Document_and_Entity_Informatio
Document and Entity Information | 12 Months Ended |
Dec. 31, 2014 | |
Document And Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | FALSE |
Document Period End Date | 31-Dec-14 |
Document Fiscal Year Focus | 2014 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | TSAKOS ENERGY NAVIGATION LTD |
Entity Central Index Key | 1166663 |
Trading Symbol | TNP |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Current Fiscal Year End Date | -19 |
Entity Filer Category | Accelerated Filer |
Entity Well Known Seasoned Issuer | No |
Entity Common Stock Shares Outstanding | 84,712,295 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ||
Cash and cash equivalents | $202,107 | $162,237 |
Restricted cash | 12,334 | 9,527 |
Accounts receivable, net | 42,047 | 21,873 |
Insurance claims | 288 | 2,569 |
Due from related companies (Note 2) | 1,895 | 1,084 |
Advances and other | 10,341 | 13,097 |
Inventories | 15,941 | 19,660 |
Prepaid insurance and other | 2,403 | 2,354 |
Current portion of financial instruments-Fair value (Note 15) | 2,443 | 140 |
Total current assets | 289,799 | 232,541 |
INVESTMENTS (Note 3) | 1,000 | 1,000 |
FINANCIAL INSTRUMENTS-FAIR VALUE, net of current portion (Note 15) | 0 | 1,438 |
FIXED ASSETS (Note 5) | ||
Advances for vessels under construction | 188,954 | 58,521 |
Vessels | 2,834,289 | 2,710,418 |
Accumulated depreciation | -635,135 | -537,350 |
Vessels' Net Book Value | 2,199,154 | 2,173,068 |
Total fixed assets | 2,388,108 | 2,231,589 |
DEFERRED CHARGES, net (Note 6) | 20,190 | 17,331 |
Total assets | 2,699,097 | 2,483,899 |
CURRENT LIABILITIES: | ||
Current portion of long-term debt (Note 7) | 228,492 | 126,361 |
Payables | 33,052 | 52,319 |
Due to related companies (Note 2) | 10,136 | 6,930 |
Dividends payable | 5,083 | 0 |
Accrued liabilities | 19,255 | 16,628 |
Accrued bank interest | 5,933 | 6,058 |
Unearned revenue | 9,897 | 14,014 |
Current portion of financial instruments-Fair value (Note 15) | 15,434 | 5,962 |
Total current liabilities | 327,282 | 228,272 |
LONG-TERM DEBT, net of current portion (Note 7) | 1,189,844 | 1,253,937 |
FINANCIAL INSTRUMENTS - FAIR VALUE, net of current portion (Note 15) | 4,059 | 4,027 |
STOCKHOLDERS' EQUITY: | ||
Preferred shares, $1.00 par value; 15,000,000 authorized and 2,000,000 Series B Preferred Shares and 2,000,000 Series C Preferred Shares issued and outstanding at December 31, 2014 and December 31, 2013 | 4,000 | 4,000 |
Common stock, $ 1.00 par value; 185,000,000 and 85,000,000 shares authorized at December 31, 2014 and December 31, 2013 respectively; 84,712,295 and 57,969,448 shares issued and outstanding at December 31, 2014 and 2013 respectively. | 84,712 | 57,969 |
Additional paid-in capital | 650,536 | 500,737 |
Accumulated other comprehensive loss | -10,290 | -6,789 |
Retained earnings | 437,565 | 430,548 |
Total Tsakos Energy Navigation Limited stockholders' equity | 1,166,523 | 986,465 |
Noncontrolling Interest (Note 12) | 11,389 | 11,198 |
Total stockholders' equity | 1,177,912 | 997,663 |
Total liabilities and stockholders' equity | $2,699,097 | $2,483,899 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Preferred Shares - par value | $1 | $1 |
Preferred Shares - shares authorized | 15,000,000 | 15,000,000 |
Common Stock - par value | $1 | $1 |
Common Stock - shares authorized | 185,000,000 | 85,000,000 |
Common Stock - shares issued | 84,712,295 | 57,969,448 |
Common Stock - shares outstanding | 84,712,295 | 57,969,448 |
Preferred Class B Shares | ||
Preferred Shares - shares issued | 2,000,000 | 2,000,000 |
Preferred Shares - shares outstanding | 2,000,000 | 2,000,000 |
Preferred Class C Shares | ||
Preferred Shares - shares issued | 2,000,000 | 2,000,000 |
Preferred Shares - shares outstanding | 2,000,000 | 2,000,000 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | |||
VOYAGE REVENUES: | $501,013 | $418,379 | $393,989 |
EXPENSES: | |||
Commissions | 18,819 | 16,019 | 12,215 |
Voyage expenses | 135,324 | 116,980 | 111,797 |
Vessel operating expenses | 147,346 | 130,760 | 133,251 |
Depreciation | 97,938 | 95,349 | 94,340 |
Amortization of deferred dry-docking costs | 4,953 | 5,064 | 4,910 |
Management fees (Note 2(a)) | 16,457 | 15,896 | 15,887 |
General and administrative expenses | 4,430 | 4,366 | 4,093 |
Stock compensation expense (Note 9) | 142 | 469 | 730 |
Foreign currency (gains)/losses | -444 | 293 | 30 |
Net loss on sale of vessels | 0 | 0 | 1,879 |
Vessel impairment charge (Note 5) | 0 | 28,290 | 13,567 |
Total expenses | 424,965 | 413,486 | 392,699 |
Operating income | 76,048 | 4,893 | 1,290 |
OTHER INCOME (EXPENSES): | |||
Interest and finance costs, net (Note 8) | -43,074 | -40,917 | -51,576 |
Interest income | 498 | 366 | 1,348 |
Other, net | 246 | -2,912 | -118 |
Total other expenses, net | -42,330 | -43,463 | -50,346 |
Net income/(loss) | 33,718 | -38,570 | -49,056 |
Less: Net (income)/loss attributable to the noncontrolling interest | -191 | 1,108 | -207 |
Net income/(loss) attributable to Tsakos Energy Navigation Limited | 33,527 | -37,462 | -49,263 |
Effect of preferred dividends | -8,438 | -3,676 | 0 |
Net income/(loss) attributable to Tsakos Energy Navigation Limited common shareholders | $25,089 | ($41,138) | ($49,263) |
Earnings/(loss) per share, basic and diluted attributable to Tsakos Energy Navigation Limited common shareholders | $0.32 | ($0.73) | ($0.92) |
Weighted average number of shares, basic and diluted | 79,114,401 | 56,698,955 | 53,301,039 |
STATEMENTS_OF_CONSOLIDATED_COM
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME [Abstract] | |||
Net income/(loss) | $33,718 | ($38,570) | ($49,056) |
Unrealized gains/(losses) from hedging financial instruments | |||
Unrealized (loss)/gain on interest rate swaps, net | -3,655 | 7,230 | 17,996 |
Amortization of deferred loss on de-designated financial instruments | 154 | 877 | 2,173 |
Total unrealized (losses)/gains from hedging financial instruments | -3,501 | 8,107 | 20,169 |
Unrealized (loss)/gain on marketable securities | 0 | -79 | 228 |
Realized gain on marketable securities reclassified to Statements of Operations | 0 | -89 | -95 |
Other Comprehensive (loss)/income | -3,501 | 7,939 | 20,302 |
Comprehensive income/(loss) | 30,217 | -30,631 | -28,754 |
Less: comprehensive (income)/loss attributable to the noncontrolling interest | -191 | 1,108 | -207 |
Comprehensive income/(loss) attributable to Tsakos Energy Navigation Limited | $30,026 | ($29,523) | ($28,961) |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Preferred Shares | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Tsakos Energy Navigation Limited | Noncontrolling Interest |
In Thousands | ||||||||
BALANCE, at Dec. 31, 2011 | $919,158 | $0 | $46,209 | $351,566 | $554,314 | ($35,030) | $917,059 | $2,099 |
Net income/(loss) | -49,056 | -49,263 | -49,263 | 207 | ||||
Issuance of common shares (10,000,000 in 2012 and 25,645,000 in 2014) | 62,329 | 10,000 | 52,329 | 62,329 | ||||
Issuance of shares of restricted share units (234,500, 96,000 and 20,000 in 2012, 2013 and 2014 respectively) | 234 | -234 | ||||||
Cash dividends paid ($0.05 per common share in 2012, $0.15 per common share in 2013 and $0.15 per common share in 2014) | -26,623 | -26,623 | -26,623 | |||||
Other comprehensive income (loss) | 20,302 | 20,302 | 20,302 | |||||
Amortization of restricted share units | 730 | 730 | 730 | |||||
BALANCE, at Dec. 31, 2012 | 926,840 | 0 | 56,443 | 404,391 | 478,428 | -14,728 | 924,534 | 2,306 |
Net income/(loss) | -38,570 | -37,462 | -37,462 | -1,108 | ||||
Issuance of 8% Series B Preferred Shares | 47,043 | 2,000 | 45,043 | 47,043 | ||||
Issuance of 8.875% Series C Preferred Shares | 47,315 | 2,000 | 45,315 | 47,315 | ||||
Issuance of common stock under distribution agency agreement | 7,045 | 1,430 | 5,615 | 7,045 | ||||
Issuance of shares of restricted share units (234,500, 96,000 and 20,000 in 2012, 2013 and 2014 respectively) | 96 | -96 | ||||||
Capital contribution of noncontrolling interest owners | 10,000 | 10,000 | ||||||
Cash dividends paid ($0.05 per common share in 2012, $0.15 per common share in 2013 and $0.15 per common share in 2014) | -8,529 | -8,529 | -8,529 | |||||
Dividends paid on Series B preferred shares | -1,889 | -1,889 | -1,889 | |||||
Other comprehensive income (loss) | 7,939 | 7,939 | 7,939 | |||||
Amortization of restricted share units | 469 | 469 | 469 | |||||
BALANCE, at Dec. 31, 2013 | 997,663 | 4,000 | 57,969 | 500,737 | 430,548 | -6,789 | 986,465 | 11,198 |
Net income/(loss) | 33,718 | 33,527 | 33,527 | 191 | ||||
Issuance of common shares (10,000,000 in 2012 and 25,645,000 in 2014) | 169,276 | 25,645 | 143,631 | 169,276 | ||||
Issuance of common stock under distribution agency agreement | 7,124 | 1,078 | 6,046 | 7,124 | ||||
Issuance of shares of restricted share units (234,500, 96,000 and 20,000 in 2012, 2013 and 2014 respectively) | 20 | -20 | ||||||
Cash dividends paid ($0.05 per common share in 2012, $0.15 per common share in 2013 and $0.15 per common share in 2014) | -12,623 | -12,623 | -12,623 | |||||
Cash dividends declared ($0.06 per share) | -5,083 | -5,083 | -5,083 | |||||
Dividends paid on Series B preferred shares | -4,000 | -4,000 | -4,000 | |||||
Dividends paid on Series C preferred shares | -4,804 | -4,804 | -4,804 | |||||
Other comprehensive income (loss) | -3,501 | -3,501 | -3,501 | |||||
Amortization of restricted share units | 142 | 142 | 142 | |||||
BALANCE, at Dec. 31, 2014 | $1,177,912 | $4,000 | $84,712 | $650,536 | $437,565 | ($10,290) | $1,166,523 | $11,389 |
CONSOLIDATED_STATEMENTS_OF_STO1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parentheticals) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY [Abstract] | |||
Issuance of common shares | 25,645,000 | 10,000,000 | |
Restricted shares, number of shares issued | 20,000 | 96,000 | 234,500 |
Cash dividends paid, per share | $0.15 | $0.15 | $0.50 |
Cash dividends declared, per share | $0.06 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Flows from Operating Activities: | |||
Net income/(loss) | $33,718 | ($38,570) | ($49,056) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation | 97,938 | 95,349 | 94,340 |
Amortization of deferred dry-docking costs | 4,953 | 5,064 | 4,910 |
Amortization of loan fees | 1,245 | 1,101 | 946 |
Stock compensation expense | 142 | 469 | 730 |
Change in fair value of derivative instruments | 4,984 | -6,021 | -2,832 |
Gain on sale of marketable securities | 0 | -89 | -95 |
Loss on sale of vessels | 0 | 0 | 1,879 |
Vessel impairment charge | 0 | 28,290 | 13,567 |
Payments for dry-docking | -6,055 | -5,680 | -7,566 |
(Increase)/Decrease in: | |||
Receivables | -15,948 | 5,269 | -8,874 |
Inventories | 3,719 | -5,304 | 5,479 |
Prepaid insurance and other | -49 | 1,214 | 1,804 |
Increase/(Decrease) in: | |||
Payables | -16,061 | 22,265 | 12,214 |
Accrued liabilities | 2,502 | 5,459 | -4,022 |
Unearned revenue | -4,117 | 9,107 | -2,562 |
Net Cash provided by Operating Activities | 106,971 | 117,923 | 60,862 |
Cash Flows from Investing Activities: | |||
Advances for vessels under construction and acquisitions | -130,436 | -37,182 | -81,848 |
Vessel acquisitions and/or improvements | -123,871 | -108,840 | -2,454 |
Proceeds from sale of marketable securities | 0 | 1,585 | 1,098 |
Proceeds from sale of vessels | 0 | 0 | 40,219 |
Net Cash used in Investing Activities | -254,307 | -144,437 | -42,985 |
Cash Flows from Financing Activities: | |||
Proceeds from long-term debt | 158,533 | 110,000 | 83,558 |
Financing costs | -2,998 | -1,067 | -1,550 |
Payments of long-term debt | -120,495 | -172,129 | -156,794 |
(Increase)/Decrease in restricted cash | -2,807 | 6,665 | -10,208 |
Proceeds from stock issuance program, net | 176,400 | 7,045 | 62,329 |
Proceeds from preferred stock issuance, net | 0 | 94,358 | 0 |
Cash dividend | -21,427 | -10,418 | -26,623 |
Capital contribution from noncontrolling interest owners to subsidiary | 0 | 10,000 | 0 |
Net Cash provided by/(used in) Financing Activities | 187,206 | 44,454 | -49,288 |
Net increase/(decrease) in cash and cash equivalents | 39,870 | 17,940 | -31,411 |
Cash and cash equivalents at beginning of period | 162,237 | 144,297 | 175,708 |
Cash and cash equivalents at end of period | 202,107 | 162,237 | 144,297 |
Interest paid | |||
Cash paid for interest, net of amounts capitalized | $34,390 | $44,057 | $57,323 |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Significant Accounting Policies [Abstract] | ||||
Significant Accounting Policies | 1.Significant Accounting Policies | |||
(a)Basis of presentation and description of business: The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and include the accounts of Tsakos Energy Navigation Limited (the “Holding Company”), and its wholly-owned and majority-owned subsidiaries (collectively, the “Company”). As at December 31, 2014, 2013 and 2012, the Holding Company consolidated two variable interest entities (“VIE”) for which it is deemed to be the primary beneficiary, i.e. it has a controlling financial interest in those entities. A VIE is an entity that in general does not have equity investors with voting rights or that has equity investors that do not provide sufficient financial resources for the entity to support its activities. A controlling financial interest in a VIE is present when a company has the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and absorbs a majority of an entity’s expected losses, receives a majority of an entity’s expected residual returns, or both. | ||||
All intercompany balances and transactions have been eliminated upon consolidation. | ||||
The Company follows the provisions of Accounting Standard Codification (ASC) 220, “Comprehensive Income,” which requires separate presentation of certain transactions, which are recorded directly as components of stockholders’ equity. The Company presents Other Comprehensive Income / (Loss) in a separate statement according to ASU 2011-05. | ||||
The Company owns and operates a fleet of crude and product oil carriers and one LNG carrier providing worldwide marine transportation services under long, medium or short-term charters. | ||||
(b)Use of Estimates: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities and expenses, reported in the consolidated financial statements and the accompanying notes. Although actual results could differ from those estimates, management does not believe that such differences would be material. | ||||
(c)Foreign Currency Translation: The functional currency of the Company is the U.S. Dollar because the Company’s vessels operate in international shipping markets in which the U.S. Dollar is utilized to transact most business. The accounting books of the Company are also maintained in U.S. Dollars. Transactions involving other currencies during the year are converted into U.S. Dollars using the exchange rates in effect at the time of the transactions. At the balance sheet dates, monetary assets and liabilities, which are denominated in other currencies, are translated into U.S. Dollars at the year-end exchange rates. Resulting gains or losses are separately reflected in the accompanying Consolidated Statements of Operations. | ||||
(d)Cash and Cash Equivalents: The Company classifies highly liquid investments such as time deposits and certificates of deposit and their equivalents with original maturities of three months or less as cash and cash equivalents. Cash deposits with certain banks that may only be used for special purposes (including loan repayments) are classified as Restricted cash. | ||||
(e)Trade Accounts Receivable, Net: Trade accounts receivable, net at each balance sheet date includes estimated recoveries from charterers for hire, freight and demurrage billings and revenue earned but not yet billed, net of an allowance for doubtful accounts (nil as of December 31, 2014 and 2013). The Company’s management at each balance sheet date reviews all outstanding invoices and provides allowances for receivables deemed uncollectible primarily based on the ageing of such balances and any amounts in dispute. | ||||
(f)Inventories: Inventories consist of bunkers, lubricants, victualling and stores and are stated at the lower of cost or market value. The cost is determined primarily by the first-in, first-out method. | ||||
(g)Fixed Assets: Fixed assets consist of vessels. Vessels are stated at cost, less accumulated depreciation. The cost of vessels includes the contract price and pre-delivery costs incurred during the construction and delivery of new buildings, including capitalized interest, and expenses incurred upon acquisition of second-hand vessels. Subsequent expenditures for conversions and major improvements are capitalized when they appreciably extend the life, increase the earning capacity or improve the efficiency or safety of the vessels; otherwise they are charged to expense as incurred. Expenditures for routine repairs and maintenance are expensed as incurred. | ||||
Depreciation is provided on the straight-line method based on the estimated remaining economic useful lives of the vessels, less an estimated residual value based on a scrap price. Effective October 1, 2012 and following management’s reassessment of the residual value of the vessels, the estimated scrap value per light weight ton (LWT) was increased to $0.39 from $0.30. Management’s estimate was based on the average demolition prices prevailing in the market during the last ten years for which historical data were available. The effect of this change in accounting estimate, which did not require retrospective application as per ASC 250 “Accounting Changes and Error Corrections,” was to decrease net loss for the year ended December 31, 2012 by $929 or $0.02 per weighted average number of shares, both basic and diluted. The decrease in depreciation expense for the year ended December 31, 2014 was approximately $3,787 or $0.05 per weighted average number of shares, both basic and diluted and $3,787 or $0.07 per weighted average number of shares, both basic and diluted, for December 31, 2013 based on the Company’s fleet existing at December 31, 2012. Economic useful lives are estimated at 25 years for crude and product oil carriers and 40 years for the LNG carrier from the date of original delivery from the shipyard. | ||||
(h)Impairment of Vessels: The Company reviews vessels for impairment whenever events or changes in circumstances indicate that the carrying amount of a vessel may not be recoverable, such as during severe disruptions in global economic and market conditions. When such indicators are present, a vessel to be held and used is tested for recoverability by comparing the estimate of future undiscounted net operating cash flows expected to be generated by the use of the vessel over its remaining useful life and its eventual disposition to its carrying amount. Net operating cash flows are determined by applying various assumptions regarding the use or possible disposition of each vessel, future revenues net of commissions, operating expenses, scheduled dry-dockings, expected off-hire and scrap values, and taking into account historical revenue data and published forecasts on future world economic growth and inflation. Should the carrying value of the vessel exceed its estimated future undiscounted net operating cash flows, impairment is measured based on the excess of the carrying amount over the fair market value of the asset. The Company determines the fair value of its vessels based on management estimates and assumptions and by making use of available market data and taking into consideration third party valuations. The review of the carrying amounts in connection with the estimated recoverable amount for certain of the Company’s vessels as of December 31, 2014 did not indicate an impairment charge, whereas at December 31, 2013 and December 31, 2012 there were impairment charges (Note 5). | ||||
(i)Reporting Assets held for sale: It is the Company’s policy to dispose of vessels when suitable opportunities occur and not necessarily to keep them until the end of their useful life. Long-lived assets are classified as held for sale when all applicable criteria enumerated under ASC 360 “Property, Plant, and Equipment” are met and are measured at the lower of their carrying amount or fair value less cost to sell. These assets are not depreciated once they meet the criteria to be held for sale. At December 31, 2014, 2013 and 2012, there were no vessels held for sale. | ||||
