TEN Announces Three-Year Charter
Tsakos Energy Navigation Limited (“TEN”) has announced a three-year time charter with profit sharing for the 2007-built double-hull suezmax tanker Arctic. The charter, which began this month, is structured with a minimum rate and a 50/50 profit share up to an agreed maximum rate. The gross proceeds from the charter, assuming only the minimum rate, are expected to exceed $25 million over the corresponding period. Following this charter extension, TEN’s fixed employment for 2009 and 2010 is 66% and 48%, respectively. Assuming profit-sharing charters generate only the minimum for the remaining operating days in 2009, TEN expects to earn at least $130 million in incremental gross revenues. For 2010, based on the same assumptions, the minimum gross revenue already secured is estimated at $180 million.