Tsakos Energy Navigation Limited (NYSE:TNP) Q2 2019 Earnings Conference Call Transcript

Sep 06, 2019 • 08:30 am ET

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Tsakos Energy Navigation Limited (NYSE:TNP) Q2 2019 Earnings Conference Call Transcript

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Q & A
Operator
Operator

Thank you very much, sir. [Operator Instructions] Okay. Our first question for today is from J Mintzmyer [Phonetic] from Value Investors.

Analyst
J Mintzmyer

Hi, good morning gentlemen. Congratulations on the LNG order.

Executive
Nikolas P. Tsakos

Thank you.

Analyst
J Mintzmyer

Yes. I'm looking at the timing of your installment payments for your two Aframaxes, two Suezmaxes, and one-option-one LNG. Is that correct? And then also, what is the timing of those installments, both for the rest of 2019, 2020 and then 2021?

Executive
Paul Durham

Well, to-date we paid for the four vessels, $25 million we've paid already out of our pocket. We expect to pay another $55 million from our pocket in the remainder of the year -- I beg your pardon, $5 million in the remainder of the year. And drawdowns we shall have from our banks, they're providing pre-financing -- pre-delivery refinancing. Drawdowns will amount to $45 million by the end of the year. And future drawdowns within the year, we have $26 million. And going into 2020, we have a further $122 million and that's being provided by the delivery date.

Executive
Nikolas P. Tsakos

So I think, actually from equity, it's another $5 million for the vessels.

Executive
Paul Durham

In addition to the $25 million already paid.

Executive
Nikolas P. Tsakos

In addition to the $25 million already paid.

Analyst
J Mintzmyer

Okay. So I'm hearing $5 million additional equity for the rest of the year. And what's the amount you anticipate? I know all the financing is probably not wrapped up yet, especially for the LNG carriers, but what's the amount of equity that you anticipate spending in 2020 and then 2021 for those vessels?

Executive
Nikolas P. Tsakos

I think the only -- the finance is wrapped up for all the other vessels with a queue of financiers for the LNGs. So we expect that perhaps another $40 million of equity within -- between 2020 and '21 for the LNG carrier.

Analyst
J Mintzmyer

So what's kind of wrapping up on that? What's the target leverage for those vessels? It sounds to me like it's in the 70%, 80% range, is that about right?

Executive
Paul Durham

We try to be conservative. As you know, we have a conservative balance sheet and we'd rather keep it closer to 70% rather than the 80%.

Analyst
J Mintzmyer

Excellent. Thank you. And then the other question I have similar is on your debt facilities. I know you've targeted refinancing the balloons, but you plan to pay down your regular amortization payments. Can you remind me what the remaining amortization payments are for the rest of 2019, also for 2020 and scheduled for 2021?

Executive
Paul Durham

Right. Our scheduled repayments for the remainder of 2019 $84 million. Going into 2020, we're going -- do you want to know future years as well? Okay. So for the remainder of this year, we have scheduled $84 million to pay.

Analyst
J Mintzmyer

And then, do you have the numbers available for 2020 or 2021 yet?

Executive
Paul Durham

Yes, sure. 2020, we have $166 million and it is a scheduled payments, not balloons. Going into 2021, we have $141 million. And if we're going into '22, here we've got another $128 million.

Analyst
J Mintzmyer

Excellent. Thanks