Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document And Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | TSAKOS ENERGY NAVIGATION LTD |
Entity Central Index Key | 1,166,663 |
Trading Symbol | TNP |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Accelerated Filer |
Entity Well Known Seasoned Issuer | No |
Entity Common Stock Shares Outstanding | 86,319,583 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 189,763 | $ 187,777 |
Restricted cash | 12,910 | 9,996 |
Accounts receivable, net | 27,364 | 38,252 |
Due from related parties (Note 2) | 14,210 | 6,730 |
Advances and other | 19,061 | 24,226 |
Vessels held for sale (Note 1(j)) | 17,500 | 68,410 |
Inventories | 16,293 | 18,756 |
Prepaid insurance and other | 1,577 | 1,842 |
Current portion of financial instruments - Fair value (Note 14) | 5,715 | 2,322 |
Total current assets | 304,393 | 358,311 |
INVESTMENTS (Note 3) | 1,000 | 1,000 |
FINANCIAL INSTRUMENTS - FAIR VALUE, net of current portion (Note 14) | 1,430 | 5,166 |
LONG TERM RECEIVABLE (Note 4) | 13,000 | 0 |
FIXED ASSETS (Note 4) | ||
Advances for vessels under construction | 1,650 | 216,531 |
Vessels | 3,953,599 | 3,479,037 |
Accumulated depreciation | (925,195) | (801,976) |
Vessels' Net Book Value | 3,028,404 | 2,677,061 |
Total fixed assets | 3,030,054 | 2,893,592 |
DEFERRED CHARGES, net (Note 5) | 23,759 | 19,506 |
Total assets | 3,373,636 | 3,277,575 |
CURRENT LIABILITIES: | ||
Current portion of long-term debt (Note 6) | 225,883 | 288,135 |
Payables | 46,916 | 52,511 |
Due to related parties (Note 2) | 7,442 | 5,892 |
Accrued liabilities | 43,693 | 34,707 |
Unearned revenue | 13,611 | 8,428 |
Current portion of financial instruments - Fair value (Note 14) | 1,378 | 3,613 |
Total current liabilities | 338,923 | 393,286 |
LONG-TERM DEBT, net of current portion (Note 6) | 1,525,986 | 1,465,720 |
FINANCIAL INSTRUMENTS - FAIR VALUE, net of current portion (Note 14) | 589 | 1,119 |
STOCKHOLDERS' EQUITY | ||
Preferred shares, $ 1.00 par value; 25,000,000 shares authorized and 2,000,000 Series B Preferred Shares and 2,000,000 Series C Preferred Shares, 3,424,803 Series D Preferred Shares and 4,600,000 Series E Preferred Shares issued and outstanding at December 31, 2017. 15,000,000 shares authorized and 2,000,000 Series B Preferred Shares, 2,000,000 Series C Preferred Shares and 3,400,000 Series D Preferred Shares issued and outstanding at December 31, 2016. | 12,025 | 7,400 |
Common shares, $ 1.00 par value; 175,000,000 shares authorized at December 31, 2017 and 185,000,000 shares authorized at December 31, 2016; 87,338,652 shares issued and 86,319,583 shares outstanding at December 31, 2017 and 87,338,652 shares issued and 83,720,866 shares outstanding at December 31, 2016. | 87,339 | 87,339 |
Additional paid-in capital | 857,998 | 752,001 |
Cost of treasury stock | (5,736) | (20,173) |
Accumulated other comprehensive loss | (5,305) | (4,313) |
Retained earnings | 547,937 | 582,889 |
Total Tsakos Energy Navigation Limited stockholders' equity | 1,494,258 | 1,405,143 |
Noncontrolling Interest | 13,880 | 12,307 |
Total stockholders' equity | 1,508,138 | 1,417,450 |
Total liabilities and stockholders' equity | $ 3,373,636 | $ 3,277,575 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Preferred Shares - par value | $ 1 | $ 1 |
Preferred Shares - shares authorized | 25,000,000 | 15,000,000 |
Common Stock - par value | $ 1 | $ 1 |
Common Stock - shares authorized | 175,000,000 | 185,000,000 |
Common Stock - shares issued | 87,338,652 | 87,338,652 |
Common Stock - shares outstanding | 86,319,583 | 83,720,866 |
8% Series B Preferred Shares | ||
Preferred Shares - shares issued | 2,000,000 | 2,000,000 |
Preferred Shares - shares outstanding | 2,000,000 | 2,000,000 |
8.875% Series C Preferred Shares | ||
Preferred Shares - shares issued | 2,000,000 | 2,000,000 |
Preferred Shares - shares outstanding | 2,000,000 | 2,000,000 |
8.75% Series D Preferred Shares | ||
Preferred Shares - shares issued | 3,424,803 | 3,400,000 |
Preferred Shares - shares outstanding | 3,424,803 | 3,400,000 |
9.25% Series E Preferred Shares | ||
Preferred Shares - shares issued | 4,600,000 | |
Preferred Shares - shares outstanding | 4,600,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | |||
VOYAGE REVENUES: | $ 529,182 | $ 481,790 | $ 587,715 |
EXPENSES: | |||
Voyage expenses | 113,403 | 106,403 | 131,878 |
Charter hire expense | 311 | 0 | 0 |
Vessel operating expenses | 173,864 | 146,546 | 142,117 |
Depreciation and amortization | 139,020 | 113,420 | 105,931 |
General and administrative expenses | 26,324 | 25,611 | 21,787 |
Loss (Gain) on sale of vessels | 3,860 | 0 | (2,078) |
Vessels impairment charge | 8,922 | 0 | 0 |
Total expenses | 465,704 | 391,980 | 399,635 |
Operating income | 63,478 | 89,810 | 188,080 |
OTHER INCOME (EXPENSES): | |||
Interest and finance costs, net (Note 7) | (56,839) | (35,873) | (30,019) |
Interest income | 1,082 | 623 | 234 |
Other, net | 1,464 | 1,935 | 128 |
Total other expenses, net | (54,293) | (33,315) | (29,657) |
Net income | 9,185 | 56,495 | 158,423 |
Less: Net income attributable to the noncontrolling interest | (1,573) | (712) | (206) |
Net income attributable to Tsakos Energy Navigation Limited | 7,612 | 55,783 | 158,217 |
Effect of preferred dividends | (23,776) | (15,875) | (13,437) |
Net (loss) income attributable to common stockholders of Tsakos Energy Navigation Limited | $ (16,164) | $ 39,908 | $ 144,780 |
(Loss) Earnings per share, basic and diluted attributable to Tsakos Energy Navigation Limited common stockholders | $ (0.19) | $ 0.47 | $ 1.69 |
Weighted average number of shares, basic and diluted | 84,713,572 | 84,905,078 | 85,827,597 |
STATEMENTS OF CONSOLIDATED OTHE
STATEMENTS OF CONSOLIDATED OTHER COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
STATEMENT OF CONSOLIDATED OTHER COMPREHENSIVE INCOME [Abstract] | |||
Net income | $ 9,185 | $ 56,495 | $ 158,423 |
Unrealized gains (losses) from hedging financial instruments | |||
Unrealized (loss) gain on interest rate swaps, net | (992) | 6,414 | (437) |
Comprehensive income | 8,193 | 62,909 | 157,986 |
Less: comprehensive income attributable to the noncontrolling interest | (1,573) | (712) | (206) |
Comprehensive income attributable to Tsakos Energy Navigation Limited | $ 6,620 | $ 62,197 | $ 157,780 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Preferred Shares | Common Shares | Additional Paid-in Capital | Treasury stock | Retained Earnings | Accumulated Other Comprehensive Loss | Tsakos Energy Navigation Limited | Non-controlling Interest | 8% Series B Preferred Shares | 8% Series B Preferred SharesRetained Earnings | 8% Series B Preferred SharesTsakos Energy Navigation Limited | 8.875% Series C Preferred Shares | 8.875% Series C Preferred SharesRetained Earnings | 8.875% Series C Preferred SharesTsakos Energy Navigation Limited | 8.75% Series D Preferred Shares | 8.75% Series D Preferred SharesPreferred Shares | 8.75% Series D Preferred SharesAdditional Paid-in Capital | 8.75% Series D Preferred SharesRetained Earnings | 8.75% Series D Preferred SharesTsakos Energy Navigation Limited | Issuance of common shares | Issuance of common sharesCommon Shares | Issuance of common sharesAdditional Paid-in Capital | Issuance of common sharesTreasury stock | Issuance of common sharesRetained Earnings | Issuance of common sharesTsakos Energy Navigation Limited | 9.25% Series E Preferred Shares | 9.25% Series E Preferred SharesPreferred Shares | 9.25% Series E Preferred SharesAdditional Paid-in Capital | 9.25% Series E Preferred SharesRetained Earnings | 9.25% Series E Preferred SharesTsakos Energy Navigation Limited |
BALANCE, at Dec. 31, 2014 | $ 1,177,912 | $ 4,000 | $ 84,712 | $ 650,536 | $ 0 | $ 437,565 | $ (10,290) | $ 1,166,523 | $ 11,389 | ||||||||||||||||||||||
Treasury stock shares, number of shares at Dec. 31, 2014 | 0 | ||||||||||||||||||||||||||||||
Net income | 158,423 | 158,217 | 158,217 | 206 | |||||||||||||||||||||||||||
Issuance of shares | $ 81,784 | $ 3,400 | $ 78,384 | $ 81,784 | $ 25,708 | $ 2,627 | $ 23,081 | $ 25,708 | |||||||||||||||||||||||
Cash dividends paid ($0.06 per common share in 2015, $0.08 and $0.05 per common share in 2016 and $0.05 per common share in 2017) | (15,563) | (15,563) | (15,563) | ||||||||||||||||||||||||||||
Dividends paid on preferred shares | $ (4,000) | $ (4,000) | $ (4,000) | $ (4,437) | $ (4,437) | $ (4,437) | (4,318) | $ (4,318) | (4,318) | ||||||||||||||||||||||
Other comprehensive income/ (loss) | (437) | (437) | (437) | ||||||||||||||||||||||||||||
BALANCE, at Dec. 31, 2015 | 1,415,072 | 7,400 | 87,339 | 752,001 | $ 0 | 567,464 | (10,727) | 1,403,477 | 11,595 | ||||||||||||||||||||||
Treasury stock shares, number of shares at Dec. 31, 2015 | 0 | ||||||||||||||||||||||||||||||
Net income | 56,495 | 55,783 | 55,783 | 712 | |||||||||||||||||||||||||||
Purchases of Treasury stock, shares | 3,705,286 | ||||||||||||||||||||||||||||||
Purchases of Treasury stock, value | (20,683) | $ (20,683) | (20,683) | ||||||||||||||||||||||||||||
Shares granted to non-executive directors, shares | (87,500) | ||||||||||||||||||||||||||||||
Shares granted to non-executive directors, value | 510 | $ 510 | 510 | ||||||||||||||||||||||||||||
Cash dividends paid ($0.06 per common share in 2015, $0.08 and $0.05 per common share in 2016 and $0.05 per common share in 2017) | (24,483) | (24,483) | (24,483) | ||||||||||||||||||||||||||||
Dividends paid on preferred shares | (4,000) | (4,000) | (4,000) | (4,437) | (4,437) | (4,437) | (7,438) | (7,438) | (7,438) | ||||||||||||||||||||||
Other comprehensive income/ (loss) | 6,414 | 6,414 | 6,414 | ||||||||||||||||||||||||||||
BALANCE, at Dec. 31, 2016 | 1,417,450 | 7,400 | 87,339 | 752,001 | $ (20,173) | 582,889 | (4,313) | 1,405,143 | 12,307 | ||||||||||||||||||||||
Treasury stock shares, number of shares at Dec. 31, 2016 | 3,617,786 | ||||||||||||||||||||||||||||||
Net income | 9,185 | 7,612 | 7,612 | 1,573 | |||||||||||||||||||||||||||
Issuance of shares | $ 110,496 | $ 4,600 | $ 105,896 | $ 110,496 | |||||||||||||||||||||||||||
Sale of Shares, shares | (2,488,717) | ||||||||||||||||||||||||||||||
Sale of Shares, value | 533 | $ 25 | $ 508 | 533 | $ 10,853 | $ (407) | $ 13,848 | $ (2,588) | $ 10,853 | ||||||||||||||||||||||
Shares granted to non-executive directors, shares | (110,000) | ||||||||||||||||||||||||||||||
Shares granted to non-executive directors, value | 487 | $ 589 | (102) | 487 | |||||||||||||||||||||||||||
Cash dividends paid ($0.06 per common share in 2015, $0.08 and $0.05 per common share in 2016 and $0.05 per common share in 2017) | (17,066) | (17,066) | (17,066) | ||||||||||||||||||||||||||||
Dividends paid on preferred shares | $ (4,000) | $ (4,000) | $ (4,000) | $ (4,438) | $ (4,438) | $ (4,438) | $ (7,485) | $ (7,485) | $ (7,485) | $ (6,885) | $ (6,885) | $ (6,885) | |||||||||||||||||||
Other comprehensive income/ (loss) | (992) | (992) | (992) | ||||||||||||||||||||||||||||
BALANCE, at Dec. 31, 2017 | $ 1,508,138 | $ 12,025 | $ 87,339 | $ 857,998 | $ (5,736) | $ 547,937 | $ (5,305) | $ 1,494,258 | $ 13,880 | ||||||||||||||||||||||
Treasury stock shares, number of shares at Dec. 31, 2017 | 1,019,069 |
CONSOLIDATED STATEMENTS OF STO7
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parentheticals) - $ / shares | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2016 | Nov. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2015 | |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY [Abstract] | ||||
Common stock - dividends paid | $ 0.05 | $ 0.08 | $ 0.05 | $ 0.06 |
Issuance of common shares | 2,626,357 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows from Operating Activities: | |||
Net income | $ 9,185 | $ 56,495 | $ 158,423 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation | 131,873 | 107,089 | 99,571 |
Amortization of deferred dry-docking costs | 7,147 | 6,331 | 6,360 |
Amortization of loan fees | 4,152 | 1,742 | 1,268 |
Stock compensation expense | 487 | 510 | 0 |
Change in fair value of derivative instruments | (3,692) | (5,232) | (8,908) |
Loss (Gain) on sale of vessels | 3,860 | 0 | (2,078) |
Gain on extinguishment of debt, net | 0 | 0 | (3,208) |
Vessels impairment charge | 8,922 | 0 | 0 |
Payments for dry-docking | (12,532) | (11,606) | (8,368) |
(Increase) Decrease in: | |||
Receivables, net | 8,573 | (5,448) | (9,191) |
Inventories | 2,463 | (4,346) | 1,531 |
Prepaid insurance and other | 265 | (75) | 638 |
Increase (Decrease) in: | |||
Payables | (4,045) | 23,399 | (8,184) |
Accrued liabilities | 8,986 | 5,344 | 4,175 |
Unearned revenue | 5,183 | (3,849) | 2,380 |
Net Cash provided by Operating Activities | 170,827 | 170,354 | 234,409 |
Cash Flows from Investing Activities: | |||
Advances for vessels under construction and acquisitions | 0 | (109,557) | (156,581) |
Vessel acquisitions and/or improvements | (293,347) | (466,518) | (60,934) |
Proceeds from sale of vessels | 51,550 | 0 | 42,761 |
Net Cash used in Investing Activities | (241,797) | (576,075) | (174,754) |
Cash Flows from Financing Activities: | |||
Proceeds from long-term debt | 397,092 | 777,536 | 227,437 |
Financing costs | (3,177) | (6,420) | (2,543) |
Payments of long-term debt | (400,053) | (411,587) | (242,367) |
(Increase) Decrease in restricted cash | (2,914) | 5,334 | (2,996) |
Sale of treasury stock, net | 10,853 | 0 | 0 |
Proceeds from preferred stock issuance, net | 111,029 | 0 | 81,784 |
Repurchase of Common Shares | 0 | (20,683) | 0 |
Cash dividends | (39,874) | (40,358) | (33,401) |
Net Cash provided by Financing Activities | 72,956 | 303,822 | 27,914 |
Net increase (decrease) in cash and cash equivalents | 1,986 | (101,899) | 87,569 |
Cash and cash equivalents at beginning of period | 187,777 | 289,676 | 202,107 |
Cash and cash equivalents at end of period | 189,763 | 187,777 | 289,676 |
Interest paid | |||
Cash paid for interest, net of amounts capitalized | $ 56,580 | $ 35,339 | $ 29,564 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016, the Holding Company consolidated one variable interest entity (“VIE”) for which it is deemed to be the primary beneficiary, i.e. it has a controlling financial interest in this entity. 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 in a separate statement according to ASU 2011-05. The Company owns and operates a fleet of crude oil and product carriers and two LNG carriers 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)Comprehensive income: The statement of comprehensive income presents the change in equity (net assets) during a period from transactions and other events and circumstances from non-owner sources. It includes all changes in equity during a period except those resulting from investments by shareholders and distributions to shareholders. Reclassification adjustments are presented out of accumulated other comprehensive income (loss) on the face of the statement in which the components of other comprehensive income are presented or in the notes to the financial statements. The Company follows the provisions of ASC 220 “Comprehensive Income”, and presents items of net income, items of other comprehensive income (“OCI”) and total comprehensive income in two separate and consecutive statements. (d)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 reflected within Operating expenses in the accompanying Consolidated Statements of Comprehensive Income. (e)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. (f)Accounts Receivable, Net: 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, 2017 and 2016). The Company’s management at each balance sheet date reviews all outstanding invoices and provides allowances for receivables deemed uncollectible primarily based on the aging of such balances and any amounts in dispute. (g)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. In July 2015, the FASB issued ASU No. 2015-11 – Inventory, as part of FASB Simplification Initiative, according to which the entities are required to measure inventory at the lower of cost or net realizable value. Net realizable value is defined as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This update was effective for public entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years prospectively. During fiscal year 2017, the Company adopted the aforementioned update, which did not impact its results of operations, financial position or cash flows, in the current and previous interim and annual reporting periods. (h)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 newbuildings, 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. (i)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, 2017, indicated an impairment charge of $8,922 (Note 4). No impairment charge was indicated as of December 31, 2016, and December 31, 2015. (j)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, 2017, the Company considered that the VLCC Millennium met the criteria to be classified as held for sale. At December 31, 2016 and 2015, the two suezmaxes Eurochampion 2004 and Euronike were classified as held for sale. (k)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 during the first ten years of life as previously estimated. This change in estimate does not have a material effect in the years ended December 31, 2017 and 2016 and is not expected to have a 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. (l)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. Deferred financing costs, net of accumulated amortization, is presented as a reduction of long-term debt. (m)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 charter 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 2017, 2016 and 2015 included revenues derived from significant charterers as follows (in percentages of total voyage revenues): Charterer 2017 2016 2015 A 14% 13% 14% B 11% 13% 10% C 10% 9% 9% D 9% 7% 8% (n)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 two liquefied natural gas (LNG) carriers which meets the quantitative thresholds used to determine reportable segments. The chief operating decision maker does not review the operating results of these vessels separately or make any decisions about resources to be allocated to these vessels or assess their performance separately; therefore, the LNG carriers do 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. (o)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 Comprehensive Income 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. (p)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 14). 