(j)Accounting for Special Survey and Dry-docking Costs: The Company follows the deferral method of accounting for dry-docking and special survey costs whereby actual costs incurred are reported in Deferred Charges and are amortized on a straight-line basis over the period through the date the next dry-docking is scheduled to become due (approximately every five years during the first fifteen years of vessels’ life and every two and a half years within the remaining useful life of the vessels). Until December 31, 2013, for vessels older than ten years the Company estimated that the next dry-docking would be due in two and a half years. However, according to Classification Society regulations, vessels can defer dry-docking costs for five years during their first fifteen years of life, instead of ten years as previously estimated. This change in estimate does not have a material effect in the year ended December 31, 2014, and is not expected to have material effect in the following years. Costs relating to routine repairs and maintenance are expensed as incurred. The unamortized portion of special survey and dry-docking costs for a vessel that is sold is included as part of the carrying amount of the vessel in determining the gain on sale of the vessel. | ||||
(k)Loan Costs: Costs incurred for obtaining new loans or refinancing existing loans are capitalized and included in deferred charges and amortized over the term of the respective loan, using the effective interest rate method. Any unamortized balance of costs relating to loans repaid or refinanced as debt extinguishments is expensed in the period the repayment or extinguishment is made. | ||||
(l)Accounting for Revenue and Expenses: Voyage revenues are generated from freight billings and time charter hire. Time charter revenue, including bare-boat hire, is recorded over the term of the charter as the service is provided. Revenues from voyage charters on the spot market or under contract of affreightment are recognized ratably from when a vessel becomes available for loading (discharge of the previous charterer’s cargo) to when the next charterer’s cargo is discharged, provided an agreed non-cancelable charter between the Company and the charterer is in existence, the charter rate is fixed or determinable and collectability is reasonably assured. Revenue under voyage charters will not be recognized until a charter has been agreed even if the vessel has discharged its previous cargo and is proceeding to an anticipated port of loading. Revenues from variable hire arrangements are recognized to the extent the variable amounts earned beyond an agreed fixed minimum hire are determinable at the reporting date and all other revenue recognition criteria are met. Revenue from hire arrangements with an escalation clause is recognized on a straight-line basis over the lease term unless another systematic and rational basis is more representative of the time pattern in which the vessel is employed. Vessel voyage and operating expenses and charter hire expense are expensed when incurred. | ||||
Unearned revenue represents cash received prior to the year end for which related service has not been provided, primarily relating to charter hire paid in advance to be earned over the applicable charter period. The operating revenues and voyage expenses of vessels operating under a tanker pool are pooled and are allocated to the pool participants on a time charter equivalent basis, according to an agreed formula. Voyage revenues for 2014, 2013 and 2012 included revenues derived from significant charterers as follows (in percentages of total voyage revenues): | ||||
Charterer | 2014 | 2013 | 2012 | |
A | 19% | 21% | 17% | |
B | 13% | 7% | 14% | |
C | 9% | 11% | 8% | |
D | 7% | 8% | 10% | |
(m)Segment Reporting: The Company does not evaluate the operating results by type of vessel or by type of charter or by type of cargo. Although operating results may be identified by type of vessel, management, including the chief operating decision maker, reviews operating results primarily by revenue per day and operating results of the fleet. The Company operates a liquefied natural gas (LNG) carrier which meets the quantitative thresholds used to determine reportable segments. The chief operating decision maker does not review the operating results of this vessel separately, or makes any decisions about resources to be allocated to this vessel or assesses its performance separately, therefore, the LNG carrier does not constitute a separate reportable segment. The Company’s vessels operate on many trade routes throughout the world and, therefore, the provision of geographic information is considered impracticable by management. For the above reasons, the Company has determined that it operates in one reportable segment, the worldwide maritime transportation of liquid energy related products. | ||||
(n)Derivative Financial Instruments: The Company regularly enters into interest rate swap contracts to manage its exposure to fluctuations of interest rates associated with its specific borrowings. Also, the Company enters into bunker swap contracts and put or call options to manage its exposure to fluctuations of bunker prices associated with the consumption of bunkers by its vessels. Interest rate and bunker price differentials paid or received under the swap agreements are recognized as part of Interest and finance costs, net. On the inception of a put or call option on bunkers an asset or liability is recognized. The subsequent changes in its the fair value, and realized payments or receipts upon exercise of the options are recognized in the Statement of Operations as part of the interest and finance costs, net. All derivatives are recognized in the consolidated financial statements at their fair value. On the inception date of the derivative contract, the Company evaluates the derivative as an accounting hedge of the variability of cash flow to be paid of a forecasted transaction (“cash flow” hedge). Changes in the fair value of a derivative that is qualified, designated and highly effective as a cash flow hedge are recorded in other comprehensive income/(loss) until earnings are affected by the forecasted transaction. Changes in the fair value of undesignated derivative instruments and the ineffective portion of designated derivative instruments are reported in earnings in the period in which those fair value changes occur. Realized gains or losses on early termination of undesignated derivative instruments are also classified in earnings in the period of termination of the respective derivative instrument. | ||||
The Company formally documents all relationships between hedging instruments and hedged items, as well as the risk-management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives that are designated as cash flow hedges of the variable cash flows of a forecasted transaction to a specific forecasted transaction. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flow of hedged items. When it is determined that a derivative is not highly effective as a hedge or that it has ceased to be a highly effective hedge, the Company discontinues hedge accounting prospectively. In accordance with ASC 815 “Derivatives and Hedging,” the Company may prospectively discontinue the hedge accounting for an existing hedge if the applicable criteria are no longer met, the derivative instrument expires, is sold, terminated or exercised or if the Company removes the designation of the respective cash flow hedge. In those circumstances, the net gain or loss remains in accumulated other comprehensive income and is reclassified into earnings in the same period or periods during which the hedged forecasted transaction affects earnings, unless the forecasted transaction is no longer probable in which case the net gain or loss is reclassified into earnings immediately. | ||||
(o)Fair Value Measurements: The Company follows the provisions of ASC 820, “Fair Value Measurements and Disclosures” which defines, and provides guidance as to the measurement of fair value. ASC 820 applies when assets or liabilities in the financial statements are to be measured at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants (Note 15). Upon issuance of guidance on the fair value option in 2007, the Company elected not to report the then existing financial assets or liabilities at fair value that were not already reported as such. | ||||
(p)Accounting for Leases: Leases of assets under which substantially all the risks and rewards of ownership are effectively retained by the lessor are classified as operating leases. Lease payments under an operating lease are recognized as an expense on a straight-line method over the lease term. The Company held no operating leases at December 31, 2014. | ||||
(q)Stock Based Compensation: The Company has a share based incentive plan that covers directors and officers of the Company and employees of the related companies. Awards granted are valued at fair value and compensation cost is recognized on a straight line basis, net of estimated forfeitures, over the requisite service period of each award. The fair value of restricted stock issued to crew members, directors and officers of the Company at the grant date is equal to the closing stock price on that date and is amortized over the applicable vesting period using the straight-line method. The fair value of restricted stock issued to non-employees is equal to the closing stock price at the grant date adjusted by the closing stock price at each reporting date and is amortized over the applicable performance period (Note 9). | ||||
(r)Marketable Securities: The Company from March 2011 until their disposal in July 2013 had investments in marketable securities that had readily determinable fair values and were classified as available for sale. Such investments were measured subsequently at fair value in the statement of financial position. Unrealized holding gains and losses for available for sale securities were excluded from earnings and were reported in Accumulated other comprehensive income/(loss) until realized (Note 4). | ||||
(s)Recent Accounting Pronouncements: | ||||
1)Presentation of Financial Statements and Property, Plant and Equipment: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity: In April 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-08 “Presentation of Financial Statements and Property, Plant and Equipment: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity” changing the presentation of discontinued operations on the statements of income and other requirements for reporting discontinued operations. Under the new standard, a disposal of a component or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results when the component meets the criteria to be classified as held-for-sale or is disposed. The amendments in this update also require additional disclosures about discontinued operations and disposal of an individually significant component of an entity that does not qualify for discontinued operations. The new accounting guidance is effective for interim and annual periods beginning after December 15, 2014. Early adoption is permitted but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued or available for issuance. | ||||
2) Revenue from Contracts with Customers: In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09 – Revenue from Contracts with Customers, that will supersede virtually all of the existing revenue recognition guidance in US GAAP and is effective for annual periods beginning on or after December 15, 2016. Early adoption is not permitted. The standard establishes a five-step model that will apply to revenue earned from a contract with a customer. The standard’s requirements will also apply to the sale of some non-financial assets that are not part of the entity’s ordinary activities. Extensive disclosures will be required, including disaggregation of total revenue; information about performance obligations; changes in contract asset and liability account balances between periods and key judgments and estimates. Management is in the process of assessing the impact of the new standard on Company’s financial position. | ||||
3) Going Concern: In August 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-15 – Presentation of Financial Statements - Going Concern. ASU 2014-15 provides guidance about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 requires an entity's management to evaluate at each reporting period based on the relevant conditions and events that are known at the date of financial statements are issued, whether there are conditions or events, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued and to disclose the necessary information. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted | ||||
4) Derivatives and Hedging: In November 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-16 – Derivatives and Hedging. This standard provides guidance on determining whether the host contract in a Hybrid Financial Instrument issued in the form of a share is more akin to debt or to equity. One criterion requires evaluating whether the nature of the host contract is more akin to debt or to equity and whether the economic characteristics and risks of the embedded derivative feature are clearly and closely related to the host contract. In making that evaluation, an issuer or investor may consider all terms and features in a hybrid financial instrument including the embedded derivative feature that is being evaluated for separate accounting or may consider all terms and features in the hybrid financial instrument except for the embedded derivative feature that is being evaluated for separate accounting. The use of different methods can result in different accounting outcomes for economically similar hybrid financial instruments. This guidance will be effective for periods after December 15, 2015. | ||||
5) Income Statement—Extraordinary and Unusual Items: In January 2015, the FASB issued ASU No. 2015-01 “Income Statement—Extraordinary and Unusual Items: Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items”. The concept of extraordinary items is removed and instead items that are both unusual in nature and infrequently occurring should be presented within income from continuing operations or disclosed in notes to financial statements because those items satisfy the conditions for an item that is unusual in nature or infrequently occurring. The new accounting guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early application is permitted. Companies have the option to apply the amendments of ASU No. 2015-01 either prospectively or retrospectively. |
Transactions_with_Related_Part
Transactions with Related Parties | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Transactions with Related Parties [Abstract] | ||||
Transactions with Related Parties | 2.Transactions with Related Parties | |||
The following amounts were charged by related parties for services rendered: | ||||
2014 | 2013 | 2012 | ||
Tsakos Shipping and Trading S.A. (commissions) | 6,189 | 5,219 | 5,304 | |
Tsakos Energy Management Limited (management fees) | 15,840 | 15,487 | 15,587 | |
Tsakos Columbia Shipmanagement S.A. | 2,091 | 1,621 | 1,280 | |
Argosy Insurance Company Limited | 9,529 | 9,129 | 9,701 | |
AirMania Travel S.A. | 4,797 | 4,810 | 3,661 | |
Total expenses with related parties | 38,446 | 36,266 | 35,533 | |
Balances due from and to related parties are as follows: | ||||
December 31, | ||||
2014 | 2013 | |||
Due from related parties | ||||
Tsakos Columbia Shipmanagement Ltd | 1,895 | 1,084 | ||
Total due from related parties | 1,895 | 1,084 | ||
Due to related parties | ||||
Tsakos Shipping and Trading S.A. | 881 | 555 | ||
Tsakos Energy Management Limited | 93 | 92 | ||
Argosy Insurance Company Limited | 8,766 | 6,008 | ||
AirMania Travel S.A. | 396 | 275 | ||
Total due to related parties | 10,136 | 6,930 | ||
There is also, at December 31, 2014 an amount of $875 ($319 in 2013) due to Tsakos Shipping and Trading S.A. and $379 ($356 in 2013) due to Argosy Insurance Limited, included in Accrued liabilities which relates to services rendered by related parties not yet invoiced. | ||||
(a) Tsakos Energy Management Limited (the “Management Company”): The Holding Company has a Management Agreement (“Management Agreement”) with the Management Company, a Liberian corporation, to provide overall executive and commercial management of its affairs for a monthly fee. Per the Management Agreement of March 8, 2007, effective from January 1, 2008, there is a prorated adjustment if at the beginning of each year the Euro has appreciated by 10% or more against the U.S. Dollar since January 1, 2007. In addition, there is an increase each year by a percentage figure reflecting 12 month Euribor, if both parties agree. In 2014 and 2013, the monthly fees for operating vessels were $27.5, for vessels chartered in or on a bare-boat basis were $20.4 and for the LNG carrier $35.8 ($35.0 in 2013) of which $10.0 was paid to the Management Company and $25.8 ($25.0 in 2013) to a third party manager. Monthly management fees for the DP2 shuttle tankers have been agreed at $35.0 per vessel. Since the expiry of the bareboat charter of the VLCC Millennium on July 30, 2013, management fees for this vessel are $27.5 per month of which $13.7 are payable to a third party manager. Management fees for the suezmax Eurochampion 2004 are $27.5 per month of which, effective September 22, 2013, $12.0 are payable to a third party manager. | ||||
In addition to the management fee, the Management Agreement provides for an incentive award to the Management Company, which is at the absolute discretion of the Holding Company’s Board of Directors. In 2014, 2013 and 2012, there was no such award. However, special awards totaling $400 ($500 in 2013) were paid and $460 ($0 in 2013) was declared for payment to the Management Company for services in relation to capital raising offerings during 2014 and 2013. These awards have been included as a deduction of additional paid in capital in the accompanying Consolidated Financial Statements. | ||||
The Holding Company and the Management Company have certain officers and directors in common. The President, who is also the Chief Executive Officer and a Director of the Holding Company, is also the sole stockholder of the Management Company. The Management Company may unilaterally terminate its Management Agreement with the Holding Company at any time upon one year’s notice. In addition, if even one director was elected to the Holding Company’s Board of Directors without having been recommended by the existing board, the Management Company would have the right to terminate the Management Agreement on ten days notice, and the Holding Company would be obligated to pay the Management Company the present discounted value of all payments that would have otherwise been due under the main agreement up until June 30 of the tenth year following the date of the termination plus the average of the incentive awards previously paid to TEM multiplied by 10. As at December 31, 2014 such payment would be approximately $166,256 calculated in accordance with the terms of the Management Agreement. Under the terms of the Management Agreement between the Holding Company and the Management Company, the Holding Company may terminate the Management Agreement only under specific circumstances, without the prior approval of the Holding Company’s Board of Directors. | ||||
Estimated future management fees payable over the next ten years under the Management Agreement, exclusive of any incentive awards and based on existing vessels and known vessels as at December 31, 2014, scheduled for future delivery, are: | ||||
Year | Amount | |||
2015 | 19,344 | |||
2016 | 19,404 | |||
2017 | 20,111 | |||
2018 | 20,332 | |||
2019 | 20,332 | |||
2020 to 2024 | 91,494 | |||
191,017 | ||||
Management fees for vessels are included in the accompanying Consolidated Statements of Operations. Also, under the terms of the Management Agreement, the Management Company provides supervisory services for the construction of new vessels for a monthly fee, per vessel, of $20.4 in 2014, 2013 and $20.0 in 2012. These fees in total amounted to $2,224, $492 and $612 for 2014, 2013 and 2012, respectively, and are either accounted for as part of construction costs for delivered vessels or are included in Advances for vessels under construction. | ||||
