TEN Ltd Announces Long-term Charter Extensions for Aframax Tankers

Rhea-AI Summary

TEN Ltd (NYSE:TNP) announced the extension of charters for two aframax tankers for a total of 48 months with a major oil company, resulting in $500 million in new secured contracts. This adds to the 10 long-term contracts secured in the last three months, which include both fixed and profit-sharing agreements. The new charter agreements are expected to enhance cash flow visibility and flexibility, aligning with the growing demand for tanker services, as stated by COO George Saroglou.

Positive

• Secured $500 million in new minimum contracts.
• Total of 10 long-term businesses secured in the last three months.
• Increased cash flow visibility and flexibility from new contracts.
• Aligned with rising demand for tanker services.

Negative

• None.

$500 million in new minimum secured contracts

ATHENS, Greece, Dec. 02, 2021 (GLOBE NEWSWIRE) -- TEN Ltd (“TEN” or the “Company”) (NYSE:TNP) today announced the charter extension for two aframax tankers for a combined period of 48 months to a major oil company. With these two transactions, the total number of long-term businesses secured over the last three months climb to 10 including ones with fixed and profit-sharing contracts. These 10 fixtures combined with the minimum charter proceeds of the LNG carrier and the Shuttle tanker to be delivered in the first and second quarter of 2022 respectively are expected to generate gross revenues of approximately $500 million.

“The recent surge for long-term charters is a sign of increased demand for tanker services. TEN, following its tried and tested employment policy for secured contracts and upside potential should be a prime beneficiary of the expected market upturn, Mr. George Saroglou, COO of TEN commented. “These two fixtures along with all the others concluded recently, including those for our newbuildings, provide enhanced cash flow visibility and flexibility and make TEN an attractive proposition for those looking for the tanker market to resemble the one experienced recently in containers and dry bulk,” Mr. George Saroglou, COO of TEN commented.”

ABOUT TSAKOS ENERGY NAVIGATION
TEN, founded in 1993 is one of the first and most established public shipping companies in the world. TEN’s diversified energy fleet currently consists of 71 double-hull vessels totaling 8.0 m dwt. Its newbuilding program includes one LNG carrier, one suezmax DP2 shuttle tanker and four dual-fuel LNG powered aframax vessels.

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
COO
+30210 94 07 710
gsaroglou@tenn.gr 

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

FAQ

What are the new contracts announced by TEN Ltd on December 2, 2021?

TEN Ltd announced $500 million in new minimum secured contracts through the charter extension of two aframax tankers.

How many long-term contracts has TEN Ltd secured recently?

TEN Ltd has secured a total of 10 long-term contracts over the last three months.

What is the expected financial impact of the recent contracts for TEN Ltd?

The recent contracts are expected to generate gross revenues of approximately $500 million.

Who is the COO of TEN Ltd and what did he say about the contracts?

George Saroglou, COO of TEN, stated that the recent surge in long-term charters indicates increased demand for tanker services.

What is the significance of the new contracts for TEN Ltd's operations?

The new contracts provide enhanced cash flow visibility and flexibility, positioning TEN Ltd to benefit from an expected upturn in the tanker market.