Tuesday, October 19, 2010

Tsakos' (NYSE:TNP) Spot Exposure Could Lower Earnings

The spot exposure of Tsakos Energy Navigation, Ltd. (NYSE:TNP) could drive the earnings of the company down in the short term, according to Cantor Fitzgerald, who downgraded Tsakos from "Buy" to "Hold."

"While we suggest TNP's experienced management team and large, modern and diverse fleet are attractive, we believe the company's spot exposure could negatively impact earnings in the near-term if the current depressed tanker market environment persists...We lower our 2010 EPS and EBITDA forecasts to ($0.03) (from $0.49) and $150 million (from $170 million, respectively. We also lower our 2011 EPS forecast to $0.49 (from $0.83) and EBITDA estimate to $167 million (from $180 million)," said Cantor.

Tsakos Energy Navigation closed Monday at $12.94, dropping $0.16, or 1.22 percent. Volume was about three times its daily 3-month average.

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