Tsakos Energy Navigation Limited (NYSE:TNP) announced a two year time-charter extension with profit sharing up to a maximum level with the same charterer, for the 2002-built double hull suezmax tanker Decathlon. TEN also announced a three-to-six month time charter for the 2006-built suezmax tanker Archangel through the initiation of a relationship with an international oil major. Prior to this new charter, the Archangel was operating in the spot market.
Assuming the minimum rate on the Decathlon and the minimum duration on the Archangel the charters should generate gross revenues in excess of $17.5m. Should the Archangel charterer exercise its option for an additional 90 days, the total gross revenues could grow by another $2.5m, providing up to $20m in cash flow contribution.
Following this charter extension, TEN’s fixed employment, including pool vessels, for remainder of 2009 and 2010 operating days is revised upward to 67% and 52%, respectively.