Tsakos Energy Navigation Reports 39% Increase and Record Profits for Second Quarter 2005

Hamilton, Bermuda:  5 August 2005 - Tsakos Energy Navigation Limited (TEN) (NYSE: TNP) reported results (unaudited) for the second quarter and first six months of 2005.
    
               Net income was $41.90 million in the second quarter of 2005, compared to 
$30.16 million in the second quarter of 2004, an increase of 38.9%. Revenues, net of voyage expenses and commissions, were $53.77 million in the second  quarter of 2005 versus $54.32 million in the like period of 2004.  Income before depreciation charges was $50.76 million in the second quarter of 2005 up from $39.07 million in the second quarter of 2004.  Gains on vessel sales were $19.64 million in the second quarter of 2005 and $8.76 million in the year earlier quarter.
    
               Net income in the first half of 2005 rose to $81.75 million from $63.55 
million in the first half of 2004. Revenues, net of voyage expenses and commissions, were $120.52 million for the first six months of 2005, compared with $122.88 million for the first half of 2004. Income before depreciation charges was $99.17 million the first half of 2005 up from $81.15 million in the year earlier period. Gains on vessel sales totalled $24.84 million in the first six months of 2005 and $8.76 million in the first half of 2004.
    
               Revenues, net of voyage expenses and commissions, were $120.52 million for 
the first six months of 2005, down $2.37 million or 1.9% from the year earlier  period reflecting the deployment of 26.6 vessels versus 27.7 vessels. The average time charter equivalent per ship per day rose to $27,883 in the 2005 period versus $26,744 a year earlier. Of the five classes of ships in our fleet, four enjoyed higher rates in the 2005 period while only one experienced marginally lower charter rates. Fleet productivity remained high in the first six months of 2005 at 95.3% but somewhat below the 97.2% performance of the first half of 2004 reflecting a heavier dry docking experience in the second quarter of 2005.
    Vessel operating expenses per ship per day rose from $5,993 for the first half of 2004 to $6,430 in the 2005 period reflecting the cost pressures of crew expense, insurance premiums, repairs and provisions and the weak dollar. The average value of the dollar against the Euro was 4.7% lower in the first half of 2005 compared with the year earlier levels.  Approximately 25% of TEN's operating costs are denominated in Euros.
    
               Depreciation and dry-docking amortization costs were $20.18 million in the 
2005 period versus $22.39 million in the first half of 2004.  Management fees were $2.78 million compared to $2.51 million in the first half of 2004 reflecting contract adjustments 
 
 
 
while general and administrative costs were  $1.39 million as against to $1.28 million.  Interest and finance costs, net of interest income, declined to $2.57 million from $5.08 million, reflecting much higher cash levels and benefits from interest rate swaps. "TEN again produced excellent results in the first half of 2005 with net income 28.6% higher than the outstanding profits of the first six months of 2004", observed Mr. D. John Stavropoulos, Chairman of the Board of Tsakos Energy Navigation. "The company's diversified fleet and balanced employment strategy yielded revenues on a par with the strong charter markets of 2004. Rising expense pressures were more than offset by somewhat lower net finance costs. The icing on the cake was the capital gains from the sale of three older vessels and a new building contract." Mr. Stavropoulos further stated, 
"The resulting financial strengths of TEN complemented by its new building contracts, positions the company to generate future earnings growth and further enhance shareholder value through asset additions, share repurchases and dividend payments."
 
    FLEET STRATEGY
    Since 1997, TEN has aggressively expanded and modernized its fleet.  The Company has ordered in total 33 newbuildings with a combined capacity of 3.6 million dwt and has taken delivery of 21 of these, plus one second-hand VLCC. An additional 12 vessels are scheduled for delivery in 2005, 2006, and 2007.  TEN sold three vessels in 2004 including one single-hull ship.  An additional single-hull aframax and two single/double hull product carriers were sold in the first half of 2005 along with a new building contract for an aframax.
   
                "Our new building program and fleet portfolio strategy has been structured 
in response to the evolving needs of our clients and the development of new trade routes" observed Mr. Nikolas P. Tsakos, President and CEO of Tsakos Energy Navigation. The correct timing of our orders and the highly favourable contract prices has contributed to current profits and provides the platform for future income growth. The emphasis on ice-class vessels is designed to serve the rapidly expanding needs of Russia, Canada, and Alaska. The two sistership Aframaxes will serve South American markets and the LNG carrier gives us entry to this dynamic sector". Mr. Tsakos continued, "We are nearing our goal of a universally double hull fleet. We currently operate two single hull aframaxes and will seek appropriate opportunities for their sale in the near future. Timely purchases and sales are fundamental to our long-term success and an integral aspect of a traditional shipping enterprise". 
    
               Since 1997, TEN has sold 10 vessels (including three chartered back) 
totalling 0.9 million-dwt contributing over $64 million in capital gains. Meanwhile it has taken delivery of 22 vessels and has on order 12 vessels with a combined capacity of3.9 million dwt. The strategy of renewing and growing the fleet has resulted in a well-diversified and modern portfolio of vessels that is well positioned to serve the future needs of the CompanyLs clients. 
    
