TEN Comments on Tanker Market Conditions

Crude price drop and dollar strength benefit TEN’s bottom line materially; third quarter financial results to be announced on November 21, 2014

Crude, product and LNG tanker operator Tsakos Energy Navigation Ltd. (TEN) said today it believes that the recent decline in TEN’s stock is in direct contrast to the state of the physical tanker market, the future prospects and the financial strength of the company.

TEN management believes that the supply and demand balance, particularly for crude tankers, is in equilibrium and should provide a solid platform for continuing the healthy rates and asset prices currently in evidence.

Additionally, the recent decrease in the price of oil can be viewed as a “double blessing” for TEN, the company said: on the one hand, it creates a tailwind for maritime transportation as the soft price of the commodity leads to increased global imports in time for the approaching winter. As a result, spot rates have doubled compared to rates this time last year for most of the vessel types TEN operates, as the table below demonstrates. On the other hand, given that the largest expense item of the company’s operations relates to vessel fuelling, the lower price of oil translates into material cost savings. Such savings are estimated to be approximately $10 million on an annualized basis to TEN’s bottom line.

Furthermore, TEN said the strengthening of the US dollar provides an additional layer of support as it reduces our Euro expenditure by an estimated $12 million dollars annualized at current exchange rate levels.

TEN’s management has decided to recommend to the Board of Directors an increase in common stock dividends for 2015. Should the board accept such recommendation, TEN expects the increase to be announced in its forthcoming third quarter earnings results on November 21, 2014.