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ATHENS - TEN, Ltd (NYSE:TEN), a leading global transporter of energy currently trading at a notably low Price/Book multiple of 0.29x, has announced a significant expansion of its fleet with the construction of nine DP2 Suezmax Shuttle Tankers, which are expected to generate gross revenues of approximately $2 billion. According to InvestingPro analysis, TEN appears undervalued based on its Fair Value metrics, suggesting potential upside for investors. These vessels, scheduled for delivery in 2027 and 2028, are being built for Petrobras Transporte S.A. (Transpetro), the primary oil and gas transportation company in Brazil.
The tankers will be constructed at Samsung Heavy Industries Co. Ltd. in South Korea, where TEN is already engaged in building three DP2 Shuttle Tankers, with deliveries anticipated in 2025 and 2026. The contract with Transpetro is structured as a bareboat charter, wherein the charterer will be responsible for all operational and technical costs during the vessels’ service period.
With the addition of these nine tankers, TEN’s fleet will comprise 16 DP2 Suezmax Shuttle tankers, positioning the company as one of the world’s largest owners in this sector. This move reflects TEN’s strategic approach to fleet employment, which emphasizes long-term contracts providing stable cash flow and the flexibility to capitalize on market opportunities.
TEN’s history of expanding its modern vessel fleet includes the acquisition of nine ice-strengthened vessels in 2007, the 2014 contract to build nine Aframax vessels for Equinor, and the acquisition of a five-vessel modern fleet from Viken Crude in early 2024, which solidified TEN’s presence in the Dual-Fuel LNG vessel market.
George Saroglou, President & COO of TEN, expressed his gratitude for the milestone transaction and emphasized the company’s commitment to meeting the long-term needs of major oil companies. He highlighted TEN’s industrial approach to fleet employment, which has consistently provided the company with financial stability and the ability to distribute dividends to shareholders regardless of market conditions.
TEN, founded in 1993, is marking 32 years as a public company with a diverse energy fleet that includes 83 vessels, totaling 10.2 million dwt. The fleet comprises crude tankers, product tankers, and LNG carriers, with several vessels currently under construction. The company maintains a remarkable 23-year track record of consecutive dividend payments, currently offering a substantial 10.6% dividend yield. InvestingPro analysis reveals 12 additional key insights about TEN’s performance and prospects, available exclusively to subscribers.
This expansion initiative is based on a press release statement and is subject to the usual risks and uncertainties associated with forward-looking statements. TEN has stated that it does not intend to update any forward-looking statements as new information becomes available or as events unfold.
In other recent news, Tenaris reported its financial results for the fourth quarter of 2024, showing stable performance despite challenging market conditions. The company’s net sales for the full year reached $12.5 billion, with a net income of $2.1 billion. Despite a 17% year-over-year decline in Q4 sales, Tenaris maintains a positive outlook for 2025, anticipating improved margins in the coming quarters. The company has a strong net cash position of $3.6 billion and plans to propose an annual dividend increase at its upcoming shareholders’ meeting. Meanwhile, TEN Ltd. announced the passing of its former Chairman, D. John Stavropoulos, who was instrumental in shaping the company’s direction during his tenure. Stavropoulos was recognized for his extensive experience in the banking industry and his contributions to Tsakos Energy Navigation. Additionally, Tenaris is optimistic about its strategic investments in industrial efficiency and carbon emission reduction, which are expected to bolster future performance. The firm is also closely monitoring potential impacts from U.S. tariffs and geopolitical tensions, which could affect its operations.
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