ATHENS, Greece, Sept. 15, 2009 (GLOBE NEWSWIRE) -- Tsakos Energy Navigation Limited ("TEN" or the "Company") (NYSE:TNP) today announced a two year time-charter extension with profit sharing for the 2002-built double hull suezmax tanker Pentathlon with the same charterer. The new two-year period reflecting profit sharing between a minimum rate and a maximum level will commence immediately upon the expiry of the existing charter in early November of this year.
The gross proceeds from the charter assuming only the minimum rate are expected to be $15.5 million over the corresponding period. Following this charter extension, TEN's fixed employment including pool vessels for 2009 and 2010 are 64% and 51%, respectively.
"We are very pleased with the extension of this charter, the third extension in a row with the same major oil entity since 2003," said Mr. Nikolas P. Tsakos, President and CEO of TEN. "This charter is a testament to oil majors' and major end-users' appetites to continue fixing quality vessels during market cycles. TEN strives to provide all of its charterers with a young, efficient and diversified fleet. For TEN, these minimum rate time charters with profit sharing provide downside protection as well as the flexibility to participate in market rallies and continue to support the fleet's strong cash flow generating capacity."
ABOUT TSAKOS ENERGY NAVIGATION
TEN's pro forma fleet consists of 52 vessels of 5.6 million dwt. TEN's operational fleet consists of 47 vessels all of double-hull design. TEN's newbuilding program includes three DNA-aframax crude carriers and two suezmax tankers totalling about 615,000 dwt.
TEN's balanced fleet profile is reflected in 27 crude tankers ranging from VLCCs to aframaxes and 24 product carriers ranging from aframaxes to handysize; complemented by one LNG.
TEN's employment profile: ---------------------------------------------------------------------- Type of Employment Vessels ---------------------------------------------------------- ----------- Period Employment -- Fixed, fixed w/profit share & min max 33 ---------------------------------------------------------- ----------- CoA -- market related 2 ---------------------------------------------------------- ----------- Pool -- market related 3 ---------------------------------------------------------- ----------- Spot -- market related 9 ---------------------------------------------------------- -----------
TEN's current newbuilding program:
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Aframax DWT Hull Type / Design Delivery
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1. Asahi Princess 105,000 DH / DNA Q4 2009
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2. Sapporo Princess 105,000 DH / DNA Q1 2010
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3. Uraga Princess 105,000 DH / DNA Q2 2010
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4. S2034 158,000 DH Q3 2011
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5. S2035 158,000 DH Q3 2011
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DH: Double Hull
DNA: Design New Aframax
FORWARD-LOOKING STATEMENTS
Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those predicted by such forward-looking statements. TEN undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.