Options for a further five vessels of similar size have also been negotiated and agreed upon in principle. As part of TEN's overall strategy to phase out older tankers in favour of modern high-spec vessels, it is expected that these new ships will eventually replace existing handymax product carriers, which currently enjoy time-charter employment with established customers. Additionally, negotiations are in progress with potential new clients for specific long-term employment contracts for these vessels.
"To this point, our newbuilding program has focused on larger sized ships. However, the opportunity to add new vessels to our fleet with the, possibility of long-term fixed rate employment make this an extremely advantageous move for TEN," said Nikolas Tsakos, President and CEO of TEN. "Since 1997, TEN has acquired only purpose-built high quality vessels from renowned yards with the aim of achieving, as soon as possible, a fleet made up only of young, high- spec vessels. Consistent with this policy, these new vessels will not only expand our reach and flexibility, but will make our fleet even younger and more efficient than it is today. Like our other newbuildings, these new handymax product carriers should begin generating revenue upon delivery, providing increased value to our shareholders."
The announcement of these additional newbuildings comes just two weeks after TEN announced the delivery of the Pentathlon, the third in a series of four new double hull suezmax tankers. TEN is scheduled to receive the fourth and final suezmax sister ship, the Triathlon, next month. In addition, TEN's newbuilding program will continue in 2003 with the scheduled delivery of two aframaxes and four panamaxes.
TEN will announce its Third Quarter results on Tuesday, November 19, at 8:30 a.m. EST and hold a conference call at 10:30 a.m. EST the same day.