TEN is constructing nine DP2 Suezmax Shuttle Tankers for Petrobras, expected to generate $2.0 billion in revenues.
Quiver AI Summary
Tsakos Energy Navigation (TEN) has announced plans to construct nine DP2 Suezmax Shuttle Tankers, which will be employed under 15-year contracts with Petrobras Transporte S.A. The vessels are set for delivery in 2027 and 2028 and will be built at Samsung Heavy Industries in South Korea. This project is expected to generate gross revenues of around $2.0 billion, positioning TEN as one of the largest independent shuttle tanker operators globally, with a total fleet of 16 such tankers. The company, known for its diversified energy fleet, has a history of strategic vessel acquisitions that enhance its status in the market. TEN's President & COO, George Saroglou, highlighted the importance of this expansion for maintaining cash flow stability and rewarding shareholders.
Potential Positives
- Expected gross revenues of approximately $2.0 billion from the construction of nine new DP2 Suezmax Shuttle Tankers, enhancing financial outlook.
- Formation of a long-term partnership with Petrobras Transporte S.A., expanding TEN's position in the energy transportation sector.
- With a proforma fleet of 16 DP2 Suezmax Shuttle tankers, TEN is recognized as one of the largest Shuttle tanker operators globally, indicating significant growth and market presence.
- Strategic fleet expansion through ongoing construction and modernization efforts positions TEN as a leading choice for major oil companies, enhancing future business prospects.
Potential Negatives
- Concerns over execution risk as the company embarks on building nine new vessels, with deliveries scheduled for 2027 and 2028, which may impact the timeline and associated financial expectations.
- Subject to market fluctuations and potential operational challenges, the reliance on long-term contracts may expose the company to revenue volatility if its charter agreements are not renewed or if market demand decreases.
- Forward-looking statements highlight risks and uncertainties that could lead to a significant discrepancy between projected and actual results, raising caution for investors regarding the company's future performance.
FAQ
What is the purpose of TEN's recent announcement?
TEN announced the construction of nine DP2 Suezmax Shuttle Tankers, enhancing its position in the shipping industry.
What are the expected revenues from TEN's new Shuttle Tankers?
The gross revenues from the new project are expected to be around $2.0 billion.
When will the new vessels be delivered?
The deliveries for the nine new vessels are scheduled for 2027 and 2028.
Who will oversee the operating costs of the Shuttle Tankers?
The charterer, Petrobras Transporte S.A. ("Transpetro"), will assume all operating and technical costs during the employment period.
How many vessels does TEN currently operate?
TEN's diversified energy fleet currently consists of 83 vessels, including twelve DP2 shuttle tankers.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
Full Release
Expected gross revenues at $2.0 billion
TEN to become one of the largest independent Shuttle tanker operators
ATHENS, Greece, March 18, 2025 (GLOBE NEWSWIRE) -- TEN, Ltd (NYSE: TEN) (the “Company”) announces the construction of nine DP2 Suezmax Shuttle Tankers with 15-year employment contracts for Petrobras Transporte S.A. (“Transpetro”), Brazil’s largest oil and gas transportation company. The deliveries are scheduled for 2027 and 2028 and TEN intends to build the vessels at Samsung Heavy Industries Co. Ltd. in South Korea, the yard that the Company is currently using for the construction of three DP2 Shuttle Tankers, all on long-term contracts to major oil companies, with deliveries in 2025 and 2026.
The charter will be in the form of a bareboat and the charterer will assume all operating and technical costs associated with the running of the vessels during the assigned employment period. With a proforma fleet of 16 DP2 Suezmax Shuttle tankers, TEN is now one of the world’s largest Shuttle tanker owners. Gross revenues from this project are expected to be around $2.0 billion.
“Over the years, we have targeted milestone opportunities to build modern vessels that added an edge, making TEN one of the largest, diversified and versatile energy transporters in the world. In 2007, the acquisition and construction of nine ice-strengthened vessels from Western Petroleum established TEN as one of the major ice-class tanker owners globally. In 2014, Equinor contracted us to build nine Aframax vessels for long-term employment, solidifying TEN as one of its prime vessel providers. In early 2024, TEN acquired a five-vessel modern fleet from Norway’s Viken Crude making TEN one of the biggest operators of Dual-Fuel LNG vessels in the water. The nine DP2 Suezmax Shuttle tankers announced today, on top of the three under construction at present and four already in the water and, make us one of the largest operators of Suezmax DP2 Shuttle tankers globally,” said George Saroglou, President & COO of TEN.
“As we progress with the construction of the nine vessels, we look forward to taking delivery of the three Shuttle tankers currently being built in South Korea while positioning TEN as the company of choice for the long-term needs of the world’s major oil concerns. The Company’s industrial approach when it comes to fleet employment has served us well over the years as it provides cash flow stability, visibility, flexibility and the firepower to move on opportunities fast while maintaining our ability to reward shareholders with healthy dividends irrespective of market conditions. On behalf of our management and myself, I would like to thank all involved in making this milestone transaction happen,” Mr. Saroglou concluded.
ABOUT TSAKOS ENERGY NAVIGATION
TEN, founded in 1993 and celebrating this year 32-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 83 vessels, including twelve DP2 shuttle tankers, two scrubber-fitted suezmax vessels, two scrubber-fitted MR product tankers and five scrubber-fitted LR1 tankers under construction, consisting of a mix of crude tankers, product tankers and LNG carriers, totaling 10.2 million dwt.
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
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/bd6af3f4-1ff0-47b0-8edb-d20091770e6f
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