Tsakos Energy Navigation buys suezmax pair, improves Q1 results

Ten revealed that it will spend $121m to acquire two modern suezmax tankers from affiliated companies. The 2013-built Eurovision and 2012-built Euro are scheduled to join Ten in the second and third quarters of this year.

Euro comes with an attractive charter to a US oil major until November 2015 while Eurovision is currently trading in the spot market.

“Despite the spot market subsequently recalibrating to more moderate levels, we feel that the crude markets will continue to present improving opportunities for those with modern and versatile tonnage,” Ten said in its latest financial statement.

“Market fundamentals and the orderbook in particular (10.4% of the crude fleet) are in much better balance coupled with sustained firm demand from China and India. This demand, driven by urbanisation and the building of strategic and commercial oil reserves in those two countries, is at very favourable levels,” the company commented.

In the first quarter ended 31 March 2014, Ten registered a $14.57m net profit compared to $1.02m gain in the previous corresponding period. Revenue also climbed to $130.29m from $97.69m a year ago.

“A strong crude market resulted in all of our 10 conventional suezmaxes generating positive results, several of them at exceptional levels. Aframax crude carriers were also able to achieve high rates in the spot market. The product carriers achieved mixed results, with certain of the handysize vessels gaining significant eanrings in the spot market,” Ten said.