(b)Tsakos Columbia Shipmanagement S.A. (“TCM”): The Management Company appointed TCM to provide technical management to the Company’s vessels from July 1, 2010. TCM is owned jointly and in equal part by Tsakos family private interests and by a private German group. TCM, at the consent of the Holding Company, may subcontract all or part of the technical management of any vessel to an alternative unrelated technical manager. | ||||
Effective July 1, 2010, the Management Company, at its own expense, pays technical management fees to TCM, and the Company bears and pays directly to TCM most of its operating expenses, including repairs and maintenance, provisioning and crewing of the Company’s vessels, as well as certain charges which are capitalized or deferred, including reimbursement of the costs of TCM personnel sent overseas to supervise repairs and perform inspections on Company vessels. The Company also pays to TCM certain fees to cover expenses relating to internal control procedures and information technology services which are borne by TCM on behalf of the Company. | ||||
(c)Tsakos Shipping and Trading S.A. (“Tsakos Shipping”): Tsakos Shipping provides chartering services for the Company’s vessels by communicating with third party brokers to solicit research and propose charters. For this service, the Company pays to Tsakos Shipping a chartering commission of 1.25% on all freights, hires and demurrages. Such commissions are included in Commissions in the accompanying Consolidated Statements of Operations. Tsakos Shipping also provides sale and purchase of vessels brokerage service. For this service, Tsakos Shipping may charge brokerage commission. In 2014, this commission was $605 or approximately 0.5% of the acquisition price of the vessels Euro and Eurovision, which were included in vessel’s cost. There were no sales of vessels in 2014. In 2013, there were no sales or purchases of vessels. In 2012, this commission was approximately 1%. | ||||
Tsakos Shipping may also charge a fee of $200 (or such other sum as may be agreed) on delivery of each new-building vessel in payment for the cost of design and supervision of the new-building by Tsakos Shipping. This amount is added to the cost of the vessels concerned and is being amortized over the remaining life of the vessels. In 2014, $200 in aggregate was charged for supervision fees on the DP2 suezmax shuttle tankers Rio 2016 and Brasil 2014. In 2013 and 2012, no such fee was charged. | ||||
Certain members of the Tsakos family are involved in the decision-making processes of Tsakos Shipping and of the Management Company, and are also shareholders, and directors of the Holding Company. | ||||
(d)Argosy Insurance Company Limited (“Argosy”): The Company places its hull and machinery insurance, increased value insurance and war risk and certain other insurance through Argosy, a captive insurance company affiliated with Tsakos Shipping. | ||||
(e)AirMania Travel S.A. (“AirMania”): Apart from third-party agents, the Company also uses an affiliated company, AirMania, for travel services. | ||||
(f)During 2014, the Company acquired the suezmax tankers Eurovision and Euro for $61,814 and $59,804 respectively. Those tankers were acquired from companies that are subject to influence by certain members of the Tsakos family, who are also shareholders, officers and directors of the Holding Company. |
Longterm_Investments
Long-term Investments | 12 Months Ended |
Dec. 31, 2014 | |
Long-term Investments [Abstract] | |
Long-term Investments | 3.Long-term Investments |
At December 31, 2014, 2013 and 2012, the Company held 125,000 common shares at a total cost of $1,000 in a private U.S. company which undertakes research into synthetic genomic processes which may have a beneficial environmental impact within the energy and maritime industries. Management has determined that there has been no impairment to the cost of this investment since its acquisition in 2007. A Director of the Company is a former officer and currently a shareholder and a consultant of this company. No income was received from this investment during 2014, 2013 and 2012. |
Marketable_Securities
Marketable Securities | 12 Months Ended |
Dec. 31, 2014 | |
Marketable securities [Abstract] | |
Marketable securities | 4.Marketable securities |
In March 2011, the Company placed $2,500 in highly liquid, low risk marketable securities which are considered to be available-for-sale for reporting purposes. In December 2012, the Company sold $1,098 of these marketable securities realizing a gain of $95 which was reclassified from Accumulated other comprehensive income/(loss) to the Statement of Operations. In July 2013, the Company sold the remaining marketable securities realizing a gain of $89, reclassified from Accumulated other Comprehensive income/(loss) to the statement of Operations. At December 31, 2014 and 2013 there are no marketable securities. |
Vessels
Vessels | 12 Months Ended |
Dec. 31, 2014 | |
Vessels [Abstract] | |
Vessels | 5.Vessels |
Acquisitions | |
During 2014, the Company acquired the suezmax tankers Eurovision and Euro for $61,814 and $59,804 respectively (Note 2(f)). Those tankers were acquired from companies that are subject to influence by certain members of the Tsakos family, who are also shareholders, officers and directors of the Holding Company. During 2013, the Company took delivery of two newbuilding DP2 suezmax shuttle tankers Rio 2016 and Brasil 2014, at a total cost of $203,908 of which $105,763 was incurred in 2013. In 2012, there were no vessel acquisitions. | |
Sales | |
There were no vessel sales in 2014 and 2013. In 2012, the Company sold the VLCCs La Madrina and La Prudencia, classified as held for sale at December 31, 2011, for net proceeds of $40,219 in total, realizing a loss of $1,879. The capital gains or losses from the sale of vessels are separately reflected in the accompanying 2012 Consolidated Statements of Operations. | |
Impairment | |
As of December 31, 2014, the Company reviewed the carrying amount in connection with the estimated recoverable amount for each of its vessels. This review did not indicate an impairment of the carrying value of the Company’s vessels. At December 31, 2013, the carrying amount for four of the Company’s vessels; Silia T, Triathlon, Delphi and Millennium was not fully recoverable. Consequently the carrying value of these four vessels, totaling $123,540 has been written down to $95,250, based on level 2 inputs of the fair value hierarchy, as determined by management taking into consideration valuations from independent marine valuers (Note 15(c)). The resulting impairment charge was $28,290 and is reflected in the accompanying 2013 Consolidated Statements of Operations. During 2012, the carrying value of the VLCC Millennium was written down resulting in a total impairment charge of $13,567. |
Deferred_Charges
Deferred Charges | 12 Months Ended |
Dec. 31, 2014 | |
Deferred Charges [Abstract] | |
Deferred Charges | 6.Deferred Charges |
Deferred charges consist of dry-docking and special survey costs, net of accumulated amortization, amounted to $13,830 and $12,724 at December 31, 2014 and 2013, respectively, and loan fees, net of accumulated amortization, amounted to $6,360 and $4,607 and at December 31, 2014 and 2013, respectively. Amortization of deferred dry-docking costs is separately reflected in the accompanying Consolidated Statements of Operations, while amortization of loan fees is included in Interest and finance costs, net (Note 8). |
LongTerm_Debt
Long-Term Debt | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Long-Term Debt [Abstract] | |||||||
Long-Term Debt | 7.Long–Term Debt | ||||||
Facility | 2014 | 2013 | |||||
(a) Credit facilities | 732,130 | 808,218 | |||||
(b) Term bank loans | 686,206 | 572,080 | |||||
Total | 1,418,336 | 1,380,298 | |||||
Less – current portion | (228,492) | (126,361) | |||||
Long-term portion | 1,189,844 | 1,253,937 | |||||
(a)Credit facilities | |||||||
As at December 31, 2014, the Company had six reducing revolving credit facilities, all of which are reduced in semi-annual installments, and two facilities which have both a reducing revolving credit component and a term bank loan component, with balloon payments due at maturity between December 2015 and February 2019. At December 31, 2014 and 2013 there was no available unused amount. Interest is payable at rates based on LIBOR plus a spread. At December 31, 2014, the interest rates on these facilities ranged from 0.92% to 5.19% (1.48% to 5.69% at December 31, 2013). | |||||||
(b)Term bank loans | |||||||
Term loan balances outstanding at December 31, 2014 amounted to $686,206. | |||||||
On June 17, 2014, the Company signed a new seven-year term bank loan for $42,000, which was drawn down the same day, providing partial financing of the suezmax tanker Eurovision, acquired on the same day. The loan is repayable in 14 semi-annual installments of $1,400 and a balloon payment of $22,400. | |||||||
On June 30, 2014, the Company signed a new syndicated six-year term bank loan for up to $193,239 relating to the pre and post delivery partial financing of five aframax tankers under construction. On July 2, 2014, an amount of $25,610 was drawdown to finance the second yard installment for the construction of the five vessels. The loan is repayable in 12 consecutive semi-annual installments of $6,038 and a balloon payment of $120,783. | |||||||
On July 7, 2014, the Company signed a new six-year term bank loan for $39,000, which was drawn down on July 8, 2014, providing partial financing of the suezmax tanker Euro, acquired on the same day. The loan is repayable in 12 consecutive semi-annual installments of $1,300 and a balloon payment of $23,400. | |||||||
On August 22, 2014, the Company signed a new seven-year term bank loan for $38,800 relating to the pre and post delivery partial financing of one aframax tanker under construction. On August 26, 2014, an amount of $5,172 was drawdown to finance the second yard installment for the construction of the vessel. The loan is repayable in 14 consecutive semi-annual installments of $1,290 and a balloon payment of $20,740. | |||||||
On August 22, 2014, the Company signed a new six-year term bank loan for up to $78,744 relating to the pre and post delivery partial financing of two aframax tankers under construction. On August 26, 2014, an amount of $10,344 was drawdown to finance the second yard installment for the construction of the vessels. The loan is repayable in 12 consecutive semi-annual installments of $2,335 and a balloon payment of $50,730. | |||||||
On August 22, 2014, the Company signed a new six-year term bank loan for $39,954 relating to the pre and post delivery partial financing of one aframax tanker under construction. On August 26, 2014, an amount of $5,172 was drawdown to finance the second yard installment for the construction of the vessel. The loan is repayable in 12 consecutive semi-annual installments of $1,249 and a balloon of $24,971. | |||||||
On September 29, 2014, the Company arranged a new term bank loan for the pre-delivery financing of the LNG carrier under construction. The facility amount is the lower of $52,195 or the 50% of the pre-delivery value of the vessel. The loan agreement was signed on October 16, 2014. An amount of $31,235 was drawdown on October 23, 2014,and an amount of $20,960 was drawn-down on March 5, 2015 (Note 16 (e)). The loan is repayable in a single installment due on the delivery date of the vessel. | |||||||
All term bank loans, except for one which is paid in quarterly installments, and the one which is repayable on the delivery of the LNG carrier, are payable in U.S. Dollars in semi-annual installments, with balloon payments due at maturity between October 2016 and April 2024. Interest rates on the outstanding loans as at December 31, 2014 are based on LIBOR plus margin. At December 31, 2014, the interest rates on these term bank loans ranged from 1.73% to 3.98%. | |||||||
The weighted-average interest rates on the above executed loans for the applicable periods were: | |||||||
Year ended December 31, 2014 | 2.23% | ||||||
Year ended December 31, 2013 | 2.49% | ||||||
Year ended December 31, 2012 | 1.87% | ||||||
Loan movements for credit facilities and term loans throughout 2014: | |||||||
Loan | Origination | Original | Balance at | New | Repaid | Balance at | |
Date | Amount | January 1, | Loans | December 31, | |||
2014 | 2014 | ||||||
Credit facility | 2005 | 220,000 | 121,090 | — | 13,135 | 107,955 | |
Credit facility | 2006 | 275,000 | 113,270 | — | 11,823 | 101,447 | |
Credit facility1 | 2004 | 179,384 | 101,800 | — | 10,555 | 91,245 | |
Credit facility | 2005 | 220,000 | 65,598 | — | 6,600 | 58,998 | |
Credit facility | 2006 | 371,010 | 231,010 | — | 20,000 | 211,010 | |
10-year term loan | 2004 | 71,250 | 28,907 | — | 3,125 | 25,782 | |
Credit facility | 2006 | 70,000 | 31,250 | — | 4,375 | 26,875 | |
Credit facility | 2007 | 120,000 | 87,500 | — | 5,000 | 82,500 | |
10-year term loan | 2007 | 88,350 | 60,750 | — | 5,520 | 55,230 | |
Credit facility | 2007 | 82,000 | 56,700 | — | 4,600 | 52,100 | |
10-year term loan | 2009 | 38,600 | 26,812 | — | 2,234 | 24,578 | |
8-year term loan | 2009 | 40,000 | 27,500 | — | 820 | 26,680 | |
12 year term loan | 2009 | 40,000 | 31,250 | — | 2,500 | 28,750 | |
10-year term loan | 2010 | 39,000 | 29,900 | — | 2,600 | 27,300 | |
7-year term loan | 2010 | 70,000 | 56,080 | — | 4,640 | 51,440 | |
10-year term loan | 2010 | 43,924 | 34,271 | — | 3,218 | 31,053 | |
9-year term loan | 2010 | 42,100 | 34,300 | — | 2,600 | 31,700 | |
10-year term loan | 2011 | 48,000 | 40,000 | — | 3,200 | 36,800 | |
9-year term loan | 2011 | 48,650 | 42,163 | — | 3,243 | 38,920 | |
8-year term loan | 2012 | 73,600 | 71,300 | — | 4,600 | 66,700 | |
8-year term loan | 2011 | 73,600 | 71,147 | — | 4,907 | 66,240 | |
7-year term loan | 2013 | 18,000 | 17,700 | — | 1,200 | 16,500 | |
7-year term loan | 2014 | 42,000 | — | 42,000 | — | 42,000 | |
6-year term loan | 2014 | 193,239 | — | 25,610 | — | 25,610 | |
6-year term loan | 2014 | 39,000 | — | 39,000 | — | 39,000 | |
7-year term loan | 2014 | 38,800 | — | 5,172 | — | 5,172 | |
6-year term loan | 2014 | 78,744 | — | 10,344 | — | 10,344 | |
6-year term loan | 2014 | 39,954 | — | 5,172 | — | 5,172 | |
19-month term loan | 2014 | 52,195 | — | 31,235 | — | 31,235 | |
Total | 1,380,298 | 158,533 | 120,495 | 1,418,336 | |||
1 This credit facility includes a fixed interest rate portion amounting to $42,688 as at December 31, 2014. | |||||||
The above revolving credit facilities and term bank loans are secured by first priority mortgages on all vessels, by assignments of earnings and insurances of the respectively mortgaged vessels, and by corporate guarantees of the relevant ship-owning subsidiaries. | |||||||
The loan agreements include, among other covenants, covenants requiring the Company to obtain the lenders’ prior consent in order to incur or issue any financial indebtedness, additional borrowings, pay dividends in an amount more than 50% of cumulative net income (as defined in the related agreements), sell vessels and assets, and change the beneficial ownership or management of the vessels. Also, the covenants require the Company to maintain a minimum liquidity, not legally restricted of $79,563 at December 31, 2014 and $78,144 at December 31, 2013, a minimum hull value in connection with the vessels’ outstanding loans and insurance coverage of the vessels against all customary risks. Three loan agreements require the Company to maintain throughout the security period, an aggregate credit balance in a deposit account of $3,250. Two loan agreements require a monthly pro rata transfer to a retention account of any principal due but unpaid. | |||||||
At December 31, 2014, the Company and its wholly and majority owned subsidiaries were compliant with the original financial covenants in its loan agreements, including the leverage ratio and the value-to-loan requirements and all other terms and covenants, except in the case of the value-to-loan requirements in one of its loan agreements with an outstanding balance of $31,700 as of December 31, 2014 ($34,300 as of December 31, 2013). The value-to-loan ratio will be satisfied with the repayment of the next two scheduled semi-annual installments and therefore, no amount has been reclassified in the current liabilities at December 31, 2014. | |||||||
The Company’s liquidity requirements relate primarily to servicing its debt, funding the equity portion of investments in vessels and funding expected capital expenditure on dry-dockings and working capital. As of December 31, 2014, the Company’s working capital (non-restricted net current assets), amounted to a deficit of $49,817. Net cash flow generated from operations is the Company’s main source of liquidity whereas other management alternatives to ensure service of the Company’s commitments include, but are not limited to, the issuance of additional equity, re-negotiation of new-building commitments and utilization of suitable opportunities for asset sales, etc. Management believes, such alternatives along with current available cash holdings and cash expected to be generated from the operation of vessels, will be sufficient to meet the Company’s liquidity and working capital needs for a reasonable period of time. | |||||||
The annual principal payments required to be made after December 31, 2014, are as follows: | |||||||
Year | Amount | ||||||
2015 | 228,492 | ||||||
2016 | 260,931 | ||||||
2017 | 188,313 | ||||||
2018 | 305,713 | ||||||
2019 | 159,459 | ||||||
2020 and thereafter | 275,428 | ||||||
1,418,336 | |||||||
Interest_and_Finance_Costs_net
Interest and Finance Costs, net | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Interest and Finance Costs, net [Abstract] | ||||
Interest and Finance Costs, net | 8.Interest and Finance Costs, net | |||
2014 | 2013 | 2012 | ||
Interest expense | 33,389 | 41,741 | 49,701 | |
Less: Interest capitalized | -2,384 | -1,945 | -1,758 | |
Interest expense, net | 31,005 | 39,796 | 47,943 | |
Interest swap cash settlements non-hedging | 3,231 | 5,012 | 8,043 | |
Bunkers swap cash settlements | 997 | -151 | -2,433 | |
Bunker put options premium | 1,199 | - | - | |
Amortization of loan fees | 1,245 | 1,101 | 946 | |
Bank charges | 240 | 379 | 243 | |
Amortization of deferred loss on termination of financial instruments | 154 | 877 | 2,173 | |
Change in fair value of non-hedging financial instruments | 5,003 | -6,097 | -5,339 | |
Net total | 43,074 | 40,917 | 51,576 | |
At December 31, 2014, the Company was committed to seven floating-to-fixed interest rate swaps with major financial institutions covering notional amounts aggregating to $301,763 maturing from March 2016 through March 2021, on which it pays fixed rates averaging 3.61% and receives floating rates based on the six-month London interbank offered rate (“LIBOR”) (Note 15). | ||||
At December 31, 2014, the Company held six of the seven interest rate swap agreements, designated and qualifying as cash flow hedges, in order to hedge its exposure to interest rate fluctuations associated with its debt covering notional amounts aggregating to $249,013. | ||||
The fair value of such financial instruments as of December 31, 2014 and 2013 in aggregate amounted to $7,046 (negative) and $3,409 (negative), respectively. The estimated net amount of cash flow hedge losses at December 31, 2014 that is estimated to be reclassified into earnings within the next twelve months is $3,138. | ||||
At December 31, 2014 and 2013, the Company held one and two interest rate swaps respectively, that did not meet hedge accounting criteria. As such, the changes in their fair values during 2014 and 2013 have been included in change in fair value of non-hedging financial instruments in the table above, and amounted to $1,960 (positive) and $6,025 (positive), respectively. In March 2010, one of these swaps was de-designated as a hedging swap and the remaining loss included in Accumulated other comprehensive loss, and for which the associated future cash flows are deemed probable of occurring (nil at December 31, 2014), was being amortized to income over the term of the original hedge provided that the variable-rate interest obligations continue. The amount of such loss amortized during 2014 and 2013 was $154 and $877, respectively. | ||||
