Tsakos Energy Navigation wants to be large and in charge

Tsakos Energy Navigation wants to be large and in charge

Athens: On the back of sustained improvement of tanker markets and of its financial results, Tsakos Energy Navigation (TEN) says it is considering “attractive opportunities for growth”.

The NYSE-listed company did not specify what its growth strategy may be, but says it will look at “all projects that are accretive to TEN’s bottom line”.

“In addition, management is also evaluating divestment opportunities, particularly for its first-generation tankers, in order to maintain the young age profile of the fleet, create positive capital gains and generate cash for future investments,” the company said in its first-quarter results for 2015 today.

TEN’s 50-vessel fleet has seven vessels of over 10 years in age, including its only VLCC Millennium (301,200 dwt, built 1998), which is the oldest vessel in the fleet.

TEN says it has 23 vessels operating on “very accretive” spot contracts and 10 under profit-sharing arrangements, with 73% of 2015 available days in spot-related or flexible charters. Most of the vessels in the fleet have been fixed on charters “well above all-in breakeven rates”.

“The first-quarter results and the continuous market strengths give us confidence for a very profitable 2015. Looking ahead, the existing supply-demand equilibrium together with the low price of oil enforces our belief that we are in the midst of, finally, a long term up-cycle in the tanker industry,” said Nikolas P. Tsakos, president and CEO of TEN and current chairman of INTERTANKO.

“If tanker owners refrain from the speculative newbuilding frenzy of the past, the current positive cycle will be prolonged and will substantially increase shareholder value for the long term.”

TEN currently has 15 newbuildings on order, comprising nine aframax tankers, four LR1s, a suezmax and one 174,000-cbm LNG carrier.

Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.

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