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TEN, Ltd (TEN) reported results (unaudited) for the nine months and third quarter ended September 30, 2024. In the first nine months of 2024, with 11 vessels undergoing scheduled dry docking and three performing repositioning voyages, TEN’s fleet generated healthy gross revenues and operating income of $615.8 million and $236.1 million respectively, including $48.7 million in gains from vessel sales. This resulted in net income, for the first nine months of 2024, of $157.0 million, equating to $4.62 per common share. Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) for the 2024 nine months reached $314.1 million, a $100.1 million increase from the 2024 six-month level. Fleet utilization, reflecting the fleet’s increased dry dockings and repositioning activity over the first nine months of 2024, was at 92.2% making the average TCE per ship per day settling at $33,390, a healthy and accretive level. Vessel operating expenses were at $147.4 million for the nine months ended September 30, 2024, corresponding to the increase of the fleet, both in terms of the number of vessels and vessel sizes since September 30, 2023, however, due to efficient management and enhanced fleet modernity, vessel operating expenses on a per ship per day basis experienced a 3.3% decline from the 2023 nine-month level and settled at $9,306. Depreciation and amortization combined experienced a slight increase, commensurate to both the higher number and larger size of vessels in the fleet and reached $118.4 million from $106.7 million in the 2023 same nine-months period. During the first nine months of 2024, debt repayments amounted to $155.9 million while total debt and other financial liabilities reached $1.8 billion, in line with the growth the fleet experienced from the same nine-month period in 2023, against a book value of $3 billion. Total finance costs for the first nine months of 2024 amounted to $87.4 million, mostly due to the continuing higher global interest rates and increased loans to support growth, compared to the 2023 equivalent period. Cash reserves remained solid at $386 million as of September 30, 2024, $9.2 million higher from the December 31, 2023, level, after payments of $258 million for common and preferred dividends, growth capital and the repurchase of two vessel lease options. During the summer months of 2024, lower oil prices steered an upsurge in Chinese oil imports that facilitated stockpiling and acted as a catalyst for the recovery of tanker spot rates. This resurgence also reinvigorated demand for secondhand tonnage, reinforcing market dynamics and bolstering overall sector performance. To this effect, TEN’s fleet, 43% of which operated under market-related contracts, generated over $200 million in revenue and achieved an operating income of $56.9 million in the third quarter of 2024, compared to $186.7 million and $53.0 million respectively for the same period in 2023. The resulting net income of $26.5 million or $0.67 per common share largely reflected the higher depreciation costs assumed during the quarter due to the higher number and larger size of vessels in the fleet when compared to the 2023 third quarter. Adjusted EBITDA in the 2024 third quarter amounted to $100.1 million, from $91.6 million in the 2023 third quarter. Depreciation and amortization combined were at $41.3 million, $5.0 million higher than the 2023 level, due to the increased size of fleet and number of vessels. With three vessels undergoing scheduled dry dockings during this quarter, fleet utilization settled at 92.8%, which resulted in an average TCE per ship per day of $32,539, 3.8% higher the 2023 third quarter level. Vessel operating expenses for the third quarter of 2024 were $49.1 million, $1.6 million lower than in the same period of 2023. On a per ship per day basis, these expenses experienced a 10% drop compared to the 2023 equivalent third quarter and settled at $9,188. Interest and finance costs were $32.2 million during the third quarter of 2024 after new loans for vessel acquisitions and still elevated global interest rates. In line with the Company’s semi-annual dividend policy to holders of its common stock and following the July 2024 payment of $0.60, TEN, will pay a dividend of $0.90 per common share on December 20, 2024, to holders of record as of December 16, 2024, increasing the total payments made for fiscal 2024 to $1.50, 50% higher than the 2023 distribution. Since its listing on NYSE, TEN maintains an uninterrupted dividend distribution for both common and preferred shares, totaling $870 million. In an environment where new vessel supply is at its lowest point for 30 years, tanker market prospects look promising for the near future. This, in a backdrop of increasing global energy demand, allows companies with modern diversified fleets and versatile