Largest growth programme in history drives TEN's revenue backlog of US$4Bn

TEN is currently executing a fleet renewal initiative, which includes the construction of 21 vessels totaling 2.6M dwt, and has already secured a minimum revenue backlog of US$4.0Bn.

The cornerstone of this substantial orderbook is a deal with South Korea’s Samsung Heavy Industries (SHI) for the construction of nine DP2 Suezmax shuttle tankers, following the Transpetro tender. TEN is also building three additional shuttle tankers, while the rest of the orderbook includes five LR1 Panamaxes, two Suezmax tankers, and two MR tankers.

In addition, the company confirmed the sale of a 2009-built Suezmax tanker, with shipbrokers recently identifying Pentathlon as the disposed vessel. TEN stated that this sale will generate approximately US$30.0M in free cash and capital gains of around US$2.5M, which will be recorded in Q1 2025.

In the company’s Q4 2024 earnings report, TEN president and chief operating officer George Saroglou highlighted that this period marks a milestone for the US-listed Greek shipping company.

TEN also emphasised that it is exploring further sales of first-generation tankers to make room for newer, more eco-friendly vessels, both in the conventional and specialised tanker segments.

As of now, TEN’s fleet consists of 82 vessels, including crude tankers, product tankers, and LNG carriers, with a total deadweight of 10.1M dwt, including vessels under construction.

Bullish outlook 

TEN remains optimistic about the fundamentals of the tanker market. Management noted in the earnings report that shipyards are currently operating at full capacity and will not be able to deliver new vessels until the second half of 2027.

Moreover, the ongoing debate around alternative fuels is slowing down the potential for over-ordering, while OPEC+ is gradually reversing output cuts implemented since 2022.

TEN also pointed to the impact of various geopolitical events that have bolstered the market in recent years. The company does not expect these conditions to subside anytime soon, which could provide further support to both charter rates and asset values.

Financial performance

TEN posted voyage revenue of US$804M in 2024, a slight decrease from US$889.5M the previous year. Net income dropped to US$181.6M, compared to US$305.0M in 2023.

Fleet utilisation for 2024 was 92.5%, reflecting increased dry-docking activity and repositioning voyages. The average TCE per ship per day stood at US$32,550.

TEN’s board has authorised a common stock dividend of US$0.60, which will be paid in July 2025. Since its listing on the NYSE, TEN has distributed a total of US$895M in dividends.