TEN Announces Contract for New Aframax

Tuesday, August 24, 2004
Tsakos Energy Navigation Limited (TEN) announced that it has ordered one aframax double hulled tanker, with a carrying capacity of 105,000 dwt. The vessel, featuring a new design that will provide customers with new options for moving cargoes in the aframax class, will be built by Sumitomo in Japan, and is scheduled for delivery in the first half of 2007. The special design of this new vessel creates a more versatile aframax that will allow it to trade in a greater variety of ports, especially in the US, Caribbean, and South America, and allow TEN to service clients that otherwise would be serviced by Panamax tankers. "We are very excited to introduce this environmentally friendly, high- specification vessel, the first of its kind in the Aframax market," said Nikolas P. Tsakos, President and CEO of TEN. "We are always looking for innovations that increase our clients efficiency. Our naval architects have once again developed a design that meets the evolving needs of the major oil companies. We expect that this vessel will have the opportunity to earn a significant premium because of its technical characteristics." The vessel is specifically designed to meet the stringent environmental protection requirements of classification societies and other regulatory bodies, the rules and guidelines of oil majors and various port authorities and terminals. Additionally, the vessel incorporates the technical requirements of all the oil majors. TEN also announced the sale of the Aframax Toula Z, built in 1997 to a third party. TEN will continue to operate the vessel until its delivery to the new owners in late December of this year. As a result, the sale will not impact the earnings potential of this vessel for 2004. However, the company will recognize a net gain of over $11 million from the sale of this vessel in the fourth quarter. Mr. Tsakos noted, "The Toula Z was the first of the series of 30 newbuildings vessels ordered since 1997. We have profitably operated the vessel for the past seven years and our focus on meticulous vessel service and maintenance made her an attractive acquisition for the buyer. As a result, we were able to negotiate a price that will be sufficient to cover almost all of TEN's equity investment in the new aframax, announced today, without adding significant cost." Out of TEN's 27 vessels currently trading, 21 operate with medium or long- term employment contracts, some at variable rates, accounting for 78% of the remaining operating days for 2004, and 63% of the operating days of 2005. These contracts will generate a minimum of approximately $255 million over the next six quarters, which should provide a sustainable flow of earnings. The company currently employs its remaining 6 vessels in the spot market. Currently, more than 90% of TEN's fleet is of the double hull design.
Maritime Reporter August 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

REL to Supply Deep Ocean Mooring Winch System to NOC

Romica Engineering Ltd (REL) have signed a contract with the U.K.’s National Oceanography Center (NOC) to provide a containerized deep ocean mooring winch system.

DSS Secures HOS Jones Act MPSV for Gulf ROV Work

Delta SubSea Secures U.S.-Flagged DP-2 IMR/Construction Support Vessel for Deepwater ROV Operations in the GoM. Delta SubSea, LLC (DSS) has entered into an agreement

Deep Sea Mooring Wins Contract with Repsol

Global energy company Repsol has selected Deep Sea Mooring (DSM) to provide a range of mooring services for their drilling operations on the Norwegian Continental Shelf.

Offshore

MN 100: Tidewater Inc.

601 Poydras Street, Suite 1500 New Orleans, Louisiana 70130 Telephone: 504 568 1010 E-mail: corth@tdw.com Website: www.tdw.com Chairman and CEO: Jeff Platt Number of employees: 8,

Deep Sea Mooring Wins Contract with Repsol

Global energy company Repsol has selected Deep Sea Mooring (DSM) to provide a range of mooring services for their drilling operations on the Norwegian Continental Shelf.

Statoil: New Compressor Means Heightened Production

The new compressor in operation on the Kvitebjørn field in the North Sea from 17 September will increase production there by 220 million barrels of oil equivalent

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Naval Architecture Navigation Pipelines Pod Propulsion Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1196 sec (8 req/sec)