Tsakos Energy Navigation Limited (NYSE:TNP) announced a three-year time-charter extension for its 2004-built double hull 37,500dwt product tanker Delphi to the same South American state oil company that had previously chartered the vessel.
The charter is expected to generate gross revenues in excess of $22.6m over the corresponding charter period. With this contract and based on TEN’s current operating fleet of 45 vessels of which 39 are under various forms of period employment, TEN’s charter coverage rises to 91% employable days secured for the remainder of 2008 and 70% of employable days secured for 2009. These fixtures translate to an average of 1.7 years per vessel employment for the 39 vessels under contract with expected gross revenues (assuming only the minimum rate for the 25 vessels under profit sharing or min-max arrangements) in excess of $577m.
“The level, length and primarily timing of this charter shows the healthy desire by oil companies to fix quality tonnage for the long-term. We have been fortunate that despite the current strains in world financial markets, seaborne oil demand has remained healthy. Tanker companies with modern tonnage stand to benefit from changing patterns in world oil trades. This charter is a testament to that,” concluded Mr. Nikolas P. Tsakos, President& CEO of TEN.
TEN's pro forma fleet consists of 50 vessels of 5.3 million dwt. TEN's operational fleet consists of 45 vessels all of double-hull design. TEN's newbuilding program includes five DNA-aframax crude carriers representing 525,000 dwt. The strategy of a balanced diverse fleet is reflected in 25 crude tankers ranging from VLCCs to aframaxes and 24 product carriers ranging from aframaxes to handysize; complemented by one LNG.