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. (q)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. At December 31, 2017, the sale and leaseback transactions for two vessels resulted in operating leases (Note 4). (r)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 8). On January 1, 2017, the Company adopted ASU No. 2016-09, Compensation--Stock Compensation: Improvements to Employee Share-Based Payment Accounting, effective for the fiscal year ending December 31, 2017 and interim periods within this fiscal year. The adoption of this guidance has had no impact on the Company's results of operations, cash flows and net assets for any period. (s)Going concern: The Company evaluates whether there is substantial doubt about its ability to continue as a going concern by applying the provisions of ASU No. 2014-15. In more detail, the Company evaluates whether there are conditions or events that raise substantial doubt about the Company’s ability to continue as a going concern within one year from the date the financial statements are issued. As part of such evaluation, the Company did not identify any conditions that raise substantial doubt about the entity’s ability to continue as a going concern within one year from the date the financial statements are issued. As a result, there was no impact in the Company’s results of operations, financial position, cash flows or disclosures. New Accounting Pronouncements - Not Yet Adopted In January 2016, the FASB issued ASU No. 2016-01— Financial Instruments—Overall (Subtopic 825-10) , which includes the requirement for all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under the equity method of accounting or those that result in consolidation of the investee). This Update is effective for all entities for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is not permitted. The Company has not yet determined what impact, if any, the adoption of the new standard will have on its consolidated financial position, results of operations or cash flows. In February 2016, the FASB issued ASU No. 2016-02— Leases (ASC 842) , which requires lessees to recognize most leases on the balance sheet. This is expected to increase both reported assets and liabilities. The new lease standard does not substantially change lessor accounting. For public companies, the standard will be effective for the first interim reporting period within annual periods beginning after December 15, 2018, although early adoption is permitted. Lessees and lessors will be required to apply the new standard at the beginning of the earliest period presented in the financial statements in which they first apply the new guidance, using a modified retrospective transition method. The requirements of this standard include a significant increase in required disclosures. In a recent update, targeted improvements were proposed to the accounting standards that provide for (a) an optional new transition method for adoption that results in initial recognition of a cumulative effect adjustment to retained earnings in the year of adoption and (b) a practical expedient for lessors, under certain circumstances, to combine the lease and non-lease components of revenues for presentation purposes. If the targeted improvements are approved, we intend to apply the alternative transition method and intend to elect the practical expedient for lessors for presentation purposes. The Company is analyzing the impact of the adoption of this guidance on the Company’s consolidated financial statements, including assessing changes that might be necessary to information technology systems, processes and internal controls to capture new data and address changes in financial reporting. With respect to leases whereby we are the lessee, we are currently expecting to recognize lease liabilities and offsetting “right of use” assets upon adoption. The future lease obligations disclosed in Note 4, Vessels, provide some insight to the estimated impact of adoption for us as a lessee. We are currently evaluating any other impacts ASC 842, including any newly issued guidance, will have on our consolidated financial statements and related disclosures. In May and April 2016, the FASB issued two Updates with respect to Topic 606: ASU No. 2016-10— Revenue from Contracts with Customers (Topic 606) : Identifying Performance Obligations and Licensing and ASU No. 2016-12— Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. The amendments in these Updates do not change the core principle of the guidance in Topic 606, which is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services by applying the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The amendments in Update 2016-10 simply clarify the following two aspects of Topic 606: (1) identifying performance obligations and (2) licensing implementation guidance. The amendments in Update 2016-12 similarly affect only certain narrow aspects of Topic 606; namely, (1) “Assessing the Collectability Criterion in Paragraph 606-10-25-1(e) and Accounting for Contracts That Do Not Meet the Criteria for Step 1 (Applying Paragraph 606-10-25-7),” (2) “Presentation of Sales Taxes and Other Similar Taxes Collected from Customers,” (3) “Noncash Consideration,” (4) “Contract Modifications at Transition,” (5) “Completed Contracts at Transition,” and (6) “Technical Correction.” The amendments in these Updates also affect the guidance in Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The effective date and transition requirements for the amendments in these Updates are the same as the effective date and transition requirements in Topic 606 (and any other Topic amended by Update 2014-09). Accounting Standards Update 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date,” has deferred the effective date of Update 2014-09 for public business entities to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted. The new revenue standard may be applied using either of the following transition methods: (1) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (2) a modified retrospective approach with the cumulative effect of initially adopting the standard recognized at the date of adoption (which includes additional footnote disclosures). The Company adopted this new revenue guidance effective January 1, 2018, utilizing the modified retrospective method, and will expand its consolidated financial statement disclosures in order to comply with the update. The Company estimates that the adoption of this standard results in a decrease in the opening retained earnings balance as of January 1, 2018 of $2,219. As the Company finalizes its assessment, the Company continues to evaluate the requirements of this standard and complete other implementation activities such as implementing new procedures, finalizing the adoption date adjustment and drafting disclosures. In June 2016, the FASB issued ASU No. 2016-13— Financial Instruments—Credit Losses (Topic 326) — Measurement of Credit Losses on Financial Instruments. ASU 2016-13 amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For public entities, the amendments of this Update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early application is permitted. Management is in the process of assessing the impact of the amendment of this Update on the Company’s consolidated financial position and performance. In August 2016, the FASB issued ASU No. 2016-15— Statement of Cash Flows (Topic 230) —Classification of Certain Cash Receipts and Cash Payments which addresses the following eight specific cash flow issues with the objective of reducing the existing diversity in practice: Debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of any corporate-owned life insurance policy (“COLI”) (including any bank-owned life insurance policy (“BOLI”)); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017 including interim periods within that reporting period, however early adoption is permitted. The Company is currently evaluating the provisions of this guidance and assessing its impact on its consolidated financial statements and notes disclosures. In November 2016, the FASB issued ASU No. 2016-18— Statement of Cash Flows (Topic 230)— Restricted Cash , which addresses the requirement that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this Update apply to all entities that have restricted cash or restricted cash equivalents and are required to present a statement of cash flows under Topic 230. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017 including interim periods within that reporting period; however early adoption is permitted. The Company is currently evaluating the provisions of this guidance and assessing its impact on its consolidated financial statements and notes disclosures. In January 2017, the FASB issued ASU 2017-01— Business Combinations (Topic 805) to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as an acquisition (or disposal) of assets or businesses. Under current implementation guidance, the existence of an integrated set of acquired activities (inputs and processes that generate outputs) constitutes an acquisition of business. This ASU provides a screen to determine when a set of assets and activities does not constitute a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This update is effective for public entities with reporting periods beginning after December 15, 2017, including interim periods within those years. The amendments of this ASU should be applied prospectively on or after the effective date. Early adoption is permitted, including adoption in an interim period (i) for transactions for which the acquisition date occurs before the issuance date or effective date of the ASU, only when the transaction has not been reported in financial statements that have been issued or made available for issuance and (ii) for transactions in which a subsidiary is deconsolidated or a group of assets is derecognized that occur before the issuance date or effective date of the amendments, only when the transaction has not been reported in financial statements that have been issued or made available for issuance. The Company is currently assessing the impact that adopting this new accounting guidance will have on its consolidated financial statements. In July 2017, the FASB issued ASU No. 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480) and Derivatives and Hedging (Topic 815): I. Accounting for Certain Financial Instruments with Down Round Features; II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Non-controlling Interests with a Scope Exception, (ASU 2017-11). Part I of this update addresses the complexity of accounting for certain financial instruments with down round features. Down round features are features of certain equity-linked instruments (or embedded features) that result in the strike price being reduced on the basis of the pricing of future equity offerings. Current accounting guidance creates cost and complexity for entities that issue financial instruments (such as warrants and convertible instruments) with down round features that require fair value measurement of the entire instrument or conversion option. Part II of this update addresses the difficulty of navigating Topic 480, Distinguishing Liabilities from Equity, because of the existence of extensive pending content in the FASB Accounting Standards Codification. This pending content is the result of the indefinite deferral of accounting requirements about mandatorily redeemable financial instruments of certain nonpublic entities and certain mandatorily redeemable non-controlling interests. The amendments in Part II of this |
Transactions with Related Parti
Transactions with Related Parties | 12 Months Ended |
Dec. 31, 2017 | |
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: 2017 2016 2015 Tsakos Shipping and Trading S.A. (commissions) 6,532 5,989 7,550 Tsakos Energy Management Limited (management fees) 19,480 16,935 16,032 Tsakos Columbia Shipmanagement S.A. (special charges) 1,518 2,136 2,234 Argosy Insurance Company Limited (insurance premiums) 10,199 9,036 9,386 AirMania Travel S.A. (travel services) 5,404 4,866 4,298 Total expenses with related parties 43,133 38,962 39,500 Balances due from and due to related parties are as follows: December 31, 2017 2016 Due from related parties Tsakos Columbia Shipmanagement S.A. 14,210 6,730 Total due from related parties 14,210 6,730 Due to related parties Tsakos Energy Management Limited 728 417 Tsakos Shipping and Trading S.A. 313 759 Argosy Insurance Company Limited 5,947 4,285 AirMania Travel S.A. 454 431 Total due to related parties 7,442 5,892 There was also, at December 31, 2017, an amount of $125 ($552 at December 31, 2016) due to Tsakos Shipping and Trading S.A. and $68 ($24 at December 31, 2016) due to Argosy Insurance Company Limited, included in accrued liabilities, which relate to services rendered by these related parties, but 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 addition, the fees may be increased if there is a material unforeseen increase in the costs of providing the management services, in which case the amount of such fee increase will be agreed between both parties. There was no increase in monthly fees based on these criteria in 2017, 2016 and 2015. In 2017, 2016 and 2015, the monthly fees for operating conventional vessels were $27.5, and $20.4 for vessels chartered out on a bare-boat basis and $35.0 for the DP2 shuttle tankers. In 2017, 2016 and 2015, the monthly fees for LNG carriers amounted to $36.3, $35.8 and $35.8, respectively. From the above fees, in 2017 a third-party manager was paid $26.3 for the LNG carriers, Maria Energy and Neo Energy and $14.2 for each of the suezmax Eurochampion 2004, the aframaxes Maria Princess and Sapporo Princess and the VLCCs Ulysses, Millennium and Hercules I . In 2016, a third-party manager was paid $25.8 for the LNG carriers, $13.9 for each of the suezmax Eurochampion 2004, the aframax Maria Princess and the VLCC Ulysses and $14.2 for the aframax Sapporo Princess . In 2015, a third-party manager was paid $10.0 for the LNG carrier Neo Energy , $13.9 for the VLCC Millennium until November 5, 2015 and $12.0 for the suezmax Eurochampion 2004 . 