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Tsakos Energy Navigation: LNG Exposure Will Enhance Returns

True Orion profile picture
True Orion


  • The company has recently acquired its newbuild LNG carrier with $100 million revenue potential.
  • Corporate strategy consists of mainly time charter rates with some spot rate exposure to spice things up.
  • As older time charters expire, rates will continue to improve rapidly.
  • Although dilution has taken place in the past years, the company has the potential to deliver better-than-average returns, should the oil market fundamentals improve.

Oil Tanker at Sea

HeliRy/E+ via Getty Images

Today I will be looking at another Greek shipping company, this time in the area of petroleum shipping. I'm talking about Tsakos Energy Navigation Limited (NYSE:TNP), a company which currently owns a total of

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True Orion profile picture
True Orion is comprised of two notions. Orion, the ancient mythical hunter, and truth. The neverending pursuit for truth. This is my motto. I believe that knowledge is key to achieving oversized returns in a financial as well as in a personal level. As a private investor, with a real estate investment educational background and with more than 15 years of investing experience in the real estate and stock market, I can tell you that. Here in SA, I provide my readers with articles regarding specific stocks, or market analysis. My main focus is in REITs, shipping and value/growth smallcap stocks. Megacaps (usually) leave me tremendously indifferent. The purpose of my articles is to express my ideas and get them tested by reality, while at the same time gain additional knowledge throughout the process. As I said above, the notion of the neverending pursuit of truth is hidden behind True Orion. If you like my content, don't forget to follow me, like, share and comment. As a contributor affiliated with SA, signing up for the SA's premium annual subscription plan by clicking here, you are supporting my efforts even more.

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Comments (24)

Extremely low price to sales compared to other shipping companies. Reminds me of nmm at one time
@goffmedia what good is nmm when the ceo slurps all the cash
Udith Fonseka profile picture
Head line shoukld read "will enhance returns only very slightly"
Well at this point this stock acting much better than most. Appears to want to go higher
When looking at the debt you might want to dive just a bit deeper and look at the preferred shares. The company, and the real debt view the preferred as equity. But to the common, they should be viewed as debt. Quite expensive debt.

I am long on both the preferred and the common. As somebody else already mentioned, it is my current bet that even poor/mediocre management won't be able to hinder the oil/lng market dynamics that are about to lift this company significantly.
@optional- I am long the common. As metal prices have increased significantly, ship replacement cost will also increase. Less than .2 book is a buy.
@M. Washburn , be careful. Book is meaningless for ships. Book = cost - depreciation. NAV would be what you can sell the ships for. Selling at about 50% of NAV. But you are correct that the NAV has been, and will continue to, go up.
@optional- great point on NAV. Thanks. I think it will climb to close to Current NAV or 18. I will sell then.
sliman21 profile picture
Sticking with the preferreds
Udith Fonseka profile picture
Too reliant on tankers----too much debt---too many pref.
Thanks for this article. Is this a Partnership or a Corporation?
@oagfy corporation
Good luck to all.
Nothing more than a trading vehicle here.
True Orion profile picture
@Contemplating Retirement it's a speculative one. But i really like the LNG exposure
@True Orion Yes...

Currently long....

Like the foreign exposure also.....

Deep value..

Trying to get out of growth and the U S
@Contemplating Retirement
Sold ALL, now last few days...
20% dilution in the 4th quarter and selling at less than 20% of book value ( 4.7 million shares )....
That should tell you how much they think of their TRUE value...lol
Investors will make the mistake of judging this one by the past. If there is any time to look forward it is now.

Look at how NMM has performed recently and all the negativity last year on the name.

These companies are not managed ideally, but the dynamics of the industry are covering up and outweighing the specific company risk
@mwhuffington NMM is at the same price it was in May 2021 ever though there was an insane bulker and container rates. Their performance has sucked
@energyguy921 I guess I should say 9 months ...essentially from the lows
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