TEN announces 3-year time charter extension for Suezmax tanker
Tsakos Energy Navigation Limited (TEN or the "Company") (NYSE: TNP) today announced a three-year time charter extension for the 2007 built, 163,216 dwt, double hull suezmax tanker, Arctic, with the same charterer, a South American state oil company, the Company said.
The charter incorporates minimum and maximum levels and a 50:50 profit split for rates in between. The minimum gross revenues from this fixture are estimated in the region of $20.0 million.
"The principal of rate flexibility and profit sharing has become the cornerstone of our chartering policy and fits well with our long standing strategy of downside protection with upside potential. Moreover, the continuation of the employment with the existing charterer provides us with assurances that our vessels remain on the top-list of quality end-users which is where you want to be in challenging times like today," said Mr. Nikolas P. Tsakos, President and CEO of TEN. "We remain optimistic on the outlook of tankers and we will continue to position our fleet accordingly to take advantage of the market upturn when it materializes. With the upcoming introduction of our two shuttle tanker newbuildings, our overall minimum secured revenues today remain in excess of $1.1 billion which provides the base for strong cash flow generation and healthy dividend distributions," Mr. Tsakos concluded.
About Tsakos Energy Navigation
To date, TEN's pro forma fleet consists of 51 double-hull vessels of 5.5 million dwt. This figure includes one LNG carrier and two DP2 suezmax shuttle tankers under construction totaling 400,000 dwt. TEN's balanced fleet profile is reflected in 23 crude tankers ranging from VLCCs to aframaxes and 26 product carriers ranging from aframaxes to handysize and two LNG carriers. The Company has an option for a third LNG carrier to be declared no later than October 2012, totaling 86,000 dwt.
TEN's employment profile (operating fleet as of September 24, 2012 excluding two VLCCs held for sale):
Period Employment - Fixed, fixed w/profit share & min max (28)
Pool - market related (4)
Spot - market related (14)
TEN's current newbuilding program:
Suezmax DP2 157,000dwt Q1 2013
Suezmax DP2 157,000dwt Q2 2013
LNG TBN 86,000dwt/162,000 m3 Tri-Fuel Q1 2015
LNG TBN 86,000dwt/162,000 m3 Tri-Fuel Q4 2015 (option)