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Tsakos Energy Navigation Announces Long Term Time Charter For The Suezmax Triathlon
The seven-year contract, with a three-year option, begins in mid January, 2004 upon the expiration of Triathlon's next fixed voyage. The rate obtained for the new time charter has an accretive minimum and provides for profit sharing between TEN and Sun International when market rates exceed the minimum.
"We are very excited to announce our latest time charter agreement," stated Nikolas P. Tsakos, President and CEO of TEN. "Once again, TEN has secured an attractive, long-term charter that will help to provide a steady and predictable flow of earnings and strengthen its balance sheet. TEN will continue to build, maintain and provide tankers that meet our clients'individual requirements providing superior customer service and support."
Mr. Tsakos continued, "Our strength is in our customer relationships. The rate and term that we have secured for this vessel illustrates that we are increasingly the provider of choice among oil majors around the world. Our high-quality, customer focused approach allows us to continually secure strong long-term engagements for the majority of our fleet and maintain a balanced fleet employment profile of spot voyages and medium to long-term charters."
Overall TEN has 21 vessels operating with medium or long-term employment contracts accounting for 69% of the operating days for 2004 or approximately $135 million in revenues, which provides a sustainable flow of earnings and enhances shareholder value.
Mr. Tsakos also commented on the current rate environment. "We have seen continued strength in rates across all of our classes of vessels. The fourth quarter has been stronger than expected and should have a significant impact on fourth quarter results across the industry."
ABOUT TSAKOS ENERGY NAVIGATION
TEN currently operates a fleet of 27 tankers (including one chartered-in aframax, the Olympia, and the two suezmaxes, the renamed CAPE BAKER and CAPE BALBOA, recently the subject of the sale and charter-back deal). The fleet comprises 2,681,522 DWT and has an average age of 6.5 years, compared to the average for the world's tanker tonnage which has an average age of 12.8 years.
Following delivery this year of the Maya, Marathon, Inca, Aztec, Parthenon and Andes, TEN is scheduled to take delivery of a further seven newbuildings in 2004, 2005 and early 2006. The resulting fleet of 34 vessels (including the chartered-in aframax and suezmaxes) with 3,449,000 DWT will include 23 newbuildings (1997-2006) with 2,750,000 DWT.