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Tsakos Energy Navigation Announces The Sale Of The Suezmaxes Decathlon And Pentathlon
As announced earlier this month, both the Decathlon and Pentathlon have been chartered at attractive rates to Petrobras, a state oil company. Each contract commenced at the beginning of October, 2003 extending for three years at a fixed rate for the first contract and a minimum rate for the second contract, with the opportunity for profit sharing if the prevailing spot market dictates.
"The opportunity to recognize a substantial gain on the sale of these two vessels, while retaining commercial control, is in the best interests of the Company and our shareholders," stated Nikolas P. Tsakos, President and CEO of TEN. "The significant proceeds from this sale and release of associated debt will further strengthen our balance sheet, and allow the Company to exploit opportunities for accretive acquisitions and to expand our newbuilding program."
TEN also announced last month, that it has ordered two additional suezmax newbuildings for its young and modern fleet. With an expected delivery date in early 2006, TEN will then be operating a suezmax fleet of eight double/double, ice class sisterships, including the chartered-in Decathlon and Pentathlon.
Overall TEN has 18 vessels operating with medium or long-term employment contracts which account for 74% of estimated operating days or $37 million gross revenues for the remainder of 2003 and 57% for 2004 or $124 million in revenues. These contracts provide sustainable revenues and earnings as well as a platform for growth, thereby enhancing shareholder value.