employment structures to capitalize on the increasing appetite of energy majors for long-term contracts at healthy and accretive rates. The absence of a clear direction on future environmental engine propulsion, coupled with longer ton miles, due to geopolitical events, add to the positive environment. Our well-tested industrial shipping model places the Company in the forefront of those demands. With a strong balance sheet and ample liquidity, TEN offers environmentally friendly vessels to its client’s long-term requirements. The increased presence in the high-end dual-fuel LNG powered tanker sector is a testament to that. With 21 new vessels, three of which DP2 shuttle tankers under construction on long-term contracts to significant energy users, TEN’s long-standing presence in this high barrier to entry sector, is further enhanced. Management continues to actively explore strategic opportunities, across all sectors in which it operates. In view of the above, and in line with our commitment to always maintaining a modern fleet, TEN will also explore divestment opportunities for its earlier generation vessels and in that way monetize the full value of the assets the current market environment is providing for. Vessel employment strategies will continue to be flexible and versatile to safeguard the cash generating ability of the fleet while maintaining earnings visibility going forward. “With a fleet of 74 vessels, 11 of which underwent scheduled dry dockings this year, thus far, the fleet performed well, setting high standards for operational excellence, fleet growth and shareholders rewards. The $1.50 per common share total dividend for 2024 is proof to that,” Mr. George Saroglou, President of TEN commented. “With healthy cash balances and committed growth, we remain confident that TEN will be at the forefront of growth and value investors going forward,” Mr. Saroglou concluded. Source: TEN Ltd.The only qualification Trump's absurd Cabinet nominees have is blind loyalty to him
Warren Buffett's investment success is hard to ignore, given the massive price increase of his primary investment vehicle, Berkshire Hathaway ( BRK.A 0.12% ) ( BRK.B -0.01% ) . This is why every new Buffett stock acquisition gets huge attention on Wall Street. One of the most recent additions was Domino's Pizza ( DPZ -1.25% ) . Here are three things investors need to know before running out and buying this restaurant chain's shares just because Buffett bought it. 1. Warren Buffett isn't always right Successful investors on Wall Street are often viewed as having magical powers. To that end, Buffett's nickname is the Oracle of Omaha. That can lead smaller investors to put people like Warren Buffett on a pedestal that they may only partially deserve. Yes, Buffett's successes have built huge amounts of wealth. But he is still a human being, and he makes mistakes. As an example, Buffett backed the merger of Kraft and Heinz to form Kraft Heinz . The original plan was for it to be run by investment firm 3G Capital, which partnered with Buffett on the merger and had a history of successfully cutting costs to boost profitability at stodgy old companies. That plan didn't work out as well as hoped, 3G Capital is now out of the picture, and Kraft Heinz is working on a new approach. The stock has lost around two-thirds of its value since the tie-up in mid-2015. That's just one example -- there are others. In fact, Buffett himself often points out his mistakes in Berkshire Hathaway's annual reports. Yes, he is a good investor overall, and his portfolio is filled with stocks that have been huge winners. But he isn't perfect. There are losers in the mix, too. Just because he, or one of his associates, buys a company for Berkshire Hathaway doesn't mean you should. It might not work out as planned, or it might not be an appropriate stock for your portfolio because it doesn't mesh with your style of investing. KHC data by YCharts. 2. Domino's Pizza isn't cheap One of the core aspects of Buffett's approach is to try to buy great companies at an attractive price. It doesn't look like Domino's is totally in line with that standard. For starters, the price-to-earnings (P/E) ratio is around 28 right now. That's only a little below the company's five-year average of 30, and roughly in line with the P/E of the broader consumer discretionary sector (using the Consumer Discretionary Select Sector SPDR ETF as a proxy). It is also about the same level as the S&P 500 index, which is trading near all-time highs. "Fairly priced" may be an appropriate description, but "cheap" certainly is not. It's true that the business is performing well in some ways right now. For example, Domino's same-store sales in the United States rose a solid 3% in the third quarter and were up 4.5% through the first three quarters of this year. However, the third quarter of 2023 saw same-store sales in the U.S. market decline 0.6%, and that figure rose just 1% through the first nine months of 2023. So 2024 results are coming off a low base, and it's pretty clear that what goes up can also go down. To highlight that fact, same-store sales in the international market, where Domino's Pizza has more stores, were up just 0.8% in Q3 2024, down from 3.3% in the same quarter of 2023. Given that Domino's valuation is similar to the market, which is near all-time highs, investors might be pricing in too much good news for a business that can be highly variable over time. And don't forget that the restaurant industry is highly competitive. 