SOURCE: Tsakos Energy Navigation

Tsakos Energy Navigation

September 28, 2011 07:45 ET

Tsakos Energy Navigation Announces Time Charter Employment of Eight of Its Tankers

Approximately $140 Million in New Charters Over the Next 3.5 Years

ATHENS, GREECE--(Marketwire - Sep 28, 2011) - Tsakos Energy Navigation Limited ("TEN" or the "Company") (NYSE: TNP) today announced time charters of four of its Suezmaxes, three of its Panamaxes and one of its Aframaxes to first class international end users. Four of the vessels have been fixed on a minimum with profit-sharing arrangements, while the other four have been chartered on fixed rates. These charters range in duration between one and three-and-a-half years and are expected to contribute minimum revenues of $140 million. When combined with the recently announced fixtures of the two newbuilding Suezmaxes for 11 and 12 years, the DP2 Shuttle tankers, still under construction, for 15 years, the Company's LNG carrier for four years and one Handymax MR2 for a year, the sum of all chartering activity of late is expected to generate approximately $1 billion in total gross revenues to the Company.

Inclusive of the above, as of today, 73% of remaining available days for this year have been fixed with minimum expected revenues of $104 million and 56% for 2012 with minimum revenues at $175 million.

"These charters are a testament to the quality of our fleet and the relations our Company has developed with first class clients over the years. This follows the Company's consistent policy of securing downside protection and upside potential to protect it from the turbulent freight cycles. The willingness of charterers to employ our vessels long term on profit sharing arrangements is a positive sign. Such fixtures reinforce TEN's ability to take advantage of accretive growth opportunities that surface in weak markets and maintain its dividend. Our policy to further strengthen TEN's balance sheet and to bridge the gap between our share price and the real value of our Company remains," Mr. Tsakos concluded.

ABOUT TSAKOS ENERGY NAVIGATION
To date, TEN's pro forma fleet consists of 50 double-hull vessels of 5.4 million dwt that includes two DP2 suezmax tankers currently under construction totalling 314,000 dwt. 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 one LNG carrier.

TEN's current newbuilding program:
Suezmax DWT Hull Type / Design Expected Delivery
1. Suezmax DP2 157,000 DH Q4 2012
2. Suezmax DP2 157,000 DH Q1 2013
DH: Double Hull
Fleet Employment:
Type of Employment Vessels
Period Employment - Fixed, fixed w/profit share & min max 30
Pool - market related 6
Spot - market related 14

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
    Biraj Gyawali
    +212 661 7566
    ten@capitallink.com