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TEN lines up six
Tsakos Energy Navigation has whetted investor appetite for newbuilding orders amid suggestions at least six new tankers will be added by the close of 2014.
Chief executive Nikolas Tsakos told investors deals are in the works which are similar to its nine-strong aframax contract in which vessels were ordered against long-term employment with Statoil.
Tsakos says the company is working in “at least half a dozen” transactions which could be announced during the third quarter.
While not revealing specific details, the shipowner says the new vessels will be in both the products tanker and crude markets, including the VLCC sector where TEN is seeking to renew its fleet.
“It will start from VLCC, down to our suezmaxs, aframaxs and other ones,” Tsakos said on a conference call.
Doug Mavrinac, an analyst at Jefferies, notes TEN has around $240m in cash and net debt-to-cap of only 44%.
“These additional acquisitions will increase the company's total contract coverage providing further support for a possible MLP spin-off in 2015,” he said in a report after TEN revealed its second quarter results yesterday.
As TradeWinds has reported, the owner booked a marginal profit for the quarter of $200,000 and an adjusted loss of $0.02 per share. The figure was in line or marginally better than Wall Street projections, according to varying sources.
“Without trying we have to be conservative and be optimistic, but I think we are looking forward at a good year,” Tsakos said.