Thank you for standing by, ladies and gentlemen and welcome to the Tsakos Energy Navigation Conference Call on the Fourth Quarter 2022 Financial Results. We have with us Mr. Takis Arapoglou, Chairman of the Board; Mr. Nikolas Tsakos, President and CEO; Mr. Paul Durham, Chief Financial Officer; and Mr. George Saroglou, Chief Operating Officer of the company. [Operator Instructions] I must advice you that this conference is being recorded today. And now, I will pass the floor over to Mr. Nicolas Bornozis, Chief President of Capital Link Investor Relations Advisor of Tsakos Energy Navigation. Please go ahead, sir.

Thank you very much and good morning to all of our participants. I am Nicolas Bornozis of Capital Link Investor Relations Advisor for Tsakos Energy Navigation. This morning, the company publicly released its financial results for the fourth quarter and year-ended December 31, 2022. In case you do not have a copy of today’s earnings release, please call us at 212-661-7566 or email us at ten@capitallink.com and we will have a copy for you e-mailed right away. Please note that parallel to today’s conference call, there is also a live audio and slide webcast, which can be accessed on the company’s website on the front page at www.tenn.gr. The conference call will follow the presentation slides. So please, we urge you to access the presentation slides on the company’s website. Please note that the slides of the webcast presentation will be available and archived on the website of the company after the conference call. Also, please note that the slides of the webcast presentation are user controlled and that means that by clicking on the proper button you can move to the next or to the previous slide on your own. At this stage, I would like to read the Safe Harbor statement. This conference call and slide presentation of the webcast contains certain forward-looking statements within the meaning of the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, which may affect TEN’s business prospects and results of operations. And before passing the floor to the Mr. Arapoglou, I would like to – we are looking forward to having Dr. Tsakos with us at the Capital Link Forum in New York next Monday. And we would like to congratulate him for being recognized as the person of the year by the Hellenic American Chamber of Commerce next Friday in New York, recognizing and honoring his contribution to Global Shipping to Greece, and also recognizing the fact that TEN is the longest listed Greek company on the New York Stock Exchange, and this recognition coincides with record profitability, a record year for TEN. So, with that, I will pass the floor to Mr. Arapoglou, the Chairman of Tsakos Energy Navigation, please go ahead, Mr. Chairman.

Thank you, Nicolas. Good morning and good afternoon to everyone, and thank you for attending our call today. Please receive my voice, which is [usual telephone calls] [ph] that are managed. [Indiscernible] and full-year, record results in books since inception. Celebrating with the very positive dividend increase. I need to remind everyone of the TEN model which mitigates negative results in [indiscernible] markets and allows the company [for directly] [ph] to strong markets. This model has a lifetime to pay an interrupted dividend since inception. At an average over the U.S. [indiscernible] ratio of over 22% of revenues, as I'm sure Nikolas Tsakos would explain later. The main driver of these stellar results about [indiscernible] otherwise very unfortunate geopolitical events are the market fundamentals we were more expected to begin for quite some time now. So, congratulations [indiscernible] once again to Nikolas Tsakos and the management team, which apart from operational excellence is [economically pursuing] [ph] the future more, reducing debt, and keeping a [credit course] [ph] to benefit from what seems to be a sustained strong market, despite our [recessional expectation] [ph]. [Indiscernible] potential has been firmly recognized by the market and the investment in our [SOX] [ph] performance in TEN recent months. But again, well done to all, and we look forward to the continuation of TENs profitable journey going forward. Thank you all, and I'll hand it over to Nikolas Tsakos. Thank you.

Thank you, Chairman, and good morning to everybody or good afternoon, if you are on this side. And we would like to welcome you on our 2022 [year-end call] [ph]. As the Chairman said, Nick, thank you very much for reminding us that we are the oldest and the greatest care of the Greek companies on the New York Stock Exchange. But I think that's a great privilege and great honor and we're looking to be able to celebrate with you quite soon the event and it coincides with a very good year, record year. But I think whenever we talk, we talk about the record year, people get a bit worried thinking that we have really reached a peak. This is something that we hope or as we can see from the fundamentals and the actual market conditions that we're facing right now. But 2023, has started as an ever stronger year than 2022 has done. So, by coincidence, we will be celebrating 30 years as public company started on the Oslo Stock Exchange in 1993. So, we hope as our CEO has said that we can see the share above the $30 within our 30th anniversary. And looking at where we are today, TEN has maintained this model of being able to grow, thrive, and prepare the grounds during difficult markets because the time you want to be investing in assets is when nobody wants to invest and we have been able to achieve this. With following our model and [indiscernible], of course. And then to thrive during the good times, but TEN has never stopped paying a dividend, has never stopped reducing debt, had never had to reconstruct any of its launch. And of course, this gives a lot of confidence to our clients and that's why…

