TEN Charters Tanker at 20% Premium

 

Greece-based crude, product and LNG tanker operator Tsakos Energy Navigation Limited (TEN) announced today a charter renewal of a handysize product carrier to a major state oil company for a period of 24 months commencing in September 2015 at a 20 percent premium to the previous rate.

 

The latest charter, expected to generate approximately $13 million in total gross revenues, along with five charters announced last month for a suezmax crude tanker and four MR product carriers, increases the total minimum charter revenues of the fleet under secured employment to more than $750 million, the company said.

 

“This new charter extension with its associated rate increase together with the recent announcement of the five charters is a confirmation that the tanker markets’ prospects remain strong. The sustained pressure in oil prices continues to encourage a healthy activity in global oil imports and as a result offers incremental benefits to companies with strong spot exposure like TEN due to the material decrease in the cost of bunkers,” stated George Saroglou, TEN chief operating officer.

 

“We remain confident on the continued strength in the tanker markets over the foreseeable future as we enter the seasonally strong fourth quarter with market fundamentals well balanced and with most of our vessels optimally positioned to take advantage of upcoming charter opportunities,” Saroglou concluded.

 

TEN said its solid financial position, supported by a blend of flexible and fixed employment contracts and strong banking relationships, has allowed the company to invest in attractive assets as recently evidenced by the acquisition of two modern spot trading suezmax tankers and two VLCCs under construction as well as to repurchase some of its bank debt obligations at an attractive discount. In addition, the company said it is capitalizing on its solid balance sheet and positive dynamics of the tanker markets to enhance shareholders value through the reevaluation of its dividend distributions.

 

TEN’s fleet, including two VLCCs, the LNG carrier Maria Energy, nine Aframax crude oil tankers, a 10 Suezmax DP2 shuttle tanker and two LR1 tankers all under construction, consists of 65 double-hull vessels, a mix of crude tankers, product tankers and LNG carriers, totaling 7.3 million dwt. Of these, 47 vessels trade in crude, 13 in products, three are shuttle tankers and two LNG carriers. In addition, TEN has an option to construct another Suezmax DP2 shuttle tanker. All of TEN’s tanker newbuildings except the LNG carrier Maria Energy which does not have employment yet, are fixed on accretive long term project businesses.