SOURCE: Tsakos Energy Navigation

Tsakos Energy Navigation

April 10, 2012 07:00 ET

Tsakos Energy Navigation Expands Presence in LNG Sector

Existing LNG Neo Energy Commenced New Charter on March 28, 2012

ATHENS, GREECE--(Marketwire - Apr 10, 2012) - Tsakos Energy Navigation Limited (TEN or the "Company") (NYSE: TNP) today announced the order of one plus one state-of-the-art LNG carrier for delivery Q1 2015 at a major South Korean yard. The vessel is of the new tri-fuel design enabling the ship to run on fuel oil, marine diesel/gas oil and natural gas offering attractive alternatives to charterers. Discussions for long-term contracts have commenced and management is confident that such employment will be secured well before the first delivery in early 2015.

Concurrently with this order, TEN announced the commencement of the previously announced four-year charter for its LNG carrier Neo Energy to a major international entity and a repeat employer of the vessel at an accretive rate reflective of current market conditions.

"We are particularly pleased with this order as it expands our presence in this exciting field. LNG operations require a particular set of discipline and commitment in order to gain credence with the sector's premier charterers and we are proud to have met the challenge," stated Mr. John Stavropoulos, Chairman of the Board.

"The LNG sector together with the offshore shuttle tankers market will be playing a growing role in our Company's affairs going forward. These segments provide longer term fixed rate charters that enhance the visibility of future revenues and profits and allow the Company to maintain its strong balance sheet and dividend sustainability going forward," said Mr. Nikolas P. Tsakos, President & Chief Executive Officer of TEN. "These new LNG orders add to the Company's two shuttle tanker contracts with delivery in Q1 and Q2 2013 to a major South American oil company for 15 years each with minimum revenues in excess of $500 million in total. Today we operate one of the most modern product carrier fleets in the world, have significant presence in the crude sector and enhanced ice-class capabilities. These new investments follow our clients' needs in the ever growing energy sector and we remain committed to provide them with a diversified fleet to meet their requirements. In the meantime and in this low cost environment, we entertain various opportunities in the greater tanker sector and intend to move on these in the near future," Mr. Tsakos concluded.

To date, TEN's pro forma fleet consists of 51 double-hull vessels of 5.5 million dwt that includes one LNG carrier and two DP2 suezmax shuttle tankers currently under construction totaling 400,000 dwt. TEN's balanced fleet profile is reflected in 23 crude tankers ranging from VLCCs to aframaxes and 26 clean/product carriers ranging from aframaxes to handysize and two LNG carriers.

TEN's employment profile - Operating fleet (as of April 8, 2012):
Type of Employment Vessels
Period Employment - Fixed, fixed w/profit share & min max (*) 29
Pool - market related 7
Spot - market related 12

(*) Excluding the two shuttle tanker newbuildings that will enter 15 year charters at delivery

TEN's current newbuilding program:
Suezmax DWT Hull Type / Design Expected Delivery
1. Suezmax DP2 157,000 DH Q1 2013
2. Suezmax DP2 157,000 DH Q2 2013
1. TBN 86,000 Tri-Fuel Q1 2015

DH: Double Hull

Contact Information

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