TEN Ltd. Expands Fleet with New Suezmax Shuttle Tankers
Expansion Plans for TEN Ltd.
ATHENS, Greece — TEN, Ltd (NYSE: TEN), a well-established player in the shipping industry, has exciting news regarding its fleet expansion. The company has announced it will build nine new DP2 Suezmax shuttle tankers, cementing its position as one of the leading independent operators in the shuttle tanker market. This anticipated project, contracted with Petrobras Transporte S.A. (Transpetro), Brazil's largest oil transport company, offers a significant increase in capacity and capability for TEN.
Project Overview and Revenue Expectations
The newly announced shuttle tankers are expected to bring in gross revenues of approximately $2.0 billion. Scheduled for delivery in 2027 and 2028, these vessels will be constructed at Samsung Heavy Industries in South Korea, a trusted partner for TEN, who is currently utilizing this yard for its ongoing projects. These nine vessels will be joined by three additional shuttle tankers currently under construction, with delivery slated for 2025 and 2026.
Optimizing Operational Efficiency
The charter agreement for these vessels will take the form of a bareboat charter, which means Transpetro will cover all operational and technical expenses incurred during the usage of the tankers. This contract structure not only enhances the financial predictability for TEN but also stabilizes cash flows ensuring steady returns through periodical revenues.
Strategic Milestones and Company Growth
Throughout its history, TEN has actively sought opportunities to enhance and modernize its fleet. Over the years, the company has strategically built a diverse fleet that includes ice-strengthened vessels and modern dual-fuel LNG carriers, underscoring its commitment to sustainability and efficiency. President and COO George Saroglou highlighted this approach as a vital strategy, noting that it has positioned TEN favorably in the competitive landscape of maritime energy transport.
The Road Ahead for TEN Ltd.
As TEN looks to the future, it anticipates not only the delivery of its ongoing projects but also the potential for more contracts with global oil companies. This future-focused vision reflects the company's adaptability in an ever-evolving market, as it aims to meet the long-term requirements of major energy players worldwide.
About Tsakos Energy Navigation
Founded in 1993, TEN is one of the pioneering public shipping companies globally, boasting a varied fleet of 83 vessels at present. This includes various types of tankers designed for different markets, ensuring that TEN continues to meet diverse shipping needs. The company remains committed to expanding its operations while also providing outstanding returns to its investors.
Frequently Asked Questions
What is the significance of the new tankers for TEN Ltd.?
The new DP2 Suezmax shuttle tankers will enhance TEN's capacity and position as one of the largest independent shuttle tanker operators in the world.
What revenue is expected from this project?
The projected gross revenues from the construction of these vessels are about $2.0 billion.
Where will the tankers be constructed?
The construction will take place at Samsung Heavy Industries in South Korea, which is known for its expertise in building advanced marine vessels.
What is the delivery timeline for the new vessels?
The delivery of the new vessels is scheduled for 2027 and 2028, adding to the current projects that will deliver in 2025 and 2026.
How does the charter agreement work?
The charter will be a bareboat arrangement, meaning the charterer, Transpetro, covers all operating and technical expenses during the vessels' employment.
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