Tsakos Energy Navigation’s value on the New York Stock Exchange has increased by 73% in the last 12 months.
The company, which has planned a 2-billion-dollar investment program to green its fleet by 2030, has seen its stock in June soar above 31 US dollars on Wall Street, while a year ago it was under 17.
According to an analysis by Alan Sumler from Seeking Alpha, the company is in the process of renewing its fleet with alternative eco-fuel vessels to meet the demands of its customers.
The cost of this process is weighing on the company’s performance in the first quarter, but better results are expected in the third and fourth quarters of 2024.
During 2023 the company announced revenue and performance at record levels. This trend, according to the analyst, will continue as global demand for oil transportation increases. There are also ongoing geopolitical upheavals that have forced ships to follow new, larger trade routes.
According to the analyst, the company, which trades at 29.34 dollars, is undervalued and trades below its book value of 56.99 per share and the average target price of 35 dollars per share.
The company’s share price still has a way to go and the company, which operates in a cash-rich environment, has promised continued good performance.
In addition, the company doubled its semi-annual dividend for the year, increasing it to 0.6 dollars.
