Tsakos Energy Navigation Limited (TEN) announced a new long-term time-charter contract for the Suezmax Triathlon with Sun International Limited/Sunoco Inc. The seven-year contract, with a three-year option, begins in mid January, 2004 upon the expiration of Triathlon's next fixed voyage. The rate obtained for the new time charter has an accretive minimum and provides for profit sharing between TEN and Sun International when market rates exceed the minimum.
"We are very excited to announce our latest time charter agreement," stated Nikolas P. Tsakos, President and CEO of TEN. "Once again, TEN has secured an attractive, long-term charter that will help to provide a steady and predictable flow of earnings and strengthen its balance sheet. TEN will continue to build, maintain and provide tankers that meet our clients' individual requirements providing superior customer service and support."
Tsakos continued, "Our strength is in our customer relationships. The rate and term that we have secured for this vessel illustrates that we are increasingly the provider of choice among oil majors around the world. Our high-quality, customer focused approach allows us to continually secure strong long-term engagements for the majority of our fleet and maintain a balanced fleet employment profile of spot voyages and medium to long-term charters."
Overall TEN has 21 vessels operating with medium or long-term employment contracts accounting for 69% of the operating days for 2004 or approximately $135 million in revenues, which provides a sustainable flow of earnings and enhances shareholder value.
Tsakos also commented on the current rate environment. "We have seen continued strength in rates across all of our classes of vessels. The fourth quarter has been stronger than expected and should have a significant impact on fourth quarter results across the industry."