SOURCE: Tsakos Energy Navigation

Tsakos Energy Navigation

September 01, 2015 13:30 ET

Tsakos Energy Navigation Limited Announces Two Year Charter Renewal at a Premium to Prior Contract Reflecting Strong Tanker Market Fundamentals

New Charter Premium at 20.0%

 

Oil Price Levels Positive for Tanker Markets

ATHENS, GREECE--(Marketwired - Sep 1, 2015) - Tsakos Energy Navigation Limited ("TEN") (NYSE: TNP), a leading crude, product, and LNG tanker operator, announced today the charter renewal of a handysize product carrier to a major state oil company for a period of twenty-four months. This charter, commencing in September 2015, is at a 20.0% premium to the previous rate and is expected to generate approximately $13.0 million in total gross revenues. As a result, this latest fixture along with the five charters announced last month, for a suezmax crude tanker and four MR product carriers, increases the total minimum charter revenues of the fleet under secured employment to over $750.0 million.

TEN's solid financial position, supported by a blend of flexible and fixed employment contracts and strong banking relationships, has allowed the Company to invest in attractive assets as recently evidenced by the acquisition of two modern spot trading suezmax tankers and two VLCCs under construction as well as to repurchase some of its bank debt obligations at an attractive discount. In addition, capitalizing on TEN's solid balance sheet and the positive dynamics of the tanker markets, management is committed to enhance shareholders value through the reevaluation of its dividend distributions.

"This new charter extension with its associated rate increase together with the recent announcement of the five charters is a confirmation that the tanker markets' prospects remain strong. The sustained pressure in oil prices continues to encourage a healthy activity in global oil imports and as a result offers incremental benefits to companies with strong spot exposure like TEN due to the material decrease in the cost of bunkers," Mr. George Saroglou, Chief Operating Officer of TEN stated. "We remain confident on the continued strength in the tanker markets over the foreseeable future as we enter the seasonally strong fourth quarter with market fundamentals well balanced and with most of our vessels optimally positioned to take advantage of upcoming charter opportunities," George Saroglou, Chief Operating Officer of TEN concluded.

ABOUT TSAKOS ENERGY NAVIGATION
To date, TEN's fleet, including two VLCCs, the LNG carrier Maria Energy, nine Aframax crude oil tankers, a Suezmax DP2 shuttle tanker and two LR1 tankers all under construction, consists of 65 double-hull vessels, a mix of crude tankers, product tankers and LNG carriers, totaling 7.3 million dwt. Of these, 47 vessels trade in crude, 13 in products, three are shuttle tankers and two LNG carriers. In addition, TEN has an option to construct another Suezmax DP2 shuttle tanker. All of TEN's tanker newbuildings except the LNG carrier Maria Energy which does not have employment yet, are fixed on accretive long term project businesses.

ABOUT 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
    Paul Lampoutis
    +212 661 7566
    ten@capitallink.com