Tsakos Energy Navigation Limited (TNP) Q2 2012 Earnings Call August 3, 2012 10:00 AM ET Executives Nicolas Bornozis – President, Capital Link and Investor Relation Advisor, Tsakos Energy Nikolas Tsakos – President and CEO John Stavropoulos – Chairman George Saroglou – VP and COO Paul Durham – CFO Analysts Urs Dür – Clarkson Capital Gregory Lewis – Credit Suisse David Beard – IBERIA Capital Partners Presentation Operator
Please note that parallel to today’s conference call, there is also a live audio and slide webcast which can be accessed through the company’s Web site at the front page at www.tenn.gr. The conference call will follow the presentation slides, so we urge you to access the presentation and webcast. Please note that the slides and webcast will also be available as an archive after the conference call. The slides of the webcast presentation are user controlled, so by clicking on the proper button you can move to the next or to the previous slide on your own.At this time, I would like to read the Safe Harbor statement. This conference call and slide presentation of the webcast contains certain forward-looking statements, within the meaning of the Safe Harbor provision of the Private Securities Litigation Reform Act of 1955. Investors are cautioned that such forward-looking statements involve risks and uncertainties, which may affect TEN’s business prospects and results of operations. Such risks are more fully disclosed in TEN’s filings with the Securities and Exchange Commission. Ladies and gentlemen, at this point, I would like to turn the call over to Mr. Nikolas Tsakos, President and Chief Executive Officer of Tsakos Energy Navigation. Mr. Tsakos, please go ahead, sir. Nikolas Tsakos Yes. Good morning. Thank you for attending our half year and second quarter call. We have been discussing since the last quarter that we could foresee the measures we have taken in the company on the chartering and operational side are turning the curve towards a better performance. We are glad to announce a better performance. However, a loss is never gratifying. So we are looking forward to going back to our continuous profitability trick, as we speak. We believe that we are taking the internal measures, the cost controls, the correct allocation of vessels in the right parts of the world where demand is stronger, we’re taking measures to enhance the company’s growth, looking at new, much more profitable segments like the offshore through our shuttle tankers and the LNG which has been a very large contributor to our bottom line, to the betterment of our bottom line.
And we believe that next year this oversupply of tonnage will start drying up. A lot of ships are being taken out of commission for scrapping. So we hope that we will be closer to profitability as we speak.What is making us also optimistic is that we see a lot of our clients out there looking, as we have reported also today, additional interest for long-term employments with profits. And this is – the company is doing more and more with minimum profit shares arrangements that have, I think, contributed to us sustaining a difficult period and having the open up-side in case the market turns, as we hope. So we will be discussing more of this as we go. I would like to ask our Chairman to give his wise words and then Mr. Saroglou will talk to us about the operations of the last quarter. Thank you. John Stavropoulos Thank you very much, Nicolas. This is John Stavropoulos. I am going to repeat much of what Nicolas said, but I am going to repeat it because I think it’s extremely important to us as shareholders. What you’ve just given us is the most encouraging report and I am looking forward to the other comments from George and Paul. I want to applaud you, Nicolas, and your management group along with the entire Tsakos Group. Your efforts during the overall economic storm and the deep depression in shipping has kept TEN on course. Your strategies and implementation have preserved underlying shareholder value. The keys to this success have been highly developed and enhanced long-term client relationships, reflected in extending term charters. These don’t come easily. They take a lot of hard work and perseverance. Read the rest of this transcript for free on seekingalpha.com