TEN eyes VLCCs to extend largest-ever growth spurt

TSAKOS Energy Navigation is eyeing further additions to its newbuilding orderbook against what it sees as a positive backdrop for the tanker business.

Company chief executive Nikolas Tsakos confirmed reports that the Greece-based owner has interest in ordering very large crude carriers for its fleet.

“We are looking to increase our presence there significantly,” Tsakos said in response to a question from Lloyd’s List.

“It’s the smallest segment of our fleet at the moment,” he added.

Just a few days ago, the company took delivery from HD Hyundai Heavy Industries of a scrubber-fitted suezmax tanker, DR Irene Tsakos(IMO: 9993755), named for Tsakos’ late mother.

The vessel has begun a minimum five-year charter to an oil major with profit-sharing provisions, the company said.

In September, a sister suezmax, Silia T, is scheduled to follow from the yard.

In the meantime, TEN expects to have taken delivery from Samsung Heavy Industries of a suezmax DP2 shuttle tanker, Paris 24(IMO: 9988176), which is a sister to a shuttle tanker delivered earlier this year.

All the tankers are on long-term contracts to major energy companies and the combined gross revenues have increased TEN’s minimum fixed future revenues to $3.7bn.

Also currently on order are two medium range product tankers and five panamax long range one tankers, all fitted with scrubbers, for delivery between next year and 2028.

The company also has a further 10 suezmax shuttle tankers on order.

In a statement accompanying first-quarter results, the New York Stock Exchange-listed owner said that “in such an apparent positive environment for tanker trades,” it was focused on strengthening its long-standing relationships with charterers and building vessels tailored for their long-term needs.

In response to “sustained demand”, the current growth programme comprising 21 newbuildings was the largest in the company’s history.

Company president and chief operating officer George Saroglou said that first-quarter results underlined that TEN “can deliver sustainable growth across all sectors in which it operates”.

TEN reported voyage revenues of $197.1m, close to the $201.6m in the equivalent three months last year.

Net income came in at $38.9m, compared with $54m in the first quarter of 2024.

The owner has declared a first semi-annual dividend of $0.60 per share.