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Tsakos Energy Navigation Enters Liquefied Natural Gas Market
"The LNG market represents the next phase in the evolution of our Company," said Mr. Nikolas P. Tsakos, President and CEO of TEN. "Our entry into one of the fastest growing shipping segments in the global energy market coincides with a growing number of new export projects and importer construction of new regasification terminals. As a result, we believe that the growth in this segment will be substantial in the coming years. With this contract, TEN joins a select fraternity of shipowners who are actively pursing this market."
According to the Energy Information Administration (EIA), U.S. imports of LNG are expected to increase by 58% between 2007 and 2010 as new regasification projects come on line. And, while LNG imports into the US doubled in 2003, this amount represented only 2% of U.S. natural gas deman, illustrating the potential for growth.
Mr. Tsakos continued, "True to our strategy, TEN's diversified fleet is growing to meeet the demands of suppliers and consumers around the world, which is now further enhanced by out ability to serve the LNG market. The high-spec nature of this LNG carrier, in tandem with the 10 ice-class vessels hat we currently have on order, should provide significant charter premims as well as increased earnings and shareholder returns."
Out of TEN's 27 vessels currently trading, 21 operate with medium or long-term employement contracts, some at variable rates, accounting for 78% of the remaining operating dys for 2004, and 63% of the operating days of 2003. These contracts will generate a minimum of approximately $255 million over the next seven quarters, which should provide a ustainable flow of earnings. The company currently employs its remaining 6 vessels in the spot market. Currently, 90% of TEN's fleet is of the double hull design.
ABOUT TSAKOS ENERGY NAVIGATION
Tsakos Energy Navigation expects to operate a fleet of 40 vessels with approximaely 4.2 million DWT by 2007, which would include 29 newbuildings (1997-2007)with approximately 3.6 million DWT. The Company currently operated a fleet of 27 vessels (including three chartered-in vessels, one aframax and two uexmaxes). The fleet comprises 2.9 million DWT with an average age of ;7 years, compared to the world's tankeer tonnage, which has an average age of 12.8 years. Between 2004 and 2007, TEN is scheduled to take delivery of a further thirteen newbuildings, (6 Suezmaxes, 6 handysite product tankers and 1 LNG carrier). The Company is also negotiating for an
additional LNG carrier, with one option, for delivery in 2007.
FORWARD-LOOKING STATEMENTS
Except for the historical information contained herein, the matters discussed in this press releaseare 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 obligations to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.
Contact: George V. Saroglou, COO of Tsakos Energy Navigation Ltd., +30-210-94-07-710-3, ten@tenn.gr, or Thomas J. Rozycki, Jr. of GCI Group for Tsakos Energy Navigation Ltd., =1-212-537-8016, trozycki@gcigroup.com.
Website: http://www.tenn.gr