Tanker operator Tsakos Energy Navigation Ltd. (TEN) has entered into charter agreements for three of its LR2 Aframax tankers with an unnamed major European oil concern for crude trading operations.
The charters last on average of 36-months per vessel and the total gross revenues from these three fixtures are expected at around USD 100 million.
“The appetite of major oil companies to lock forward long-term is a positive testament to the prospects of the already strong tanker market. With USD 1.5 billion of total contracted revenues to date and a 15-vessel newbuilding program 12 of which already on long-term contracts, TEN combines long-term stability and future growth prospects to our shareholders,” Nikolas P. Tsakos, President and Chief Executive Officer of TEN commented.
“TEN’s secured cash flow increases predictability and safeguards our net income and dividend payments going forward while our profit sharing and spot market exposure allows us to take advantage of strong rate spikes,” Tsakos concluded.
With these new fixtures, the fleet’s total contracted revenue increases to USD 1.5 billion, excluding any additional income through profit sharing provisions. For the remainder of 2015, 66.0% of available days are fixed on spot or spot impacted contracts while 58.0% are on secured and flexible contracts safeguarding a stable cash inflow for the company, TEN said.
To date, TEN’s fleet, including two VLCCs, an LNG carrier, nine Aframax crude oil tankers, a Suezmax DP2 shuttle tanker and two LR1 tankers all under construction, consists of 65 double-hull vessels, a mix of crude tankers, product tankers and LNG carriers, totaling 7.2 million dwt.
Of these, 47 vessels trade in crude, 13 in products, three are shuttle tankers and two are LNG carriers. All of TEN’s tanker newbuildings except the two VLCCs and the LNG carrier Maria Energy are fixed on long-term project businesses.