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 2017, 2016 and 2015, an award of $575, $2,575 and $1,142 respectively, was granted to the Management Company and is included in the General and Administrative expenses in the accompanying Consolidated Statement of Comprehensive income. In addition, a special award of $575 was paid to the Management Company in relation to capital raising offerings in 2017. In addition, a special award of $425 was paid to the Management Company in relation to capital raising offerings in 2015 and $460 was paid in 2015 in relation to capital raising offerings in 2014. These awards relating to offerings 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 as at December 31, 2017, to pay the Management Company an amount of approximately $160,741 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 scheduled for future delivery as at December 31, 2017, are: Year Amount 2018 19,787 2019 19,787 2020 19,787 2021 19,787 2022 19,787 2023 to 2027 88,443 187,378 Management fees for vessels are included in the accompanying Consolidated Statements of Comprehensive Income. Also, under the terms of the Management Agreement, the Management Company provides supervisory services for the construction of new vessels for a monthly fee of $20.4 in 2017, 2016 and 2015. These fees in total amounted to $590, $3,016 and $3,346 for 2017, 2016 and 2015, 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 related party interests and by a private German Group. TCM, with 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 the Company’s 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. TCM has a 25% share in a manning agency, located in the Philippines, named TCM Tsakos Maritime Philippines (TMPI), which provides crew to certain of the Company’s vessels. The Company has no control or ownership directly in TCM Tsakos Maritime Philippines, nor had any direct transactions to date with the agency. As of December 31, 2017, TCM has made advances to TMPI as a manning agent amounting to $2.6 million, included in Advances and other. (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 Tsakos Shipping a chartering commission of approximately 1.25% on all freights, hires and demurrages. Such commissions are included in Voyage expenses in the accompanying Consolidated Statements of Comprehensive Income. Tsakos Shipping also provides sale and purchase of vessels brokerage service. In 2015, the handysize tanker Delphi and the suezmax tanker Triathlon were sold to client companies of Tsakos Shipping. For this service, Tsakos Shipping charged a brokerage commission of $215 which was 0.5% of the sale price of the vessels. Tsakos Shipping may also charge a fee of $200 (or such other sum as may be agreed) on delivery of each newbuilding vessel in payment for the cost of design and supervision of the newbuilding by Tsakos Shipping. In 2017, $3.1 million in aggregate was charged for supervision fees on fifteen vessels which were delivered between May 2016 and October 2017. In 2016 and 2015, 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 of the Holding Company. During 2017, 2016 and 2015, a ship brokerage company affiliated with a non-executive member of the Board of Directors, received $0.1 million, $0.2 million and $0.3 million, commissions, respectively, for brokerage services provided to the Company in relation to the charter of vessels owned by three of the Company’s subsidiaries. In 2017 the same company earned $0.3 million in commission relating the acquisition of the VLCC Hercules I . In 2016, the same company earned $0.3 million in commission relating the acquisition of the VLCC Ulysses. No respective commissions were charged in 2015. All such arrangements were performed in the ordinary course of the Company’s business and at terms standard to industry practice. (d)Argosy Insurance Company Limited (“Argosy”): The Company places its hull and machinery insurance, increased value insurance, war risk insurance 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. |
Long-term Investments
Long-term Investments | 12 Months Ended |
Dec. 31, 2017 | |
Long-term Investments [Abstract] | |
Long-term Investments | 3.Long-term Investments At December 31, 2017 and 2016, 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 2017, 2016 and 2015. |
Vessels
Vessels | 12 Months Ended |
Dec. 31, 2017 | |
Vessels [Abstract] | |
Vessels | 4.Vessels Acquisitions During 2017, the Company acquired its newbuild VLCC tanker Hercules I for $101,208, the newbuild aframaxes Marathon TS , Sola TS, Oslo TS, Stavanger TS and Bergen TS for $294,494 in total and the newbuild shuttle tanker Lisboa for $108,492. During 2016, the Company acquired the suezmax tanker Decathlon for $64,992, the newbuild aframaxes Elias Tsakos , Thomas Zafiras, Leontios H and Parthenon TS for $223,291 in total, the two newbuild panamaxes Sunray and Sunrise for $101,584 in total, the newbuild VLCC Ulysses for $100,189 and the newbuild LNG Maria Energy for $239,029. Sales There were no vessel sales in 2016 or, other than the transactions described below under “—Sale and Leaseback,” in 2017. On July 16, 2015 and July 17, 2015, the Company sold the handysize tanker Delphi and the suezmax tanker Triathlon , for net proceeds of $42,761 in total, realizing a total net gain of $2,078. The capital gains from the sale of vessels are separately reflected in the accompanying 2015 Consolidated Statement of Comprehensive Income. Sale and Leaseback On December 21, 2017, the Company entered into a five-year sale and leaseback agreement for each of the two suezmaxes previously classified as Held for Sale, Eurochampion 2004 and Euronike . The agreed net sale price was $32,600 each. There was a total loss on sale of the vessels of $3,860, which was recorded in the fourth quarter of 2017. Under these leaseback agreements, there is a seller’s credit of $6,500 each on the sales price that becomes immediately payable to the Company by the owners at the end of the five-year charter or upon sale of the vessels during the charter period. The Company analyzed the classification of the leaseback agreements based on the primary lease classification criteria and the supplemental indicators in ASC 840, and determined that these agreements qualified as operating leases. Charter hire expense As at December 31, 2017, minimum commitments to be incurred by the Company under vessel operating leases by which the Company charters-in vessels were approximately $53,844, comprised of $10,822 (2018), $10,822 (2019), $10,852 (2020), $10,822 (2021), and $10,526 (2022). The Company recognizes the expense from these charters, which is included in time-charter hire expense, on a straight-line basis over the term of the charters. Impairment As of December 31, 2017, the Company reviewed the carrying amount in connection with the estimated recoverable amount for each of its vessels. This review indicated that such carrying amount was not fully recoverable for two of the Company’s vessels; Silia T and Millennium . Consequently, the carrying value of these two vessels, totaling $44,672, has been written down to $35,750, based on Level 2 inputs of the fair value hierarchy, as determined by management taking into consideration valuations from independent marine valuers (Note 14(c)). The resulting impairment charge was $8,922 and is reflected in the accompanying Consolidated Statements of Comprehensive Income. As of December 31, 2016, and 2015 there were no impairment charges. |
Deferred Charges
Deferred Charges | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Charges [Abstract] | |
Deferred Charges | 5.Deferred Charges Deferred charges, consisting of dry-docking and special survey costs, net of accumulated amortization, amounted to $23,759 and $19,506, at December 31, 2017 and 2016, respectively. Amortization of deferred dry-docking costs is included in Depreciation and amortization in the accompanying Consolidated Statements of Comprehensive income. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2017 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | 6.Long –Term Debt Facility 2017 2016 (a) Credit Facilities 250,104 344,564 (b) Term Bank Loans 1,512,978 1,421,479 Total 1,763,082 1,766,043 Less deferred finance costs, net (11,213) (12,188) Total long-term debt 1,751,869 1,753,855 Less current portion of debt (228,967) (291,111) Add deferred finance costs, current portion 3,084 2,976 Total long-term portion, net of current portion and deferred finance costs 1,525,986 1,465,720 (a) Credit facilities As at December 31, 2017, the Company had two open reducing revolving credit facilities, both of which are reduced in semi-annual installments, and one open facility which has both a reducing revolving credit component and a term bank loan component, with balloon payments due at maturity between October 2018 and April 2019. At December 31, 2017, there was no available unused amount. Interest is payable at a rate based on LIBOR plus a margin. At December 31, 2017, interest on these facilities ranged from 2.00% to 5.19%. (b) Term bank loans Term loan balances outstanding at December 31, 2017, amounted to $1,512,978. These bank loans are payable in U.S. Dollars in quarterly or semi-annual installments with balloon payments mainly due at maturity between September 2018 and January 2027. Interest rates on the outstanding loans as at December 31, 2017, are based on LIBOR plus a spread. On May 23, 2017, the Company signed a new four-year bank loan for $122,500 relating to the refinancing of the aframax tankers Izumo Princess and Asahi Princess , the handysize product carrier Aegeas, the two panamax tankers World Harmony and Chantal and the two suezmax tankers Archangel and Alaska with matured debts between June 2017 and February 2018. The final drawdown amounts to $117,162. The loan is repayable in eight semi-annual installments with the first four amounting to $8,283 and the second four amounting to $7,312, commencing six months after the first drawdown date, plus a balloon of $54,782 payable together with the last installment. On September 15, 2017, the Company signed a new seven and half year loan for $85,000 relating to the refinancing of the suezmax shuttle tanker Lisboa. The Company repaid the amount of $73,500 which was outstanding at the refinancing date and drew down $85,000 on the same date. The new loan is repayable in fifteen semi-annual installments of $2,833.33 commencing six months after the drawdown date, plus a balloon of $42,500 payable together with the last installment. On December 21, 2017, the Company prepaid the amount of $35,994 to lenders due to sale of the two suezmax tankers Eurochampion 2004 and Euronike (Note 4). On February 15, 2018, the Company signed a new five-year loan relating to the refinancing of eleven vessels with matured debts between October 2018 and April 2019. The total amount of the loan amounts to $162,575 and was drawn on April 3, 2018. The new loan is repayable in ten semi-annual installments of $11,561, commencing six months after the drawdown date, plus a balloon of $46,965 payable together with the last installment. On April 4, 2018, the Company prepaid $181,168 relating to the outstanding debt on the above eleven vessels. At December 31, 2017, interest on these term bank loans ranged from 2.85% to 4.54%. The weighted-average interest rates on the above executed loans for the applicable periods were: Year ended December 31, 2017 3.47% Year ended December 31, 2016 2.71% Year ended December 31, 2015 2.30% Loan movements for credit facilities and term loans throughout 2017: Loan Origination Date Original Amount Balance at January 1, 2017 New Loans Prepaid Repaid Balance at December 31, 2017 Credit facility 1 2004 179,384 70,135 — 30,391 8,150 31,594 Credit facility 2005 220,000 30,920 — 29,100 1,820 — Credit facility 2006 371,010 171,010 — — 20,000 151,010 Credit facility 2007 120,000 72,500 — — 5,000 67,500 10-year term loan 2007 88,350 44,190 — — 5,520 38,670 10-year term loan 2009 38,600 20,110 — — 2,234 17,876 8-year term loan 2009 40,000 21,352 — 18,688 2,664 — 12-year term loan 2009 40,000 23,750 — — 2,500 21,250 10-year term loan 2010 39,000 22,100 — — 2,600 19,500 7-year term loan 2010 70,000 42,160 — 37,520 4,640 — 10-year term loan 2010 43,924 24,617 — — 3,218 21,399 9-year term loan 2010 42,100 26,500 — — 2,600 23,900 10-year term loan 2011 48,000 30,400 — — 3,200 27,200 9-year term loan 2011 48,650 32,434 — — 3,243 29,191 8-year term loan 2011 73,600 73,600 — — 6,133 67,467 8-year term loan 2012 73,600 73,600 — — 6,942 66,658 7-year term loan 2013 18,000 13,575 — — 1,620 11,955 7-year term loan 2014 42,000 36,400 — — 2,800 33,600 6-year term loan 2014 193,239 167,826 24,212 — 10,841 181,197 6-year term loan 2014 39,000 33,800 — — 2,600 31,200 7-year term loan 2014 40,400 16,598 23,802 — 1,341 39,059 6-year term loan 2014 78,744 32,114 46,630 — 1,150 77,594 6-year term loan 2014 39,954 16,598 23,356 — — 39,954 5-year term loan 2015 35,190 35,190 — — 1,955 33,235 7-year term loan 2015 35,190 35,190 — — 2,199 32,991 7-year term loan 2015 39,900 36,273 — — 3,627 32,646 5-year term loan 2015 82,775 77,602 — — 10,347 67,255 6-year term loan 2015 46,217 41,595 — — 4,622 36,973 8-year term loan 2015 73,500 39,200 34,300 71,200 2,300 — 7-year term loan 2015 44,800 43,200 — — 3,200 40,000 12-year term loan 2016 309,824 251,199 42,630 625 19,269 273,935 2&5-year term loan 2016 60,000 60,000 — 35,994 11,200 12,806 5-year term loan 2016 33,104 32,180 — — 5,092 27,088 4-year term loan 2016 18,125 18,125 — — 3,625 14,500 7½-year term loan 2017 85,000 — 85,000 — — 85,000 4-year term loan 2017 122,500 — 117,162 — 8,283 108,879 Total 1,766,043 397,092 223,518 176,535 1,763,082 1 This credit facility includes a fixed interest rate portion amounting to $8,617 as at December 31, 2017. The above revolving credit facilities and term bank loans are secured by first priority mortgages on all vessels owned by our subsidiaries, 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 $113,427 at December 31, 2017 and $108,139 at December 31, 2016, a minimum consolidated leverage ratio, a minimum hull value in connection with the vessels’ outstanding loans and insurance coverage of the vessels against all customary risks. Four loan agreements require the Company to maintain throughout the security period, an aggregate credit balance in a deposit account of $4,250. Four loan agreements require a monthly pro rata transfer to retention account of any principal due but unpaid. As at December 31, 2017, the Company and its wholly owned subsidiaries had thirty-two loan agreements, totaling $1,763,082. The Company fulfilled its requirements in respect of the financial covenants of all the agreements in relation to the leverage ratio and all other terms and covenants, apart from the value-to-loan requirement in certain of its loan agreements in respect of which an amount of $883 has been reclassified within current liabilities at December 31, 2017. The Company’s liquidity requirements relate primarily to servicing its debt, funding the equity portion of investments in vessels and funding expected capital expenditures on dry-dockings and working capital. The annual principal payments, including balloon payments on loan maturity, required to be made after December 31, 2017, are as follows: Period/Year Amount 2018 228,084 2019 256,775 2020 257,857 2021 357,573 2022 201,838 2023 and thereafter 460,955 1,763,082 |
Interest and Finance Costs, net
Interest and Finance Costs, net | 12 Months Ended |
Dec. 31, 2017 | |
Interest and Finance Costs, net [Abstract] | |