At December 31, 2014 and 2013, the Company had seven and five bunker swap agreements, respectively in order to hedge its exposure to bunker price fluctuations associated with the consumption of bunkers by its vessels. The fair value of these financial instruments as of December 31, 2014 and 2013 was $9,228 (negative) and $177 (positive), respectively and the changes in their fair values during 2014 and 2013 amounting to $9,405 (negative) and $72 (positive), respectively have been included in Change in fair value of non-hedging financial instruments in the table above, as such agreements do not meet the hedging criteria. During the fourth quarter of 2014 the Company entered into three bunker put option agreements at a premium of $1,199 in order to reduce the losses of the bunker swap agreements previously entered into. The value of those put options at December 31, 2014 was $2,443 and the change in their fair values since acquisition was $1,244 (positive) and has been included in Change in fair value of non-hedging financial instruments in the table above, as also those agreements do not meet the hedging criteria. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2014 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | 9.Stockholders’ Equity |
The Company has a shareholder rights plan that authorizes to existing shareholders substantial preferred share rights and additional common shares if any third party acquires 15% or more of the outstanding common shares or announces its intent to commence a tender offer for at least 15% of the common shares, in each case, in a transaction that the Board of Directors has not approved. | |
On May 30, 2014, at the annual general meeting of shareholders, the shareholders approved the amendment of the Company’s Memorandum of Association in order to increase the authorized share capital from $100,000 consisting of 85 million common shares of a par value of $1.00 each and 15 million preferred shares of a par value of $1.00 each, to $200,000, consisting of 185 million common shares of a par value of $1.00 each and 15 million preferred shares of a par value of $1.00 each | |
On February 5, 2014, the Company completed an offering of 12,995,000 common shares, including 1,695,000 common shares issued upon the exercise in full by the underwriters of their option to purchase additional shares, at a price of $6.65 per share. On April 29, 2014, the Company completed an offering of 11,000,000 common shares, at a price of $7.30 per share. On May 22, 2014, the underwriters exercised their option to purchase 1,650,000 additional shares at the same price. The aggregate net proceeds of the two offerings were 169,276. | |
On May 10, 2013, the Company issued 2,000,000 8.00% Cumulative Redeemable Perpetual Series B Preferred Shares (the “Series B preferred shares”) for net proceeds of $47,043. The Series B preferred shares were issued for cash and pay cumulative quarterly dividends at a rate of 8% per annum from their date of issuance, i.e. $2.0 per preferred share or $4,000 in aggregate. At any time on or after July 30, 2018, the Series B preferred shares may be redeemed, at the option of the Company, in whole or in part at a redemption price of $25.00 per share plus unpaid dividends. If the Company fails to comply with certain covenants relating to the level of borrowings and net worth as these terms are defined in the applicable agreement, defaults on any of its credit facilities, fails to pay four quarterly dividends payable in arrears or if the Series B preferred shares are not redeemed at the option of the Company, in whole by July 30, 2019, the dividend rate payable on the Series B preferred shares increases quarterly to a rate that is 1.25 times the dividend rate payable on the series B preferred shares , subject to an aggregate maximum rate per annum of 25% prior to July 30, 2018 and 30% thereafter. The Series B preferred shares are not convertible into common shares and are not redeemable at the option of the holder. | |
On August 8, 2013 the Company entered into a distribution agency agreement with a leading investment bank as manager, providing for the offer and sale from time to time of up to 4,000,000 common shares of the Company, par value $1.0 per share, at market prices. . In 2014, the Company sold 1,077,847 common shares for proceeds, net of commissions, of $7,124. As of December 31, 2013, the Company had sold 1,430,211 common shares under this agreement for proceeds, net of commissions and other issuance expenses, of $7,045 | |
On September 30, 2013, the Company issued 2,000,000 8.875% Cumulative Redeemable Perpetual Series C Preferred Shares (the “Series C preferred shares”) for net proceeds of $47,315. The Series C preferred shares were issued for cash and pay cumulative quarterly dividends at a rate of 8.875% per annum from their date of issuance, i.e. $2.21875 per preferred share or $4,438 in aggregate. At any time on or after October 30, 2018, the Series C preferred shares may be redeemed, at the option of the Company, in whole or in part at a redemption price of $25.00 per share plus unpaid dividends. If the Company fails to comply with certain covenants relating to the level of borrowings and net worth as these terms are defined in the applicable agreement, defaults on any of its credit facilities, fails to pay four quarterly dividends payable in arrears or if the Series C preferred shares are not redeemed at the option of the Company in whole by October 30, 2020, the dividend rate payable on the Series C preferred shares increases quarterly to a rate that is 1.25 times the dividend rate payable on the Series C preferred shares, subject to an aggregate maximum rate per annum of 25% prior to October 30, 2018 and 30% thereafter. The Series C preferred shares are not convertible into common shares and are not redeemable at the option of the holder. | |
On April 18, 2012, the Company completed an offering of 10,000,000 common shares at a price of $6.50 per share, for net proceeds of $62,329. | |
Under the Company’s share-based incentive plan, 20,000 restricted share units (RSUs) were granted and vested in 2014, at a fair value of $7.08 per share. In 2013, 96,000 RSUs were granted and vested at a weighted average fair value of $4.89 per share. There were no RSUs outstanding at the beginning or end of 2014 and 2013. The Company issued 150,000 RSUs in 2012 at a weighted average grant date fair value of $3.75 per share. The total fair value of shares vested during the years ended December 31, 2014, 2013 and 2012 were $142, $469 and $974 respectively. | |
As at December 31, 2014, under the existing share-based incentive plan approved by the shareholders, a further 868,950 RSUs or other share-based awards may be issued in the future. | |
Total compensation expense recognized in 2014 amounted to $142, ($469 in 2013 and $730 in 2012). As at December 31, 2014 and 2013 all granted RSUs were vested and the compensation expense recognized. |
Accumulated_other_comprehensiv
Accumulated other comprehensive income/(loss) | 12 Months Ended |
Dec. 31, 2014 | |
Accumulated other comprehensive income/(loss) [Abstract] | |
Accumulated other comprehensive income/(loss) | 10.Accumulated other comprehensive income/(loss) |
In 2014, Accumulated other comprehensive income/(loss) increased with unrealized losses from hedging financial instruments of $3,501 (gain of $8,107 and gain of $20,169 in 2013 and 2012 respectively) of which $3,655 (gain of $7,230 in 2013 and gain of $17,996 in 2012) related to unrealized losses on interest rate swaps, and $154 ($877 in 2013 and $2,173 in 2012) related to amortization of deferred loss on de-designated financial instruments. During 2013, unrealized losses on marketable securities was $79 (gain of $228), of which a gain of $89 ($95 in 2012) was realized and reclassified into earnings following the sale of the respective securities. |
Earnings_per_Common_Share
Earnings per Common Share | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Earnings per Common Share [Abstract] | ||||
Earnings per Common Share | 11.Earnings per Common Share | |||
The computation of basic earnings per share is based on the weighted average number of common shares outstanding during the year. The computation of diluted earnings per share assumes the foregoing and the exercise of all RSUs (Note 9) using the treasury stock method. | ||||
Numerator | ||||
2014 | 2013 | 2012 | ||
Net income/(loss) attributable to Tsakos Energy Navigation Limited | $33,527 | ($37,462) | ($49,263) | |
Preferred share dividends, Series B | -4,000 | -2,567 | — | |
Preferred share dividends, Series C | -4,438 | -1,109 | — | |
Net income/(loss) attributable to common stock holders | 25,089 | -41,138 | -49,263 | |
Denominator | ||||
Weighted average common shares outstanding | 79,114,401 | 56,698,955 | 53,301,039 | |
Basic and diluted gain/(loss) per common share | $0.32 | ($0.73) | ($0.92) | |
For 2014, 2013 and 2012 there were no non-vested RSUs. |
Noncontrolling_Interest_in_Sub
Noncontrolling Interest in Subsidiary | 12 Months Ended |
Dec. 31, 2014 | |
Noncontrolling Interest in Subsidiary [Abstract] | |
Noncontrolling Interest in Subsidiary | 12.Noncontrolling Interest in Subsidiary |
In August 2006, the Company signed an agreement with Polaris Oil Shipping Inc. (Polaris), an affiliate of one of the Company’s major charterers, following which Polaris acquired 49% of Mare Success S.A., a previously wholly-owned subsidiary of the Holding Company. Mare Success S.A. is the holding-company of two Panamanian registered companies which own respectively the vessels Maya and Inca. The agreement became effective on November 30, 2006. Mare Success S.A. is fully consolidated in the accompanying financial statements. In the fourth quarter of 2013, Mare Success increased its paid-in capital by $20,408 of which $10,408 being the 51%, was contributed by the Company and $10,000 being the 49%, by Polaris. After the recapitalization, the shareholding of Mare Success S.A. remained at 51% for the Company and 49% for Polaris. There have been no transactions between Polaris and the Company since the incorporation of Mare Success S.A., whereas approximately 7.0% of the Company’s 2014 revenue (8.3% in 2013) was generated by the charterer affiliated to Polaris. |
Income_Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2014 | |
Income Taxes [Abstract] | |
Income Taxes | 13.Income Taxes |
Under the laws of the countries of the Company’s subsidiaries’ incorporation and/or vessels’ registration (Greece, Liberia, Marshall Islands, Panama, Bahamas), the companies are subject to registration and tonnage taxes, which have been included in the Vessel operating expenses. | |
The Company is not expected to be subject to United States Federal income tax on their gross income from the international operations of ships. In general, foreign persons operating ships to and from the United States are subject to United States Federal income tax of 4% of their United States source gross transportation income, which equals 50% of their gross income from transportation to or from the United States. The Company believes that it is exempt from United States Federal income tax on its United States source gross transportation income, as each vessel-operating subsidiary is organized in a foreign country that grants an equivalent exemption to corporations organized in the United States, and derives income from the international operation of ships and satisfies the stock ownership test as defined by the Internal Revenue Code and related regulations as a result of the Company’s stock being primarily and regularly traded on an established securities market in the United States. Under the regulations, a Company’s stock is considered to be regularly traded on an established securities market if (i) one or more classes of its stock representing 50% or more of its outstanding shares, by voting power and value, is listed on the market and is traded on the market, other than in minimal quantities, on at least 60 days during the taxable year; and (ii) the aggregate number of shares of stock traded during the taxable year is at least 10% of the average number of shares of the stock outstanding during the taxable year. Other requirements such as the substantiation and reporting requirements under the regulations also must be satisfied to qualify for the exemption from United States Federal income tax. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |
Dec. 31, 2014 | ||
Commitments and Contingencies [Abstract] | ||
Commitments and Contingencies | 14.Commitments and Contingencies | |
On February 26, 2014, the Company signed four new building contracts for the construction of four aframax crude carriers for $51,720 each. On October 23, 2014, the Company signed two new building contracts for the construction of two LR1 product carriers for $46,920 each. On November 26, 2014, the Company signed a new building contract relating to the construction of one shuttle tanker for $98,000. Also, on October 23, 2014 the Company signed a termination agreement for a contract signed in 2012, with the same yard, for the construction of a shuttle tanker. Under this old contract, an amount of $4,500 was paid in 2013 as part of the first installment. Under the termination agreement, an amount of $600 per vessel will be used against the contract price of the LR1 product carriers and an amount of $1,650 will be used against the contract price of the shuttle tanker. The remaining prepaid amount of $1,650 will be used against the contract price of future new buildings, currently being discussed between the Company and the Shipyard. | ||
Including the newbuilding contracts signed in 2014, at December 31, 2014, the Company had under construction nine aframax tankers, two LR1 product tankers, one shuttle tanker and one LNG carrier. The total contracted amount remaining to be paid for the thirteen vessels under construction, plus the extra costs agreed as at December 31, 2014 was $710,466. Scheduled remaining payments as at December 31, 2014 were $128,492 in 2015, $373,009 in 2016 and $208,965 in 2017. | ||
In the ordinary course of the shipping business, various claims and losses may arise from disputes with charterers, agents and other suppliers relating to the operations of the Company’s vessels. Management believes that all such matters are either adequately covered by insurance or are not expected to have a material adverse effect on the Company’s results from operations or financial condition. | ||
Charters-out | ||
The future minimum revenues, before reduction for brokerage commissions, expected to be recognized on non-cancelable time charters are as follows: | ||
Year | Amount | |
2015 | 178,444 | |
2016 | 113,683 | |
2017 | 143,875 | |
2018 | 156,001 | |
2019 to 2028 | 803,810 | |
Minimum charter revenue | 1,395,813 | |
These amounts do not assume any off-hire. | ||
The Company has signed charter party agreements for twelve of its vessels under construction for periods ranging from 4.5 years to 8 years to commence on delivery of the vessels, delivered between the second quarter of 2016 and the third quarter of 2017. Revenues of $620,366 to be generated by these vessels have been included in the above table. |
Financial_Instruments
Financial Instruments | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Financial Instruments [Abstract] | |||||||
Financial Instruments | 15.Financial Instruments | ||||||
(a)Interest rate risk: The Company is subject to interest rate risk associated with changing interest rates with respect to its variable interest rate term loans and credit facilities as described in Notes 7 and 8. | |||||||
(b)Concentration of credit risk: Financial Instruments that are subject to credit risk consist principally of cash, trade accounts receivable, investments and derivatives. The Company places its temporary cash investments, consisting mostly of deposits, primarily with high credit qualified financial institutions. The Company performs periodic evaluations of the relative credit standing of those financial institutions that are considered in the Company’s investment strategy. The Company limits its credit risk with accounts receivable by performing ongoing credit evaluations of its customers’ financial condition and generally does not require collateral for its accounts receivable and does not have any agreements to mitigate credit risk. | |||||||
The Company limits the exposure of non-performance by counterparties to derivative instruments by diversifying among counterparties with high credit ratings, and performing periodic evaluations of the relative credit standing of the counterparties. | |||||||
(c)Fair value: The carrying amounts reflected in the accompanying Consolidated Balance Sheet of cash and cash equivalents, restricted cash, trade receivables and accounts payable approximate their respective fair values due to the short maturity of these instruments. The fair value of long-term bank loans with variable interest rates approximate the recorded values, generally due to their variable interest rates. The present value of the future cash flows of the portion of one long-term bank loan with a fixed interest rate is estimated to be approximately $41,782 as compared to its carrying amount of $42,688 (Note 7).The Company performs relevant enquiries on a periodic basis to assess the recoverability of the long-term investment discussed in Note 3 and estimates that the amount presented on the accompanying Balance Sheet approximates the amount that is expected to be received by the Company in the event of sale of that investment. | |||||||
The fair values of the one long-term bank loan with a fixed interest rate, the interest rate swap agreements, bunker swap agreements and bunker put option agreements, discussed in Note 8 above are determined through Level 2 of the fair value hierarchy as defined in FASB guidance for Fair Value Measurements and are derived principally from or corroborated by observable market data, interest rates, yield curves and other items that allow value to be determined. | |||||||
The fair value of the impaired vessels Silia T, Triathlon, Delphi and Millennium discussed in Note 5 as at December 31, 2013 was determined through Level 2 of the fair value hierarchy, as defined in FASB guidance for Fair Value Measurements and was determined by management taking into consideration valuations from independent marine valuers based on observable data such as sale of comparable assets. | |||||||
The estimated fair values of the Company’s financial instruments, other than derivatives at December 31, 2014 and 2013 are as follows: | |||||||
2014 | 2013 | ||||||
Carrying | Fair Value | Carrying | Fair Value | ||||
Amount | Amount | ||||||
Financial assets/(liabilities) | |||||||
Cash and cash equivalents | 202,107 | 202,107 | 162,237 | 162,237 | |||
Restricted cash | 12,334 | 12,334 | 9,527 | 9,527 | |||
Investments | 1,000 | 1,000 | 1,000 | 1,000 | |||
Debt | -1,418,336 | -1,417,430 | -1,380,298 | -1,378,753 | |||
Tabular Disclosure of Derivatives Location | |||||||
Derivatives are recorded in the balance sheet on a net basis by counterparty when a legal right of setoff exists. The following tables present information with respect to the fair values of derivatives reflected in the balance sheet on a gross basis by transaction. The tables also present information with respect to gains and losses on derivative positions reflected in the Statement of Operations or in the balance sheet, as a component of Accumulated other comprehensive income/(loss). | |||||||
Asset Derivatives | Liability Derivatives | ||||||
December 31, | December 31, | December 31, | December 31, | ||||
2014 | 2013 | 2014 | 2013 | ||||
Derivative | Balance Sheet Location | Fair Value | Fair Value | Fair Value | Fair Value | ||
Derivatives designated as hedging instruments | |||||||
Interest rate swaps | Current portion of financial instruments—Fair value | — | — | 3,547 | 2,365 | ||
FINANCIAL INSTRUMENTS—FAIR VALUE, net of current portion | — | 1,401 | 3,499 | 2,445 | |||
Subtotal | — | 1,401 | 7,046 | 4,810 | |||
Asset Derivatives | Liability Derivatives | ||||||
December 31, | December 31, | December 31, | December 31, | ||||
2014 | 2013 | 2014 | 2013 | ||||
Derivative | Balance Sheet Location | Fair Value | Fair Value | Fair Value | Fair Value | ||