Yes, by all means. Sure. So, the fourth quarter of 2022 resulted in net income of over $100 million, bringing our net income for the year to over $204 million, a new record for the company since 2008. EBITDA increased to almost $160 million in the quarter, adding to our cash reserves for the year-end and reaching staggering amount of over $300 million by the end of the recent year, due mainly to the impact of the events in Eastern Europe through most of 2022. And since the end of the year, our cash reserves have continued to increase taking into account sale of vessels, Revenue in quarter four totaled over $270 million and 94% increase over the prior year. Time charters generated about $460 million in the year, while total revenues in the year amounted to $860 million of which $55 million related to profit share. Total operating income in the quarter amounted to $122 million, compared to a loss in the prior fourth quarter. In 2022, operating income reached $256 million, compared with a loss of $120 million in the prior year. With 66 vessels operating, our average daily time charter equivalent in the quarter was almost $40,000 in a market that effectively operated with full employment for our vessels at 97%. Only two of our vessels were in dry dock in the quarter, but in the year, 16 vessels undertook dry dock, while certain expenses had increased due in part to the new vessels that incur higher operating expenses and to various other price increases. However, our time charter revenue alone was able to cover all our expenses and still leave significant amounts of free funds. All our new vessels and orders are financed except to the latest orders and all new buildings are expected to generate strong rewards over the forthcoming years. In the meantime, the company will continue as always to ensure perfect debt service. Given our cash availability, use of funds will be high on management's financial priorities, and in this respect, we are already preparing plans accordingly regarding the company's future. And that's my basic comment. Please note that we shall be filing our 20-F shortly in which there will of course be substantial information included.

Thank you, Paul. Good morning to all of you joining our earnings call today. Last year, we had experienced the largest change in trade flows to ongoing crude and oil product movements due to a political action they were in Ukraine and the sanctions that followed on Russian seaborne barrels. These changes could be permanent as Europe, the biggest client of Russian oil managed to replace these barrels with barrels coming from the U.S., West Africa, Vienna, and the Middle East, creating a positive ton mile multiplier effect for tanker demand and rates. At the same time, tanker newbuildings are at an all-time low, 30-year low. And global oil demand is coming back after the COVID pandemic. In fact, despite the ongoing energy transition to renewables, the world understands that its reliance on oil and LNG will last longer, possibly at least until 2050. Demand is expected to grow by 2 million barrels per day in 2023 based as the latest forecast [to enter the] [ph] International Energy Agency. It will be an all-time record at 102 million barrels per day. All lines are, of course, on China, which changed its zero COVID policy in the last quarter of 2022 as [most] [ph] of the growth is expected to come from them. Especially, despite global headwinds, inflation, tightening global financial conditions, the war in Ukraine and that continues and geopolitical tensions, the global economy continues to grow. Oil demand, as we said, is growing and tanker fundamentals appear to be favoring a sustainably good tanker market. Let's go to the slides of our presentation. Starting with Slide 3, we see that since TEN’s inception in 1993, we have faced five major crisis and it's time the company came out stronger, thanks to its operating model. This time is no exception.…

