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TEN cashes in on eight older tankers and fixes LNG carrier for 12 years

Tsakos Energy Navigation (TEN) has taken advantage of the busy tanker sale and purchase market, cashing in on some of its older ships while also fixing one of its LNG carriers on a long-term charter in Asia.

The New York-listed Greek owner confirmed previous Splash reports that it had sold six 2005-built MRs as well as two 2007-built handysize tankers on an en-bloc basis to third-party interests in the first quarter of 2023.

Free cash of $117m was generated after repaying related debt and a capital gain of $80.4m from these sales will be recorded in this quarter, the company said.

TEN has also recently repurchased two 2005-built suezmaxes under sale-and-leasebacks for a price tag it says is well below their fair market value today. The ships currently trade in the spot market and the company is said to be actively exploring opportunities.

“The first quarter of 2023 has been the most active sales and purchase period since the company’s inception in 1993 and proves that TEN moves swiftly when opportunities arise in order to maintain the modernity of its fleet. Following the sale of eight vessels, with an average age of 17 years, the company is renewing its fleet with an active newbuilding program in South Korean yards with deliveries starting in the third quarter of 2023,” the company said in its latest earnings report.

In addition to asset plays, TEN fixed its 2016-built LNG carrier Maria Energy to a leading Asian operator earlier this month for a minimum of 12 years. The 174,000 cu m vessel should deliver after it comes off its existing contract with Uniper in April 2026. The deal is expected to generate at least $350m in revenues.

TEN’s diversified fleet, including newbuildings, currently consists of 67 ships, constituting a mix of crude and product tankers and LNG carriers. The company logged a record Q4 profit of $101m and $204.2m or $6.02 per share, for the full year 2022.

Adis Ajdin

Adis is an experienced news reporter with a background in finance, media and education. He has written across the spectrum of offshore energy and ocean industries for many years and is a member of International Federation of Journalists. Previously he had written for Navingo media group titles including Offshore Energy, Subsea World News and Marine Energy.
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