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