Tsakos Energy Navigation Limited (TEN or the “Company") (NYSE: TNP) has entered into a time charter agreement for the 301,171 dwt, double hull VLCC tanker Millennium, with a state oil company for a period of 18 months, the Comopany said in a press release.
The new charter commenced in September 2013 and is expected to generate gross revenues of approximately $11.50 million during the corresponding period.
Currently, TEN’s secured contract coverage is 74% and 60% for the available vessel days of 2013 and 2014, with expected minimum revenues of $69 million and $214 million, respectively. Overall, TEN’s minimum contracted charter revenues is approximately $965 million with an average employment of three years per vessel.
“We are pleased to secure the Millennium, until March 2015, at a rate that reflects the changing environment in the crude tanker sector,” said Mr. Nikolas P. Tsakos, President and CEO of TEN.
“This charter highlights TEN’s ability to offer its diversified fleet of products, crude and LNG vessels to its high-end clientele and solidify its position with such names for more business in the future. With a policy of fixing our fleet in medium to long term charters, we are confident that the cash flow visibility we project will continue to provide attractive returns and enhance shareholder value through
dividend payments,” Mr. Tsakos concluded.
To date, TEN's fleet, including an LNG carrier under construction, consists of 49 double-hull vessels, a mix of product tankers, crude tankers and LNG carriers, totaling 4.9 million dwt. Of these, 28 are product carriers ranging from shuttle suezmaxes to handysize, 19 are crude tankers ranging from VLCCs to aframaxes, and two are LNG carriers.
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