ATHENS, GREECE--(Marketwired - Oct 16, 2014) - Tsakos Energy Navigation Ltd. (
Management believes that the supply and demand balance, particularly for crude tankers, is in equilibrium and should provide a solid platform for continuing the healthy rates and asset prices currently in evidence.
Additionally, the recent decrease in the price of oil can be viewed as a "double blessing" for TEN. On the one hand, it creates a tailwind for maritime transportation as the soft price of the commodity leads to increased global imports in time for the approaching winter. As a result, spot rates have doubled compared to rates this time last year for most of the vessel types TEN operates, as the table below demonstrates. On the other hand, given that the largest expense item of the Company's operations relates to vessel fuelling, the lower price of oil translates into material cost savings. Such savings are estimated to be approximately $10 million on an annualised basis to TEN's bottom line.
Furthermore, the strengthening of the US dollar provides an additional layer of support as it reduces our Euro expenditure by an estimated $12 million dollars annualized at current exchange rate levels.
Below is a year-on-year comparison of spot rates in TEN's vessel types as provided by market brokers highlighting the current strength of the tanker market.
| 10/14/2014 | 10/10/2013 | ||||
| VLCC | $ | 34,700 | $ | 18,000 | |
| Suezmax | $ | 32,500 | $ | 3,500 | |
| Aframax | $ | 22,000 | $ | 10,600 | |
| LR2 | $ | 24,200 | $ | 18,550 | |
| LR1 | $ | 12,900 | $ | 7,660 | |
| MR/Handy | $ | 13,200 | $ | 9,990 | |
TEN is one of the largest transporters of energy in the world and a partner of choice for major oil companies. With its modern, versatile and diversified fleet, with a strong crude presence, TEN is uniquely positioned to benefit from such hikes. This trend is expected to continue for the near future particularly with the winter months still ahead of us.
In light of the above, TEN's management has decided to recommend to the Board of Directors an increase in common stock dividends for 2015. Should the Board accept such recommendation, we expect the increase to be announced in our forthcoming third quarter earnings results on November 21, 2014.
ABOUT TSAKOS ENERGY NAVIGATION To date, TEN's fleet, including the LNG carrier Maria Energy, nine Aframax crude oil tankers and two LR1 tankers all under construction, consists of 62 double-hull vessels, a mix of crude tankers, product tankers and LNG carriers, totaling 6.4 million dwt. Of these, 44 vessels trade in crude, 14 in products, two are shuttle tankers and two are LNG carriers. The average age of the operational fleet is 7.2 years.
The Company's newbuilding program consists of:
| Vessel | Dwt | Built | Employment at Delivery | ||||
| 1. LNG Maria Energy | 174,000 cbm | 1Q2016 | TBD | ||||
| 2. Aframax H/N 5010 | 112,700 dwt | 2Q2016 | Yes | ||||
| 3. Aframax H/N 5011 | 112,700 dwt | 2Q2016 | Yes | ||||
| 4. Aframax H/N 5012 | 112,700 dwt | 3Q2016 | Yes | ||||
| 5. Aframax H/N 5013 | 112,700 dwt | 4Q2016 | Yes | ||||
| 6. Aframax H/N 5014 | 112,700 dwt | 1Q2017 | Yes | ||||
| 7. Aframax H/N 5015 | 112,700 dwt | 1Q2017 | Yes | ||||
| 8. Aframax H/N 5016 | 112,700 dwt | 2Q2017 | Yes | ||||
| 9. Aframax H/N 5017 | 112,700 dwt | 2Q2017 | Yes | ||||
| 10. Aframax H/N 5018 | 112,700 dwt | 3Q2017 | Yes | ||||
| 11. LR1 TBA | 74,000 dwt | 2H2016 | Yes | ||||
| 12. LR1 TBA | 74,000 dwt | 2H2016 | Yes | ||||
ABOUT 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.
Visit our company website at: http://www.tenn.gr
Contact: For further information please contact: Company Tsakos Energy Navigation Ltd. George Saroglou COO +30210 94 07 710 gsaroglou@tenn.gr Investor Relations / Media Capital Link, Inc. Nicolas Bornozis Paul Lampoutis +212 661 7566 ten@capitallink.com
