Tsakos Energy Navigation Ltd (NYSE:TEN) stock rose 3.05% (As on September 12, 11:22:20 AM UTC-4, Source: Google Finance) after the company hiked its dividends by half. The company announced that it will distribute to common shareholders a second semi-annual dividend of $0.90 per share following the $0.60 per share paid in July, bringing the total dividend for 2024 operations to $1.50, representing a 50% increase over the amount distributed for 2023 operations.
Moreover, for the second quarter of FY 24 the company has reported operating income, which included $32 million of capital gains in the second quarter of 2024 of $103 million resulted in a net income of $76.4 million for the same period. With three vessels undergoing scheduled dry dockings and special surveys, fleet utilization dropped to 92% and gross revenues reached $214 million. Average TCE per ship per day in the 2024 second quarter, which was impacted by vessel repositionings, reached $34,235 leading to an adjusted EBITDA of $113 million for the same period. Fleet operating expenses were modestly higher from the 2023 second quarter levels, reaching $49.7 million in the 2024 second quarter again reflecting the larger sizes of vessels in the fleet. Despite that, and largely due to efficient vessel management, operating expenses per ship per day for the second quarter of 2024 dropped to $9,347 from $9,492 in the 2023 equivalent period. Depreciation and amortization during the second quarter of 2024 was in line with the increased number of vessels in the fleet at $39.5 million. Interest and finance costs for the second quarter of 2024 reached $30.0 million reflecting the aforementioned loans and continued elevated global interest rates.
Meanwhile, during the summer of 2024, TEN triggered the repurchase of two sister vessels, the 2006-built suezmaxes Alaska and Archangel, by exercising, in-the-money, purchase options. With the termination of this leasing arrangement, TEN generated approximately $5.0 million in forward hire savings. These two vessels continue to operate in the fleet, unencumbered, and are currently on charter to significant oil concerns at attractive rates.
With a solid balance sheet, $2.0 billion in minimum contracted revenues and a fleet generating healthy cash flows, TEN continues to expand in the sectors it operates. At the end of June 2024, TEN’s cash position reached $476 million, almost $100 million higher from year-end 2023.