A “state oil company” has extended its charter of four panamax tankers owned by Tsakos Energy Navigation (TEN) with profit sharing provisions, for which TEN expects minimum gross revenues of $65m.
The NYSE-listed company did not enter into specifics about the contracts, but said the charters were extended for an average duration of 22 months per vessel. The fixtures are expected to commence between April and November this year as the ships’ existing charters are concluded.
Ecuadorian state oil company Flopec took five of TEN’s LR1 panamax tankers on three-year period charters back in March 2013, each at a daily rate of $14,740, according to historical broker data. The charters are all due to expire from this month, making it likely that four of the tankers are among those to have their contracts renewed.
The vessels are Andes (68,400 dwt, built 2003); Inca (68,400 dwt, built 2003), Maya (68,400 dwt, built 2003), Chantal (74,300 dwt, built 2009) and World Harmony (74,200 dwt, built 2009).
“The extension of these contracts follow our policy to increase TEN’s long-term employment profile as time charter rates have finally started to reflect the strength of the spot market,” Nikolas Tsakos, president and CEO of TEN, said in a statement today.