要的船隊，因此我們相信這類船舶為我們帶來了利潤。

And if you look at the order book, I don't think anybody is building any of those ships. I think the order book is anyway 2% to 3%. So it's a combination. Yes, it is relatively new on the two sides of the business that very few people operate, and it's something that I think it's a good opportunity. It is the least build segment of the vessels that we operate.

如果你看一下訂單，我認為沒有人在建造任何一艘這樣的船。我認為訂單量無論如何都是 2% 到 3%。所以這是一個組合。是的，這兩個方面的業務相對較新，很少有人經營，我認為這是一個很好的機會。這是我們營運的船舶中建造量最少的部分。

Makes sense. Thanks for the color. And would you be willing to trade them on spot? Or do you still plan to follow your usual strategy of securing a charter?

說得通。謝謝你的顏色。您願意當場交易嗎？或者您仍然計劃遵循通常的獲得包機的策略嗎？

Well, I mean, we -- the way things are today, we do not have a big chance for trading ships on spot because our clients are actually grabbing those ships as soon as we ink and newbuilding orders or a discussion or take delivery of the ship. What I try to do, and I think our clients are now much, much more open to, is put market-related features like profit sharings in the market. So most probably, those ships will be either entering some of our very successful pools or we'll be working on profit arrangements with our clients. So yes, we are always looking for the highest utilization on the pro forma to earn us money every hour.

嗯，我的意思是，按照今天的情況，我們沒有很大的機會在現場交易船舶，因為一旦我們簽訂了新造船訂單或進行了討論或接收了這些船舶，我們的客戶實際上就會搶走這些船舶。我試圖做的就是將與市場相關的功能（例如利潤分享）引入市場，我認為我們的客戶現在對此更加開放。因此，最有可能的是，這些船舶要么進入我們一些非常成功的池，要么我們將與我們的客戶進行利潤安排。所以，是的，我們一直在尋找最高的備考利用率，以便每小時為我們賺錢。

That's helpful, thank you. And actually, talking about long-term contracts, I noticed that your exposure to every $1,000 per day increase in rates has decreased to $0.14 relative to last quarter's $0.18. And I was wondering, could you provide some commentary on some of the fixtures you have added over the past few months?

這很有幫助，謝謝。事實上，在談論長期合約時，我注意到每天每增加 1,000 美元的利率風險敞口已從上季度的 0.18 美元下降到 0.14 美元。我想知道，您能否對過去幾個月添加的一些固定裝置提供一些評論？

Yes. I think by the end of -- actually, by the end of the second quarter, it will be closer to $0.20 from our calculations because we have re-fixed some vessels in the third quarter at unprecedented levels. I cannot say too much because our competition is listening. And although we're very nice friends and we can have a drink in marine money or capital linkage, but everybody to run his own business. But in some cases, our minimums have doubled from where they are from our profit share. So you will see that increasing significantly. The reason is that in the first quarter, we took some vessels that had on with its previous owners, fixed employment.

是的。我認為，實際上，到第二季末，我們的計算結果將接近 0.20 美元，因為我們在第三季以前所未有的水平重新修復了一些船隻。我不能說太多，因為我們的競爭對手正在傾聽。雖然我們是很好的朋友，我們可以喝一杯海洋貨幣或資本聯動，但每個人都經營自己的事業。但在某些情況下，我們的最低限額是我們利潤分成的最低限額的兩倍。所以你會看到這個數字顯著增加。原因是第一季我們接收了一些與前任船東有固定僱傭關係的船舶。

Thanks for the color. And final question from me. This is more on the shareholder return side. Last year, you declared a special dividend alongside Q2 earnings. And I was wondering, considering you expect Q2 earnings to be significantly better than Q1's, is it fair to expect a special dividend as well when you report earnings?