Interest and Finance Costs, net | 7.Interest and Finance Costs, net 2017 2016 2015 Interest expense 62,343 41,451 32,065 Less: Interest capitalized (445) (4,015) (3,430) Interest expense, net 61,898 37,436 28,635 Interest swaps termination cash settlements (3,685) — — Interest swap cash settlements non-hedging — 1,086 2,201 Bunkers swap and call options cash settlements (2,547) (128) 7,427 Bunker call options premium 216 266 1,414 Amortization of loan fees 4,152 1,742 1,268 Bank charges 164 143 137 Finance project costs expensed — — 1,261 Change in fair value of non-hedging financial instruments (3,359) (4,672) (9,116) Net gain on the prepayment of a loan — — (3,208) Net total 56,839 35,873 30,019 At December 31, 2017, the Company was committed to five floating-to-fixed interest rate swaps with major financial institutions covering notional amounts aggregating to $182,320, maturing from May 2018 through March 2021, on which it pays fixed rates averaging 2.71% and receives floating rates based on the six-month London interbank offered rate (“LIBOR”) (Note 14). At December 31, 2017, all interest rate swap agreements were designated and qualified as cash flow hedges, in order to hedge the Company’s exposure to interest rate fluctuations. The fair values of such financial instruments as of December 31, 2017 and 2016, in aggregate amounted to $1,966 (negative) and $1,030 (negative), respectively. The net amount of cash flow hedge losses at December 31, 2017, that is estimated to be reclassified into earnings within the next twelve months is $833. At December 31, 2017 and 2016, the Company held one and five, respectively, call option agreements in order to hedge its exposure to bunker price fluctuations associated with the consumption of bunkers by its vessels. The value of the call options at December 31, 2017 and 2016 was $118 (positive) and $1,307 (positive), respectively. At December 31, 2015, the Company held twelve call option agreements with total value $154 (positive). The changes in their fair value during 2017, 2016 and 2015 amounting to $1,189 (negative), $1,153 (positive) and $154 (positive), respectively have been included in Change in fair value of non-hedging financial instruments in the above table. During 2017, the Company entered into two call option agreements and paid total premium of $216. During 2017, the Company entered into nine bunker swap agreements in order to hedge its exposure to bunker price fluctuations associated with the consumptions of bunkers by its vessels. The fair value of bunker swap agreements at December 31, 2017, was $7,027 (positive). The change in the fair values as of December 31, 2017, was $4,548 (positive). During 2016, the Company entered into three bunker swap agreements in order to hedge its exposure to bunker price fluctuations associated with the consumption of bunkers by the vessel Ulysses . The fair values of these financial instruments as of December 31, 2017 and 2016, were $3,264 (positive) and $2,479 (positive), respectively. The change in their fair value during 2017 was $785 (positive). At December 31, 2015, the Company held one interest rate swap that did not meet hedge accounting criteria. As such, the change in its fair value during the 2015 has been included in Change in fair value of non-hedging financial instruments and amounted to a gain of $2,178. This interest rate swap expired on April 10, 2016. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | 8.Stockholders’ Equity On April 5, 2017, the Company completed an offering of 4,600,000 of its Series E Cumulative Perpetual Preferred Shares, par value $1.00 per share, liquidation preference $25.00 per share, raising $110,496, net of underwriter’s discount and other expenses. Dividends on the Series E Preferred Shares are cumulative from the date of original issue and will be payable quarterly in arrears on the 28 th day of February, May, August and November of each year, commencing May 28, 2017, when, as and if declared by our board of directors. Dividends will be payable from cash available for dividends at a rate equal to 9.25% per annum of the stated liquidation preference prior to May 28, 2027 and from and including May 28, 2027, at a floating rate equal to three-month LIBOR plus a spread of 6.881% per annum of the stated liquidation preference . On October 10, 2017, under the Company’s share-based plan the Company granted 110,000 restricted share units to all non-executive directors out of the repurchased treasury stock, which vested immediately. A related amount of $0.5 million was accounted for as stock compensation expense within General and Administrative expenses in the accompanying financial statements. In 2017, the Company sold 2,488,717 common shares from its treasury stock for net proceeds of $10,853 and 24,803 of its Series D Preferred Shares for net proceeds of $533. On April 8, 2016, under the Company’s share-based plan the Company granted 87,500 restricted share units to all non-executive directors out of the repurchased treasury stock, which vested immediately. A related amount of $0.5 million was accounted for as stock compensation expense within General and Administrative expenses in the accompanying Financial Statements. On April 22, 2015, the Company completed an offering of 3,400,000 of its 8.75% Series D Cumulative Perpetual Preferred Shares, par value $1.00 per share, liquidation preference $25.00 per share, raising $81,784, net of underwriter’s discount and other expenses. Dividends on the Series D Preferred Shares are cumulative from the date of original issue and will be payable quarterly in arrears on the 28th day of February, May, August and November of each year, commencing August 28, 2015, when, as and if declared by our board of directors. Dividends will be payable from cash available for dividends at a rate equal to 8.75% per annum of the stated liquidation preference. At any time on or after April 29, 2020, the Series D Preferred Shares may be redeemed, in whole or in part, out of amounts available thereof, at a redemption price of $25.00 per share plus an amount equal to all accumulated and unpaid dividends thereon to the date of redemption, whether or not declared. The Series D preferred shares are not convertible into common shares and are not redeemable at the option of the holder. On July 30, 2015, the Company issued 2,626,357 common shares at a value of $9.7881 per share so as to partially finance the acquisition of two resale contracts for the construction of VLCC tankers for delivery in 2016 and 2017. As at December 31, 2015, 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. No (RSUs) were granted in 2015. |
Accumulated other comprehensive
Accumulated other comprehensive loss | 12 Months Ended |
Dec. 31, 2017 | |
Accumulated other comprehensive loss [Abstract] | |
Accumulated other comprehensive loss | 9.Accumulated other comprehensive loss In 2017, Accumulated other comprehensive loss increased to $5,305 ($4,313 in 2016) due to unrealized losses from hedging financial instruments of $992 (gains of $6,414 in 2016 and losses $437 in 2015). |
Earnings per Common Share
Earnings per Common Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings per Common Share [Abstract] | |
Earnings per Common Share | 10.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 granted RSUs (Note 8) using the treasury stock method. Numerator 2017 2016 2015 Net income attributable to Tsakos Energy Navigation Limited $ 7,612 $55,783 $158,217 Preferred share dividends, Series B (4,000) (4,000) (4,000) Preferred share dividends, Series C (4,437) (4,437) (4,437) Preferred share dividends, Series D (7,479) (7,438) (5,000) Preferred share dividends, Series E (7,860) — — Net (loss) income attributable to common share holders (16,164) 39,908 144,780 Denominator Weighted average common shares outstanding 84,713,572 84,905,078 85,827,597 Basic and diluted (loss) earnings per common share $(0.19) $0.47 $1.69 For 2017, 2016 and 2015 there were no non-vested RSUs. |
Noncontrolling Interest in Subs
Noncontrolling Interest in Subsidiary | 12 Months Ended |
Dec. 31, 2017 | |
Noncontrolling Interest in Subsidiary [Abstract] | |
Noncontrolling Interest in Subsidiary | 11.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 9.5% of the Company’s 2017 revenue (7.4% in 2016) was generated by the charterer affiliated to Polaris. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Income Taxes | 12.Income Taxes Under the laws of the countries of the Company’s subsidiaries’ incorporation and/or vessels’ registration (Greece, Liberia, Marshall Islands, Panama, Bahamas, Cyprus, Malta), 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 its 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, 2017 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 13.Commitments and Contingencies At December 31, 2017, there is a prepaid amount of $1,650 under an old shipbuilding contract which was terminated in 2014, which will be used against the contract price of future new buildings, currently being discussed between the Company and the shipyard. 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 of vessels in operation at December 31, 2017, before reduction for brokerage commissions, expected to be recognized on non-cancelable time charters are as follows: Year Amount 2018 282,501 2019 211,966 2020 185,954 2021 153,378 2022 to 2028 354,466 Minimum charter payments 1,188,265 These amounts do not assume any off-hire. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments [Abstract] | |
Financial Instruments | 14.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 6 and 7. (b)Concentration of credit risk: Financial Instruments 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 $8,472 as compared to its carrying amount of $8,617 (Note 6). The Company performs relevant enquiries on a periodic basis to assess the recoverability of the long-term investment 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, and bunker swap agreements, put option agreements and call option agreements discussed in Note 6 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 estimated fair values of the Company’s financial instruments, other than derivatives at December 31, 2017 and 2016 are as follows: 2017 2016 Carrying Amount Fair Value Carrying Amount Fair Value Financial assets/(liabilities) Cash and cash equivalents 189,763 189,763 187,777 187,777 Restricted cash 12,910 12,910 9,996 9,996 Investments 1,000 1,000 1,000 1,000 Debt (1,763,082) (1,762,938) (1,766,043) (1,765,726) 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 Comprehensive Income or in the Balance Sheet, as a component of Accumulated other comprehensive loss. Asset Derivatives Liability Derivatives December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 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 — 1 1,378 3,613 Financial instruments—Fair Value, net of current portion — 3,701 589 1,119 Subtotal — 3,702 1,967 4,732 Asset Derivatives Liability Derivatives December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 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 — — — — Bunker swaps Current portion of financial instruments—Fair value 5,715 1,014 — — Bunker swaps Financial instruments—Fair Value, net of current portion 1,312 1,465 — — Bunker call options Current portion of financial instruments—Fair value — 1,307 — — Bunker call options Financial instruments—Fair Value, net of current portion 118 — — — Subtotal 7,145 3,786 — — Total derivatives 7,145 7,488 1,967 4,732 Derivatives designated as Hedging Instruments-Net effect on the Statements of Comprehensive Income Derivative Gain/(Loss) Recognized in Accumulated Other Comprehensive Income on Derivative Amount (Effective Portion) 2017 2016 2015 Interest rate swaps (3,692) 3,015 (5,446) Total (3,692) 3,015 (5,446) Loss Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) Location Amount Derivative 2017 2016 2015 Interest rate swaps Depreciation expense (189) (156) (154) Interest rate swaps Interest and finance costs, net (2,511) (3,243) (2,996) Total (2,700) (3,399) (3,150) The accumulated loss from Derivatives designated as Hedging instruments recognized in Accumulated Other Comprehensive Loss as of December 31, 2017 and 2016 was $5,305 and $4,313 respectively. Derivatives not designated as Hedging Instruments – Net effect on the Statement of Comprehensive Income Net Realized and Unrealized Gain (Loss) Recognized on Statement of Comprehensive Income / (Loss) Location Derivative Amount 2017 2016 2015 Interest rate swaps Interest and finance costs, net — (47) (24) Bunker swaps Interest and finance costs, net 5,903 2,586 (1,206) Bunker put options Interest and finance costs, net — — 564 Bunker call options Interest and finance costs, net (213) 909 (1,260) Total 5,690 3,448 (1,926) The following tables summarize the fair values for assets and liabilities measured on a recurring basis as of December 31, 2017 and 2016 using Level 2 inputs (significant other observable inputs): Recurring measurements: December 31, 2017 December 31, 2016 Interest rate swaps (1,967) (1,030) Bunker swaps 7,027 2,479 Bunker call options 118 1,307 5,178 2,756 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 15.Subsequent Events a) On January 30, 2018, the Company paid a dividend of $0.50 per share for its 8.00% Series B Preferred Shares. b) On January 30, 2018, the Company paid a dividend of $0.55469 per share for its 8.875% Series C Preferred Shares. c) On February 28, 2018, the Company paid a dividend of $0.54687 per share for its 8.75% Series D Preferred Shares. d) On February 28, 2018, the Company paid a dividend of $0.57812 per share for its 9.25% Series E Preferred Shares. e) On March 12, 2018, the Company declared a dividend of $0.05 per common share payable on May 10, 2018 to shareholders of record as of May 3, 2018. f) On March 19, 2018, the Company agreed to sell the VLCC Millennium to a third-party for a net amount of $17,690. g) As of April 2, 2018, the Company had raised $0.3 million from the sale of 88,651 common shares from its treasury stock in 2018. |
Significant Accounting Polici24
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and 2016, the Holding Company consolidated one variable interest entity (“VIE”) for which it is deemed to be the primary beneficiary, i.e. it has a controlling financial interest in this entity. 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 in a separate statement according to ASU 2011-05. The Company owns and operates a fleet of crude oil and product carriers and two LNG carriers 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. |
Comprehensive income: | (c)Comprehensive income: The statement of comprehensive income presents the change in equity (net assets) during a period from transactions and other events and circumstances from non-owner sources. It includes all changes in equity during a period except those resulting from investments by shareholders and distributions to shareholders. Reclassification adjustments are presented out of accumulated other comprehensive income (loss) on the face of the statement in which the components of other comprehensive income are presented or in the notes to the financial statements. The Company follows the provisions of ASC 220 “Comprehensive Income”, and presents items of net income, items of other comprehensive income (“OCI”) and total comprehensive income in two separate and consecutive statements. |
Foreign Currency Translation: | (d)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 reflected within Operating expenses in the accompanying Consolidated Statements of Comprehensive Income. |
Cash and Cash Equivalents: | (e)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. |
Accounts Receivable, Net: | (f)Accounts Receivable, Net: 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, 2017 and 2016). The Company’s management at each balance sheet date reviews all outstanding invoices and provides allowances for receivables deemed uncollectible primarily based on the aging of such balances and any amounts in dispute. |
Inventories: | (g)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. In July 2015, the FASB issued ASU No. 2015-11 – Inventory, as part of FASB Simplification Initiative, according to which the entities are required to measure inventory at the lower of cost or net realizable value. Net realizable value is defined as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This update was effective for public entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years prospectively. During fiscal year 2017, the Company adopted the aforementioned update, which did not impact its results of operations, financial position or cash flows, in the current and previous interim and annual reporting periods. |
Fixed Assets: | (h)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 newbuildings, 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. |
Impairment of Vessels: | (i)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, 2017, indicated an impairment charge of $8,922 (Note 4). No impairment charge was indicated as of December 31, 2016, and December 31, 2015. |
Reporting Assets held for sale: | (j)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, 2017, the Company considered that the VLCC Millennium met the criteria to be classified as held for sale. At December 31, 2016 and 2015, the two suezmaxes Eurochampion 2004 and Euronike were classified as held for sale. |
Accounting for Special Survey and Dry-docking Costs: | (k)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 during the first ten years of life as previously estimated. This change in estimate does not have a material effect in the years ended December 31, 2017 and 2016 and is not expected to have a 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: | (l)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. Deferred financing costs, net of accumulated amortization, is presented as a reduction of long-term debt. |
