Tsakos Replaces Vessels with Newbuilds
Tsakos Energy Navigation Limited (TEN) (NYSE:TNP) announced that it has signed a Memorandum of Agreement with a state oil company for the sale of the 2003-built aframax tankers Marathon and Parthenon for a combined price of $78m. One vessel will be delivered to its new owner at the end of February and the other at the end of April, at the expiration of their voyage charters. The capital gains that will be generated from this sale will be booked during the respective quarters of this fiscal year. With the conclusion of this sale, TEN’s cash reserves are expected to be approximately $370m.
"In line with our long stated policy to actively participate in the sale and purchase market, such sales in tandem with our newbuilding program have kept our fleet both profitable and modern. The sale of the above vessels coincides with the delivery, in March and July 2010, of the last two DNA aframax newbuildings from the series of eight Princess aframaxes ordered in 2004. The Marathon and Parthenon have served us extremely well and we wish their new owner equally good fortune", said Mr. Nikolas P. Tsakos, President and CEO of TEN. He added, "We are well positioned to continue our growth strategy based on a solid balance sheet and our strong cash reserves".
