SOURCE: Tsakos Energy Navigation

Tsakos Energy Navigation

April 12, 2012 07:00 ET

Tsakos Energy Navigation Announces Long-Term Charters for Two Handysize Product Tankers

Obtains Options for Two Suezmax Newbuildings

ATHENS, GREECE--(Marketwire - Apr 12, 2012) - Tsakos Energy Navigation Limited (TEN or the "Company") (NYSE: TNP) today announced three and five year charters for two of its modern handysize product tankers to a major end-user. These vessels currently under pooling arrangements will commence within April/May and are expected to generate gross revenues of approximately $42 million over the duration of their respective contracts.

Concurrently with the above, the Company announces the options for two conventional suezmax newbuildings from a South Korean yard expected to be delivered in Q2 2012 and Q1 2013. Should these options be exercised, the total number of suezmaxes in TEN's fleet will be 14, including the two shuttle tankers under construction.

"The appetite of end-users for long term employment of product carriers is a positive testament for this segment. Our balanced employment policy with long-term contracts and profit sharing provisions would allow for further income visibility and continuous dividend distributions amid the sound confines of an already existing strong balance sheet," said Mr. Nikolas P. Tsakos, President & Chief Executive Officer of TEN.

To date, TEN's pro forma fleet consists of 51 double-hull vessels of 5.5 million dwt that includes one LNG carrier and two DP2 suezmax shuttle tankers currently under construction totaling 400,000 dwt. The Company has newbuilding options for two conventional suezmax tankers and one LNG carrier. TEN's balanced fleet profile is reflected in 23 crude tankers ranging from VLCCs to aframaxes and 26 product carriers ranging from aframaxes to handysize and two LNG carriers.

TEN's employment profile - Operating fleet (as of April 8, 2012):

Type of Employment Vessels
Period Employment - Fixed, fixed w/profit share & min max (*) 31
Pool - market related 5
Spot - market related 12

(*) Excluding the two shuttle tanker newbuildings that will enter 15 year charters at delivery

TEN's current newbuilding program (incl. options):

Suezmax DWT Hull Type / Design Expected Delivery
1. Suezmax DP2 157,000 DH Q1 2013
2. Suezmax DP2 157,000 DH Q2 2013
3. Suezmax * 158,000 DH Q2 2012
4. Suezmax * 158,000 DH Q1 2013
1. TBN 86,000 Tri-Fuel Q1 2015
2. TBN * 86,000 Tri-Fuel Q4 2015

DH: Double Hull
* Options

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