Accounting for Revenue and Expenses: | (m)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 charter 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 2017, 2016 and 2015 included revenues derived from significant charterers as follows (in percentages of total voyage revenues): Charterer 2017 2016 2015 A 14% 13% 14% B 11% 13% 10% C 10% 9% 9% D 9% 7% 8% |
Segment Reporting: | (n)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 two liquefied natural gas (LNG) carriers which meets the quantitative thresholds used to determine reportable segments. The chief operating decision maker does not review the operating results of these vessels separately or make any decisions about resources to be allocated to these vessels or assess their performance separately; therefore, the LNG carriers do 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: | (o)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 Comprehensive Income 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: | (p)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 14). 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: | (q)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. At December 31, 2017, the sale and leaseback transactions for two vessels resulted in operating leases (Note 4). |
Stock Based Compensation: | (r)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 8). On January 1, 2017, the Company adopted ASU No. 2016-09, Compensation--Stock Compensation: Improvements to Employee Share-Based Payment Accounting, effective for the fiscal year ending December 31, 2017 and interim periods within this fiscal year. The adoption of this guidance has had no impact on the Company's results of operations, cash flows and net assets for any period. |
Going concern: | (s)Going concern: The Company evaluates whether there is substantial doubt about its ability to continue as a going concern by applying the provisions of ASU No. 2014-15. In more detail, the Company evaluates whether there are conditions or events that raise substantial doubt about the Company’s ability to continue as a going concern within one year from the date the financial statements are issued. As part of such evaluation, the Company did not identify any conditions that raise substantial doubt about the entity’s ability to continue as a going concern within one year from the date the financial statements are issued. As a result, there was no impact in the Company’s results of operations, financial position, cash flows or disclosures. |
New Accounting Pronouncements - Not Yet Adopted | New Accounting Pronouncements - Not Yet Adopted In January 2016, the FASB issued ASU No. 2016-01— Financial Instruments—Overall (Subtopic 825-10) , which includes the requirement for all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under the equity method of accounting or those that result in consolidation of the investee). This Update is effective for all entities for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is not permitted. The Company has not yet determined what impact, if any, the adoption of the new standard will have on its consolidated financial position, results of operations or cash flows. In February 2016, the FASB issued ASU No. 2016-02— Leases (ASC 842) , which requires lessees to recognize most leases on the balance sheet. This is expected to increase both reported assets and liabilities. The new lease standard does not substantially change lessor accounting. For public companies, the standard will be effective for the first interim reporting period within annual periods beginning after December 15, 2018, although early adoption is permitted. Lessees and lessors will be required to apply the new standard at the beginning of the earliest period presented in the financial statements in which they first apply the new guidance, using a modified retrospective transition method. The requirements of this standard include a significant increase in required disclosures. In a recent update, targeted improvements were proposed to the accounting standards that provide for (a) an optional new transition method for adoption that results in initial recognition of a cumulative effect adjustment to retained earnings in the year of adoption and (b) a practical expedient for lessors, under certain circumstances, to combine the lease and non-lease components of revenues for presentation purposes. If the targeted improvements are approved, we intend to apply the alternative transition method and intend to elect the practical expedient for lessors for presentation purposes. The Company is analyzing the impact of the adoption of this guidance on the Company’s consolidated financial statements, including assessing changes that might be necessary to information technology systems, processes and internal controls to capture new data and address changes in financial reporting. With respect to leases whereby we are the lessee, we are currently expecting to recognize lease liabilities and offsetting “right of use” assets upon adoption. The future lease obligations disclosed in Note 4, Vessels, provide some insight to the estimated impact of adoption for us as a lessee. We are currently evaluating any other impacts ASC 842, including any newly issued guidance, will have on our consolidated financial statements and related disclosures. In May and April 2016, the FASB issued two Updates with respect to Topic 606: ASU No. 2016-10— Revenue from Contracts with Customers (Topic 606) : Identifying Performance Obligations and Licensing and ASU No. 2016-12— Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. The amendments in these Updates do not change the core principle of the guidance in Topic 606, which is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services by applying the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The amendments in Update 2016-10 simply clarify the following two aspects of Topic 606: (1) identifying performance obligations and (2) licensing implementation guidance. The amendments in Update 2016-12 similarly affect only certain narrow aspects of Topic 606; namely, (1) “Assessing the Collectability Criterion in Paragraph 606-10-25-1(e) and Accounting for Contracts That Do Not Meet the Criteria for Step 1 (Applying Paragraph 606-10-25-7),” (2) “Presentation of Sales Taxes and Other Similar Taxes Collected from Customers,” (3) “Noncash Consideration,” (4) “Contract Modifications at Transition,” (5) “Completed Contracts at Transition,” and (6) “Technical Correction.” The amendments in these Updates also affect the guidance in Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The effective date and transition requirements for the amendments in these Updates are the same as the effective date and transition requirements in Topic 606 (and any other Topic amended by Update 2014-09). Accounting Standards Update 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date,” has deferred the effective date of Update 2014-09 for public business entities to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted. The new revenue standard may be applied using either of the following transition methods: (1) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (2) a modified retrospective approach with the cumulative effect of initially adopting the standard recognized at the date of adoption (which includes additional footnote disclosures). The Company adopted this new revenue guidance effective January 1, 2018, utilizing the modified retrospective method, and will expand its consolidated financial statement disclosures in order to comply with the update. The Company estimates that the adoption of this standard results in a decrease in the opening retained earnings balance as of January 1, 2018 of $2,219. As the Company finalizes its assessment, the Company continues to evaluate the requirements of this standard and complete other implementation activities such as implementing new procedures, finalizing the adoption date adjustment and drafting disclosures. In June 2016, the FASB issued ASU No. 2016-13— Financial Instruments—Credit Losses (Topic 326) — Measurement of Credit Losses on Financial Instruments. ASU 2016-13 amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For public entities, the amendments of this Update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early application is permitted. Management is in the process of assessing the impact of the amendment of this Update on the Company’s consolidated financial position and performance. In August 2016, the FASB issued ASU No. 2016-15— Statement of Cash Flows (Topic 230) —Classification of Certain Cash Receipts and Cash Payments which addresses the following eight specific cash flow issues with the objective of reducing the existing diversity in practice: Debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of any corporate-owned life insurance policy (“COLI”) (including any bank-owned life insurance policy (“BOLI”)); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017 including interim periods within that reporting period, however early adoption is permitted. The Company is currently evaluating the provisions of this guidance and assessing its impact on its consolidated financial statements and notes disclosures. In November 2016, the FASB issued ASU No. 2016-18— Statement of Cash Flows (Topic 230)— Restricted Cash , which addresses the requirement that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this Update apply to all entities that have restricted cash or restricted cash equivalents and are required to present a statement of cash flows under Topic 230. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017 including interim periods within that reporting period; however early adoption is permitted. The Company is currently evaluating the provisions of this guidance and assessing its impact on its consolidated financial statements and notes disclosures. In January 2017, the FASB issued ASU 2017-01— Business Combinations (Topic 805) to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as an acquisition (or disposal) of assets or businesses. Under current implementation guidance, the existence of an integrated set of acquired activities (inputs and processes that generate outputs) constitutes an acquisition of business. This ASU provides a screen to determine when a set of assets and activities does not constitute a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This update is effective for public entities with reporting periods beginning after December 15, 2017, including interim periods within those years. The amendments of this ASU should be applied prospectively on or after the effective date. Early adoption is permitted, including adoption in an interim period (i) for transactions for which the acquisition date occurs before the issuance date or effective date of the ASU, only when the transaction has not been reported in financial statements that have been issued or made available for issuance and (ii) for transactions in which a subsidiary is deconsolidated or a group of assets is derecognized that occur before the issuance date or effective date of the amendments, only when the transaction has not been reported in financial statements that have been issued or made available for issuance. The Company is currently assessing the impact that adopting this new accounting guidance will have on its consolidated financial statements. In July 2017, the FASB issued ASU No. 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480) and Derivatives and Hedging (Topic 815): I. Accounting for Certain Financial Instruments with Down Round Features; II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Non-controlling Interests with a Scope Exception, (ASU 2017-11). Part I of this update addresses the complexity of accounting for certain financial instruments with down round features. Down round features are features of certain equity-linked instruments (or embedded features) that result in the strike price being reduced on the basis of the pricing of future equity offerings. Current accounting guidance creates cost and complexity for entities that issue financial instruments (such as warrants and convertible instruments) with down round features that require fair value measurement of the entire instrument or conversion option. Part II of this update addresses the difficulty of navigating Topic 480, Distinguishing Liabilities from Equity, because of the existence of extensive pending content in the FASB Accounting Standards Codification. This pending content is the result of the indefinite deferral of accounting requirements about mandatorily redeemable financial instruments of certain nonpublic entities and certain mandatorily redeemable non-controlling interests. The amendments in Part II of this update do not have an accounting effect. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company is currently assessing the impact that adopting this new accounting guidance will have on its consolidated financial statements and related disclosures. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (ASU 2017-12), which amends and simplifies existing guidance in order to allow companies to more accurately present the economic effects of risk management activities in the financial statements. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company is currently assessing the impact that adopting this new accounting guidance will have on its consolidated financial statements and related disclosures. |
Significant Accounting Polici25
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Significant Accounting Policies [Abstract] | |
Schedule of Revenue Percentage by Major Customer | Charterer 2017 2016 2015 A 14% 13% 14% B 11% 13% 10% C 10% 9% 9% D 9% 7% 8% |
Transactions with Related Par26
Transactions with Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Transactions with Related Parties [Abstract] | |
Related Party Transactions Disclosure | 2017 2016 2015 Tsakos Shipping and Trading S.A. (commissions) 6,532 5,989 7,550 Tsakos Energy Management Limited (management fees) 19,480 16,935 16,032 Tsakos Columbia Shipmanagement S.A. (special charges) 1,518 2,136 2,234 Argosy Insurance Company Limited (insurance premiums) 10,199 9,036 9,386 AirMania Travel S.A. (travel services) 5,404 4,866 4,298 Total expenses with related parties 43,133 38,962 39,500 |
Related Party Transactions Balances | December 31, 2017 2016 Due from related parties Tsakos Columbia Shipmanagement S.A. 14,210 6,730 Total due from related parties 14,210 6,730 Due to related parties Tsakos Energy Management Limited 728 417 Tsakos Shipping and Trading S.A. 313 759 Argosy Insurance Company Limited 5,947 4,285 AirMania Travel S.A. 454 431 Total due to related parties 7,442 5,892 |
Related Party - Future Management Fees | Year Amount 2018 19,787 2019 19,787 2020 19,787 2021 19,787 2022 19,787 2023 to 2027 88,443 187,378 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Long-Term Debt [Abstract] | |
Debt Disclosure | Facility 2017 2016 (a) Credit Facilities 250,104 344,564 (b) Term Bank Loans 1,512,978 1,421,479 Total 1,763,082 1,766,043 Less deferred finance costs, net (11,213) (12,188) Total long-term debt 1,751,869 1,753,855 Less current portion of debt (228,967) (291,111) Add deferred finance costs, current portion 3,084 2,976 Total long-term portion, net of current portion and deferred finance costs 1,525,986 1,465,720 |
Schedule of Weighted-Average Interest Rate | Year ended December 31, 2017 3.47% Year ended December 31, 2016 2.71% Year ended December 31, 2015 2.30% |