Derivatives not designated as hedging instruments | |||||||
Interest rate swaps | Current portion of financial instruments—Fair value | — | — | 2,659 | 3,597 | ||
FINANCIAL INSTRUMENTS—FAIR VALUE, net of current portion | — | — | 560 | 1,582 | |||
Bunker swaps | Current portion of financial instruments—Fair value | — | 140 | 9,228 | — | ||
FINANCIAL INSTRUMENTS—FAIR VALUE, net of current portion | — | 37 | — | — | |||
Bunker put options | Current portion of financial instruments—Fair value | 2,443 | — | — | — | ||
Subtotal | 2,443 | 177 | 12,447 | 5,179 | |||
Total derivatives | 2,443 | 1,578 | 19,493 | 9,989 | |||
Derivatives designated as Hedging Instruments-Net effect on the Statement of Comprehensive Income/(loss) and Statement of Operations | |||||||
Gain (Loss) Recognized in | |||||||
Accumulated Other | |||||||
Comprehensive | |||||||
Loss on Derivative | |||||||
(Effective Portion) | |||||||
Derivative | Amount | ||||||
2014 | 2013 | 2012 | |||||
Interest rate swaps | -7,042 | -3,338 | -2,964 | ||||
Total | -7,042 | -3,338 | -2,964 | ||||
Gain (Loss) Reclassified from | |||||||
Accumulated Other Comprehensive | |||||||
Loss into Income (Effective Portion) | |||||||
Location | |||||||
Derivative | Amount | ||||||
2014 | 2013 | 2012 | |||||
Interest rate swaps | Depreciation expense | -154 | -144 | -122 | |||
Interest rate swaps | Interest and finance costs, net | -3,388 | -11,301 | -23,010 | |||
Total | -3,542 | -11,445 | -23,132 | ||||
The accumulated loss from Derivatives designated as Hedging instruments recognized in Accumulated Other comprehensive Income/(Loss) as of December 31, 2014 and 2013 was $10,290 and $6,789 respectively. | |||||||
Derivatives not designated as Hedging Instruments – Net effect on the Statement of Operations | |||||||
Net Realized and Unrealized Gain | |||||||
(Loss) Recognized on Statement of | |||||||
Operations Location | |||||||
Derivative | Amount | ||||||
2014 | 2013 | 2012 | |||||
Interest rate swaps | Interest and finance costs, net | -1,272 | 1,012 | -1,054 | |||
Bunker swaps | Interest and finance costs, net | -10,402 | 223 | 783 | |||
Bunker put options | Interest and finance costs, net | 1,244 | - | - | |||
Total | -10,430 | 1,235 | -271 | ||||
The following tables summarize the fair values for assets and liabilities measured on a recurring basis as of December 31, 2014 and 2013 using Level 2 inputs (significant other observable inputs): | |||||||
Recurring measurements: | December 31, | December 31, | |||||
2014 | 2013 | ||||||
Interest rate swaps | -10,265 | -8,588 | |||||
Bunker swaps | -9,228 | 177 | |||||
Bunker put options | 2,443 | — | |||||
-17,050 | -8,411 | ||||||
The following tables present the fair values of items measured at fair value on a nonrecurring basis for the years ended December 31, 2013, using Level 2 inputs (Note 5). There were no such fair value measurements as at December 31, 2014. | |||||||
Nonrecurring basis | December 31, 2013 | ||||||
Significant Other | |||||||
Observable | |||||||
Inputs | |||||||
Assets/ | |||||||
(Liabilities) | |||||||
(Level 2) | |||||||
Vessels | $ 95,250 | ||||||
$ 95,250 | |||||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16.Subsequent Events |
(a)On January 27, 2015, an amount of $9,384 was paid as the first installment for the construction of the two LR1 tankers under construction. | |
(b)On January 29, 2015, the Company paid $0.50 per share for its 8.00% Series B Preferred Shares and $0.55469 per share for its 8.875% Series C Preferred Shares. | |
(c)On February 13, 2015, the Company agreed the terms of a bank loan for an amount of $35,190 relating to the pre and post delivery financing of the first of its LR1 product carriers, expected to be delivered in the third quarter of 2016. | |
(d)On February 24, 2015, the Company agreed the terms of a bank loan for an amount of $35,190 relating to the pre and post delivery financing of the second of its LR1 product carriers, expected to be delivered in the third quarter of 2016. | |
(e)On March 5, 2015, the Company drew down $20,960 for the pre-delivery financing of the LNG carrier under construction, under a loan agreed in September 2014 (Note 7). This amount was paid to the yard the same date. | |
(f)On March 6, 2015, an amount of $9,800 was paid as the first installment for the construction of the shuttle tanker under construction. | |
(g)On March 19, 2015, the Company’s Board of Directors declared a quarterly dividend of $0.06 per share of common stock outstanding to be paid on May 28, 2015 to shareholders of record as of May 21, 2015. | |
(h)On April 7, 2015, the Company drew down $5,122 for the pre-delivery financing of one aframax tanker under construction, under a loan agreed in June 2014 (Note 7). This amount was paid to the yard the same date. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Significant Accounting Policies [Abstract] | ||||
Basis of presentation and description of business | (a)Basis of presentation and description of business: The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and include the accounts of Tsakos Energy Navigation Limited (the “Holding Company”), and its wholly-owned and majority-owned subsidiaries (collectively, the “Company”). As at December 31, 2014, 2013 and 2012, the Holding Company consolidated two variable interest entities (“VIE”) for which it is deemed to be the primary beneficiary, i.e. it has a controlling financial interest in those entities. A VIE is an entity that in general does not have equity investors with voting rights or that has equity investors that do not provide sufficient financial resources for the entity to support its activities. A controlling financial interest in a VIE is present when a company has the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and absorbs a majority of an entity’s expected losses, receives a majority of an entity’s expected residual returns, or both. | |||
All intercompany balances and transactions have been eliminated upon consolidation. | ||||
The Company follows the provisions of Accounting Standard Codification (ASC) 220, “Comprehensive Income,” which requires separate presentation of certain transactions, which are recorded directly as components of stockholders’ equity. The Company presents Other Comprehensive Income / (Loss) in a separate statement according to ASU 2011-05. | ||||
The Company owns and operates a fleet of crude and product oil carriers and one LNG carrier providing worldwide marine transportation services under long, medium or short-term charters. | ||||
Use of Estimates | (b)Use of Estimates: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities and expenses, reported in the consolidated financial statements and the accompanying notes. Although actual results could differ from those estimates, management does not believe that such differences would be material. | |||
Foreign Currency Translation | (c)Foreign Currency Translation: The functional currency of the Company is the U.S. Dollar because the Company’s vessels operate in international shipping markets in which the U.S. Dollar is utilized to transact most business. The accounting books of the Company are also maintained in U.S. Dollars. Transactions involving other currencies during the year are converted into U.S. Dollars using the exchange rates in effect at the time of the transactions. At the balance sheet dates, monetary assets and liabilities, which are denominated in other currencies, are translated into U.S. Dollars at the year-end exchange rates. Resulting gains or losses are separately reflected in the accompanying Consolidated Statements of Operations. | |||
Cash and Cash Equivalents | (d)Cash and Cash Equivalents: The Company classifies highly liquid investments such as time deposits and certificates of deposit and their equivalents with original maturities of three months or less as cash and cash equivalents. Cash deposits with certain banks that may only be used for special purposes (including loan repayments) are classified as Restricted cash. | |||
Trade Accounts Receivable,Net | (e)Trade Accounts Receivable, Net: Trade accounts receivable, net at each balance sheet date includes estimated recoveries from charterers for hire, freight and demurrage billings and revenue earned but not yet billed, net of an allowance for doubtful accounts (nil as of December 31, 2014 and 2013). The Company’s management at each balance sheet date reviews all outstanding invoices and provides allowances for receivables deemed uncollectible primarily based on the ageing of such balances and any amounts in dispute. | |||
Inventories | (f)Inventories: Inventories consist of bunkers, lubricants, victualling and stores and are stated at the lower of cost or market value. The cost is determined primarily by the first-in, first-out method. | |||
Fixed Assets | (g)Fixed Assets: Fixed assets consist of vessels. Vessels are stated at cost, less accumulated depreciation. The cost of vessels includes the contract price and pre-delivery costs incurred during the construction and delivery of new buildings, including capitalized interest, and expenses incurred upon acquisition of second-hand vessels. Subsequent expenditures for conversions and major improvements are capitalized when they appreciably extend the life, increase the earning capacity or improve the efficiency or safety of the vessels; otherwise they are charged to expense as incurred. Expenditures for routine repairs and maintenance are expensed as incurred. | |||
Depreciation is provided on the straight-line method based on the estimated remaining economic useful lives of the vessels, less an estimated residual value based on a scrap price. Effective October 1, 2012 and following management’s reassessment of the residual value of the vessels, the estimated scrap value per light weight ton (LWT) was increased to $0.39 from $0.30. Management’s estimate was based on the average demolition prices prevailing in the market during the last ten years for which historical data were available. The effect of this change in accounting estimate, which did not require retrospective application as per ASC 250 “Accounting Changes and Error Corrections,” was to decrease net loss for the year ended December 31, 2012 by $929 or $0.02 per weighted average number of shares, both basic and diluted. The decrease in depreciation expense for the year ended December 31, 2014 was approximately $3,787 or $0.05 per weighted average number of shares, both basic and diluted and $3,787 or $0.07 per weighted average number of shares, both basic and diluted, for December 31, 2013 based on the Company’s fleet existing at December 31, 2012. Economic useful lives are estimated at 25 years for crude and product oil carriers and 40 years for the LNG carrier from the date of original delivery from the shipyard. | ||||
Impairment of Vessels | (h)Impairment of Vessels: The Company reviews vessels for impairment whenever events or changes in circumstances indicate that the carrying amount of a vessel may not be recoverable, such as during severe disruptions in global economic and market conditions. When such indicators are present, a vessel to be held and used is tested for recoverability by comparing the estimate of future undiscounted net operating cash flows expected to be generated by the use of the vessel over its remaining useful life and its eventual disposition to its carrying amount. Net operating cash flows are determined by applying various assumptions regarding the use or possible disposition of each vessel, future revenues net of commissions, operating expenses, scheduled dry-dockings, expected off-hire and scrap values, and taking into account historical revenue data and published forecasts on future world economic growth and inflation. Should the carrying value of the vessel exceed its estimated future undiscounted net operating cash flows, impairment is measured based on the excess of the carrying amount over the fair market value of the asset. The Company determines the fair value of its vessels based on management estimates and assumptions and by making use of available market data and taking into consideration third party valuations. The review of the carrying amounts in connection with the estimated recoverable amount for certain of the Company’s vessels as of December 31, 2014 did not indicate an impairment charge, whereas at December 31, 2013 and December 31, 2012 there were impairment charges (Note 5). | |||
Reporting Assets held for sale | (i)Reporting Assets held for sale: It is the Company’s policy to dispose of vessels when suitable opportunities occur and not necessarily to keep them until the end of their useful life. Long-lived assets are classified as held for sale when all applicable criteria enumerated under ASC 360 “Property, Plant, and Equipment” are met and are measured at the lower of their carrying amount or fair value less cost to sell. These assets are not depreciated once they meet the criteria to be held for sale. At December 31, 2014, 2013 and 2012, there were no vessels held for sale. | |||
Accounting for Special Survey and Dry-docking Costs | (j)Accounting for Special Survey and Dry-docking Costs: The Company follows the deferral method of accounting for dry-docking and special survey costs whereby actual costs incurred are reported in Deferred Charges and are amortized on a straight-line basis over the period through the date the next dry-docking is scheduled to become due (approximately every five years during the first fifteen years of vessels’ life and every two and a half years within the remaining useful life of the vessels). Until December 31, 2013, for vessels older than ten years the Company estimated that the next dry-docking would be due in two and a half years. However, according to Classification Society regulations, vessels can defer dry-docking costs for five years during their first fifteen years of life, instead of ten years as previously estimated. This change in estimate does not have a material effect in the year ended December 31, 2014, and is not expected to have material effect in the following years. Costs relating to routine repairs and maintenance are expensed as incurred. The unamortized portion of special survey and dry-docking costs for a vessel that is sold is included as part of the carrying amount of the vessel in determining the gain on sale of the vessel. | |||
Loan Costs | (k)Loan Costs: Costs incurred for obtaining new loans or refinancing existing loans are capitalized and included in deferred charges and amortized over the term of the respective loan, using the effective interest rate method. Any unamortized balance of costs relating to loans repaid or refinanced as debt extinguishments is expensed in the period the repayment or extinguishment is made. | |||
Accounting for Revenue and Expenses | (l)Accounting for Revenue and Expenses: Voyage revenues are generated from freight billings and time charter hire. Time charter revenue, including bare-boat hire, is recorded over the term of the charter as the service is provided. Revenues from voyage charters on the spot market or under contract of affreightment are recognized ratably from when a vessel becomes available for loading (discharge of the previous charterer’s cargo) to when the next charterer’s cargo is discharged, provided an agreed non-cancelable charter between the Company and the charterer is in existence, the charter rate is fixed or determinable and collectability is reasonably assured. Revenue under voyage charters will not be recognized until a charter has been agreed even if the vessel has discharged its previous cargo and is proceeding to an anticipated port of loading. Revenues from variable hire arrangements are recognized to the extent the variable amounts earned beyond an agreed fixed minimum hire are determinable at the reporting date and all other revenue recognition criteria are met. Revenue from hire arrangements with an escalation clause is recognized on a straight-line basis over the lease term unless another systematic and rational basis is more representative of the time pattern in which the vessel is employed. Vessel voyage and operating expenses and charter hire expense are expensed when incurred. | |||
Unearned revenue represents cash received prior to the year end for which related service has not been provided, primarily relating to charter hire paid in advance to be earned over the applicable charter period. The operating revenues and voyage expenses of vessels operating under a tanker pool are pooled and are allocated to the pool participants on a time charter equivalent basis, according to an agreed formula. Voyage revenues for 2014, 2013 and 2012 included revenues derived from significant charterers as follows (in percentages of total voyage revenues): | ||||
Charterer | 2014 | 2013 | 2012 | |
A | 19% | 21% | 17% | |
B | 13% | 7% | 14% | |
C | 9% | 11% | 8% | |
D | 7% | 8% | 10% | |
Segment Reporting | (m)Segment Reporting: The Company does not evaluate the operating results by type of vessel or by type of charter or by type of cargo. Although operating results may be identified by type of vessel, management, including the chief operating decision maker, reviews operating results primarily by revenue per day and operating results of the fleet. The Company operates a liquefied natural gas (LNG) carrier which meets the quantitative thresholds used to determine reportable segments. The chief operating decision maker does not review the operating results of this vessel separately, or makes any decisions about resources to be allocated to this vessel or assesses its performance separately, therefore, the LNG carrier does not constitute a separate reportable segment. The Company’s vessels operate on many trade routes throughout the world and, therefore, the provision of geographic information is considered impracticable by management. For the above reasons, the Company has determined that it operates in one reportable segment, the worldwide maritime transportation of liquid energy related products. | |||
Derivative Financial Instruments | (n)Derivative Financial Instruments: The Company regularly enters into interest rate swap contracts to manage its exposure to fluctuations of interest rates associated with its specific borrowings. Also, the Company enters into bunker swap contracts and put or call options to manage its exposure to fluctuations of bunker prices associated with the consumption of bunkers by its vessels. Interest rate and bunker price differentials paid or received under the swap agreements are recognized as part of Interest and finance costs, net. On the inception of a put or call option on bunkers an asset or liability is recognized. The subsequent changes in its the fair value, and realized payments or receipts upon exercise of the options are recognized in the Statement of Operations as part of the interest and finance costs, net. All derivatives are recognized in the consolidated financial statements at their fair value. On the inception date of the derivative contract, the Company evaluates the derivative as an accounting hedge of the variability of cash flow to be paid of a forecasted transaction (“cash flow” hedge). Changes in the fair value of a derivative that is qualified, designated and highly effective as a cash flow hedge are recorded in other comprehensive income/(loss) until earnings are affected by the forecasted transaction. Changes in the fair value of undesignated derivative instruments and the ineffective portion of designated derivative instruments are reported in earnings in the period in which those fair value changes occur. Realized gains or losses on early termination of undesignated derivative instruments are also classified in earnings in the period of termination of the respective derivative instrument. | |||
