SOURCE: Tsakos Energy Navigation

TSAKOS ENERGY NAVIGATION

October 12, 2010 09:31 ET

Tsakos Energy Navigation Announces Series of Time Charters With Profit Share for Modern Suezmax and LR2 Aframax Tankers

$82.0 Million Of Minimum Revenues From Recent Chartering Activity

ATHENS, GREECE--(Marketwire - October 12, 2010) - Tsakos Energy Navigation Ltd. ("TEN") (NYSE: TNP) or (the "Company") today announced two-year charters with 50:50 profit share for two suezmaxes with charterers option for one additional year on one vessel and one twelve-month charter with 50:50 profit share for an ice- class aframax product tanker. These charters combined are expected to generate minimum gross revenues in excess of $44.0 million or $53.5 million if charterers exercise the one-year option on the one suezmax vessel. In addition to the recently announced three year fixture of a handysize product tanker, together with the employment of the other two aframax product tankers in the summer, the minimum gross revenue the company will expect to generate from its recent chartering activity should rise to $82.0 million.

The suezmax charters are in direct continuation from their previous fixtures with the same international oil major while the aframax was trading in the spot market. All three 1A ice-class aframaxes are chartered to a major North European shipping concern active in ice trades where the vessels are expected to operate. The vessels will earn a premium over the base rate for the duration of ice operations.

"We are pleased to continue implementing our tested chartering policy of term employment with upside potential to major international oil concerns. This allows us to both secure our bottom line and participate in market upturns in cooperation with our clients," Mr. Nikolas P. Tsakos, President & CEO of TEN stated. "The recent appetite of oil companies for term fixtures is a positive sign for the future particularly in a weak spot rate environment," Mr. Tsakos concluded.

About Tsakos Energy Navigation TEN's pro forma fleet (including the recently acquired Panamaxes) consists of 50 vessels of 5.3 million dwt. TEN's operational fleet consists of 46 vessels all of double-hull design of which 21 are ice-class. TEN's remaining newbuilding program includes two suezmax tankers totaling 316,000 dwt.

TEN's balanced operational fleet profile is reflected in 21 crude tankers ranging from VLCCs to aframaxes and 24 product carriers ranging from aframaxes to handysize; complemented by one LNG.

TEN's current employment profile:
Type of Employment                                           Vessels
Period Employment - Fixed and fixed with profit share           30
CoA  - market related                                            3
Pool - market related                                            4
Spot - market related                                            9

TEN's current newbuilding program:
Suezmax          DWT            Hull Type/ Design       Delivery
1. S2034         158,000        DH                      Q2 2011
2. S2035         158,000        DH                      Q3 2011

DH: Double Hull

FORWARD-LOOKING STATEMENTS

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:
    Company
    Tsakos Energy Navigation Ltd.
    George Saroglou
    COO
    +30210 94 07 710
    gsaroglou@tenn.gr

    Investor Relations / Media
    Capital Link, Inc.
    Nicolas Bornozis
    Ramnique Grewal
    +212 661 7566
    ten@capitallink.com

    Communications Advisor
    Cubitt Jacobs & Prosek Communications
    Thomas J. Rozycki, Jr.
    +212 279 3115 (x208)
    trozycki@cjpcom.com