Tsakos Energy Navigation Announces the Sale and Time Charter Back
of the Suezmaxes Decathlon and Pentathlon
Transaction Results in a Net Capital Gain of Over $15 Million
Tsakos Energy Navigation
Limited (TEN) announced the sale of the suezmaxes Decathlon and Pentathlon. Both vessels will be time chartered back to TEN for a period of five years, with options for extension. Decathlon and Pentathlon are two of four suezmax sisterships delivered in 2002 to TEN from the Hyundai Samho shipyard in Korea. The sale price results in a combined net profit
of over $15 million, which will be amortized over the 5-year period of the charter back.
As announced earlier this month, both the Decathlon and Pentathlon have been chartered at attractive rates to Petrobras, a state oil company. Each contract commenced at the beginning of October, 2003 extending for three years at a fixed rate for the first contract and a minimum rate for the second contract, with the opportunity for profit sharing if the prevailing spot market dictates.
"The opportunity to recognize a substantial gain on the sale of these two vessels, while retaining commercial control, is in the best interests of the Company and our shareholders," stated Nikolas P. Tsakos, President and CEO of TEN. "The significant proceeds from this sale and release of associated debt will further strengthen our balance sheet, and allow the Company to exploit opportunities for accretive acquisitions and to expand our newbuilding program."