Schedule of Debt | Loan Origination Date Original Amount Balance at January 1, 2017 New Loans Prepaid Repaid Balance at December 31, 2017 Credit facility 1 2004 179,384 70,135 — 30,391 8,150 31,594 Credit facility 2005 220,000 30,920 — 29,100 1,820 — Credit facility 2006 371,010 171,010 — — 20,000 151,010 Credit facility 2007 120,000 72,500 — — 5,000 67,500 10-year term loan 2007 88,350 44,190 — — 5,520 38,670 10-year term loan 2009 38,600 20,110 — — 2,234 17,876 8-year term loan 2009 40,000 21,352 — 18,688 2,664 — 12-year term loan 2009 40,000 23,750 — — 2,500 21,250 10-year term loan 2010 39,000 22,100 — — 2,600 19,500 7-year term loan 2010 70,000 42,160 — 37,520 4,640 — 10-year term loan 2010 43,924 24,617 — — 3,218 21,399 9-year term loan 2010 42,100 26,500 — — 2,600 23,900 10-year term loan 2011 48,000 30,400 — — 3,200 27,200 9-year term loan 2011 48,650 32,434 — — 3,243 29,191 8-year term loan 2011 73,600 73,600 — — 6,133 67,467 8-year term loan 2012 73,600 73,600 — — 6,942 66,658 7-year term loan 2013 18,000 13,575 — — 1,620 11,955 7-year term loan 2014 42,000 36,400 — — 2,800 33,600 6-year term loan 2014 193,239 167,826 24,212 — 10,841 181,197 6-year term loan 2014 39,000 33,800 — — 2,600 31,200 7-year term loan 2014 40,400 16,598 23,802 — 1,341 39,059 6-year term loan 2014 78,744 32,114 46,630 — 1,150 77,594 6-year term loan 2014 39,954 16,598 23,356 — — 39,954 5-year term loan 2015 35,190 35,190 — — 1,955 33,235 7-year term loan 2015 35,190 35,190 — — 2,199 32,991 7-year term loan 2015 39,900 36,273 — — 3,627 32,646 5-year term loan 2015 82,775 77,602 — — 10,347 67,255 6-year term loan 2015 46,217 41,595 — — 4,622 36,973 8-year term loan 2015 73,500 39,200 34,300 71,200 2,300 — 7-year term loan 2015 44,800 43,200 — — 3,200 40,000 12-year term loan 2016 309,824 251,199 42,630 625 19,269 273,935 2&5-year term loan 2016 60,000 60,000 — 35,994 11,200 12,806 5-year term loan 2016 33,104 32,180 — — 5,092 27,088 4-year term loan 2016 18,125 18,125 — — 3,625 14,500 7½-year term loan 2017 85,000 — 85,000 — — 85,000 4-year term loan 2017 122,500 — 117,162 — 8,283 108,879 Total 1,766,043 397,092 223,518 176,535 1,763,082 1 This credit facility includes a fixed interest rate portion amounting to $8,617 as at December 31, 2017. |
Debt Principal Payments | Period/Year Amount 2018 228,084 2019 256,775 2020 257,857 2021 357,573 2022 201,838 2023 and thereafter 460,955 1,763,082 |
Interest and Finance Costs, n28
Interest and Finance Costs, net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Interest and Finance Costs, net [Abstract] | |
Interest and Finance Costs, net | 2017 2016 2015 Interest expense 62,343 41,451 32,065 Less: Interest capitalized (445) (4,015) (3,430) Interest expense, net 61,898 37,436 28,635 Interest swaps termination cash settlements (3,685) — — Interest swap cash settlements non-hedging — 1,086 2,201 Bunkers swap and call options cash settlements (2,547) (128) 7,427 Bunker call options premium 216 266 1,414 Amortization of loan fees 4,152 1,742 1,268 Bank charges 164 143 137 Finance project costs expensed — — 1,261 Change in fair value of non-hedging financial instruments (3,359) (4,672) (9,116) Net gain on the prepayment of a loan — — (3,208) Net total 56,839 35,873 30,019 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings per Common Share [Abstract] | |
Earnings per Common Share | 2017 2016 2015 Net income attributable to Tsakos Energy Navigation Limited $ 7,612 $55,783 $158,217 Preferred share dividends, Series B (4,000) (4,000) (4,000) Preferred share dividends, Series C (4,437) (4,437) (4,437) Preferred share dividends, Series D (7,479) (7,438) (5,000) Preferred share dividends, Series E (7,860) — — Net (loss) income attributable to common share holders (16,164) 39,908 144,780 Denominator Weighted average common shares outstanding 84,713,572 84,905,078 85,827,597 Basic and diluted (loss) earnings per common share $(0.19) $0.47 $1.69 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Charters-out [Abstract] | |
Minimum Future Charter Revenue | Year Amount 2018 282,501 2019 211,966 2020 185,954 2021 153,378 2022 to 2028 354,466 Minimum charter payments 1,188,265 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments [Abstract] | |
Schedule of Carrying Values and Estimated Fair Values of Financial Instruments | 2017 2016 Carrying Amount Fair Value Carrying Amount Fair Value Financial assets/(liabilities) Cash and cash equivalents 189,763 189,763 187,777 187,777 Restricted cash 12,910 12,910 9,996 9,996 Investments 1,000 1,000 1,000 1,000 Debt (1,763,082) (1,762,938) (1,766,043) (1,765,726) |
Schedule of Derivative Instruments - Statements of Financial Position Location | Asset Derivatives Liability Derivatives December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 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 — 1 1,378 3,613 Financial instruments—Fair Value, net of current portion — 3,701 589 1,119 Subtotal — 3,702 1,967 4,732 Asset Derivatives Liability Derivatives December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 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 — — — — Bunker swaps Current portion of financial instruments—Fair value 5,715 1,014 — — Bunker swaps Financial instruments—Fair Value, net of current portion 1,312 1,465 — — Bunker call options Current portion of financial instruments—Fair value — 1,307 — — Bunker call options Financial instruments—Fair Value, net of current portion 118 — — — Subtotal 7,145 3,786 — — Total derivatives 7,145 7,488 1,967 4,732 |
Schedule of Cash Flow Hedges - Gain (Loss) Recognized In Accumulated Other Comprehensive Loss on Derivative (Effective Portion) | Derivative Gain/(Loss) Recognized in Accumulated Other Comprehensive Income on Derivative Amount (Effective Portion) 2017 2016 2015 Interest rate swaps (3,692) 3,015 (5,446) Total (3,692) 3,015 (5,446) |
Schedule of Cash Flow Hedges - Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) | Loss Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) Location Amount Derivative 2017 2016 2015 Interest rate swaps Depreciation expense (189) (156) (154) Interest rate swaps Interest and finance costs, net (2,511) (3,243) (2,996) Total (2,700) (3,399) (3,150) |
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 Comprehensive Income / (Loss) Location Derivative Amount 2017 2016 2015 Interest rate swaps Interest and finance costs, net — (47) (24) Bunker swaps Interest and finance costs, net 5,903 2,586 (1,206) Bunker put options Interest and finance costs, net — — 564 Bunker call options Interest and finance costs, net (213) 909 (1,260) Total 5,690 3,448 (1,926) |
Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis | Recurring measurements: December 31, 2017 December 31, 2016 Interest rate swaps (1,967) (1,030) Bunker swaps 7,027 2,479 Bunker call options 118 1,307 5,178 2,756 |
Significant Accounting Polici32
Significant Accounting Policies (Table) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Charterer A | |||
Major customer percentage | 14.00% | 13.00% | 14.00% |
Charterer B | |||
Major customer percentage | 11.00% | 13.00% | 10.00% |
Charterer C | |||
Major customer percentage | 10.00% | 9.00% | 9.00% |
Charterer D | |||
Major customer percentage | 9.00% | 7.00% | 8.00% |
Significant Accounting Polici33
Significant Accounting Policies (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2013 | |
Allowance for doubtful accounts receivable | $ 0 | $ 0 | ||
Vessels depreciation method | straight-line basis | |||
Vessels impairment charge | $ 8,922 | $ 0 | $ 0 | |
Number of Reportable Segments | 1 | |||
Number of vessels under sale and leaseback transaction | 2 | |||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect On Retained Earnings | $ (2,219) | |||
Vessels older than ten years | ||||
Vessels dry-dock period | 2 years 6 months | |||
First 15 years of vessel's life | ||||
Vessels dry-dock period | 5 years | |||
Remaining useful life of the vessels | ||||
Vessels dry-dock period | 2 years 6 months |
Transactions with Related Par34
Transactions with Related Parties - Statement of Income (Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Total expenses with related parties | $ 43,133 | $ 38,962 | $ 39,500 |
Tsakos Shipping and Trading S.A. | |||
Related Party Transaction [Line Items] | |||
Commissions | 6,532 | 5,989 | 7,550 |
Tsakos Energy Management Limited | |||
Related Party Transaction [Line Items] | |||
Management fees | 19,480 | 16,935 | 16,032 |
Tsakos Columbia Shipmanagement S.A. | |||
Related Party Transaction [Line Items] | |||
Special charges | 1,518 | 2,136 | 2,234 |
Argosy Insurance Company Limited | |||
Related Party Transaction [Line Items] | |||
Insurance premiums | 10,199 | 9,036 | 9,386 |
AirMania Travel S.A. | |||
Related Party Transaction [Line Items] | |||
Travel services | $ 5,404 | $ 4,866 | $ 4,298 |
Transactions with Related Par35
Transactions with Related Parties - Balance Sheet (Table) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | ||
Due from related parties | $ 14,210 | $ 6,730 |
Due to related parties | 7,442 | 5,892 |
Tsakos Columbia Shipmanagement S.A. | ||
Related Party Transaction [Line Items] | ||
Due from related parties | 14,210 | 6,730 |
Tsakos Energy Management Limited | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 728 | 417 |
Tsakos Shipping and Trading S.A. | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 313 | 759 |
Argosy Insurance Company Limited | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 5,947 | 4,285 |
AirMania Travel S.A. | ||
Related Party Transaction [Line Items] | ||
Due to related parties | $ 454 | $ 431 |
Transactions with Related Par36
Transactions with Related Parties - Management Fees (Table) (Details) - Tsakos Energy Management Limited $ in Thousands | Dec. 31, 2017USD ($) |
Related Party Transaction [Line Items] | |
2,018 | $ 19,787 |
2,019 | 19,787 |
2,020 | 19,787 |
2,021 | 19,787 |
2,022 | 19,787 |
2023 to 2027 | 88,443 |
Total | $ 187,378 |
Transactions with Related Par37
Transactions with Related Parties - Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Tsakos Shipping and Trading S.A. | ||
Related Party Transaction [Line Items] | ||
Accrued liabilities | $ 125 | $ 552 |
Argosy Insurance Company Limited | ||
Related Party Transaction [Line Items] | ||
Accrued liabilities | $ 68 | $ 24 |
Transactions with Related Par38
Transactions with Related Parties - Tsakos Energy Management Limited (Details) | 10 Months Ended | 12 Months Ended | ||
Nov. 05, 2015USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Operating vessels | ||||
Related Party Transaction [Line Items] | ||||
Monthly management fees | $ 27,500 | $ 27,500 | $ 27,500 | |
Vessels chartered out on a bare-boat basis | ||||
Related Party Transaction [Line Items] | ||||
Monthly management fees | 20,400 | 20,400 | 20,400 | |
DP2 Shuttle Tankers | ||||
Related Party Transaction [Line Items] | ||||
Monthly management fees | 35,000 | 35,000 | 35,000 | |
LNG Carriers | ||||
Related Party Transaction [Line Items] | ||||
Monthly management fees | $ 36,300 | 35,800 | 35,800 | |
Tsakos Energy Management Limited | ||||
Related Party Transaction [Line Items] | ||||
Euro appreciated against dollar percentage | 10.00% | |||
Yearly increase basis | 12-month Euribor | |||
Management incentive award | $ 575,000 | 2,575,000 | 1,142,000 | |
Special award paid | $ 575,000 | 425,000 | ||
Years required for cancellation written notice for agreement | 1 | |||
Days required for cancellation written notice for agreement | 10 | |||
Compensation to Management company after contract termination with Directors | $ 160,741,000 | |||
Monthly fee for supervisory services, per vessel | 20,400 | 20,400 | 20,400 | |
Supervisory services | 590,000 | 3,016,000 | 3,346,000 | |
Tsakos Energy Management Limited | Two equity offerings | ||||
Related Party Transaction [Line Items] | ||||
Special award paid | 460,000 | |||
Third Party Manager | LNG Carriers | ||||
Related Party Transaction [Line Items] | ||||
Monthly management fees | 26,300 | 25,800 | ||
Third Party Manager | Suezmax tanker Eurochampion 2004 | ||||
Related Party Transaction [Line Items] | ||||
Monthly management fees | 14,200 | 13,900 | 12,000 | |
Third Party Manager | Aframax tanker Maria Princess | ||||
Related Party Transaction [Line Items] | ||||
Monthly management fees | 14,200 | 13,900 | ||
Third Party Manager | Aframax tanker Sapporo Princess | ||||
Related Party Transaction [Line Items] | ||||
Monthly management fees | 14,200 | 14,200 | ||
Third Party Manager | VLCC Ulysses | ||||
Related Party Transaction [Line Items] | ||||
Monthly management fees | 14,200 | $ 13,900 | ||
Third Party Manager | VLCC Millennium | ||||
Related Party Transaction [Line Items] | ||||
Monthly management fees | $ 13,900 | 14,200 | ||
Third Party Manager | VLCC Hercules I | ||||
Related Party Transaction [Line Items] | ||||
Monthly management fees | $ 14,200 | |||
Third Party Manager | LNG carrier Neo Energy | ||||
Related Party Transaction [Line Items] | ||||
Monthly management fees | $ 10,000 |
Transactions with Related Par39
Transactions with Related Parties - Tsakos Columbia Shipmanagement S.A. (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | ||
Advances and other | $ 19,061 | $ 24,226 |
Tsakos Columbia Shipmanagement S.A. (TCM) | TCM Tsakos Maritime Philippines | ||
Related Party Transaction [Line Items] | ||
Ownership percentage | 25.00% | |
Advances and other | $ 2,600 |
Transactions with Related Par40
Transactions with Related Parties - Tsakos Shipping and Trading S.A. (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Tsakos Shipping and Trading S.A. | |||
Related Party Transaction [Line Items] | |||
Chartering commission | 1.25% | ||
Payment for the cost of design and supervision services for newbuildings | $ 0 | $ 0 | |
Tsakos Shipping and Trading S.A. | Potential charge | |||
Related Party Transaction [Line Items] | |||
Payment for the cost of design and supervision services for each newbuilding vessel | $ 200 | ||
Tsakos Shipping and Trading S.A. | Handysize tanker Delphi and Suezmax tanker Triathlon | |||
Related Party Transaction [Line Items] | |||
Brokerage commission amount | $ 215 | ||
Brokerage commission | 0.50% | ||
Tsakos Shipping and Trading S.A. | 15 vessels | |||
Related Party Transaction [Line Items] | |||
Payment for the cost of design and supervision services for newbuildings | 3,100 | ||
Company affiliated with a non-executive member of the Board of Directors | |||
Related Party Transaction [Line Items] | |||
Brokerage commission revenue | 100 | 200 | $ 300 |
Company affiliated with a non-executive member of the Board of Directors | VLCC Hercules I | |||
Related Party Transaction [Line Items] | |||
Brokerage commission revenue | $ 300 | ||
Company affiliated with a non-executive member of the Board of Directors | VLCC Ulysses | |||
Related Party Transaction [Line Items] | |||
Brokerage commission revenue | $ 300 |
Long-term Investments (Details)
Long-term Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Long-term Investments [Abstract] | ||
Common shares held | 125,000 | 125,000 |
Long term investments | $ 1,000 | $ 1,000 |
Vessels - Acquisitions and Sale
Vessels - Acquisitions and Sales (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property Plant And Equipment [Line Items] | |||
Net proceeds from sale of vessels | $ 51,550 | $ 0 | $ 42,761 |
Gain/(loss) on sale of vessels | (3,860) | 0 | $ 2,078 |
VLCC tanker Hercules I | |||
Property Plant And Equipment [Line Items] | |||
Acquisition of newly constructed vessels | 101,208 | ||
Aframaxes Marathon TS, Sola TS, Oslo TS, Stavanger TS and Bergen TS | |||
Property Plant And Equipment [Line Items] | |||
Acquisition of newly constructed vessels | 294,494 | ||
Shuttle tanker Lisboa | |||
Property Plant And Equipment [Line Items] | |||
Acquisition of newly constructed vessels | $ 108,492 | ||
Suezmax tanker Decathlon | |||
Property Plant And Equipment [Line Items] | |||
Acquisition of newly constructed vessels | 64,992 | ||
Aframaxes Elias Tsakos, Thomas Zafiras, Leontios H and Parthenon TS | |||
Property Plant And Equipment [Line Items] | |||
Acquisition of newly constructed vessels | 223,291 | ||
Panamaxes Sunray and Sunrise | |||
Property Plant And Equipment [Line Items] | |||
Acquisition of newly constructed vessels | 101,584 | ||
VLCC Ulysses | |||
Property Plant And Equipment [Line Items] | |||
Acquisition of newly constructed vessels | 100,189 | ||
LNG Maria Energy | |||
Property Plant And Equipment [Line Items] | |||
Acquisition of newly constructed vessels | $ 239,029 | ||
Handysize tanker Delphi | |||
Property Plant And Equipment [Line Items] | |||
Date of vessel disposal | Jul. 16, 2015 | ||
Suezmax tanker Triathlon | |||
Property Plant And Equipment [Line Items] | |||
Date of vessel disposal | Jul. 17, 2015 | ||
Handysize tanker Delphi and Suezmax tanker Triathlon | |||
Property Plant And Equipment [Line Items] | |||
Net proceeds from sale of vessels | $ 42,761 | ||
Gain/(loss) on sale of vessels | $ 2,078 |
Vessels - Sale and Leaseback (D
Vessels - Sale and Leaseback (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property Plant And Equipment [Line Items] | ||
Long-term lease receivable | $ 13,000 | $ 0 |
Eurochampion 2004 and Euronike | ||
