TEN pens LR1s

Tsakos Energy Navigation has made good on its promise for newbuilding orders against period contracts.
Nikolas Tsakos

Nikolas Tsakos

New York-listed TEN has today booked up to four LR1 newbuildings against five-year charters with a mystery oil major – further boosting its potential for launching an MLP.

The two firm vessels are against charters with a 50/50 profit split above what the owner calls an “accretive base rate”.

Tsakos – which stated it was on the verge of deals for up to six tankers just a couple of weeks ago – says the duo will be delivered in the second half of 2016.

The other two vessels are options at this stage.

While TEN does not reveal the yard that will build the vessels, a spokesperson tells TradeWinds the vessels will be constructed in South Korea.

“We continue growing and modernizing our fleet with non speculative orders,” said chief executive Nikolas Tsakos.

“We expect the value created by these and other similar projects to be soon reflected in our valuation.”

TEN says the deal is part of a new strategic partnership with one of the largest oil companies in the world.

The spokesperson says TEN has done spot and period business with the charterer in the past and hopes today's deal will lead to further activity. Similar deals with other oil majors are also being sighted, he adds.

The latest vessels appear to be further candidates for the MLP, which the owner intends to spin-off next year.

Suezmaxes fixed

TEN has also revealed period employment for two of its suezmaxes today. 

One of the vessels has been booked on a 24-month deal and the other on a 12-month contract. Both have a 12-month option period attached.


While the rates are not disclosed, they could generate revenue of $35m, the owner says.

Tsakos said during its second quarter conference call it was fighting off work for its suezmaxes.

It is not clear if the vessels fixed today are the 158,000-dwt tankers Euro (built 2012) and Eurovision (built 2013), which the listed company bought from a private arm of Tsakos this year.

At the time of the results, Tsakos said the owner was not keen to lock the tankers away on period deals.

“We would not charter long-term without either a significant profit earnings arrangement because we expect that the market is going to be strong,” he said.

Tsakos Energy Nav
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