TEN Ltd. Announces Completion of Viken Fleet Acquisition and Sale of Aframax Tanker and LNG Carrier

Rhea-AI Summary

TEN (NYSE: TNP) announced the completion of its acquisition of Viken Crude AS, including the delivery of a 2019-built Aframax tanker. The company also sold a 2008-built Aframax and a 2007-built LNG carrier, generating $100 million in free cash. Since early 2023, TEN has sold 13 vessels totaling 1.1 million dwt, averaging 18.5 years old, and acquired or ordered 20 vessels totaling 2.25 million dwt with an average age of 1.2 years. These moves significantly increase the company's fleet size and capacity, modernize its assets, and enhance its environmental footprint.

TEN's ongoing newbuilding program includes several vessels under construction, expected to be delivered between Q2 2025 and Q3 2028.

Positive

• Completion of Viken Crude AS acquisition.
• Fleet expansion expected to generate over $200 million in minimum gross revenues.
• Sale of older vessels generated $100 million in free cash.
• Fleet modernization with newer vessels, reducing average age to 1.2 years.
• Increased fleet capacity by 2.25 million dwt.
• Enhanced environmental footprint due to newer, more efficient vessels.
• TEN's newbuilding program includes several vessels under construction, enhancing future capacity.

Negative

• Sale of 13 older vessels, which may impact short-term operational capacity.
• Potential risks associated with integrating new acquisitions into the existing fleet.
• Significant capital expenditure required for new vessel acquisitions and orders.
• Long delivery times for new vessels, with some not expected until 2028.

  Green-growth initiative program in progress

Fleet acquisition to generate in excess of $200 million of minimum gross revenues

ATHENS, Greece, June 03, 2024 (GLOBE NEWSWIRE) -- TEN, Ltd (NYSE: TNP) (the “Company”) announces the completion of the Viken Crude AS acquisition with the delivery of a 2019-built scrubber fitted 1A Ice-Class Aframax tanker. Concurrently the Company has sold a 2008-built Aframax and a 2007-built Steam Turbine LNG carrier to third party interests. From these sales, the Company has generated an additional $100 million in free cash.

Since the beginning of 2023, TEN has sold 13 vessels totaling 1.1 million dwt averaging about 18.5 years. At the same time, it has purchased and placed new orders for 20 vessels totaling 2.25 million dwt, with an average age of 1.2 years. The above transaction significantly increases the Company’s size and dwt capacity and drastically modernizes the fleet.

“The vessel divestments coupled with strategic acquisitions, in co-operation with its first-class clients, have enabled the Company to enhance this modern fleet, and increase TEN’s critical mass in the maritime energy segments, while strengthening our environmental footprint at a time considered transformational for the industry,” Mr. George Saroglou, President & COO of TEN commented.

TEN’s CURRENT NEWBUILDING PROGRAM  

#	Name	Type	Delivery	Status	Employment
1	Athens 04	DP2 Shuttle Tanker	Q2 2025*	Under Construction	Yes
2	Paris 24	DP2 Shuttle Tanker	Q2 2025*	Under Construction	Yes
3	Anfield	DP2 Shuttle Tanker	Q3 2026*	Under Construction	Yes
4	TBN	Suezmax – Scrubber Fitted	Q2 2025*	Under Construction	Under Discussion
5	TBN	Suezmax – Scrubber Fitted	Q4 2025*	Under Construction	Under Discussion
6	TBN	MR – Scrubber Fitted	Q1 2026*	Under Construction	Under Discussion
7	TBN	MR – Scrubber Fitted	Q1 2026*	Under Construction	Under Discussion
8	TBN	Panamax LR1	Q2 2027*	Under Construction	Under Discussion
9	TBN	Panamax LR1	Q1 2028	Under Construction	N/A
10	TBN	Panamax LR1	Q1 2028	Under Construction	N/A
11	TBN	Panamax LR1	Q2 2028	Under Construction	N/A
12	TBN	Panamax LR1	Q3 2028	Under Construction	N/A

^{*Expected delivery as per shipbuilding contracts}

ABOUT TEN

TEN, founded in 1993 and celebrating this year 31-years as a public company, is one of the first and most established public shipping companies in the world. TEN’s diversified energy fleet currently consists of 74 vessels, including three DP2 shuttle tankers, two scrubber-fitted suezmax vessels and two scrubber-fitted MR product tankers and five scrubber-fitted Panamax tankers under construction, consisting of a mix of crude tankers, product tankers and LNG carries, totaling 9.0 million dwt. 

ABOUT 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.

For further information, please contact:
Company
Tsakos Energy Navigation Ltd.
George Saroglou
President & COO
+30210 94 07 710
gsaroglou@tenn.gr

Investor Relations / Media
Capital Link, Inc.
Nicolas Bornozis
Markella Kara
+212 661 7566
ten@capitallink.com

Visit our company website at: http://www.tenn.gr

FAQ

What is the impact of TEN 's Viken Crude AS acquisition?

The acquisition significantly increases TEN 's fleet size and capacity and is expected to generate over $200 million in minimum gross revenues.

How much cash did TEN generate from selling older vessels?

TEN generated $100 million in free cash from the sale of a 2008-built Aframax and a 2007-built LNG carrier.

What is the average age of TEN 's newly acquired vessels?

The newly acquired vessels have an average age of 1.2 years.

How many vessels has TEN sold since 2023?

TEN has sold 13 vessels totaling 1.1 million dwt since the beginning of 2023.

What are the expected delivery dates for TEN 's newbuilding program?

The new vessels under construction are expected to be delivered between Q2 2025 and Q3 2028.