Property Plant And Equipment [Line Items] | ||
Sale and leaseback terms | 5 years | |
Gain/ (loss) recognized | $ (3,860) | |
Eurochampion 2,004 | ||
Property Plant And Equipment [Line Items] | ||
Net sale price | 32,600 | |
Long-term lease receivable | 6,500 | |
Euronike | ||
Property Plant And Equipment [Line Items] | ||
Net sale price | 32,600 | |
Long-term lease receivable | $ 6,500 |
Vessels - Charter hire expense
Vessels - Charter hire expense (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,018 | $ 10,822 |
2,019 | 10,822 |
2,020 | 10,852 |
2,021 | 10,822 |
2,022 | 10,526 |
Total minimum commitments | $ 53,844 |
Vessels - Impairment (Details)
Vessels - Impairment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Vessels [Line Items] | |||
Carrying amount of vessels | $ 3,953,599 | $ 3,479,037 | |
Vessels impairment charge | 8,922 | $ 0 | $ 0 |
Silia T and Millennium | |||
Vessels [Line Items] | |||
Carrying amount of vessels | 44,672 | ||
Fair value of vessels | 35,750 | ||
Vessels impairment charge | $ 8,922 |
Deferred Charges (Details)
Deferred Charges (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred Charges [Abstract] | ||
Deferred charges consisted of dry-docking and special survey costs | $ 23,759 | $ 19,506 |
Long-Term Debt (Table) (Details
Long-Term Debt (Table) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
(a) Credit Facilities | $ 250,104 | $ 344,564 |
(b) Term Bank Loans | 1,512,978 | 1,421,479 |
Total | 1,763,082 | 1,766,043 |
Less deferred finance costs, net | (11,213) | (12,188) |
Total long-term debt | 1,751,869 | 1,753,855 |
Less current portion of debt | (228,967) | (291,111) |
Add deferred finance costs, current portion | 3,084 | 2,976 |
Total long-term portion, net of current portion and deferred finance costs | $ 1,525,986 | $ 1,465,720 |
Long-Term Debt - Weighted-Avera
Long-Term Debt - Weighted-Average Interest Rates (Table) (Details) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | |||
Weighted-average interest rates on the executed loans | 3.47% | 2.71% | 2.30% |
Long-Term Debt - Loan Movements
Long-Term Debt - Loan Movements (Table) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($) | ||
Debt Instrument [Line Items] | ||
Balance at January 1, 2017 | $ 1,766,043 | |
New Loans | 397,092 | |
Prepaid | 223,518 | |
Repaid | 176,535 | |
Balance at December 31, 2017 | $ 1,763,082 | |
Credit facility | ||
Debt Instrument [Line Items] | ||
Origination Date | 2,004 | |
Original Amount | $ 179,384 | |
Balance at January 1, 2017 | 70,135 | |
Prepaid | 30,391 | |
Repaid | 8,150 | |
Balance at December 31, 2017 | $ 31,594 | [1] |
Credit facility | ||
Debt Instrument [Line Items] | ||
Origination Date | 2,005 | |
Original Amount | $ 220,000 | |
Balance at January 1, 2017 | 30,920 | |
Prepaid | 29,100 | |
Repaid | 1,820 | |
Balance at December 31, 2017 | $ 0 | |
Credit facility | ||
Debt Instrument [Line Items] | ||
Origination Date | 2,006 | |
Original Amount | $ 371,010 | |
Balance at January 1, 2017 | 171,010 | |
Repaid | 20,000 | |
Balance at December 31, 2017 | $ 151,010 | |
Credit facility | ||
Debt Instrument [Line Items] | ||
Origination Date | 2,007 | |
Original Amount | $ 120,000 | |
Balance at January 1, 2017 | 72,500 | |
Repaid | 5,000 | |
Balance at December 31, 2017 | $ 67,500 | |
10-year term loan | ||
Debt Instrument [Line Items] | ||
Origination Date | 2,007 | |
Original Amount | $ 88,350 | |
Balance at January 1, 2017 | 44,190 | |
Repaid | 5,520 | |
Balance at December 31, 2017 | $ 38,670 | |
10-year term loan | ||
Debt Instrument [Line Items] | ||
Origination Date | 2,009 | |
Original Amount | $ 38,600 | |
Balance at January 1, 2017 | 20,110 | |
Repaid | 2,234 | |
Balance at December 31, 2017 | $ 17,876 | |
8-year term loan | ||
Debt Instrument [Line Items] | ||
Origination Date | 2,009 | |
Original Amount | $ 40,000 | |
Balance at January 1, 2017 | 21,352 | |
Prepaid | 18,688 | |
Repaid | 2,664 | |
Balance at December 31, 2017 | $ 0 | |
12-year term loan | ||
Debt Instrument [Line Items] | ||
Origination Date | 2,009 | |
Original Amount | $ 40,000 | |
Balance at January 1, 2017 | 23,750 | |
Repaid | 2,500 | |
Balance at December 31, 2017 | $ 21,250 | |
10-year term loan | ||
Debt Instrument [Line Items] | ||
Origination Date | 2,010 | |
Original Amount | $ 39,000 | |
Balance at January 1, 2017 | 22,100 | |
Repaid | 2,600 | |
Balance at December 31, 2017 | $ 19,500 | |
7-year term loan | ||
Debt Instrument [Line Items] | ||
Origination Date | 2,010 | |
Original Amount | $ 70,000 | |
Balance at January 1, 2017 | 42,160 | |
Prepaid | 37,520 | |
Repaid | 4,640 | |
Balance at December 31, 2017 | $ 0 | |
10-year term loan | ||
Debt Instrument [Line Items] | ||
Origination Date | 2,010 | |
Original Amount | $ 43,924 | |
Balance at January 1, 2017 | 24,617 | |
Repaid | 3,218 | |
Balance at December 31, 2017 | $ 21,399 | |
9-year term loan | ||
Debt Instrument [Line Items] | ||
Origination Date | 2,010 | |
Original Amount | $ 42,100 | |
Balance at January 1, 2017 | 26,500 | |
Repaid | 2,600 | |
Balance at December 31, 2017 | $ 23,900 | |
10-year term loan | ||
Debt Instrument [Line Items] | ||
Origination Date | 2,011 | |
Original Amount | $ 48,000 | |
Balance at January 1, 2017 | 30,400 | |
Repaid | 3,200 | |
Balance at December 31, 2017 | $ 27,200 | |
9-year term loan | ||
Debt Instrument [Line Items] | ||
Origination Date | 2,011 | |
Original Amount | $ 48,650 | |
Balance at January 1, 2017 | 32,434 | |
Repaid | 3,243 | |
Balance at December 31, 2017 | $ 29,191 | |
8-year term loan | ||
Debt Instrument [Line Items] | ||
Origination Date | 2,011 | |
Original Amount | $ 73,600 | |
Balance at January 1, 2017 | 73,600 | |
Repaid | 6,133 | |
Balance at December 31, 2017 | $ 67,467 | |
8-year term loan | ||
Debt Instrument [Line Items] | ||
Origination Date | 2,012 | |
Original Amount | $ 73,600 | |
Balance at January 1, 2017 | 73,600 | |
Repaid | 6,942 | |
Balance at December 31, 2017 | $ 66,658 | |
7-year term loan | ||
Debt Instrument [Line Items] | ||
Origination Date | 2,013 | |
Original Amount | $ 18,000 | |
Balance at January 1, 2017 | 13,575 | |
Repaid | 1,620 | |
Balance at December 31, 2017 | $ 11,955 | |
7-year term loan | ||
Debt Instrument [Line Items] | ||
Origination Date | 2,014 | |
Original Amount | $ 42,000 | |
Balance at January 1, 2017 | 36,400 | |
Repaid | 2,800 | |
Balance at December 31, 2017 | $ 33,600 | |
6-year term loan | ||
Debt Instrument [Line Items] | ||
Origination Date | 2,014 | |
Original Amount | $ 193,239 | |
Balance at January 1, 2017 | 167,826 | |
New Loans | 24,212 | |
Repaid | 10,841 | |
Balance at December 31, 2017 | $ 181,197 | |
6-year term loan | ||
Debt Instrument [Line Items] | ||
Origination Date | 2,014 | |
Original Amount | $ 39,000 | |
Balance at January 1, 2017 | 33,800 | |
Repaid | 2,600 | |
Balance at December 31, 2017 | $ 31,200 | |
7-year term loan | ||
Debt Instrument [Line Items] | ||
Origination Date | 2,014 | |
Original Amount | $ 40,400 | |
Balance at January 1, 2017 | 16,598 | |
New Loans | 23,802 | |
Repaid | 1,341 | |
Balance at December 31, 2017 | $ 39,059 | |
6-year term loan | ||
Debt Instrument [Line Items] | ||
Origination Date | 2,014 | |
Original Amount | $ 78,744 | |
Balance at January 1, 2017 | 32,114 | |
New Loans | 46,630 | |
Repaid | 1,150 | |
Balance at December 31, 2017 | $ 77,594 | |
6-year term loan | ||
Debt Instrument [Line Items] | ||
Origination Date | 2,014 | |
Original Amount | $ 39,954 | |
Balance at January 1, 2017 | 16,598 | |
New Loans | 23,356 | |
Repaid | 0 | |
Balance at December 31, 2017 | $ 39,954 | |
5-year term loan | ||
Debt Instrument [Line Items] | ||
Origination Date | 2,015 | |
Original Amount | $ 35,190 | |
Balance at January 1, 2017 | 35,190 | |
Repaid | 1,955 | |
Balance at December 31, 2017 | $ 33,235 | |
7-year term loan | ||
Debt Instrument [Line Items] | ||
Origination Date | 2,015 | |
Original Amount | $ 35,190 | |
Balance at January 1, 2017 | 35,190 | |
Repaid | 2,199 | |
Balance at December 31, 2017 | $ 32,991 | |
7-year term loan | ||
Debt Instrument [Line Items] | ||
Origination Date | 2,015 | |
Original Amount | $ 39,900 | |
Balance at January 1, 2017 | 36,273 | |
Repaid | 3,627 | |
Balance at December 31, 2017 | $ 32,646 | |
5-year term loan | ||
Debt Instrument [Line Items] | ||
Origination Date | 2,015 | |
Original Amount | $ 82,775 | |
Balance at January 1, 2017 | 77,602 | |
Repaid | 10,347 | |
Balance at December 31, 2017 | $ 67,255 | |
6-year term loan | ||
Debt Instrument [Line Items] | ||
Origination Date | 2,015 | |
Original Amount | $ 46,217 | |
Balance at January 1, 2017 | 41,595 | |
Repaid | 4,622 | |
Balance at December 31, 2017 | $ 36,973 | |
8-year term loan | ||
Debt Instrument [Line Items] | ||
Origination Date | 2,015 | |
Original Amount | $ 73,500 | |
Balance at January 1, 2017 | 39,200 | |
New Loans | 34,300 | |
Prepaid | 71,200 | |
Repaid | 2,300 | |
Balance at December 31, 2017 | $ 0 | |
7-year term loan | ||
Debt Instrument [Line Items] | ||
Origination Date | 2,015 | |
Original Amount | $ 44,800 | |
Balance at January 1, 2017 | 43,200 | |
Repaid | 3,200 | |
Balance at December 31, 2017 | $ 40,000 | |
12-year term loan | ||
Debt Instrument [Line Items] | ||
Origination Date | 2,016 | |
Original Amount | $ 309,824 | |
Balance at January 1, 2017 | 251,199 | |
New Loans | 42,630 | |
Prepaid | 625 | |
Repaid | 19,269 | |
Balance at December 31, 2017 | $ 273,935 | |
2&5-year term loan | ||
Debt Instrument [Line Items] | ||
Origination Date | 2,016 | |
Original Amount | $ 60,000 | |
Balance at January 1, 2017 | 60,000 | |
Prepaid | 35,994 | |
Repaid | 11,200 | |
Balance at December 31, 2017 | $ 12,806 | |
5-year term loan | ||
Debt Instrument [Line Items] | ||
Origination Date | 2,016 | |
Original Amount | $ 33,104 | |
Balance at January 1, 2017 | 32,180 | |
Repaid | 5,092 | |
Balance at December 31, 2017 | $ 27,088 | |
4-year term loan | ||
Debt Instrument [Line Items] | ||
Origination Date | 2,016 | |
Original Amount | $ 18,125 | |
Balance at January 1, 2017 | 18,125 | |
Repaid | 3,625 | |
Balance at December 31, 2017 | $ 14,500 | |
7 1/2-year term loan | ||
Debt Instrument [Line Items] | ||
Origination Date | 2,017 | |
Original Amount | $ 85,000 | |
Balance at January 1, 2017 | 0 | |
New Loans | 85,000 | |
Repaid | 0 | |
Balance at December 31, 2017 | $ 85,000 | |
4-year term loan | ||
Debt Instrument [Line Items] | ||
Origination Date | 2,017 | |
Original Amount | $ 122,500 | |
Balance at January 1, 2017 | 0 | |
New Loans | 117,162 | |
Repaid | 8,283 | |
Balance at December 31, 2017 | $ 108,879 | |
[1] | This credit facility includes a fixed interest rate portion amounting to $8,617 as at December 31, 2017. |
Long-Term Debt - Principal Paym
Long-Term Debt - Principal Payments (Table) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Principal Payments [Abstract] | ||
2,018 | $ 228,084 | |
2,019 | 256,775 | |
2,020 | 257,857 | |
2,021 | 357,573 | |
2,022 | 201,838 | |
2023 and thereafter | 460,955 | |
Total | $ 1,763,082 | $ 1,766,043 |
Long-Term Debt - Credit Facilit
Long-Term Debt - Credit Facilities (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Line Of Credit Facility [Line Items] | |
Number of credit facilities with both a reducing revolving credit component and a term bank loan component, with balloon payments due at maturity between October 2018 and April 2019 | 1 |
Unused amount | $ 0 |
Credit facility with outstanding balance $31,594 as at December 31, 2017 | |
Line Of Credit Facility [Line Items] | |
Fixed interest rate portion | $ 8,617 |
Revolving Credit Facility | |
Line Of Credit Facility [Line Items] | |
Number of open reducing credit facilities | 2 |
Reducing revolving credit facilities periodic payment | semi-annual |
Line Of Credit Facility Interest Rate Description | LIBOR |
Revolving Credit Facility | Minimum | |
Line Of Credit Facility [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 2.00% |
Revolving Credit Facility | Maximum | |
Line Of Credit Facility [Line Items] | |
Debt Instrument, Interest Rate, Stated Percentage | 5.19% |
Revolving Credit Facility with term bank loan component | |
Line Of Credit Facility [Line Items] | |
Debt Instrument Maturity Date, Start | Oct. 31, 2018 |
Debt Instrument Maturity Date, End | Apr. 30, 2019 |
Long-Term Debt - Term Bank Loan
Long-Term Debt - Term Bank Loans (Details) | 2 Months Ended | 3 Months Ended | 5 Months Ended | 9 Months Ended | 12 Months Ended | |||
Feb. 15, 2018USD ($) | Apr. 04, 2018USD ($) | Apr. 03, 2018USD ($) | May 23, 2017USD ($) | Sep. 15, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 21, 2017USD ($) | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | ||||||||
Term loan balances outstanding | $ 1,512,978,000 | $ 1,421,479,000 | ||||||
Prepaid amount | $ 223,518,000 | |||||||
Aframax tankers Izumo Princess and Asahi Princess, Handysize product carrier Aegeas, two Panamax tankers World Harmony and Chantal and two Suezmax tankers Archangel and Alaska | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument Face Amount | $ 122,500,000 | |||||||
Duration of term bank loan | 4 years | |||||||
Amount drawn down | $ 117,162,000 | |||||||
Number of repayment installments | 8 | |||||||
Debt periodic payment | semi-annual | |||||||
Debt balloon payment | $ 54,782,000 | |||||||
Debt Instrument Maturity Date, Start | Jun. 30, 2017 | |||||||
Debt Instrument Maturity Date, End | Feb. 28, 2018 | |||||||
Suezmax shuttle tanker Lisboa | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument Face Amount | $ 85,000,000 | |||||||
Duration of term bank loan | 7 years 6 months | |||||||
Amount drawn down | $ 85,000,000 | |||||||
Number of repayment installments | 15 | |||||||
Debt periodic payment | semi-annual | |||||||
Debt periodic payment amount | $ 2,833,330 | |||||||
Debt balloon payment | 42,500,000 | |||||||
Eurochampion 2004 and Euronike | ||||||||
Debt Instrument [Line Items] | ||||||||
Prepaid amount | $ 35,994,000 | |||||||
Eleven vessels | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument Face Amount | $ 162,575,000 | |||||||
Duration of term bank loan | 5 years | |||||||
Amount drawn down | $ 162,575,000 | |||||||
Number of repayment installments | 10 | |||||||
Debt periodic payment | semi-annual | |||||||
Debt periodic payment amount | $ 11,561,000 | |||||||
Debt balloon payment | $ 46,965,000 | |||||||
Prepaid amount | $ 181,168,000 | |||||||
Debt Instrument Maturity Date, Start | Oct. 31, 2018 | |||||||
Debt Instrument Maturity Date, End | Apr. 30, 2019 | |||||||
All Company's term bank loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt periodic payment | quarterly or semi-annual | |||||||
Variable rate basis | LIBOR | |||||||
Debt Instrument Maturity Date, Start | Sep. 30, 2018 | |||||||
Debt Instrument Maturity Date, End | Jan. 31, 2027 | |||||||
All Company's term bank loans | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.85% | |||||||
All Company's term bank loans | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.54% | |||||||
First four installments | Aframax tankers Izumo Princess and Asahi Princess, Handysize product carrier Aegeas, two Panamax tankers World Harmony and Chantal and two Suezmax tankers Archangel and Alaska | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt periodic payment amount | 8,283,000 | |||||||
Second four installments | Aframax tankers Izumo Princess and Asahi Princess, Handysize product carrier Aegeas, two Panamax tankers World Harmony and Chantal and two Suezmax tankers Archangel and Alaska | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt periodic payment amount | $ 7,312,000 | |||||||
8-year term loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument Face Amount | $ 73,500,000 | |||||||
Repayment of debt | $ 73,500,000 | |||||||
Prepaid amount | $ 71,200,000 |
Long-Term Debt - Covenants (Det
Long-Term Debt - Covenants (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [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 $113,427 at December 31, 2017 and $108,139 at December 31, 2016, a minimum consolidated leverage ratio, a minimum hull value in connection with the vessels’ outstanding loans and insurance coverage of the vessels against all customary risks. Four loan agreements require the Company to maintain throughout the security period, an aggregate credit balance in a deposit account of $4,250. Four loan agreements require a monthly pro rata transfer to retention account of any principal due but unpaid. | |||
