ATHENS, Greece, Nov. 27 /PRNewswire-FirstCall/ -- Tsakos Energy Navigation Ltd. ("TEN") today announced the sale of the 1989-built double hull Panamax tanker Bregen. Following the sale of 1987-built Crux and 1988- built Libra during the third quarter of 2006, the sale of the Bregen represents the disposition of the last remaining 1980's built tanker in the Company's fleet. The vessel will be delivered to its new owners in the first quarter of 2007, and as a result of the sale, TEN will recognize a capital gain of $5 million at that time.
Separately, the Company also announced time charter employment for the double-hull Panamax tankers Victory III and Hesnes. The new contracts, both with a major South American state oil company, are long-term, fixed rate charters that are expected to generate gross revenue of at least $35 million over the next 25 months.
"These two announcements clearly illustrate our corporate strategy where timely sales and purchase transactions together with long period employment charters are integral parts in the success of our operating model," stated Mr. Nikolas P. Tsakos, Chief Executive Officer of TEN. "The Bregen has been a steady earner for our Company. However, as we seek to continually modernize our fleet, we recognized the opportunity to realize significant capital gains from her sale, which will provide greater financial flexibility as we take delivery of 11 new vessels in the next 12 months."
Tsakos continued, "Much like the Bregen, vessels like the Victory III and Hesnes continue to be in strong demand by state owned oil companies who are willing to enter into long-term, accretive charter arrangements. By locking in these vessels on longer-term charters, we have secured healthy cash flows and the prospect for increased shareholder value."
Based on the currently operating fleet of 37 vessels, TEN has secured employment for 80% of the available days of 2007 and 70% of the available days of 2008, which should provide minimum revenues of $250 million and $220 million respectively.
ABOUT TSAKOS ENERGY NAVIGATION
TEN's proforma fleet consists of 52 vessels of 5.5 million dwt. Today, TEN operates a fleet of 37 vessels. Additionally, its newbuilding program has 15 vessels totaling 1.5 million dwt including: two Suezmaxes, six Aframax crude carriers, two Panamax tankers, four Handysize product carriers, and one LNG. The fleet is 100% double hull.
The strategy of a balanced diverse fleet is reflected in 26 crude transporters ranging from VLCCs to Aframaxes and 25 product carriers ranging from Handysize to Aframaxes; complemented by one LNG.
Visit our company website at: http://www.tenn.gr/.
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.
CONTACTS:
George V. Saroglou, COO
Tsakos Energy Navigation Ltd.
Tel: 30 210 94 07 710-3
