Revenues from vessels, net of commissions for fiscal year 2001 were $118.65 million, representing an increase of 11.5% from fiscal year 2000. Operating income was $37.97 million in fiscal year 2001 or 23.4% higher than in fiscal year 2000. Expenses were $4.99 million higher in fiscal year 2001 from fiscal year 2000 reflecting primarily higher amortization of deferred charges. Depreciation charges were modestly higher, but net interest and other finance costs were significantly lower reflecting the monetary ease engineered by the U.S. Federal Reserve Bank. As a result, net income was up sharply reaching higher levels in 2001 for the second consecutive year. Net income rose 75.2% from $14.05 million in 2000 to $24.62 million in 2001. EBITDA increased by 19.7% from $54.56 million in 2000 to $65.29 million in 2001.
Revenues from vessels, net of commissions for the fourth quarter of 2001 were $28.70 million or 5.0% less than the fourth quarter of 2000. Operating income was $5.65 million in the fourth quarter of 2001 which was 25.3% lower than the fourth quarter of 2000. Expenses were $3.27 million higher in the fourth quarter of 2001 from the fourth quarter of 2000 due to extra vessels on voyage charter and higher amortization of deferred charges. Depreciation was up modestly, but net interest and finance costs were well below the levels of the fourth quarter of 2000. As a result net income was greater in the fourth quarter of 2001 in comparison with the fourth quarter of 2000. EBITDA was down 7.4% from $13.34 million in the fourth quarter of 2000 to $12.35 million in the fourth quarter of 2001.
Per share results were also at higher levels for the second consecutive year reflecting the underlying performance and the benefits of a modest share repurchase program. Net income per share for fiscal year 2001 was $2.56 up 79.0% from the $1.43 produced in 2000. Net income per share for the fourth quarter of 2001 was $0.46 or 39.4% above the $0.33 attained in the final quarter of 2000.
TEN has a fleet of sixteen tankers (including one chartered in Aframax) comprising 1,420,000 dwt with an average tonnage age of approximately nine years which is younger than the average global tanker tonnage age. The fleet was unchanged during 2000 and 2001, but a somewhat stronger charter market earlier in 2001 lifted revenue from vessels, net of commissions by $12.20 million.
TEN plans to expand its fleet by 1.144 million deadweight tons. It has contracted for four new buildings (three Suezmax and one Aframax) to be delivered in 2002 and has exercised options to acquire six additional new buildings (one Suezmax, one Aframax, and four Panamax) for delivery between 2002 and the first quarter of 2004, with the possibility of all remaining deliveries by the end of 2003. After TEN takes delivery of these new buildings, the average tonnage age of TEN's fleet will fall to approximately seven years.
The economic outlook for the balance of 2002 is less murky than was the case in late November. The combination of aggressive monetary easing and stimulative fiscal actions appears to have limited the degree and duration of the U.S. recession. Europe, although less robust, may well avoid a recession of its own. Meantime Japan continues in its quagmire. The timing of a turnaround in the highly important Japanese economy is most uncertain. Despite this constraint, most of the Pacific Basin is displaying economic buoyancy and could benefit from worldwide inventory replenishment. Latin America and Africa are generally bogged down with currency and debt pressures. As a result, near term the overall demand for petroleum and its products is likely to experience only modest growth. However, a strong rebound in U.S economic activity and more normal winter heating requirements could stimulate demand for oil imports in late 2002.
Tanker charter rates were very strong in late 2000 and early 2001 but have since experienced persistent erosion. Current depressed levels may prevail until the hoped for economic rebound displays traction. In the interim, TEN's policy of deploying a large portion of tonnage to fixed rate employment will cushion the impact of the soft market. Twelve of the sixteen vessels in TEN's fleet are operating on full utilization with fixed, collar rate or contract of affreightment employment anticipated through year end 2002.
Against this backdrop TEN anticipates that certain operating costs and insurance rates in particular will be higher in 2002. Conversely TEN continues to benefit from the relative strength of the U.S. dollar and its impact on Euro based expenses. The era of low U.S interest rates is also a significant plus.
TEN has announced its intention to commence a cash dividend policy with semi-annual disbursements. It plans to initiate the program with a declaration and payment in October 2002.
This is not an offer of TEN's securities in the United States. TEN's securities may not be offered or sold in the United States absent registration or an exemption from registration under the United States Securities Act of 1933, as amended. Any public offering of TEN's securities to be made in the United States will be made by means of a prospectus that may be obtained from TEN and that will contain detailed information about the company and management, as well as financial statements.
A registration statement relating to TEN's common shares has been filed with the United States Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This communication shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.