Debt Instrument Covenant Compliance | As at December 31, 2017, the Company and its wholly owned subsidiaries had thirty-two loan agreements, totaling $1,763,082. The Company fulfilled its requirements in respect of the financial covenants of all the agreements in relation to the leverage ratio and all other terms and covenants, apart from the value-to-loan requirement in certain of its loan agreements in respect of which an amount of $883 has been reclassified within current liabilities at December 31, 2017. | |||
Cash and cash equivalents | $ 189,763 | $ 187,777 | $ 289,676 | $ 202,107 |
Carrying amount | 1,763,082 | 1,766,043 | ||
Thirty-two loan agreements | ||||
Debt Instrument [Line Items] | ||||
Carrying amount | 1,763,082 | |||
Minimum liquidity requirement | ||||
Debt Instrument [Line Items] | ||||
Cash and cash equivalents | 113,427 | $ 108,139 | ||
Four loan agreements | ||||
Debt Instrument [Line Items] | ||||
Held in deposit account | 4,250 | |||
Certain of the loan agreements | ||||
Debt Instrument [Line Items] | ||||
Reclassification Of Long Term Debt | $ 883 |
Interest and Finance Costs, n54
Interest and Finance Costs, net (Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest and Finance Costs, net [Abstract] | |||
Interest expense | $ 62,343 | $ 41,451 | $ 32,065 |
Less: Interest capitalized | (445) | (4,015) | (3,430) |
Interest expense, net | 61,898 | 37,436 | 28,635 |
Interest swaps termination cash settlements | (3,685) | 0 | 0 |
Interest swap cash settlements non-hedging | 0 | 1,086 | 2,201 |
Bunkers swap and call options cash settlements | (2,547) | (128) | 7,427 |
Bunker call options premium | 216 | 266 | 1,414 |
Amortization of loan fees | 4,152 | 1,742 | 1,268 |
Bank charges | 164 | 143 | 137 |
Finance project costs expensed | 0 | 0 | 1,261 |
Change in fair value of non-hedging financial instruments | (3,359) | (4,672) | (9,116) |
Net gain on the prepayment of a loan | 0 | 0 | (3,208) |
Net total | $ 56,839 | $ 35,873 | $ 30,019 |
Interest and Finance Costs, n55
Interest and Finance Costs, net (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Derivatives Fair Value [Line Items] | |||
Change in fair value of non-hedging financial instruments | $ 3,359 | $ 4,672 | $ 9,116 |
Bunker Call Option Premium | $ 216 | 266 | $ 1,414 |
Interest Rate Swaps | |||
Derivatives Fair Value [Line Items] | |||
Number of floating-to-fixed interest rate swaps | 5 | ||
Notional amount of floating-to-fixed interest rate swaps | $ 182,320 | ||
Fixed interest rate | 2.71% | ||
Floating rate basis | six-month LIBOR | ||
Interest Rate Swaps | Minimum | |||
Derivatives Fair Value [Line Items] | |||
Maturity date | May 31, 2018 | ||
Interest Rate Swaps | Maximum | |||
Derivatives Fair Value [Line Items] | |||
Maturity date | Mar. 31, 2021 | ||
Bunker Call Options | |||
Derivatives Fair Value [Line Items] | |||
Number of bunker call option agreement entered into | 2 | ||
Bunker Call Option Premium | $ 216 | ||
Designated as Hedging Instrument | Interest Rate Swaps | |||
Derivatives Fair Value [Line Items] | |||
Fair value of hedging interest rate swaps | (1,966) | $ (1,030) | |
Net amount of cash flow hedge losses to be reclassified into earnings within 12 months | $ 833 | ||
Not Designated as Hedging Instrument | Interest Rate Swaps | |||
Derivatives Fair Value [Line Items] | |||
Number of floating-to-fixed interest rate swaps | 1 | ||
Maturity date | Apr. 10, 2016 | ||
Change in fair value of non-hedging financial instruments | $ 2,178 | ||
Not Designated as Hedging Instrument | Bunker Swaps | |||
Derivatives Fair Value [Line Items] | |||
Number of bunker swap agreements entered into | 9 | ||
Fair value of bunker swap agreement | $ 7,027 | ||
Change in fair value of non-hedging financial instruments | 4,548 | ||
Not Designated as Hedging Instrument | Bunker Swaps | VLCC Ulysses | |||
Derivatives Fair Value [Line Items] | |||
Number of bunker swap agreements entered into | 3 | ||
Fair value of bunker swap agreement | 3,264 | $ 2,479 | |
Change in fair value of non-hedging financial instruments | $ 785 | ||
Not Designated as Hedging Instrument | Bunker Call Options | |||
Derivatives Fair Value [Line Items] | |||
Number of bunker call option agreements held | 1 | 5 | 12 |
Fair value of bunker call option agreements | $ 118 | $ 1,307 | $ 154 |
Change in fair value of non-hedging financial instruments | $ (1,189) | $ 1,153 | $ 154 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 4 Months Ended | 7 Months Ended | 9 Months Ended | 12 Months Ended | |||
Apr. 05, 2017 | Apr. 08, 2016 | Apr. 22, 2015 | Jul. 30, 2015 | Oct. 10, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net proceeds from sale of treasuy stock | $ 10,853 | $ 0 | $ 0 | |||||
Preferred Shares - par value | $ 1 | $ 1 | ||||||
Common shares offered | 2,626,357 | 2,626,357 | ||||||
Common shares issued, price per share | $ 9.7881 | |||||||
Net proceeds from issuance of preferred shares | $ 111,029 | $ 0 | $ 81,784 | |||||
Stock compensation expense | $ 487 | $ 510 | $ 0 | |||||
Number of RSUs issuable under incentive plan | 868,950 | |||||||
8.75% Series D Preferred Shares | ||||||||
Preferred Shares - shares issued | 3,400,000 | 3,424,803 | 3,400,000 | |||||
Preferred Shares - par value | $ 1 | |||||||
Liquidation preference, per share | $ 25 | |||||||
Net proceeds from issuance of preferred shares | $ 81,784 | |||||||
Preferred stock dividend rate percentage | 8.75% | |||||||
Preferred Stock, Redemption Date | Apr. 29, 2020 | |||||||
Redemption price | $ 25 | |||||||
9.25% Series E Preferred Shares | ||||||||
Preferred Shares - shares issued | 4,600,000 | 4,600,000 | ||||||
Preferred Shares - par value | $ 1 | |||||||
Liquidation preference, per share | $ 25 | |||||||
Net proceeds from issuance of preferred shares | $ 110,496 | |||||||
Preferred stock dividend rate percentage | 9.25% | |||||||
Treasury stock | ||||||||
Restricted shares granted to non-executive directors | 87,500 | 110,000 | 110,000 | 87,500 | ||||
Restricted shares vested to non-executive directors | 87,500 | 110,000 | ||||||
Stock compensation expense | $ 500 | $ 500 | ||||||
Treasury stock | Common shares | ||||||||
Sale of treasury stock | 2,488,717 | |||||||
Net proceeds from sale of treasuy stock | $ 10,853 | |||||||
Treasury stock | 8.75% Series D Preferred Shares | ||||||||
Sale of treasury stock | 24,803 | |||||||
Net proceeds from sale of treasuy stock | $ 533 | |||||||
Prior to May 28, 2027 | 9.25% Series E Preferred Shares | ||||||||
Preferred stock dividend rate percentage | 9.25% | |||||||
From and including May 28, 2027 and thereafter | 9.25% Series E Preferred Shares | ||||||||
Preferred stock dividend payment rate | three-month LIBOR plus a spread of 6.881% |
Accumulated other comprehensi57
Accumulated other comprehensive loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated other comprehensive loss [Abstract] | |||
Accumulated other comprehensive loss | $ (5,305) | $ (4,313) | |
Total unrealized (losses)/gains from hedging financial instruments | $ (992) | $ 6,414 | $ (437) |
Earnings per Common Share (Ta58
Earnings per Common Share (Table) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator | |||
Net income attributable to Tsakos Energy Navigation Limited | $ 7,612 | $ 55,783 | $ 158,217 |
Preferred share dividends, Series B | (4,000) | (4,000) | (4,000) |
Preferred share dividends, Series C | (4,437) | (4,437) | (4,437) |
Preferred share dividends, Series D | (7,479) | (7,438) | (5,000) |
Preferred share dividends, Series E | (7,860) | 0 | 0 |
Net (loss) income attributable to common share holders | $ (16,164) | $ 39,908 | $ 144,780 |
Denominator | |||
Weighted average common shares outstanding | 84,713,572 | 84,905,078 | 85,827,597 |
Basic and diluted (loss) earnings per common share | $ (0.19) | $ 0.47 | $ 1.69 |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - shares | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Earnings per Common Share [Abstract] | |||
Balance of non-vested RSUs | 0 | 0 | 0 |
Noncontrolling Interest in Su60
Noncontrolling Interest in Subsidiary (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2013 | |
Noncontrolling Interest [Line Items] | |||
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% | ||
Percentage of revenue generated by single charterer | 9.50% | 7.40% | |
Polaris Oil Shipping Inc. (Polaris) | |||
Noncontrolling Interest [Line Items] | |||
Percentage of ownership in Mare Success S.A. by Polaris Oil Shipping Inc. | 49.00% | ||
Capital contribution to subsidiary by Polaris Oil Shipping Inc. | $ 10,000 |
Commitments and Contingencies61
Commitments and Contingencies (Table) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Charters-out [Abstract] | |
2,018 | $ 282,501 |
2,019 | 211,966 |
2,020 | 185,954 |
2,021 | 153,378 |
2022 to 2028 | 354,466 |
Minimum charter payments | $ 1,188,265 |
Commitments and Contingencies62
Commitments and Contingencies (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Long-term Purchase Commitment [Line Items] | |
Prepaid amount which will be used against the contract price of future newbuildings | $ 1,650 |
Financial Instruments - Fair Va
Financial Instruments - Fair Values (Table) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Financial Instruments [Abstract] | ||||
Cash and cash equivalents - Carrying Amount | $ 189,763 | $ 187,777 | $ 289,676 | $ 202,107 |
Restricted cash - Carrying Amount | 12,910 | 9,996 | ||
Investments - Carrying Amount | 1,000 | 1,000 | ||
Debt - Carrying amount | (1,763,082) | (1,766,043) | ||
Cash and cash equivalents - Fair Value | 189,763 | 187,777 | ||
Restricted cash - Fair value | 12,910 | 9,996 | ||
Investments - Fair Value | 1,000 | 1,000 | ||
Debt - Fair Value | $ (1,762,938) | $ (1,765,726) |
Financial Instruments - Balance
Financial Instruments - Balance Sheet Location (Table) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value Disclosures [Abstract] | ||
Total derivatives - Assets | $ 7,145 | $ 7,488 |
Total derivatives - Liabilites | 1,967 | 4,732 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Liabilities, Noncurrent | 589 | 1,119 |
Designated as Hedging Instrument | ||
Derivatives designated as hedging instruments | ||
Subtotal - Assets | 0 | 3,702 |
Subtotal - Liabilities | 1,967 | 4,732 |
Designated as Hedging Instrument | Interest Rate Swaps | Current portion of financial instruments - Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset, Current | 0 | 1 |
Derivative Liability, Current | 1,378 | 3,613 |
Designated as Hedging Instrument | Interest Rate Swaps | Financial instruments - Fair Value, net of current portion | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset, Noncurrent | 0 | 3,701 |
Derivative Liabilities, Noncurrent | 589 | 1,119 |
Not Designated as Hedging Instrument | ||
Derivatives designated as hedging instruments | ||
Subtotal - Assets | 7,145 | 3,786 |
Subtotal - Liabilities | 0 | 0 |
Not Designated as Hedging Instrument | Interest Rate Swaps | Current portion of financial instruments - Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset, Current | 0 | 0 |
Derivative Liability, Current | 0 | 0 |
Not Designated as Hedging Instrument | Bunker Swaps | Current portion of financial instruments - Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset, Current | 5,715 | 1,014 |
Derivative Liability, Current | 0 | 0 |
Not Designated as Hedging Instrument | Bunker Swaps | Financial instruments - Fair Value, net of current portion | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset, Noncurrent | 1,312 | 1,465 |
Derivative Liabilities, Noncurrent | 0 | 0 |
Not Designated as Hedging Instrument | Bunker Call Options | Current portion of financial instruments - Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset, Current | 0 | 1,307 |
Derivative Liability, Current | 0 | 0 |
Not Designated as Hedging Instrument | Bunker Call Options | Financial instruments - Fair Value, net of current portion | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset, Noncurrent | 118 | 0 |
Derivative Liabilities, Noncurrent | $ 0 | $ 0 |
Financial Instruments - Derivat
Financial Instruments - Derivatives Designated as Hedging Instruments - Gain/(Loss) Recognized in Accumulated Other Comprehensive Income on Derivative (Effective Portion) (Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments Gain/Loss [Line Items] | |||
Total | $ (992) | $ 6,414 | $ (437) |
Gain/(Loss) Recognized in Accumulated OCI on Derivative (Effective Portion) | |||
Derivative Instruments Gain/Loss [Line Items] | |||
Interest rate swaps | (3,692) | 3,015 | (5,446) |
Total | $ (3,692) | $ 3,015 | $ (5,446) |
Financial Instruments - Deriv66
Financial Instruments - Derivatives Designated As Hedging Instruments - Loss Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) (Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative | |||
Total | $ (2,700) | $ (3,399) | $ (3,150) |
Depreciation expense | |||
Derivative | |||
Interest rate swaps | (189) | (156) | (154) |
Interest and finance costs, net | |||
Derivative | |||
Interest rate swaps | $ (2,511) | $ (3,243) | $ (2,996) |
Financial Instruments - Deriv67
Financial Instruments - Derivatives Not Designated as Hedging Instruments - Net Realized and Unrealized Gain (Loss) Recognized on Statement of Comprehensive Income / (Loss) (Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative | |||
Total | $ 5,690 | $ 3,448 | $ (1,926) |
Interest and finance costs, net | |||
Derivative | |||
Interest rate swaps | 0 | (47) | (24) |
Bunker swaps | 5,903 | 2,586 | (1,206) |
Bunker put options | 0 | 0 | 564 |
Bunker call options | $ (213) | $ 909 | $ (1,260) |
Financial Instruments - Fair 68
Financial Instruments - Fair Value of Assets and Liabilities Measured on Recurring Basis (Table) (Details) - Recurring Basis - Significant Other Observable Inputs Assets / (Liabilities) (Level 2) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps | $ (1,967) | $ (1,030) |
Bunker swaps | 7,027 | 2,479 |
Bunker call options | 118 | 1,307 |
Total | $ 5,178 | $ 2,756 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Present value of future cash flows of one bank loan | $ 1,762,938 | $ 1,765,726 |
Accumulated loss from derivatives designated as Hedging Instruments | 5,305 | $ 4,313 |
Present value of one long-term bank loan | ||
Present value of future cash flows of one bank loan | 8,472 | |
Carrying amount of one long-term bank loan | ||
Carrying amount | $ 8,617 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Jan. 30, 2018 | Mar. 12, 2018 | Feb. 28, 2018 | Apr. 02, 2018 | Mar. 19, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Subsequent Event [Line Items] | ||||||||
Net proceeds from sale of treasuy stock | $ 10,853 | $ 0 | $ 0 | |||||
Net proceeds from sale of vessels | $ 51,550 | $ 0 | $ 42,761 | |||||
Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Common stock - dividend declared | $ 0.05 | |||||||
Dividends per share declared - payment date | May 10, 2018 | |||||||
Dividends per share declared - record date | May 3, 2018 | |||||||
VLCC Millennium | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Net proceeds from sale of vessels | $ 17,690 | |||||||
8% Series B Preferred Shares | ||||||||
Subsequent Event [Line Items] | ||||||||
Preferred stock dividend rate percentage | 8.00% | |||||||
8% Series B Preferred Shares | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Preferred stock - dividend paid | $ 0.50 | |||||||
8.875% Series C Preferred Shares | ||||||||
Subsequent Event [Line Items] | ||||||||
Preferred stock dividend rate percentage | 8.875% | |||||||
8.875% Series C Preferred Shares | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Preferred stock - dividend paid | $ 0.55469 | |||||||
8.75% Series D Preferred Shares | ||||||||
Subsequent Event [Line Items] | ||||||||
Preferred stock dividend rate percentage | 8.75% | |||||||
8.75% Series D Preferred Shares | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Preferred stock - dividend paid | $ 0.54687 | |||||||
9.25% Series E Preferred Shares | ||||||||
Subsequent Event [Line Items] | ||||||||
Preferred stock dividend rate percentage | 9.25% | |||||||
9.25% Series E Preferred Shares | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Preferred stock - dividend paid | $ 0.57812 | |||||||
Common shares | Treasury stock | ||||||||
Subsequent Event [Line Items] | ||||||||
Sale of treasury stock | 2,488,717 | |||||||
Net proceeds from sale of treasuy stock | $ 10,853 | |||||||
Common shares | Treasury stock | Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Sale of treasury stock | 88,651 | |||||||
Net proceeds from sale of treasuy stock | $ 300 |