SOURCE: Tsakos Energy Navigation

Tsakos Energy Navigation

May 09, 2011 07:34 ET

Tsakos Energy Navigation Announces Long Term Time Charters for Two Suezmax Newbuilding Tankers

Minimum $200 Million in Revenues Over Charter Period

ATHENS, GREECE--(Marketwire - May 9, 2011) - Tsakos Energy Navigation Limited ("TEN" or the "Company") (NYSE: TNP) today announced two long-term fixtures with minimum and profit sharing provisions to a major Far Eastern entity for two suezmax tankers to be delivered in mid-May and mid-July of this year in South Korea. The charters, of eleven and twelve-year periods will commence upon delivery and are expected to generate combined gross revenues, assuming only the minimum rates, of approximately $200 million.

"The duration and structure of this transaction is a testament to the quality of our fleet and operations while the calibre of the counterparty is a proof of the high-value relationships our Company has cultivated over the years," said Mr. Nikolas P. Tsakos, President & CEO of TEN. "These two fixtures fall in line with our tried and tested policy of cash flow predictability as they provide us with a flexible and stable income stream over a very long period. These two new charters together with the recent fifteen year contracts secured for the two suezmax shuttle tankers currently under construction should generate a minimum of $720 million in gross revenues over their corresponding charter periods," Mr. Tsakos concluded.

To date, TEN's pro forma fleet consists of 51 double-hull vessels of 5.5 million dwt that includes four suezmax tankers currently under construction totalling 630,000 dwt to be delivered in Q2 and Q3 2011 and two suezmax DP2 shuttle tankers for delivery in 2012 and 2013. TEN's balanced fleet profile is reflected in 24 crude tankers ranging from VLCCs to aframaxes and 26 product carriers ranging from aframaxes to handysize and one LNG carrier.

TEN's employment profile (operating fleet as of May 14, 2011):
Type of EmploymentVessels
Period Employment - Fixed, fixed w/profit share & min max29
CoA - market related2
Pool - market related6
Spot - market related11

TEN's current newbuilding program:
SuezmaxDWTHull Type / DesignDelivery
1. Spyros K158,000DHExpected May 14, 2011
2. Dimitrios P158,000DHJuly 2011
3. Suezmax DP2157,000DHQ4 2012
4. Suezmax DP2157,000DHQ1 2013

DH: Double Hull

Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those predicted by such forward-looking statements. TEN undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.

Contact Information

  • For further information, please contact:
    Tsakos Energy Navigation Ltd.
    George Saroglou
    +30210 94 07 710

    Investor Relations / Media
    Capital Link, Inc.
    Nicolas Bornozis
    Biraj Gyawali
    +212 661 7566