謝謝你的顏色。最後一個問題是我提出來的。這比較是在股東回報方面。去年，您在第二季收益的同時宣布了特別股息。我想知道，考慮到您預計第二季度的收益將明顯好於第一季度，在您報告收益時期望特別股息是否公平？

That's a very good question. I mean all your questions are good, but I think that -- I want to clarify something. Yeah, last year, we actually announced and paid an extra dividend which went unnoticed by the analysts in the market as a one-off experience, we did not get any additional valuation for our shareholders. So we will not pay an extra dividend because it goes unnoticed, though I thought dollars should be paid -- after we pay them, they should be noticed. And we will add it on the second half dividend, so it will go noticed. So I guess our intention is if the market continues to increase the second half of the year, but not with a special dividend because the market seems to think that it's a one-off occasion, and they do not give it any value. So we will include it in our second half in our December dividend.

這是一個非常好的問題。我的意思是，你們所有的問題都很好，但我認為——我想澄清一些事情。是的，去年，我們實際上宣布並支付了額外股息，市場分析師並沒有註意到這一點，因為這是一次性的經歷，我們沒有為股東獲得任何額外的估值。因此，我們不會支付額外的股息，因為它不會被注意到，儘管我認為應該支付美元——在我們支付之後，它們應該被注意到。我們會將其添加到下半年股息中，因此會引起人們的注意。所以我想我們的意圖是如果市場在下半年繼續成長，但不會派發特別股息，因為市場似乎認為這是一次性的，他們不賦予它任何價值。因此，我們將把它納入下半年的 12 月股息中。

Makes sense. That's all for me. Thanks for taking my questions.

說得通。這就是我的全部。感謝您回答我的問題。

Thank you.

謝謝。

(Operator Instructions) With no further questions at this time. I would like to turn the floor back over to the CEO, Dr. Nikolas Tsakos. Please conclude.

（操作員說明） 目前沒有其他問題。我想請首席執行官 Nikolas Tsakos 博士發言。請得出結論。

Again, it's a pleasure to be able to share the company's developments with you. It's our 31st year. Hopefully, we will see -- last year, we were TEN at 30, we broke 30, now we're 31. I want to break 31 and more and much more above that. And we hope that our performance and our results and our dividend payments will help to shareholders. And our share price go much closer to where it should be, although it has moved positively, but we're still a long way from where we expected to be.

再次，很高興能夠與您分享公司的發展。這是我們的第 31 年。希望我們能看到——去年，我們在 30 歲的時候排名第十，突破了 30 歲，現在我們已經 31 歲了。我想突破 31 甚至更多。我們希望我們的業績、業績和股利支付能夠對股東有所幫助。我們的股價已經更接近應有的水平，儘管它已經積極上漲，但距離我們的預期還有很長的路要走。

And again, I want to thank everybody for their support. It has been a frantic period in the last six months for commercial developments, renewing the fleet or for growing the fleet significantly at the same time, making earnings, positive earnings and profits by selling older ships and replacing them with much younger ships growing the company, modernizing the company.

再次，我要感謝大家的支持。過去六個月是商業發展、更新船隊或同時大幅擴大船隊的瘋狂時期，透過出售舊船並用更年輕的船取代它們來實現盈利、正收益和利潤，從而發展公司，實現公司現代化。

So yeah, we are in a go-go always mode right now, but we only do it when there is a solid business. You know that we are trying to avoid putting ever our company into any trouble, we haven't done this for 21 years, and we're always growing it responsibly. And we want to thank you for your support and looking to see you face-to-face very soon.

所以，是的，我們現在處於「永遠」的模式，但我們只有在業務穩定的情況下才會這樣做。您知道，我們正在努力避免讓我們的公司陷入任何麻煩，我們已經 21 年沒有這樣做了，而且我們始終負責任地發展它。我們要感謝您的支持，並期待很快與您見面。

And I think we're organizing a European roadshow. And of course, we're always in the US quarterly to see our shareholders. And again, thank you very much, and have a nice relaxing and peaceful summer, we will not have one because we will be working. Thank you.

我認為我們正在組織一場歐洲路演。當然，我們總是每季都會去美國見我們的股東。再次，非常感謝你們，祝你們有個愉快、輕鬆、平靜的夏天，我們不會有這樣的夏天，因為我們要工作。謝謝。

Thank you. This will conclude today's conference. You may disconnect your lines at this time and thank you for your participation.

謝謝。今天的會議到此結束。此時您可以斷開線路，感謝您的參與。