Tsakos Releases More Than $100m by Selling Two 2006-Built Suezmaxes
Seven of a 26-ship newbuilding programme have now delivered, taking the pro forma fleet to 81 vessels
Tsakos Energy Navigation is selling another two ageing suezmaxes, releasing more than $100m into its cash reserves as a 26-ship newbuilding programme steadily feeds younger tonnage into the fleet.
The New York-listed Greek owner said the two ships were built in 2006, but did not identify them, disclose the buyer or give individual sale prices. The company's current fleet list shows the 2006-built Archangel and Alaska as its only suezmax tankers of that vintage. In the sale and purchase market the buyers have been named as Daelon Fathomline and Zeythra Group respectively.
The disposals follow the late-July delivery of another new shuttle tanker from Samsung Heavy Industries. Seven ships from the 26-vessel newbuilding programme have now joined the fleet, and the company reports $3.5bn in minimum contracted revenue across its forward employment book, which is the figure that allows an owner to sell older tonnage without exposing itself to a soft spot market.
Fleet renewal through disposal has been a recurring feature of the company's growth strategy over the past few years, with multiple sales of ageing tankers including earlier suezmaxes. The pattern is consistent: sell the units at around 20 years old, take the cash, and let the order book replace the capacity with tonnage that carries a different employment profile.
At the other end of the cycle the owner has been investing in larger and more specialised ships. It expanded its VLCC order book at Hanwha Ocean last year, while the shuttle tanker programme has grown substantially. Earlier this year the company also returned to the LNG carrier newbuilding market, ordering its first gas ships in roughly seven years.
In April it extended employment on two existing shuttle tankers by up to five years each, in deals expected to generate more than $200m of gross revenue. At that point the shuttle operation comprised six ships on the water and 10 newbuildings, a concentration that has moved the company some distance from a conventional crude and product owner.
After the latest sales, the pro forma fleet stands at 81 vessels totalling about 10.5m dwt.