The Company formally documents all relationships between hedging instruments and hedged items, as well as the risk-management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives that are designated as cash flow hedges of the variable cash flows of a forecasted transaction to a specific forecasted transaction. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flow of hedged items. When it is determined that a derivative is not highly effective as a hedge or that it has ceased to be a highly effective hedge, the Company discontinues hedge accounting prospectively. In accordance with ASC 815 “Derivatives and Hedging,” the Company may prospectively discontinue the hedge accounting for an existing hedge if the applicable criteria are no longer met, the derivative instrument expires, is sold, terminated or exercised or if the Company removes the designation of the respective cash flow hedge. In those circumstances, the net gain or loss remains in accumulated other comprehensive income and is reclassified into earnings in the same period or periods during which the hedged forecasted transaction affects earnings, unless the forecasted transaction is no longer probable in which case the net gain or loss is reclassified into earnings immediately. | ||||
Fair Value Measurements | (o)Fair Value Measurements: The Company follows the provisions of ASC 820, “Fair Value Measurements and Disclosures” which defines, and provides guidance as to the measurement of fair value. ASC 820 applies when assets or liabilities in the financial statements are to be measured at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants (Note 15). Upon issuance of guidance on the fair value option in 2007, the Company elected not to report the then existing financial assets or liabilities at fair value that were not already reported as such. | |||
Accounting for Leases | (p)Accounting for Leases: Leases of assets under which substantially all the risks and rewards of ownership are effectively retained by the lessor are classified as operating leases. Lease payments under an operating lease are recognized as an expense on a straight-line method over the lease term. The Company held no operating leases at December 31, 2014. | |||
Stock Based Compensation | (q)Stock Based Compensation: The Company has a share based incentive plan that covers directors and officers of the Company and employees of the related companies. Awards granted are valued at fair value and compensation cost is recognized on a straight line basis, net of estimated forfeitures, over the requisite service period of each award. The fair value of restricted stock issued to crew members, directors and officers of the Company at the grant date is equal to the closing stock price on that date and is amortized over the applicable vesting period using the straight-line method. The fair value of restricted stock issued to non-employees is equal to the closing stock price at the grant date adjusted by the closing stock price at each reporting date and is amortized over the applicable performance period (Note 9). | |||
Marketable Securities | (r)Marketable Securities: The Company from March 2011 until their disposal in July 2013 had investments in marketable securities that had readily determinable fair values and were classified as available for sale. Such investments were measured subsequently at fair value in the statement of financial position. Unrealized holding gains and losses for available for sale securities were excluded from earnings and were reported in Accumulated other comprehensive income/(loss) until realized (Note 4). | |||
Recent Accounting Pronouncements | (s)Recent Accounting Pronouncements: | |||
1)Presentation of Financial Statements and Property, Plant and Equipment: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity: In April 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-08 “Presentation of Financial Statements and Property, Plant and Equipment: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity” changing the presentation of discontinued operations on the statements of income and other requirements for reporting discontinued operations. Under the new standard, a disposal of a component or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results when the component meets the criteria to be classified as held-for-sale or is disposed. The amendments in this update also require additional disclosures about discontinued operations and disposal of an individually significant component of an entity that does not qualify for discontinued operations. The new accounting guidance is effective for interim and annual periods beginning after December 15, 2014. Early adoption is permitted but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued or available for issuance. | ||||
2) Revenue from Contracts with Customers: In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09 – Revenue from Contracts with Customers, that will supersede virtually all of the existing revenue recognition guidance in US GAAP and is effective for annual periods beginning on or after December 15, 2016. Early adoption is not permitted. The standard establishes a five-step model that will apply to revenue earned from a contract with a customer. The standard’s requirements will also apply to the sale of some non-financial assets that are not part of the entity’s ordinary activities. Extensive disclosures will be required, including disaggregation of total revenue; information about performance obligations; changes in contract asset and liability account balances between periods and key judgments and estimates. Management is in the process of assessing the impact of the new standard on Company’s financial position. | ||||
3) Going Concern: In August 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-15 – Presentation of Financial Statements - Going Concern. ASU 2014-15 provides guidance about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 requires an entity's management to evaluate at each reporting period based on the relevant conditions and events that are known at the date of financial statements are issued, whether there are conditions or events, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued and to disclose the necessary information. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted | ||||
4) Derivatives and Hedging: In November 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-16 – Derivatives and Hedging. This standard provides guidance on determining whether the host contract in a Hybrid Financial Instrument issued in the form of a share is more akin to debt or to equity. One criterion requires evaluating whether the nature of the host contract is more akin to debt or to equity and whether the economic characteristics and risks of the embedded derivative feature are clearly and closely related to the host contract. In making that evaluation, an issuer or investor may consider all terms and features in a hybrid financial instrument including the embedded derivative feature that is being evaluated for separate accounting or may consider all terms and features in the hybrid financial instrument except for the embedded derivative feature that is being evaluated for separate accounting. The use of different methods can result in different accounting outcomes for economically similar hybrid financial instruments. This guidance will be effective for periods after December 15, 2015. | ||||
5) Income Statement—Extraordinary and Unusual Items: In January 2015, the FASB issued ASU No. 2015-01 “Income Statement—Extraordinary and Unusual Items: Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items”. The concept of extraordinary items is removed and instead items that are both unusual in nature and infrequently occurring should be presented within income from continuing operations or disclosed in notes to financial statements because those items satisfy the conditions for an item that is unusual in nature or infrequently occurring. The new accounting guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early application is permitted. Companies have the option to apply the amendments of ASU No. 2015-01 either prospectively or retrospectively. |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Significant Accounting Policies [Abstract] | ||||
Schedule of Revenue Percentage by Major Customer | ||||
Charterer | 2014 | 2013 | 2012 | |
A | 19% | 21% | 17% | |
B | 13% | 7% | 14% | |
C | 9% | 11% | 8% | |
D | 7% | 8% | 10% | |
Transactions_with_Related_Part1
Transactions with Related Parties (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Transactions with Related Parties [Abstract] | ||||
Related Party Transactions Disclosure | ||||
2014 | 2013 | 2012 | ||
Tsakos Shipping and Trading S.A. (commissions) | 6,189 | 5,219 | 5,304 | |
Tsakos Energy Management Limited (management fees) | 15,840 | 15,487 | 15,587 | |
Tsakos Columbia Shipmanagement S.A. | 2,091 | 1,621 | 1,280 | |
Argosy Insurance Company Limited | 9,529 | 9,129 | 9,701 | |
AirMania Travel S.A. | 4,797 | 4,810 | 3,661 | |
Total expenses with related parties | 38,446 | 36,266 | 35,533 | |
Related Party Transactions Balances | ||||
December 31, | ||||
2014 | 2013 | |||
Due from related parties | ||||
Tsakos Columbia Shipmanagement Ltd | 1,895 | 1,084 | ||
Total due from related parties | 1,895 | 1,084 | ||
Due to related parties | ||||
Tsakos Shipping and Trading S.A. | 881 | 555 | ||
Tsakos Energy Management Limited | 93 | 92 | ||
Argosy Insurance Company Limited | 8,766 | 6,008 | ||
AirMania Travel S.A. | 396 | 275 | ||
Total due to related parties | 10,136 | 6,930 | ||
Related Party - Future Management Fees | ||||
Year | Amount | |||
2015 | 19,344 | |||
2016 | 19,404 | |||
2017 | 20,111 | |||
2018 | 20,332 | |||
2019 | 20,332 | |||
2020 to 2024 | 91,494 | |||
191,017 | ||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Long-Term Debt [Abstract] | |||||||
Debt Disclosure | |||||||
Facility | 2014 | 2013 | |||||
(a) Credit facilities | 732,130 | 808,218 | |||||
(b) Term bank loans | 686,206 | 572,080 | |||||
Total | 1,418,336 | 1,380,298 | |||||
Less – current portion | (228,492) | (126,361) | |||||
Long-term portion | 1,189,844 | 1,253,937 | |||||
Schedule of Weighted-Average Interest Rate | |||||||
Year ended December 31, 2014 | 2.23% | ||||||
Year ended December 31, 2013 | 2.49% | ||||||
Year ended December 31, 2012 | 1.87% | ||||||
Schedule of Debt | |||||||
Loan | Origination | Original | Balance at | New | Repaid | Balance at | |
Date | Amount | January 1, | Loans | December 31, | |||
2014 | 2014 | ||||||
Credit facility | 2005 | 220,000 | 121,090 | — | 13,135 | 107,955 | |
Credit facility | 2006 | 275,000 | 113,270 | — | 11,823 | 101,447 | |
Credit facility1 | 2004 | 179,384 | 101,800 | — | 10,555 | 91,245 | |
Credit facility | 2005 | 220,000 | 65,598 | — | 6,600 | 58,998 | |
Credit facility | 2006 | 371,010 | 231,010 | — | 20,000 | 211,010 | |
10-year term loan | 2004 | 71,250 | 28,907 | — | 3,125 | 25,782 | |
Credit facility | 2006 | 70,000 | 31,250 | — | 4,375 | 26,875 | |
Credit facility | 2007 | 120,000 | 87,500 | — | 5,000 | 82,500 | |
10-year term loan | 2007 | 88,350 | 60,750 | — | 5,520 | 55,230 | |
Credit facility | 2007 | 82,000 | 56,700 | — | 4,600 | 52,100 | |
10-year term loan | 2009 | 38,600 | 26,812 | — | 2,234 | 24,578 | |
8-year term loan | 2009 | 40,000 | 27,500 | — | 820 | 26,680 | |
12 year term loan | 2009 | 40,000 | 31,250 | — | 2,500 | 28,750 | |
10-year term loan | 2010 | 39,000 | 29,900 | — | 2,600 | 27,300 | |
7-year term loan | 2010 | 70,000 | 56,080 | — | 4,640 | 51,440 | |
10-year term loan | 2010 | 43,924 | 34,271 | — | 3,218 | 31,053 | |
9-year term loan | 2010 | 42,100 | 34,300 | — | 2,600 | 31,700 | |
10-year term loan | 2011 | 48,000 | 40,000 | — | 3,200 | 36,800 | |
9-year term loan | 2011 | 48,650 | 42,163 | — | 3,243 | 38,920 | |
8-year term loan | 2012 | 73,600 | 71,300 | — | 4,600 | 66,700 | |
8-year term loan | 2011 | 73,600 | 71,147 | — | 4,907 | 66,240 | |
7-year term loan | 2013 | 18,000 | 17,700 | — | 1,200 | 16,500 | |
7-year term loan | 2014 | 42,000 | — | 42,000 | — | 42,000 | |
6-year term loan | 2014 | 193,239 | — | 25,610 | — | 25,610 | |
6-year term loan | 2014 | 39,000 | — | 39,000 | — | 39,000 | |
7-year term loan | 2014 | 38,800 | — | 5,172 | — | 5,172 | |
6-year term loan | 2014 | 78,744 | — | 10,344 | — | 10,344 | |
6-year term loan | 2014 | 39,954 | — | 5,172 | — | 5,172 | |
19-month term loan | 2014 | 52,195 | — | 31,235 | — | 31,235 | |
Total | 1,380,298 | 158,533 | 120,495 | 1,418,336 | |||
1 This credit facility includes a fixed interest rate portion amounting to $42,688 as at December 31, 2014. | |||||||
Debt Principal Payments | |||||||
Year | Amount | ||||||
2015 | 228,492 | ||||||
2016 | 260,931 | ||||||
2017 | 188,313 | ||||||
2018 | 305,713 | ||||||
2019 | 159,459 | ||||||
2020 and thereafter | 275,428 | ||||||
1,418,336 | |||||||
Interest_and_Finance_Costs_net1
Interest and Finance Costs, net (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Interest and Finance Costs, net [Abstract] | ||||
Interest and Finance Costs, net | ||||
2014 | 2013 | 2012 | ||
Interest expense | 33,389 | 41,741 | 49,701 | |
Less: Interest capitalized | -2,384 | -1,945 | -1,758 | |
Interest expense, net | 31,005 | 39,796 | 47,943 | |
Interest swap cash settlements non-hedging | 3,231 | 5,012 | 8,043 | |
Bunkers swap cash settlements | 997 | -151 | -2,433 | |
Bunker put options premium | 1,199 | - | - | |
Amortization of loan fees | 1,245 | 1,101 | 946 | |
Bank charges | 240 | 379 | 243 | |
Amortization of deferred loss on termination of financial instruments | 154 | 877 | 2,173 | |
Change in fair value of non-hedging financial instruments | 5,003 | -6,097 | -5,339 | |
Net total | 43,074 | 40,917 | 51,576 | |
Earnings_per_Common_Share_Tabl
Earnings per Common Share (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Earnings per Common Share [Abstract] | ||||
Earnings per Common Share | ||||
2014 | 2013 | 2012 | ||
Net income/(loss) attributable to Tsakos Energy Navigation Limited | $33,527 | ($37,462) | ($49,263) | |
Preferred share dividends, Series B | -4,000 | -2,567 | — | |
Preferred share dividends, Series C | -4,438 | -1,109 | — | |
Net income/(loss) attributable to common stock holders | 25,089 | -41,138 | -49,263 | |
Denominator | ||||
Weighted average common shares outstanding | 79,114,401 | 56,698,955 | 53,301,039 | |
Basic and diluted gain/(loss) per common share | $0.32 | ($0.73) | ($0.92) | |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |
Dec. 31, 2014 | ||
Charters-out [Abstract] | ||
Minimum Future Charter Revenue | ||
Year | Amount | |
2015 | 178,444 | |
2016 | 113,683 | |
2017 | 143,875 | |
2018 | 156,001 | |
2019 to 2028 | 803,810 | |
Minimum charter revenue | 1,395,813 | |
Financial_Instruments_Tables
Financial Instruments (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Financial Instruments [Abstract] | |||||||
Schedule of Carrying Values and Estimated Fair Values of Financial Instruments | |||||||
2014 | 2013 | ||||||
Carrying | Fair Value | Carrying | Fair Value | ||||
Amount | Amount | ||||||
Financial assets/(liabilities) | |||||||
Cash and cash equivalents | 202,107 | 202,107 | 162,237 | 162,237 | |||
Restricted cash | 12,334 | 12,334 | 9,527 | 9,527 | |||
Investments | 1,000 | 1,000 | 1,000 | 1,000 | |||
Debt | -1,418,336 | -1,417,430 | -1,380,298 | -1,378,753 | |||
Schedule of Derivative Instruments - Statements of Financial Position Location | |||||||
Asset Derivatives | Liability Derivatives | ||||||
December 31, | December 31, | December 31, | December 31, | ||||
2014 | 2013 | 2014 | 2013 | ||||
Derivative | Balance Sheet Location | Fair Value | Fair Value | Fair Value | Fair Value | ||
Derivatives designated as hedging instruments | |||||||
Interest rate swaps | Current portion of financial instruments—Fair value | — | — | 3,547 | 2,365 | ||
FINANCIAL INSTRUMENTS—FAIR VALUE, net of current portion | — | 1,401 | 3,499 | 2,445 | |||
Subtotal | — | 1,401 | 7,046 | 4,810 | |||
Asset Derivatives | Liability Derivatives | ||||||
December 31, | December 31, | December 31, | December 31, | ||||
2014 | 2013 | 2014 | 2013 | ||||
Derivative | Balance Sheet Location | Fair Value | Fair Value | Fair Value | Fair Value | ||
Derivatives not designated as hedging instruments | |||||||
Interest rate swaps | Current portion of financial instruments—Fair value | — | — | 2,659 | 3,597 | ||
FINANCIAL INSTRUMENTS—FAIR VALUE, net of current portion | — | — | 560 | 1,582 | |||
Bunker swaps | Current portion of financial instruments—Fair value | — | 140 | 9,228 | — | ||
FINANCIAL INSTRUMENTS—FAIR VALUE, net of current portion | — | 37 | — | — | |||
Bunker put options | Current portion of financial instruments—Fair value | 2,443 | — | — | — | ||
Subtotal | 2,443 | 177 | 12,447 | 5,179 | |||
Total derivatives | 2,443 | 1,578 | 19,493 | 9,989 | |||
Schedule of Cash Flow Hedges - Gain (Loss) Recognized In Accumulated Other Comprehensive Loss on Derivative (Effective Portion) | |||||||
Gain (Loss) Recognized in | |||||||
Accumulated Other | |||||||
Comprehensive | |||||||
Loss on Derivative | |||||||
(Effective Portion) | |||||||
Derivative | Amount | ||||||
2014 | 2013 | 2012 | |||||
Interest rate swaps | -7,042 | -3,338 | -2,964 | ||||
Total | -7,042 | -3,338 | -2,964 | ||||
Schedule of Cash Flow Hedges - Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) | |||||||
Gain (Loss) Reclassified from | |||||||
Accumulated Other Comprehensive | |||||||
Loss into Income (Effective Portion) | |||||||
Location | |||||||
Derivative | Amount | ||||||
2014 | 2013 | 2012 | |||||
Interest rate swaps | Depreciation expense | -154 | -144 | -122 | |||
Interest rate swaps | Interest and finance costs, net | -3,388 | -11,301 | -23,010 | |||
Total | -3,542 | -11,445 | -23,132 | ||||
Schedule of Derivatives Not Designated As Hedging Instruments - Net Realized and Unrealized Gain (Loss) Recognized on Statement Of Operations | |||||||
Net Realized and Unrealized Gain | |||||||
(Loss) Recognized on Statement of | |||||||
Operations Location | |||||||
Derivative | Amount | ||||||
2014 | 2013 | 2012 | |||||
Interest rate swaps | Interest and finance costs, net | -1,272 | 1,012 | -1,054 | |||
Bunker swaps | Interest and finance costs, net | -10,402 | 223 | 783 | |||
Bunker put options | Interest and finance costs, net | 1,244 | - | - | |||
Total | -10,430 | 1,235 | -271 | ||||
Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis | |||||||
Recurring measurements: | December 31, | December 31, | |||||
2014 | 2013 | ||||||
Interest rate swaps | -10,265 | -8,588 | |||||
Bunker swaps | -9,228 | 177 | |||||
Bunker put options | 2,443 | — | |||||
-17,050 | -8,411 | ||||||
Schedule of Fair Value Items Measured on Nonrecurring Basis | |||||||
Nonrecurring basis | December 31, 2013 | ||||||
Significant Other | |||||||
Observable | |||||||
Inputs | |||||||
Assets/ | |||||||
(Liabilities) | |||||||
(Level 2) | |||||||
Vessels | $ 95,250 | ||||||
$ 95,250 | |||||||
Significant_Accounting_Policie3
Significant Accounting Policies (Table) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Charterer A | |||
Major customer percentage | 19.00% | 21.00% | 17.00% |
Charterer B | |||
Major customer percentage | 13.00% | 7.00% | 14.00% |
Charterer C | |||
Major customer percentage | 9.00% | 11.00% | 8.00% |
Charterer D | |||
Major customer percentage | 7.00% | 8.00% | 10.00% |
Significant_Accounting_Policie4
Significant Accounting Policies (Details) (USD $) | 9 Months Ended | 12 Months Ended | 27 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
Allowance for doubtful accounts receivable | $0 | $0 | $0 | ||
Vessels depreciation method | straight-line basis | ||||
Vessels scrap value per Lightweight Ton | $0.30 | $0.39 | |||
Change in accounting estimate financial effect | The effect of this change in accounting estimate, which did not require retrospective application as per ASC 250 “Accounting Changes and Error Corrections,” was to decrease net loss for the year ended December 31, 2012 by $929 or $0.02 per weighted average number of shares, both basic and diluted. | ||||
Change in accounting estimate effect on depreciation | 3,787 | 3,787 | |||
Change in accounting estimate effect on depreciation per weighted average number of shares | $0.05 | $0.07 | |||
Vessels held for sale | $0 | $0 | $0 | $0 | |
Crude Carriers | |||||
Useful Lives | 25 years | ||||
Product Oil Carriers | |||||
Useful Lives | 25 years | ||||
LNG Carrier | |||||
Useful Lives | 40 years |
Transactions_with_Related_Part2
Transactions with Related Parties - Statement of Income (Table) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Related Party Transaction [Line Items] | |||
Tsakos Shipping and Trading S.A. (commissions) | $18,819 | $16,019 | $12,215 |
Tsakos Energy Management Limited (management fees) | 16,457 | 15,896 | 15,887 |
Total expenses with related parties | 38,446 | 36,266 | 35,533 |
Tsakos Shipping and Trading S.A. | |||
Related Party Transaction [Line Items] | |||
Tsakos Shipping and Trading S.A. (commissions) | 6,189 | 5,219 | 5,304 |
