Tsakos Energy Navigation Limited (NYSE:TNP) Q2 2020 Earnings Conference Call - Final Transcript
Sep 23, 2020 • 09:00 am ET
Nikolas P. Tsakos
said, it has been a very interesting to say that it is enlightening educational period for all of us. We are navigating in unchartered waters for the last, more than six months now. However, we have been able to maintain the company on course at least. We have been able to first of all secure the safety of our people onboard, which has been a huge concern if you are in an operation with 2,000 seafarers onboard our ships at one time and 2,000 seafarers waiting to board the ships on the other hand. So that's a huge effort that has been made.
Then I think that's where the big part of our priority has been focused. And as the Chairman said, we were able to navigate this unchartered waters successfully and not lose track of the company's targets. The target has always been profitability. It has been a record quarter and a record six months. But other than that, also the growth and modernization of our fleet. We sold four vessels within the quarter, in the six months. We reduced debt. We put cash aside. And we replaced them, those four vessels, with an average age of 14 years with four new vessels, three of them already delivered in spite of the very difficult circumstances that seafarers have been operating. So I need, first of all to thank our associated seafarers for their efforts, so the people there, but also our new building team and operation team for making sure that we were able to deliver best ships on time, maintain our very accretive charters.
So by -- So in all of this, we were able to replace four older ladies [Phonetic] on target at 14 years. This is our goal to try avoiding passing the usually a bit more stern special survey and we replaced them with four new vessels, of which at the minimum earning capacity will -- are the $180 million for over the five years employment as a minimum to our revenue. So all this took a lot of effort from the whole team.
We maintained 96% utilization, which has not been easy, mainly because of the unprecedented circumstances we are facing with the crew changes. We started this year in 2020 with optimism, I would say, but a lot of concerns. All of us remembers that this would have been our biggest issue or supposed to be the move -- the progression from the 3.5 [Indecipherable] contract to the 0.5. Within six weeks of the beginning of the year, all this went to the back of the queue, and we have been dealing with the effects of the virus since. But however, so far so good.
We increased our dividend in June. We hope to maintain a strong dividend in our next dividend payment in December. And again, I would like to thank the board, the management, the technical management for their efforts to keep the board on track in these very, very rough