3. Domino's is huge, and moving the needle could be hard Domino's Pizza has around 6,900 U.S. locations and another 14,000 foreign restaurants. Altogether, it has well over 20,000 locations. That's a very large number, and it changes the game for a restaurant company like Domino's Pizza. There are usually two ways that restaurants grow. The first is through opening new locations, while the second is by luring more customers into its existing locations (which is what same-store sales measures). Domino's Pizza opened a net total of 72 new locations in Q3 2024 (there were 208 openings and 136 closures). Over the past year it opened 805 stores, which is 4% growth year over year. However, the openings in the third quarter amounted to less than half a percentage point of growth. It will require massive investment of time, energy, and money for store openings to keep driving the top and bottom line, which the Q3 slowdown hints could be hard to achieve. That leaves same-store sales as the more important driver of financial success. But, as highlighted above, fickle customers can render that key metric highly volatile. Buffett could have jumped aboard at the perfect time, it's always possible. But it is also just as possible that Domino's Pizza will stumble if people decide that its pizza isn't so great anymore. Given the intense competition in the restaurant sector, there's probably more risk here than many investors realize. Don't just follow anyone Buffett often laments how investors act like lemmings, unthinkingly following hot fads and trends. One of his many pithy quotes is: "A pack of lemmings looks like a group of rugged individualists compared with Wall Street when it gets a concept in its teeth." Yet, in an ironic twist, Wall Street buys the stocks Buffett buys with lemming-like consistency. There's no harm in researching the stocks Buffett buys for Berkshire Hathaway. But make sure you only buy the ones that make sense to you. That list may or may not include Domino's Pizza, but there are some very clear reasons to be skeptical of this recent purchase if you take the time to look.
In a Monday appearance on MSNBC's "Morning Joe," former President Bill Clinton said, despite President-elect Donald Trump sweeping all seven battleground states in the general election, America is still "deeply" divided. The 42nd president of the United States spoke with Joe Scarborough about his November-published book, " Citizen: My Life after the White House ," and his reactions to the November results. "People are losing faith in the institutions, and in many, many places, they're going to reward the people that destroyed their faith," Clinton said. "I wouldn't bet against America. So far everybody that's bet against us has lost money. We just gotta stay after it." Clinton also chimed in on Vice President Kamala Harris ' campaign run saying, "She became a candidate at a time when no one else could legally access the money that had already been given to Joe Biden , and there was no time to have primaries." Essentially, she was a "stranger" to the public, he said. The 78-year-old had been stumping for Harris across the country and took the stage in support of her at the Democratic National Convention in August. Clinton's analysis of the election continued when he said the Trump team tried to claim economic wins he felt were a product of the Democratic administration before him. "I think the facts are that he inherited the end of the Obama-era's recovery," he said about Trump getting credit for a strong economy at the beginning of his first term. It's been just over a month since the Republicans won the White House and both houses of Congres s, and some Democratic officials are still trying to explain the loss of blue-collar, Latino, and women voters. Senator Bernie Sanders, I-Vermont, and a former presidential candidate blamed the loss on Democrats' failure to focus on working-class issues, and others are clamoring for new leadership. "If I see a dumpster fire and we've put it out and I want to work on how to prevent future dumpster fires , I'm not going to go talk to the arsonists," Aidan Kohn-Murphy, the founder of Gen Z for Change, a political activism group, said on TikTok.