Tsakos Energy Management Limited | |||
Related Party Transaction [Line Items] | |||
Tsakos Energy Management Limited (management fees) | 15,840 | 15,487 | 15,587 |
Tsakos Columbia Shipmanagement S.A. | |||
Related Party Transaction [Line Items] | |||
Tsakos Columbia Shipmanagement S.A. | 2,091 | 1,621 | 1,280 |
Argosy Insurance Company Limited | |||
Related Party Transaction [Line Items] | |||
Argosy Insurance Company Limited | 9,529 | 9,129 | 9,701 |
AirMania Travel S.A. | |||
Related Party Transaction [Line Items] | |||
AirMania Travel S.A. | $4,797 | $4,810 | $3,661 |
Transactions_with_Related_Part3
Transactions with Related Parties - Balance Sheet (Table) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Related Party Transaction [Line Items] | ||
Due from related parties | $1,895 | $1,084 |
Due to related parties | 10,136 | 6,930 |
Tsakos Columbia Shipmanagement Ltd | ||
Related Party Transaction [Line Items] | ||
Due from related parties | 1,895 | 1,084 |
Tsakos Shipping and Trading S.A. | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 881 | 555 |
Tsakos Energy Management Limited | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 93 | 92 |
Argosy Insurance Company Limited | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 8,766 | 6,008 |
AirMania Travel S.A. | ||
Related Party Transaction [Line Items] | ||
Due to related parties | $396 | $275 |
Transactions_with_Related_Part4
Transactions with Related Parties - Management Fees (Table) (Details) (Management Agreement with Tsakos Energy Management Limited, USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Management Agreement with Tsakos Energy Management Limited | |
Related Party Transaction [Line Items] | |
2015 | $19,344 |
2016 | 19,404 |
2017 | 20,111 |
2018 | 20,332 |
2019 | 20,332 |
2020 to 2024 | 91,494 |
Total | $191,017 |
Transactions_with_Related_Part5
Transactions with Related Parties - Accrued Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Tsakos Shipping and Trading S.A. | ||
Related Party Transaction [Line Items] | ||
Accrued liabilities | $875 | $319 |
Argosy Insurance Limited | ||
Related Party Transaction [Line Items] | ||
Accrued liabilities | $379 | $356 |
Transactions_with_Related_Part6
Transactions with Related Parties - Tsakos Energy Management Limited (Details) (USD $) | 12 Months Ended | 18 Months Ended | 15 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||||
Management incentive award | $0 | $0 | $0 | ||
Supervisory services per month, per vessel | 20,400 | 20,400 | 20,000 | ||
Supervisory services | 2,224,000 | 492,000 | 612,000 | ||
Operating vessels | |||||
Related Party Transaction [Line Items] | |||||
Monthly management fees | 27,500 | 27,500 | |||
Chartered out or on a bare-boat basis | |||||
Related Party Transaction [Line Items] | |||||
Monthly management fees | 20,400 | 20,400 | |||
LNG Carrier | |||||
Related Party Transaction [Line Items] | |||||
Monthly management fees | 35,800 | 35,000 | |||
DP2 Shuttle Tankers | |||||
Related Party Transaction [Line Items] | |||||
Monthly management fees | 35,000 | ||||
VLCC Millennium | |||||
Related Party Transaction [Line Items] | |||||
Monthly management fees | 27,500 | ||||
Suezmax Eurochampion 2004 | |||||
Related Party Transaction [Line Items] | |||||
Monthly management fees | 27,500 | ||||
Tsakos Energy Management Limited | |||||
Related Party Transaction [Line Items] | |||||
Euro appreciated against dollar percentage | 10.00% | ||||
Yearly increase basis | 12 month Euribor | ||||
Special award paid | 400,000 | 500,000 | |||
Special award declared | 460,000 | 0 | 460,000 | 460,000 | |
Years required for cancellation written notice for agreement | One year notice | ||||
Days required for cancellation written notice for agreement | Ten days notice | ||||
Compensation to Management company after contract termination with Directors | 166,256,000 | ||||
Tsakos Energy Management Limited | LNG Carrier | |||||
Related Party Transaction [Line Items] | |||||
Monthly management fees | 10,000 | 10,000 | |||
Third Party Manager | LNG Carrier | |||||
Related Party Transaction [Line Items] | |||||
Monthly management fees | 25,800 | 25,000 | |||
Third Party Manager | VLCC Millennium | |||||
Related Party Transaction [Line Items] | |||||
Monthly management fees | 13,700 | ||||
Third Party Manager | Suezmax Eurochampion 2004 | |||||
Related Party Transaction [Line Items] | |||||
Monthly management fees | $12,000 |
Transactions_with_Related_Part7
Transactions with Related Parties - Tsakos Shipping and Trading S.A. (Details) (Tsakos Shipping and Trading S.A., USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Related Party Transaction [Line Items] | |||
Chartering commission | 1.25% | ||
Brokerage commission | 0.50% | 1.00% | |
Charge fee | $200 | ||
Payment for the cost of design and supervision services for new buildings | 0 | 0 | |
Euro and Eurovision | |||
Related Party Transaction [Line Items] | |||
Brokerage commission amount | 605 | ||
DP2 suezmax shuttle tankers Rio 2016 and Brasil 2014 | |||
Related Party Transaction [Line Items] | |||
Payment for the cost of design and supervision services for new buildings | $200 |
Transactions_with_Related_Part8
Transactions with Related Parties - Vessel Acquisitions from Related Parties (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Suezmax tanker Eurovision | |
Property Plant And Equipment [Line Items] | |
Acquisition of newly constructed vessels | $61,814 |
Suezmax tanker Euro | |
Property Plant And Equipment [Line Items] | |
Acquisition of newly constructed vessels | $59,804 |
Longterm_Investments_Details
Long-term Investments (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | |||
Long-term Investments [Abstract] | |||
Common shares held | 125,000 | 125,000 | 125,000 |
Long term investments | $1,000 | $1,000 | $1,000 |
Marketable_Securities_Details
Marketable Securities (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2011 |
Marketable securities [Abstract] | ||||
Marketable Securities | $0 | $0 | $2,500 | |
Proceeds from sale of marketable securities | 0 | 1,585 | 1,098 | |
Gain on sale of marketable securities | $0 | $89 | $95 |
Vessels_Acquisitions_and_Sales
Vessels - Acquisitions and Sales (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property Plant And Equipment [Line Items] | |||
Cash paid for vessel acquisitions | $123,871 | $108,840 | $2,454 |
Net proceeds from sale of vessel | 0 | 0 | 40,219 |
Gain/(loss) on sale of vessels | 0 | 0 | -1,879 |
Suezmax tanker Eurovision | |||
Property Plant And Equipment [Line Items] | |||
Acquisition of newly constructed vessels | 61,814 | ||
Suezmax tanker Euro | |||
Property Plant And Equipment [Line Items] | |||
Acquisition of newly constructed vessels | 59,804 | ||
DP2 suezmax shuttle tankers Rio 2016 and Brasil 2014 | |||
Property Plant And Equipment [Line Items] | |||
Acquisition of newly constructed vessels | 203,908 | ||
Cash paid for vessel acquisitions | 105,763 | ||
VLCCs La Madrina and La Prudencia | |||
Property Plant And Equipment [Line Items] | |||
Net proceeds from sale of vessel | 40,219 | ||
Gain/(loss) on sale of vessels | ($1,879) |
Vessels_Impairment_Details
Vessels - Impairment (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Vessels [Line Items] | |||
Carrying value of assets | $2,199,154 | $2,173,068 | |
Vessel impairment charge | 0 | 28,290 | 13,567 |
Silia T, Triathlon, Delphi and Millennium vessels - Carrying value prior to impairment | |||
Vessels [Line Items] | |||
Carrying value of assets | 123,540 | ||
Silia T, Triathlon, Delphi and Millennium vessels - Carrying value after impairment | |||
Vessels [Line Items] | |||
Carrying value of assets | 95,250 | ||
Silia T, Triathlon, Delphi and Millennium vessels | |||
Vessels [Line Items] | |||
Vessel impairment charge | 28,290 | ||
VLCC Millennium | |||
Vessels [Line Items] | |||
Vessel impairment charge | $13,567 |
Deferred_Charges_Details
Deferred Charges (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Charges [Abstract] | ||
Deferred charges consisted of dry-docking and special survey costs | $13,830 | $12,724 |
Loan fees net of accumulated amortization | $6,360 | $4,607 |
LongTerm_Debt_Table_Details
Long-Term Debt (Table) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
Credit facilities | $732,130 | $808,218 |
Term bank loans | 686,206 | 572,080 |
Total | 1,418,336 | 1,380,298 |
Less - current portion | -228,492 | -126,361 |
Long-term portion | $1,189,844 | $1,253,937 |
LongTerm_Debt_WeightedAverage_
Long-Term Debt - Weighted-Average Interest Rates (Table) (Details) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Debt Disclosure [Abstract] | |||
Weighted average interest rates on the executed loans | 2.23% | 2.49% | 1.87% |
LongTerm_Debt_Loan_Movements_T
Long-Term Debt - Loan Movements (Table) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Debt Instrument [Line Items] | |
Balance at January 1, 2014 | $1,380,298 |
New Loans | 158,533 |
Repaid | 120,495 |
Balance at December 31, 2014 | 1,418,336 |
Credit facility | |
Debt Instrument [Line Items] | |
Origination Date | 2005 |
Original Amount | 220,000 |
Balance at January 1, 2014 | 121,090 |
New Loans | 0 |
Repaid | 13,135 |
Balance at December 31, 2014 | 107,955 |
Credit facility | |
Debt Instrument [Line Items] | |
Origination Date | 2006 |
Original Amount | 275,000 |
Balance at January 1, 2014 | 113,270 |
New Loans | 0 |
Repaid | 11,823 |
Balance at December 31, 2014 | 101,447 |
Credit facility | |
Debt Instrument [Line Items] | |
Origination Date | 2004 |
Original Amount | 179,384 |
Balance at January 1, 2014 | 101,800 |
New Loans | 0 |
Repaid | 10,555 |
Balance at December 31, 2014 | 91,245 |
Credit facility | |
Debt Instrument [Line Items] | |
Origination Date | 2005 |
Original Amount | 220,000 |
Balance at January 1, 2014 | 65,598 |
New Loans | 0 |
Repaid | 6,600 |
Balance at December 31, 2014 | 58,998 |
Credit facility | |
Debt Instrument [Line Items] | |
Origination Date | 2006 |
Original Amount | 371,010 |
Balance at January 1, 2014 | 231,010 |
New Loans | 0 |
Repaid | 20,000 |
Balance at December 31, 2014 | 211,010 |
10-year term loan | |
Debt Instrument [Line Items] | |
Origination Date | 2004 |
Original Amount | 71,250 |
Balance at January 1, 2014 | 28,907 |
New Loans | 0 |
Repaid | 3,125 |
Balance at December 31, 2014 | 25,782 |
Credit facility | |
Debt Instrument [Line Items] | |
Origination Date | 2006 |
Original Amount | 70,000 |
Balance at January 1, 2014 | 31,250 |
New Loans | 0 |
Repaid | 4,375 |
Balance at December 31, 2014 | 26,875 |
Credit facility | |
Debt Instrument [Line Items] | |
Origination Date | 2007 |
Original Amount | 120,000 |
Balance at January 1, 2014 | 87,500 |
New Loans | 0 |
Repaid | 5,000 |
Balance at December 31, 2014 | 82,500 |
10-year term loan | |
Debt Instrument [Line Items] | |
Origination Date | 2007 |
Original Amount | 88,350 |
Balance at January 1, 2014 | 60,750 |
New Loans | 0 |
Repaid | 5,520 |
Balance at December 31, 2014 | 55,230 |
Credit facility | |
Debt Instrument [Line Items] | |
Origination Date | 2007 |
Original Amount | 82,000 |
Balance at January 1, 2014 | 56,700 |
New Loans | 0 |
Repaid | 4,600 |
Balance at December 31, 2014 | 52,100 |
10-year term loan | |
Debt Instrument [Line Items] | |
Origination Date | 2009 |
Original Amount | 38,600 |
Balance at January 1, 2014 | 26,812 |
New Loans | 0 |
Repaid | 2,234 |
Balance at December 31, 2014 | 24,578 |
8-year term loan | |
Debt Instrument [Line Items] | |
Origination Date | 2009 |
Original Amount | 40,000 |
Balance at January 1, 2014 | 27,500 |
New Loans | 0 |
Repaid | 820 |
Balance at December 31, 2014 | 26,680 |
12 year term loan | |
Debt Instrument [Line Items] | |
Origination Date | 2009 |
Original Amount | 40,000 |
Balance at January 1, 2014 | 31,250 |
New Loans | 0 |
Repaid | 2,500 |
Balance at December 31, 2014 | 28,750 |
10-year term loan | |
Debt Instrument [Line Items] | |
Origination Date | 2010 |
Original Amount | 39,000 |
Balance at January 1, 2014 | 29,900 |
New Loans | 0 |
Repaid | 2,600 |
Balance at December 31, 2014 | 27,300 |
7-year term loan | |
Debt Instrument [Line Items] | |
Origination Date | 2010 |
Original Amount | 70,000 |
Balance at January 1, 2014 | 56,080 |
New Loans | 0 |
Repaid | 4,640 |
Balance at December 31, 2014 | 51,440 |
10-year term loan | |
Debt Instrument [Line Items] | |
Origination Date | 2010 |
Original Amount | 43,924 |
Balance at January 1, 2014 | 34,271 |
New Loans | 0 |
Repaid | 3,218 |
Balance at December 31, 2014 | 31,053 |
9-year term loan | |
Debt Instrument [Line Items] | |
Origination Date | 2010 |
Original Amount | 42,100 |
Balance at January 1, 2014 | 34,300 |
New Loans | 0 |
Repaid | 2,600 |
Balance at December 31, 2014 | 31,700 |
10-year term loan | |
Debt Instrument [Line Items] | |
Origination Date | 2011 |
Original Amount | 48,000 |
Balance at January 1, 2014 | 40,000 |
New Loans | 0 |
Repaid | 3,200 |
Balance at December 31, 2014 | 36,800 |
9-year term loan | |
Debt Instrument [Line Items] | |
Origination Date | 2011 |
Original Amount | 48,650 |
Balance at January 1, 2014 | 42,163 |
New Loans | 0 |
Repaid | 3,243 |
Balance at December 31, 2014 | 38,920 |
8-year term loan | |
Debt Instrument [Line Items] | |
Origination Date | 2012 |
Original Amount | 73,600 |
Balance at January 1, 2014 | 71,300 |
New Loans | 0 |
Repaid | 4,600 |
Balance at December 31, 2014 | 66,700 |
8-year term loan | |
Debt Instrument [Line Items] | |
Origination Date | 2011 |
Original Amount | 73,600 |
Balance at January 1, 2014 | 71,147 |
New Loans | 0 |
Repaid | 4,907 |
Balance at December 31, 2014 | 66,240 |
7-year term loan | |
Debt Instrument [Line Items] | |
Origination Date | 2013 |
Original Amount | 18,000 |
Balance at January 1, 2014 | 17,700 |
New Loans | 0 |
Repaid | 1,200 |
Balance at December 31, 2014 | 16,500 |
7-year term loan | |
Debt Instrument [Line Items] | |
Origination Date | 2014 |
Original Amount | 42,000 |
Balance at January 1, 2014 | 0 |
New Loans | 42,000 |
Repaid | 0 |
Balance at December 31, 2014 | 42,000 |
6-year term loan | |
Debt Instrument [Line Items] | |
Origination Date | 2014 |
Original Amount | 193,239 |
Balance at January 1, 2014 | 0 |
New Loans | 25,610 |
Repaid | 0 |
Balance at December 31, 2014 | 25,610 |
6-year term loan | |
Debt Instrument [Line Items] | |
Origination Date | 2014 |
Original Amount | 39,000 |
Balance at January 1, 2014 | 0 |
New Loans | 39,000 |
Repaid | 0 |
Balance at December 31, 2014 | 39,000 |
7-year term loan | |
Debt Instrument [Line Items] | |
Origination Date | 2014 |
Original Amount | 38,800 |
Balance at January 1, 2014 | 0 |
New Loans | 5,172 |
Repaid | 0 |
Balance at December 31, 2014 | 5,172 |
6-year term loan | |
Debt Instrument [Line Items] | |
Origination Date | 2014 |
Original Amount | 78,744 |
Balance at January 1, 2014 | 0 |
New Loans | 10,344 |
Repaid | 0 |
Balance at December 31, 2014 | 10,344 |
6-year term loan | |
Debt Instrument [Line Items] | |
Origination Date | 2014 |
Original Amount | 39,954 |
Balance at January 1, 2014 | 0 |
New Loans | 5,172 |
Repaid | 0 |
Balance at December 31, 2014 | 5,172 |
19-month term loan | |
Debt Instrument [Line Items] | |
Origination Date | 2014 |
Original Amount | 52,195 |
Balance at January 1, 2014 | 0 |
New Loans | 31,235 |
Repaid | 0 |
Balance at December 31, 2014 | $31,235 |
LongTerm_Debt_Principal_Paymen
Long-Term Debt - Principal Payments (Table) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Principal Payments [Abstract] | ||
2015 | $228,492 | |
2016 | 260,931 | |
2017 | 188,313 | |
2018 | 305,713 | |
2019 | 159,459 | |
2020 and thereafter | 275,428 | |
Total | $1,418,336 | $1,380,298 |
LongTerm_Debt_Credit_Facilitie
Long-Term Debt - Credit Facilities (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Number of open reducing credit facilities | 6 | |
Number of credit facilities with reducing revolving credit component and term bank loan component, with balloon payments due at maturity between December 2015 and February 2019 | 2 | |
Unused amount | 0 | 0 |
Credit facility | ||
Fixed interest rate portion | 42,688 | |
Revolving Credit Facility | ||
Libor plus spread minimum | 0.92% | 1.48% |
Libor plus spread maximum | 5.19% | 5.69% |
LongTerm_Debt_Term_Bank_Loans_
Long-Term Debt - Term Bank Loans (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Jun. 17, 2014 | Jul. 07, 2014 | Jun. 30, 2014 | Aug. 22, 2014 | Oct. 16, 2014 | Dec. 31, 2013 | Jul. 08, 2014 | Jul. 02, 2014 | Aug. 26, 2014 | Mar. 05, 2015 | Oct. 23, 2014 |
New term bank loan | $158,533 | |||||||||||
Term loan balances, with balloon payments due at maturity between October 2016 and April 2024 / Amount drawn down | 686,206 | 572,080 | ||||||||||
Suezmax tanker Eurovision | ||||||||||||
New term bank loan | 42,000 | |||||||||||
Duration of term bank loan | 7 years | |||||||||||
Term loan balances, with balloon payments due at maturity between October 2016 and April 2024 / Amount drawn down | 42,000 | |||||||||||
Debt periodic payment | 14 semi-annual installments | |||||||||||
Debt periodic payment amount | 1,400 | |||||||||||
Debt balloon payment | 22,400 | |||||||||||
Suezmax tanker Euro | ||||||||||||
New term bank loan | 39,000 | |||||||||||
Duration of term bank loan | 6 years | |||||||||||
Term loan balances, with balloon payments due at maturity between October 2016 and April 2024 / Amount drawn down | 39,000 | |||||||||||
Debt periodic payment | 12 consecutive semi-annual installments | |||||||||||
Debt periodic payment amount | 1,300 | |||||||||||
Debt balloon payment | 23,400 | |||||||||||
Five Aframax Tankers Under Construction | ||||||||||||
New term bank loan | 193,239 | |||||||||||
Duration of term bank loan | 6 years | |||||||||||
Term loan balances, with balloon payments due at maturity between October 2016 and April 2024 / Amount drawn down | 25,610 | |||||||||||
Debt periodic payment | 12 consecutive semi-annual installments | |||||||||||
Debt periodic payment amount | 6,038 | |||||||||||
Debt balloon payment | 120,783 | |||||||||||
One Aframax Tanker Under Construction | ||||||||||||
New term bank loan | 38,800 | |||||||||||
Duration of term bank loan | 7 years | |||||||||||
Term loan balances, with balloon payments due at maturity between October 2016 and April 2024 / Amount drawn down | 5,172 | |||||||||||
Debt periodic payment | 14 consecutive semi-annual installments | |||||||||||
Debt periodic payment amount | 1,290 | |||||||||||
Debt balloon payment | 20,740 | |||||||||||
Two Aframax Tankers Under Construction | ||||||||||||
New term bank loan | 78,744 | |||||||||||
Duration of term bank loan | 6 years | |||||||||||
Term loan balances, with balloon payments due at maturity between October 2016 and April 2024 / Amount drawn down | 10,344 | |||||||||||
Debt periodic payment | 12 consecutive semi-annual installments | |||||||||||
Debt periodic payment amount | 2,335 | |||||||||||
Debt balloon payment | 50,730 | |||||||||||
One Aframax Tanker Under Construction | ||||||||||||
New term bank loan | 39,954 | |||||||||||
Duration of term bank loan | 6 years | |||||||||||
Term loan balances, with balloon payments due at maturity between October 2016 and April 2024 / Amount drawn down | 5,172 | |||||||||||
Debt periodic payment | 12 consecutive semi-annual installments | |||||||||||
Debt periodic payment amount | 1,249 | |||||||||||
Debt balloon payment | 24,971 | |||||||||||
LNG Carrier Under Construction | ||||||||||||
New term bank loan | The facility amount is the lower of $52,195 or the 50% of the pre-delivery value of the vessel. | |||||||||||
Term loan balances, with balloon payments due at maturity between October 2016 and April 2024 / Amount drawn down | $20,960 | $31,235 | ||||||||||
Debt periodic payment | Single installment due on the delivery date of the vessel | |||||||||||
All Company's term bank loans | ||||||||||||
Libor plus spread minimum | 1.73% | |||||||||||
Libor plus spread maximum | 3.98% |
LongTerm_Debt_Covenants_Detail
Long-Term Debt - Covenants (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Long-Term Debt [Line Items] | ||||
