SOURCE: Tsakos Energy Navigation

Tsakos Energy Navigation

December 15, 2010 08:45 ET

Tsakos Energy Navigation Awarded Two 15-Year Shuttle Tanker Contracts With National Oil Major

Accretive Project to Be Financed With Proceeds From Recent Equity Offering Project Revenues to Exceed $520 Million

ATHENS, GREECE--(Marketwire - December 15, 2010) - Tsakos Energy Navigation Ltd. ("TEN") (NYSE: TNP) or (the "Company") today announced two 15-year time charters with a national oil major for two DP2 Suezmax shuttle tankers with delivery within 2012. These charters are expected to generate revenues of at least $520 million over their corresponding periods. The return on equity anticipated from this project is attractive when compared to other mainstream shipping projects and our overall investment criteria and will make a significant contribution to our bottom line. The construction of these two high specification Suezmax tankers will be financed with cash from our recent $85 million equity offering and bank debt.

Shuttle tankers are a highly specialized sector, which calls for state of the art vessels specifically designed for oil transport from an offshore field. Typically, such vessels are committed to industrial projects for long periods and at premium daily rates.

George Saroglou, Chief Operation Officer of TEN commented: "TEN's expansion into the shuttle tanker business is expected to generate significant long term advantages for our Company and its shareholders and puts to good use the proceeds of our recent equity offering. This project is within the context of our strategy to operate modern, diversified and versatile vessels across all sectors of tanker operations aiming to meet the overall transportation needs of our clients. In addition, it solidifies our long standing relationship with the specific high quality charterer as well as our standing with oil majors worldwide. The sizeable and highly accretive returns that we expected to generate over the life of these charters will significantly enhance our cash flow and ability to continue rewarding our shareholders with stable and regular dividends. TEN is a growth company and given our strong balance sheet and high liquidity we will continue to monitor the market for additional fleet expansion opportunities."

ABOUT TSAKOS ENERGY NAVIGATION

To date, TEN's pro forma fleet consists of 50 double-hull vessels of 5.1 million dwt that includes two suezmax tankers currently under construction totalling 316,000 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 employment profile (operating fleet):

Type of Employment                                            Vessels
                                                              -------
Period Employment - Fixed, fixed w/profit share & min max        30
CoA - market related                                             2
Pool - market related                                            6
Spot - market related                                            10

TEN's current newbuilding program:

Suezmax                     DWT        Hull Type / Design       Delivery
                          -------      ------------------      ----------
1. S2034 (tbn Spyros K)   158,000               DH             April 2011
2. S2035                  158,000               DH             July 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