Archives Maritime World News

TEN Secures More Work for Four Panamaxes

Written by Maritime First
  • COSCO Pacific’s Profit Up 30 Pct, Beating Forecasts

Greek tanker owner and operator Tsakos Energy Navigation (TEN) has inked charter extensions for four of its Panamax tankers with an undisclosed state oil company.

Tsakos said that the vessels will be employed on an average duration of 22 months per tanker and will collect minimum gross revenues of USD 65 million.

The new contracts are expected to come into force between April and November of 2016, upon expiration of the existing employments of the Panamaxes.

Tsakos believes that the extensions would contribute, on an annualized basis, an additional USD 20 million to the company’s bottom line.

“The extension of these contracts follow our policy to increase TEN’s long-term employment profile as time charter rates have finally started to reflect the strength of the spot market,” Nikolas Tsakos, President and CEO of TEN, said.

Tsakos added that the average contract length for the company’s fleet currently stands at 2.7 years with minimum revenues of USD 1.5 billion.

In the meantime, Hong Kong-listed port operator COSCO Pacific Limited recorded a 30.4 % profit increase in 2015 due to steady development and stable profit performance, the company said.

Specifically, profit attributable to equity holders of COSCO Pacific for the year 2015 was USD 381.6 million against USD 292.7 million reported in 2014.

Excluding the write back provisions from the sale of its 21.8 percent stake in China International Marine Containers (Group) Co. in 2013 of USD 79.1 million profit attributable to equity holders of COSCO Pacific amounted to USD 302.4 million, a 3.3% increase compared with last year.

Bloomberg said that the results beat the USD 300 million average estimate of 12 analysts compiled by the news agency.

However, in respect of the container leasing business, lease rates and resale prices decreased due to the adverse market environment during the year, affecting the profit performance of the group’s arm.  As a result the business unit recorded a profit of USD 82.8 million, down 13.5% when compared with last year.

COSCO Pacific said that its profit from the terminals business for 2015 was USD 233.6, a 5.7% increase compared with last year. The throughput of container terminals was 68.6 million TEU, a 2.0% increase compared with 2014.

During the year, the performance of Xiamen Ocean Gate Terminal improved, with an increase in container throughput of 28.4% compared with last year as a result of an increase in the number of shipping routes, enabling the terminal to return to profitability, recording a profit of USD 137,000.

World Maritime News

About the author

Maritime First