Tsakos Energy Navigation Ltd (NYSE:TEN) stock surged after the company reported stronger third-quarter 2025 results, delivering earnings and revenue above expectations, supported by robust tanker markets and gains from vessel sales.
Third-quarter gross revenues reached $186.228 million, beating the $178.092 million estimate. Net income increased to $38.3 million, or $1.05 per share, compared with $26.5 million, or 67 cents per share, in the prior-year quarter. EPS of $1.05 topped the 80 cents estimate.
Operating income was $60.5 million, including $9 million in gains from the sale of three older vessels. Adjusted EBITDA totaled $95.6 million.
Also Read: Earnings Preview For Tsakos Energy Navigation
Fleet utilization in the quarter was 95%, average Time Charter Equivalent (TCE) was $30,601 per vessel per day, and operating expenses averaged $9,904 per vessel per day.
General and administrative expenses decreased to $9.2 million from $14.2 million in the prior year. Depreciation and amortization totaled $42.4 million.
For the first nine months of 2025, TEN reported $577 million in gross revenues and net income of $103 million, or $2.75 per share. Adjusted EBITDA for the period was $289 million.
Fleet utilization improved to 96.2% from 92.2% in the prior-year period, reflecting recalibrated fleet employment. Average TCE was $30,703 per vessel per day, while operating expenses averaged $9,797 per vessel per day.
The company ended September with $264.3 million in cash, following principal repayments of $134.6 million, predelivery installments of $178 million, and preferred dividends of $20.3 million.
TEN reported $4 billion in minimum contracted revenue and continued its 20-vessel newbuilding program, including three VLCCs.
Cash flow from operations for the nine-month period was $201.4 million, while heavy vessel investments led to negative free cash flow.
The board approved a $1.00 per-share dividend for common shareholders, payable in two equal installments in December 2025 and February 2026.
Management stated that tariffs, trade restrictions, rising oil demand, low inventories, and geopolitical tensions have all contributed to strengthening freight rates and vessel values.
COO Commentary
President and COO George Saroglou said, "With a fleet value in excess of $6 billion including an aggressive new-building program, TEN is increasing its critical mass in the areas it operates as it divests from its first-generation assets." He said the company's 62 vessels in operation and 20 under construction position TEN to remain competitive in the energy-transportation market.
Price Action: TEN shares were trading higher by 3.61% to $26.15 at last check Thursday.
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