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TORONTO -- TORONTO (AP) — President-elect Donald Trump was joking when he suggested Canada become the 51st U.S. state during a dinner with Prime Minister Justin Trudeau, a Canadian minister who attended their recent dinner said Tuesday. Fox News reported that Trump made the comment in response to Trudeau raising concerns that Trump's threatened tariffs on Canada would damage Canada's economy. Public Safety Minister Dominic LeBlanc, who attended the Friday dinner at Trump's Mar-a-Lago club, said Trump's comments were in jest. “The president was telling jokes. The president was teasing us. It was, of course, on that issue, in no way a serious comment,” LeBlanc told reporters in Ottawa. LeBlanc described it as a three-hour social evening at the president’s residence in Florida on a long weekend of American Thanksgiving. “The conversation was going to be light-hearted,” he said. He called the relations warm and cordial and said the fact that “the president is able to joke like that for us” indicates good relations. On Tuesday, Trump appeared to continue with the joke, posting on his Truth Social platform an AI-generated image of himself standing on a mountain with a Canadian flag next to him with the caption “Oh Canada!" Some Canadians had fun with it. “If I were President Trump, I’d think twice before invading Canada. The last time the U.S. tried something like that— back in the War of 1812 —it didn’t exactly end well. Canada even burned down the White House,” former Quebec Premier Jean Charest joked on X. Earlier last week, the Republican president-elect threatened to impose a 25% tax on all products entering the U.S. from Canada and Mexico unless they stem the flow of migrants and drugs. Trudeau requested the meeting in a bid to avoid the tariffs by convincing Trump that the northern border is nothing like the U.S. southern border with Mexico . Trudeau held a rare meeting with opposition leaders on Tuesday about U.S-Canada relations and later said that opposition Conservative leader Pierre Poilievre shouldn’t amplify the erroneous narratives that Americans are saying about the border. “Less than one percent of migrants coming into the United States irregularly come from Canada and 0.2 percent of the fentanyl coming into the United States comes from Canada,” Trudeau said in Parliament. Canadian officials have said there are plans to put more helicopters, drones and law enforcement officers at the border. At the dinner, Kristen Hillman, Canada's ambassador to the U.S., said America’s trade deficit with Canada was also raised. Hillman said the U.S. had a $75 billion trade deficit with Canada last year but noted a third of what Canada sells into the U.S. is energy exports and prices have been high. “Trade balances are something that he focuses on so it’s important to engage in that conversation but to put it into context,” Hillman told The Associated Press. “We are one-tenth the size of the United States so a balanced trade deal would mean per capita we are buying 10 times more from the U.S. than they are buying from us. If that’s his metric we will certainly engage on that.” Hillman said Canada sold $170 billion worth of energy products last year to the U.S. About 60% of U.S. crude oil imports are from Canada, and 85% of U.S. electricity imports as well. Canada is also the largest foreign supplier of steel, aluminum and uranium to the U.S. and has 34 critical minerals and metals that the Pentagon is eager for and investing for national security. About 77% of Canada’s exports go to the U.S. Trudeau's government successfully employed a “Team Canada” approach during Trump’s first term in office when the free trade deal between Canada, the U.S. and Mexico was renegotiated. But Trudeau’s minority government is in a much weaker position politically now and faces an election within a year. Poilievre, Canada's opposition leader, said the tariffs would harm Americans. “The president-elect was elected on a promise to make America richer. These tariffs would make America poorer,” Poilievre said after meeting with Trudeau. Poilievre said the U.S. would be wise to do more free trade with its best friend and closest ally. Canada is the top export destination for 36 U.S. states. Nearly 3.6 billion Canadian dollars ($2.7 billion) worth of goods and services cross the border each day. Trudeau returned home after the dinner at Mar-a-Lago club in Florida without assurances Trump would back away from threatened tariffs on all products from the major American trading partner. Trump called the talks “productive” but signaled no retreat from a pledge that Canada says unfairly lumps it in with Mexico over the flow of drugs and migrants into the United States. The flows of migrants and seizures of drugs are vastly different. U.S. customs agents seized 43 pounds of fentanyl at the Canadian border during the last fiscal year, compared with 21,100 pounds at the Mexican border. Most of the fentanyl reaching the U.S. — where it causes about 70,000 overdose deaths annually — is made by Mexican drug cartels using precursor chemicals smuggled from Asia. On immigration, the U.S. Border Patrol reported 1.53 million encounters with irregular migrants at the southwest border with Mexico between October 2023 and September 2024. That compares to 23,721 encounters at the Canadian border during that time.
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