Tsakos Energy Navigation Ltd. (TEN) announced the delivery of the 1A ice-class 116,000dwt Aframax product tanker Propontis and the 1A ice-class 36,660dwt Handysize product tanker Arion from South Korea's Hyundai Heavy Industries and Hyundai Mipo Dockyard, respectively. Upon delivery, the Propontis, one of the largest product tankers in the world and the last of the three Aframax newbuildings acquired from Western Petroleum to be delivered, entered a two- year time charter with Neste Oil
of Finland, one of Europe's prime independent oil companies with significant ice-class trading requirements. The time charter incorporates a minimum rate which should gross TEN revenues in excess of $21 million over the corresponding charter period, with a 50:50 profit split if rates exceed that minimum.
The Arion entered a three-year employment with a major Far Eastern charterer for a minimum rate that exceeds the vessel's all-in breakeven rate. The charter also calls for a 50:50 split on the upside if rates exceed a prespecified level above that minimum. For the duration of the charter, the minimum rate of the Arion should generate TEN $16 million in gross revenues.
Furthermore, TEN advised today that the capital gain realised from the strategic alliance the company entered with Ecuador's Flota Petrolera Ecuatorian (Flopec) on August 1st, 2006 will be recorded in the fourth quarter of 2006 instead of the third quarter of 2006 as previously announced.