               TEN is also seeking appropriate opportunities in other energy related 
sectors and has recently made a $5 million investment in the owning company of 
 
 
a drilling rig currently under construction in S. Korea.
 
    The following table presents the newbuilding vessels currently on order:
 
    VESSEL                         DWT      Expected Delivery           Design
    SUEZMAX
     M/T Euroniki               164,000        September 2005     1C Ice Class
     M/T Archangel              162,400          January 2006     1A Ice Class
     M/T Alaska                 162,400            March 2006     1A Ice Class
     M/T Arctic                 162,400         February 2007     1A Ice Class
     M/T Antarctic              162,400            April 2007     1A Ice Class
    AFRAMAX
     H/N 1328                   105,000              May 2007       DNA Design 
     H/N 1334                   105,000           August 2007       DNA Design 
    HANDYSIZE
     M/T Antares                 36,660             June 2006     1A Ice Class
     M/T Arion                   36,660          October 2006     1A Ice Class
     M/T Andromeda               36,660         February 2007     1A Ice Class
     M/T Aegeas                  36,660              May 2007     1A Ice Class
    LNG
     LNG TBN                    150,000 m(3)    February 2007         Membrane
 
    Assuming no interim retirements or new acquisitions the following table outlines the composition of TEN's fleet after delivery of the orders citied above:
 
    TYPE             Double      Double/Single      Single
                      Hull           Hull            Hull          Total
    VLCC               2                                             2
    Suezmax           10                                            10
    Aframax            8                               2            10
    Panamax            7                                             7
    Handysize          6               2                             8
    LNG                1                                             1
    TOTAL             34               2               2            38
 
    TANKER INDUSTRY
    Worldwide oil demand expanded at the fastest pace in decades in 2004.  The rate of growth in 2005 is expected to decelerate from 3.4% last year to about 1.9%. However, the International Energy Agency is projecting accelerated growth in 2006 of some 2.1%. The principal growth drivers are Asia led by China at 7.2%.
    
The tanker industry operated at virtual capacity through much of 2004 as modern tonnage under quality management was in tight supply.  The less robust growth in oil demand combined with fleet expansion has eased the strain, although the principal 
 
 
 
surprise in the equation has been limited scrappage and other removals. Last year tanker capacity expanded approximately 5.4% which proved to be less than the growth in tonnage demand. This year the combination of a larger new delivery schedule and fewer removals has led to a reversal in the supply/demand equation. Nevertheless, the continued demand for quality tonnage should result in very acceptable charter rates, as fleet utilization remains well above historical levels.
    
               Longer term prospects are also favourable for supply/demand balance. 
Assuming no recession in the advanced economies and sustainable growth in the 
developing countries, oil demand will grow at a solid pace. The principal growth in demand is generated by oil importers who are distant from the sources of oil production resulting in healthy growth of seaborne requirements. Demand growth combined with shipyard capacity limitations and scrappage dictated by regulatory requirements over the next five years bode well for a satisfactory supply/demand relationship.
    
               Overall, conditions in 2005 should result in good fleet utilization and 
satisfactory charter rates. Offsets to these desirable conditions are significantly higher short-term interest rates, sharply higher bunker prices, somewhat higher insurance premiums, rising personnel expenses, expanded regulatory procedures on ships and onshore to address security and environmental challenges, growing corporate governance fees, and the burden of a weak dollar.  Although 2005 is not likely to match the robust results of last year, the tanker industry should experience the third consecutive year of general prosperity.
 
    OUTLOOK FOR TEN
    The momentum of 2003/2004 continued in the first half of 2005. The balanced employment strategy sustained revenues at a high level and the timely sale of vessels produced welcome gains. Prospects for oil demand in the second half of 2005 should sustain tonnage demand and provide acceptable charter rates. TEN is on track for another year of high fleet utilization with 90% of employable days having been served or under contract. Æ’±he Euroniki, an ice-class Suezmax, which is scheduled for delivery in September will be employed from day one by a major oil concern under a one-year time charter at an accretive rate. Finance costs, net of interest income, should continue to 
reflect favourable year-to-year comparisons. Additionally, the fleet renewal program and vessel portfolio positioning may add gains on sales. Management anticipates another year of strong profitability in 2005. Optimism about the future is best expressed by the share repurchase program. Year to date, TEN has repurchased and retired 401,625 shares at an average cost of $38.90 per share and has further Board of DirectorsL authorization to employ $12.5 million for future repurchases. 
 
    ABOUT TSAKOS ENERGY NAVIGATION
    TEN expects to operate a fleet of 38 vessels of 4.1 million dwt by mid-2007. Currently it operates a fleet of 26 vessels (including three chartered-in, one Aframax and two Suezmaxes vessels) of approximately 2.9 million dwt with an average age of 6.6 years compared to 12 years of the world average. 
 
 
Its newbuilding program today consists of 12 vessels (5 Suezmax, 2 Aframax, 4 
Handysize, 1 LNG) of 1.2 million dwt.
 
    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.