Thank you, George, for giving us a full picture of quite an exciting year. And a lot of excitement, as I say, has begun with 2023 where market fundamentals are remaining strong. There is some weakness in the price of oil. It is, I think, a welcomed and positive for the tanker industry. And I've been saying this for, as long as Mr. Bornozis said, we've been on the New York Stock Exchange and [indiscernible] Stock Exchanges, that there is always a correlation – reverse correlation with tanker rates and the price of oil. So, I think what we are seeing in the recent weeks, the normalization of the price – in the price of oil. We are in a low inventory environment. The world has suffered from high oil prices in the last, at least four quarters. So, we see that the correction and the price of oil becoming to more affordable levels for the world is good to drive more business for ourselves. And we see this in the demand from [every single measure] [ph] for long-term businesses that I don't think we have seen again. As you know, we do monitor all of our business on profit sharing arrangements, but today, VLCC could easily go for a year close to $70,000, as Suezmax about [50 to 60] [ph] and very similar the Aframax rates. And these are also for a couple of years. So, there is a positive environment for where we're going forward. And that's why we took the opportunity to order vessels of new generation that will be able to fulfill the requirement of the major oil companies. I think right now, we are having a balanced profit sharing and spot environment. Our LNG is – one of our LNG is opening in the next…

Thank you. [Operator Instructions] Thank you. Our first question is from Climent Molins with Value Investors. Please proceed with your question.

Good morning. Thank you for taking my questions. I wanted to start by asking about the dividend you announced today. How should we think about it? Because on the capital event in January, you mentioned that DMP really intensely tribute between 25% and 50% of net income during [indiscernible], is that still the board's intention?

Yes. I mean, this has always been – thanks for – good morning to you and thanks for your question. If you look at the historical figures I announced out of 2.3 billion of net income, we have already distributed 5 – in total, [570] [ph]. So, that's about 20 – close to between 25% and 30%. And yes, we will maintain the same policy. And always build-up cash. I believe that if things continue, we would be close to $0.5 billion of liquidity within this year, which I think will give us a lot of security going forward and a lot of ammunition to invest in new and more environmentally friendly vessels.

Thanks for the color. During the quarter, you issued 570,000 shares for 10.4 million, could you provide some insight on the reasoning behind that decision? And looking ahead, should we expect additional ATM usage?

That was a program that we had to complete within the year. That was a decision taken in the early parts of 2022. And it was completed – with the liquidity that the company is building up on a daily basis, I don't foresee any similar transactions now that this program has been completed.

That's helpful. Thank you. And final question from me. You mentioned the new contract on the new energy will add at least another dollar in net income by itself. Could you provide some additional commentary on the terms of the new contract? For example, the TCE or the contract duration?

We are looking at yearly contracts in excess of $100,000 a day, but that's about [36] [ph] or if we decide to do a two-year contract about $85,000 a day, so, yes, that's how we can do the figure I mentioned to you.

Makes sense. So, it's not peak yet ,right?

Exactly.

All right. Thank you for taking my questions and congratulations for the quarter.

Thank you very much.

[Operator Instructions] Thank you. There are no further questions at this time. I'd like to hand the floor back over to Dr. Nikolas Tsakos for any closing comments.

Well, first of all, thank you for supporting the company over this year. We are actually looking at this, and I know whenever someone talks about very strong quarter, you have people thinking that the market has picked. The solid fundamentals that I think our COO presented and I think you are all familiar with the market shows that we are in the tankers in a situation because of the lack of knowledge, of what actual [indiscernible] engines, our vessels should be designed or built with the lowest replacement program or newbuilding program since I've been in business in 30 years. I think the whole industry – the whole tanker industry is close to 4%. And I think segments – the big segments closer to 2.8% to 3%. This is unprecedented. And without any growth in trades, that would signal a very strong market going forward because as you know, it takes at least three years to build the ship if someone decides to do so. So, we are in for a healthy period going forward without the need of any geopolitical circumstances that create the requirement for more ton miles. So, whereas we are [indiscernible] we are always preparing the company to be able to observe any shocks that might arrive and we are proven that we're very proud of that record. I think we will be able to harvest everything that we have planted and with the coming of the eight new ships, plus two vessels that have been added in our fleet in the recent couple of weeks to grow the earnings in the first quarter and going forward. And we are the major shareholders in the company and we feel very correct and very right to be able to reward our shareholders with a very dramatic and significant increase of our dividend. And if the market continues, hopefully we can have another increase later in the year. And with that, I will ask Mr. Arapoglou to wrap up.

Well, thank you, Nikolas. The message is that it is not a flash [indiscernible]. The market continues as strong as it used to be at the end of last year and TEN is ideally positioned to capture all the benefits going forward. So, with that, thank you all for attending today's meeting. And all the best. Thank you.

Thank you and see you next week in New York. Thank you very much. Thank you.

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.