Debt Instrument Covenant Description | The loan agreements include, among other covenants, covenants requiring the Company to obtain the lenders’ prior consent in order to incur or issue any financial indebtedness, additional borrowings, pay dividends in an amount more than 50% of cumulative net income (as defined in the related agreements), sell vessels and assets, and change the beneficial ownership or management of the vessels. Also, the covenants require the Company to maintain a minimum liquidity, not legally restricted of $79,563 at December 31, 2014 and $78,144 at December 31, 2013, a minimum hull value in connection with the vessels’ outstanding loans and insurance coverage of the vessels against all customary risks. Three loan agreements require the Company to maintain throughout the security period, an aggregate credit balance in a deposit account of $3,250. Two loan agreements require a monthly pro rata transfer to a retention account of any principal due but unpaid. | |||
Debt Instrument Covenant Compliance | At December 31, 2014, the Company and its wholly and majority owned subsidiaries were compliant with the original financial covenants in its loan agreements, including the leverage ratio and the value-to-loan requirements and all other terms and covenants, except in the case of the value-to-loan requirements in one of its loan agreements with an outstanding balance of $31,700 as of December 31, 2014 ($34,300 as of December 31, 2013). The value-to-loan ratio will be satisfied with the repayment of the next two scheduled semi-annual installments and therefore, no amount has been reclassified in the current liabilities at December 31, 2014. | |||
Cash and cash equivalents | $202,107 | $162,237 | $144,297 | $175,708 |
Debt - Carrying amount | 1,418,336 | 1,380,298 | ||
Working capital deficit | 49,817 | |||
Minimum liquidity requirement | ||||
Long-Term Debt [Line Items] | ||||
Cash and cash equivalents | 79,563 | 78,144 | ||
Three loan agreements | ||||
Long-Term Debt [Line Items] | ||||
Held in deposit account | 3,250 | |||
Term loan not in compliance with value-to-loan ratio | ||||
Long-Term Debt [Line Items] | ||||
Debt - Carrying amount | $31,700 | $34,300 |
Interest_and_Finance_Costs_net2
Interest and Finance Costs, net (Table) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest and Finance Costs, net [Abstract] | |||
Interest expense | $33,389 | $41,741 | $49,701 |
Less: Interest capitalized | -2,384 | -1,945 | -1,758 |
Interest expense, net | 31,005 | 39,796 | 47,943 |
Interest swap cash settlements non-hedging | 3,231 | 5,012 | 8,043 |
Bunkers swap cash settlements | 997 | -151 | -2,433 |
Bunker put options premium | 1,199 | 0 | 0 |
Amortization of loan fees | 1,245 | 1,101 | 946 |
Bank charges | 240 | 379 | 243 |
Amortization of deferred loss on termination of financial instruments | 154 | 877 | 2,173 |
Change in fair value of non-hedging financial instruments | 5,003 | -6,097 | -5,339 |
Net total | $43,074 | $40,917 | $51,576 |
Interest_and_Finance_Costs_net3
Interest and Finance Costs, net (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Number of floating-to-fixed interest rate swaps | 7 | ||
Notional amount of floating-to-fixed interest rate swaps | $301,763 | ||
Fixed interest rate | 3.61% | ||
Floating rate basis | six-month LIBOR | ||
Fair value of hedging interest rate swaps | -7,046 | -3,409 | |
Net amount of cash flow hedge losses to be reclassified into earnings within 12 months | 3,138 | ||
Change in fair value of non-hedging financial instruments | -5,003 | 6,097 | 5,339 |
De-designated hedging swap loss in accumulated other comprehensive income | 0 | ||
Amortization of de-designated hedging swap loss in accumulated other comprehensive income | 154 | 877 | 2,173 |
Number of bunker swap agreements held | 7 | 5 | |
Fair value of bunker swap agreements | -9,228 | 177 | |
Number of bunker put option agreements held | 3 | ||
Bunker put options premium | 1,199 | 0 | 0 |
Fair value of bunker put option agreements | 2,443 | ||
Designated As Hedging Instrument | |||
Number of floating-to-fixed interest rate swaps | 6 | ||
Notional amount of floating-to-fixed interest rate swaps | 249,013 | ||
Not Designated As Hedging Instrument | |||
Number of floating-to-fixed interest rate swaps | 1 | 2 | |
Amortization of de-designated hedging swap loss in accumulated other comprehensive income | 154 | 877 | |
Not Designated As Hedging Instrument | Interest Rate Swap | |||
Change in fair value of non-hedging financial instruments | 1,960 | 6,025 | |
Not Designated As Hedging Instrument | Bunker Swap | |||
Change in fair value of non-hedging financial instruments | -9,405 | 72 | |
Not Designated As Hedging Instrument | Bunker Put Option | |||
Change in fair value of non-hedging financial instruments | $1,244 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Apr. 29, 2014 | Feb. 05, 2014 | Apr. 18, 2012 | 22-May-14 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 22-May-14 | 10-May-13 | Sep. 30, 2013 | Jun. 01, 2014 | 30-May-14 | Aug. 08, 2013 |
Third Party shareholding percentage | 15.00% | ||||||||||||
Authorized share capital | $200,000 | $100,000 | |||||||||||
Common Stock - shares authorized | 185,000,000 | 85,000,000 | 185,000,000 | 85,000,000 | |||||||||
Common shares - par value | $1 | $1 | $1 | $1 | |||||||||
Preferred Shares - shares authorized | 15,000,000 | 15,000,000 | 15,000,000 | 15,000,000 | |||||||||
Preferred Shares - par value | $1 | $1 | $1 | $1 | |||||||||
Common shares offered | 11,000,000 | 12,995,000 | 10,000,000 | 25,645,000 | 10,000,000 | ||||||||
Common shares issued, price per share | $7.30 | $6.65 | $6.50 | ||||||||||
Net proceeds from offering | 62,329 | 169,276 | 176,400 | 7,045 | 62,329 | ||||||||
Net proceeds from issuance of preferred shares | 0 | 94,358 | 0 | ||||||||||
Underwriters over-allotment option | |||||||||||||
Common shares offered | 1,695,000 | 1,650,000 | |||||||||||
Preferred Class B Shares | |||||||||||||
Preferred Shares - shares issued | 2,000,000 | 2,000,000 | 2,000,000 | ||||||||||
Net proceeds from issuance of preferred shares | 47,043 | ||||||||||||
Dividend rate percentage | 8.00% | ||||||||||||
Preferred dividends per share | $2 | ||||||||||||
Preferred dividends | 4,000 | ||||||||||||
Redemption price | $25 | ||||||||||||
Conditions for dividend rate increase | If the Company fails to comply with certain covenants relating to the level of borrowings and net worth as these terms are defined in the applicable agreement, defaults on any of its credit facilities, fails to pay four quarterly dividends payable in arrears or if the Series B preferred shares are not redeemed at the option of the Company, in whole by July 30, 2019, the dividend rate payable on the Series B preferred shares increases quarterly to a rate that is 1.25 times the dividend rate payable on the series B preferred shares , subject to an aggregate maximum rate per annum of 25% prior to July 30, 2018 and 30% thereafter. | ||||||||||||
Distribution Agency Agreement | |||||||||||||
Maximum number of shares issuable under distribution agency agreement | 4,000,000 | ||||||||||||
Common shares - par value | $1 | ||||||||||||
Common shares offered | 1,077,847 | 1,430,211 | |||||||||||
Net proceeds from offering | 7,124 | 7,045 | |||||||||||
Preferred Class C Shares | |||||||||||||
Preferred Shares - shares issued | 2,000,000 | 2,000,000 | 2,000,000 | ||||||||||
Net proceeds from issuance of preferred shares | 47,315 | ||||||||||||
Dividend rate percentage | 8.88% | ||||||||||||
Preferred dividends per share | $2.22 | ||||||||||||
Preferred dividends | $4,438 | ||||||||||||
Redemption price | $25 | ||||||||||||
Conditions for dividend rate increase | If the Company fails to comply with certain covenants relating to the level of borrowings and net worth as these terms are defined in the applicable agreement, defaults on any of its credit facilities, fails to pay four quarterly dividends payable in arrears or if the Series C preferred shares are not redeemed at the option of the Company in whole by October 30, 2020, the dividend rate payable on the Series C preferred shares increases quarterly to a rate that is 1.25 times the dividend rate payable on the Series C preferred shares, subject to an aggregate maximum rate per annum of 25% prior to October 30, 2018 and 30% thereafter. |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stockholders' Equity [Abstract] | |||
RSUs issued | 20,000 | 96,000 | 150,000 |
RSUs vested | 20,000 | 96,000 | |
Fair value per share (weighted average) | $7.08 | $4.89 | $3.75 |
Fair value of shares vested | $142 | $469 | $974 |
Number of RSUs issuable under incentive plan | 868,950 | ||
Stock compensation expense | $142 | $469 | $730 |
Accumulated_other_comprehensiv1
Accumulated other comprehensive income/(loss) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated other comprehensive income/(loss) [Abstract] | |||
Total unrealized (losses)/gains from hedging financial instruments | ($3,501) | $8,107 | $20,169 |
Changes in fair value of financial instruments | -3,655 | 7,230 | 17,996 |
Losses reclassified to income | 154 | 877 | 2,173 |
Change in fair value of marketable securities | 0 | -79 | 228 |
Gain on sale of marketable securities | $0 | $89 | $95 |
Earnings_per_Common_Share_Tabl1
Earnings per Common Share (Table) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Numerator | |||
Net income/(loss) attributable to Tsakos Energy Navigation Limited | $33,527 | ($37,462) | ($49,263) |
Preferred share dividends, Series B | -4,000 | -2,567 | 0 |
Preferred share dividends, Series C | -4,438 | -1,109 | 0 |
Net income/(loss) attributable to common stock holders | $25,089 | ($41,138) | ($49,263) |
Denominator | |||
Weighted average common shares outstanding | 79,114,401 | 56,698,955 | 53,301,039 |
Basic and diluted gain/(loss) per common share | $0.32 | ($0.73) | ($0.92) |
Earnings_per_Common_Share_Deta
Earnings per Common Share (Details) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings per Common Share [Abstract] | |||
Balance of Non-Vested RSUs | 0 | 0 | 0 |
Noncontrolling_Interest_in_Sub1
Noncontrolling Interest in Subsidiary (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Noncontrolling Interest in Subsidiary [Abstract] | ||
Percentage of ownership in Mare Success S.A. by Polaris Oil Shipping Inc. | 49.00% | |
Capital contribution to subsidiary | $20,408 | |
Capital contribution to subsidiary by Tsakos Energy Navigation Limited | 10,408 | |
Percentage of ownership in Mare Success S.A. by Tsakos Energy Navigation Ltd | 51.00% | |
Capital contribution to subsidiary by Polaris Oil Shipping Inc. | $10,000 | |
Percentage Of Revenue Generated By Single Charterer | 7.00% | 8.30% |
Commitments_and_Contingencies_1
Commitments and Contingencies (Table) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Charters-out [Abstract] | |
2015 | $178,444 |
2016 | 113,683 |
2017 | 143,875 |
2018 | 156,001 |
2019 to 2028 | 803,810 |
Minimum charter revenue | $1,395,813 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | ||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 07, 2015 | Mar. 06, 2015 | Jan. 31, 2013 | Feb. 26, 2014 | Oct. 23, 2014 | Nov. 26, 2014 |
Long-term Purchase Commitment [Line Items] | |||||||||
Amount paid | $130,436 | $37,182 | $81,848 | ||||||
Minimum charter revenue | 1,395,813 | ||||||||
Purchase obligations | |||||||||
Payable amounts in 2015 | 128,492 | ||||||||
Payable amounts in 2016 | 373,009 | ||||||||
Payable amounts in 2017 | 208,965 | ||||||||
Total contractual purchase obligation | 710,466 | ||||||||
Aframax tankers | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Number of vessels under construction | 9 | ||||||||
LR1 product tankers | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Number of vessels under construction | 2 | ||||||||
Shuttle tanker | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Number of vessels under construction | 1 | ||||||||
LNG Carrier | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Number of vessels under construction | 1 | ||||||||
Aframax crude carrier | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Construction price per vessel | 51,720 | ||||||||
Amount paid | 5,122 | ||||||||
Aframax crude carrier | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Construction price per vessel | 51,720 | ||||||||
Aframax crude carrier | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Construction price per vessel | 51,720 | ||||||||
Aframax crude carrier | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Construction price per vessel | 51,720 | ||||||||
LR1 product carrier | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Construction price per vessel | 46,920 | ||||||||
Expected delivery | Q3 2016 | ||||||||
LR1 product carrier | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Construction price per vessel | 46,920 | ||||||||
Expected delivery | Q3 2016 | ||||||||
Shuttle tanker | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Construction price per vessel | 98,000 | ||||||||
Amount paid | 9,800 | ||||||||
Shuttle tanker termination agreement | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Amount paid | 4,500 | ||||||||
New contract with yard | Under the termination agreement, an amount of $600 per vessel will be used against the contract price of the LR1 product carriers and an amount of $1,650 will be used against the contract price of the shuttle tanker. The remaining prepaid amount of $1,650 will be used against the contract price of future new buildings, currently being discussed between the Company and the Shipyard. | ||||||||
Twelve vessels under construction | |||||||||
Long-term Purchase Commitment [Line Items] | |||||||||
Time charter agreement duration | 4.5 years to 8 years to commence on delivery of the vessels | ||||||||
Expected delivery | Between Q2 2016 and Q3 2017 | ||||||||
Minimum charter revenue | $620,366 |
Financial_Instruments_Fair_Val
Financial Instruments - Fair Values (Table) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Financial Instruments [Abstract] | ||||
Cash and cash equivalents - Carrying Amount | $202,107 | $162,237 | $144,297 | $175,708 |
Restricted cash - Carrying Amount | 12,334 | 9,527 | ||
Investments - Carrying Amount | 1,000 | 1,000 | 1,000 | |
Debt - Carrying amount | -1,418,336 | -1,380,298 | ||
Cash and cash equivalents - Fair Value | 202,107 | 162,237 | ||
Restricted cash - Fair value | 12,334 | 9,527 | ||
Investments - Fair Value | 1,000 | 1,000 | ||
Debt - Fair Value | ($1,417,430) | ($1,378,753) |
Financial_Instruments_Balance_
Financial Instruments - Balance Sheet Location (Table) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivatives designated as hedging instruments | ||
Subtotal - Assets | $0 | $1,401 |
Subtotal - Liabilities | 7,046 | 4,810 |
Derivatives not designated as hedging instruments | ||
Subtotal - Assets | 2,443 | 177 |
Subtotal - Liabilities | 12,447 | 5,179 |
Total derivatives - Assets | 2,443 | 1,578 |
Total derivatives - Liabilites | 19,493 | 9,989 |
Current portion of financial instruments-Fair value | ||
Derivatives designated as hedging instruments | ||
Interest rate swaps - Asset Derivatives - Fair Value | 0 | 0 |
Interest rate swaps - Liability Derivatives - Fair Value | 3,547 | 2,365 |
Derivatives not designated as hedging instruments | ||
Interest rate swaps - Asset Derivatives - Fair Value | 0 | 0 |
Interest rate swaps - Liability Derivatives - Fair Value | 2,659 | 3,597 |
Bunker swaps - Asset Derivatives - Fair Value | 0 | 140 |
Bunker swaps - Liability Derivatives - Fair Value | 9,228 | 0 |
Bunker put options - Asset Derivatives - Fair Value | 2,443 | 0 |
Bunker put options - Liability Derivatives - Fair Value | 0 | 0 |
FINANCIAL INSTRUMENTS-FAIR VALUE, net of current portion | ||
Derivatives designated as hedging instruments | ||
Interest rate swaps - Asset Derivatives - Fair Value | 0 | 1,401 |
Interest rate swaps - Liability Derivatives - Fair Value | 3,499 | 2,445 |
Derivatives not designated as hedging instruments | ||
Interest rate swaps - Asset Derivatives - Fair Value | 0 | 0 |
Interest rate swaps - Liability Derivatives - Fair Value | 560 | 1,582 |
Bunker swaps - Asset Derivatives - Fair Value | 0 | 37 |
Bunker swaps - Liability Derivatives - Fair Value | $0 | $0 |
Financial_Instruments_Derivati
Financial Instruments - Derivatives Designated as Hedging Instruments - Gain (Loss) Recognized in Accumulated Other Comprehensive Loss on Derivative (Effective Portion) (Table) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Total | ($3,501) | $8,107 | $20,169 |
Gain (Loss) Recognized in Accumulated Other Comprehensive Loss on Derivative (Effective Portion) | |||
Interest rate swaps | -7,042 | -3,338 | -2,964 |
Total | ($7,042) | ($3,338) | ($2,964) |
Financial_Instruments_Derivati1
Financial Instruments - Derivatives Designated As Hedging Instruments - Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) (Table) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative | |||
Total | ($3,542) | ($11,445) | ($23,132) |
Depreciation expense | |||
Derivative | |||
Interest rate swaps | -154 | -144 | -122 |
Interest and finance costs, net | |||
Derivative | |||
Interest rate swaps | ($3,388) | ($11,301) | ($23,010) |
Financial_Instruments_Derivati2
Financial Instruments - Derivatives Not Designated as Hedging Instruments - Net Effect on the Statement of Operations (Table) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative | |||
Total | ($10,430) | $1,235 | ($271) |
Interest and finance costs, net | |||
Derivative | |||
Interest rate swaps | -1,272 | 1,012 | -1,054 |
Bunker swaps | -10,402 | 223 | 783 |
Bunker put options | $1,244 | $0 | $0 |
Financial_Instruments_Fair_Val1
Financial Instruments - Fair Value of Assets and Liabilities Measured on Recurring Basis (Table) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Bunker put options | $2,443 | |
Significant Other Observable Inputs Assets / (Liabilities) (Level 2) | ||
Interest rate swaps | -10,265 | -8,588 |
Bunker swaps | -9,228 | 177 |
Bunker put options | 2,443 | 0 |
Total | ($17,050) | ($8,411) |
Financial_Instruments_Fair_Val2
Financial Instruments - Fair Value of Items Measured on Nonrecurring Basis (Table) (Details) (Significant Other Observable Inputs Assets / (Liabilities) (Level 2), USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Significant Other Observable Inputs Assets / (Liabilities) (Level 2) | |
Vessels | $95,250 |
Total | $95,250 |
Financial_Instruments_Details
Financial Instruments (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Present value of future cash flows of one bank loan | $1,417,430 | $1,378,753 |
Carrying amount | 1,418,336 | 1,380,298 |
Accumulated loss from derivatives designated as Hedging Instruments | 10,290 | 6,789 |
Present value of long-term debt | ||
Present value of future cash flows of one bank loan | 41,782 | |
Carrying amount of long-term debt | ||
Carrying amount | $42,688 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Mar. 19, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 29, 2015 | Jan. 27, 2015 | Feb. 13, 2015 | Feb. 24, 2015 | Mar. 05, 2015 | Mar. 06, 2015 | Apr. 07, 2015 | Oct. 23, 2014 |
Subsequent Event [Line Items] | ||||||||||||
Cash paid for vessel acquisitions | $130,436 | $37,182 | $81,848 | |||||||||
New term bank loan | 158,533 | |||||||||||
Amount drawn down | 686,206 | 572,080 | ||||||||||
Common stock - dividend declared | $0.06 | |||||||||||
Dividends per share declared - payment date | 28-May-15 | |||||||||||
Dividends per share declared - record date | 21-May-15 | |||||||||||
Preferred Class B Shares | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Preferred stock - dividend paid | $0.50 | |||||||||||
Preferred stock dividend rate percentage | 8.00% | |||||||||||
Preferred Class C Shares | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Preferred stock - dividend paid | $0.55 | |||||||||||
Preferred stock dividend rate percentage | 8.88% | |||||||||||
Two LR1 tankers under construction | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Cash paid for vessel acquisitions | 9,384 | |||||||||||
LR1 product carrier | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
New term bank loan | 35,190 | |||||||||||
Expected delivery | Q3 2016 | |||||||||||
LR1 product carrier | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
New term bank loan | 35,190 | |||||||||||
Expected delivery | Q3 2016 | |||||||||||
LNG Carrier | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Cash paid for vessel acquisitions | 20,960 | |||||||||||
Amount drawn down | 20,960 | 31,235 | ||||||||||
Shuttle tanker | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Cash paid for vessel acquisitions | 9,800 | |||||||||||
Aframax crude carrier | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Cash paid for vessel acquisitions | 5,122 | |||||||||||
Amount drawn down | $5,122 |