Tsakos Energy Navigation (TNP) investor relations material

Company overview and strategy

• Operates as a leading global transporter of oil and oil products, ranking among the top 10 tanker companies and aiming for top 5 with recent orders.

• Maintains a long-standing dividend record and focuses on servicing major international oil companies through long-term relationships.

• Business model centers on long-term time charters, reducing exposure to market cyclicality and ensuring stable revenues.

• Diversified fleet includes conventional crude tankers, shuttle tankers, and LNG-capable vessels, tailored to customer needs.

• Fleet renewal is guided by customer demand for modern, efficient ships and opportunistic asset sales.

Market dynamics and outlook

• Global tanker supply is tightening due to an aging fleet and limited new builds, with 20% of tankers over 20 years old and new deliveries insufficient to replace retiring vessels.

• Geopolitical events, such as sanctions and regional conflicts, have increased voyage distances and ton-miles, supporting higher rates.

• Shadow fleet activity has influenced spot rates and asset values, but recent enforcement actions have led to increased scrapping and higher spot rates.

• Regulatory changes are increasing the preference for newer, more efficient vessels, with dual-fuel capability providing a competitive edge.

• Macro risks are managed through risk-averse operations, avoiding high-risk regions and maintaining strong technical standards.

Fleet development and commercial approach

• Largest order book among public peers, with 20 new ships including shuttle tankers and VLCCs, most secured by long-term contracts with major clients.

• Opportunistic acquisition of newbuild slots enables faster fleet expansion and contract alignment.

• Average charter duration is two to three years, with ongoing repricing opportunities as contracts roll over.

• Spot market exposure is limited and used strategically to capture favorable rates before entering new long-term contracts.

• Fleet renewal decisions are based on a mix of client requirements, market opportunities, and asset age, with a focus on maintaining a modern fleet.