TEN Ltd. Announces Delivery and Naming of First Two in Series of Twelve DP2 Shuttle Tanker Orders at Samsung Heavy Industries, South Korea

Rhea-AI Summary

TEN Ltd. has announced the delivery of "Athens 04" and naming of "Paris 24" DP2 shuttle tankers from Samsung Heavy Industries, marking a significant expansion in their Brazilian offshore operations. These vessels secured seven-year contracts with a European oil major, with extension options up to 15 years, expected to generate $300 million in gross revenues. The deliveries represent the start of TEN's second phase expansion in Brazil's offshore market, where they've operated since 2013. With a pro-forma fleet of 82 vessels, including 16 shuttle tankers, TEN's minimum contracted revenues now reach $3.7 billion. The company's extensive newbuilding program includes 12 DP2 shuttle tankers and 9 conventional tankers under construction, positioning TEN as one of the largest shuttle tanker owners globally.

Positive

• Secured $300 million in gross revenues from seven-year contracts for two new vessels
• Total minimum contracted revenues increased to $3.7 billion
• Expansion strengthens position in high-barrier Brazilian offshore market
• Large newbuilding program of 21 vessels demonstrates strong growth trajectory
• Contracts include options to extend up to 15 years

Negative

• Significant capital expenditure required for 21-vessel newbuilding program
• Stock trading at significant discount to 52-week high of $31.5

Insights

Maritime Transportation Analyst

TEN's delivery of two contracted shuttle tankers strengthens its specialized fleet, adding $300M in contracts to its $3.7B revenue backlog.

The delivery of "Athens 04" and naming of "Paris 24" marks a significant strategic expansion for TEN in the specialized shuttle tanker segment. These sophisticated vessels, featuring dynamic positioning systems for offshore loading, require specialized technology and operational expertise - creating the "high barriers-to-entry" market advantage mentioned in the release.

The immediate seven-year employment contracts with a European oil major demonstrate strong demand for these assets and will generate approximately $300 million in gross revenue. What's particularly noteworthy is the contract structure allowing extension options to the vessels' 15th anniversary, providing exceptional long-term revenue visibility.

These deliveries represent just the beginning of TEN's ambitious expansion program, with 10 more shuttle tankers under construction. This positions the company to become one of the largest shuttle tanker operators globally, particularly in the Brazilian offshore market where they've operated since 2013.

The diversification strategy is impressive - upon completion of their newbuilding program, TEN will operate a 82-vessel fleet spanning shuttle tankers, conventional crude carriers, product tankers, and LNG carriers, totaling 10.1 million dwt. This diversified approach, coupled with their $3.7 billion secured revenue backlog, creates substantial financial stability in the historically volatile shipping sector.

Energy Finance Specialist

The financial implications of these deliveries extend well beyond the $300 million in new contracts. These vessels represent the first installments in TEN's strategic capital allocation toward higher-value assets that generate premium day rates compared to conventional tankers.

The seven-year employment contracts with extension options provide exceptional cash flow visibility - a crucial advantage in the cyclical shipping industry. This contracted revenue stream supports management's stated intention to "reward shareholders with healthy dividends" while continuing fleet expansion.

TEN's cumulative $3.7 billion revenue backlog represents a substantial financial foundation. Based on the delivery schedule outlined in the release, this newbuilding program creates a steady pipeline of additional cash-generating assets entering service through 2028, with most vessels already securing employment contracts before delivery.

The company's focus on the Brazilian offshore market is strategically sound given Brazil's continued offshore oil development requiring specialized transportation solutions. By cementing its position in this niche, TEN has created a defensible market position less vulnerable to the rate volatility affecting standard tanker markets.

The management's reference to trading at a discount to the 52-week high of $31.5 signals confidence that this strategic execution will eventually be reflected in the company's valuation as these contracted assets begin generating the secured revenue.

$3.7 billion of minimum contracted revenues from 82 vessel pro-forma fleet

16-vessel shuttle tanker fleet making TEN on the largest shuttle tanker owners in world

ATHENS, Greece, May 01, 2025 (GLOBE NEWSWIRE) -- TEN, Ltd. (TEN) (NYSE: TEN) (the “Company”) today announced the delivery and naming of two DP2 suezmax shuttle tankers, the “Athens 04” and the “Paris 24”, from Samsung Heavy Industries, Co., Ltd. (“Samsung”) in South Korea and concurrent seven-year employment to a European oil major with options to extend until the vessels’ 15^th year anniversary. Total gross revenues from these two contracts, excluding any optional periods being exercised, are expected in the region of $300 million. The delivery of the “Athens 04” and the naming of the “Paris 24”, which is expected in the fleet in June 2025, mark the commencement of TEN’s second phase expansion in the Brazilian offshore space, having established a solid presence in this “high barriers-to-entry” market since 2013.

These two vessels, on top of the four already in operation, spearhead TEN’s efforts in further cementing its foothold in this demanding segment of the tanker market and propel the fleet’s minimum gross revenues to $3.7 billion.

“This new milestone kickstarts a series of shuttle tanker deliveries set to make TEN one of the largest owners of such high-end tonnage in the world, and Brazil in particular,” Mr. George Saroglou, President and COO of TEN stated. “With a $3.7 billion secured revenue backlog, all to blue-chip concerns TEN can comfortably continue its growth, reward shareholders with healthy dividends which eventually should breach the deep valuation discount from its 52-week high of $31.5 dollars,” Mr. Saroglou concluded.

TEN’s CURRENT NEWBUILDING PROGRAM

#	Name	Type	Delivery (exp)	Status	Employment
SHUTTLE TANKERS
1	Athens 04	DP2 Shuttle Tanker	April 2025	DELIVERED	Yes
2	Paris 24	DP2 Shuttle Tanker	June 2025	NOTICE TO DELIV.	Yes
3	Anfield	DP2 Shuttle Tanker	Q3 2026	Under Construction	Yes
4	TBN	DP2 Shuttle Tanker	Q3 2027	Under Construction	Yes
5	TBN	DP2 Shuttle Tanker	Q4 2027	Under Construction	Yes
6	TBN	DP2 Shuttle Tanker	Q1 2028	Under Construction	Yes
7	TBN	DP2 Shuttle Tanker	Q2 2028	Under Construction	Yes
8	TBN	DP2 Shuttle Tanker	Q3 2028	Under Construction	Yes
9	TBN	DP2 Shuttle Tanker	Q3 2028	Under Construction	Yes
10	TBN	DP2 Shuttle Tanker	Q4 2028	Under Construction	Yes
11	TBN	DP2 Shuttle Tanker	Q4 2028	Under Construction	Yes
12	TBN	DP2 Shuttle Tanker	Q4 2028	Under Construction	Yes
CONVENTIONAL TANKERS
13	Dr Irene Tsakos	Suezmax – Scrubber Fitted	Q2 2025	Under Construction	Yes
14	Silia T	Suezmax – Scrubber Fitted	Q4 2025	Under Construction	Yes
15	TBN	MR – Scrubber Fitted	Q1 2026	Under Construction	TBA
16	TBN	MR – Scrubber Fitted	Q1 2026	Under Construction	TBA
17	TBN	Panamax LR1 – Scrubber Fitted	Q2 2027	Under Construction	TBA
18	TBN	Panamax LR1 – Scrubber Fitted	Q3 2027	Under Construction	TBA
19	TBN	Panamax LR1 – Scrubber Fitted	Q4 2027	Under Construction	TBA
20	TBN	Panamax LR1 – Scrubber Fitted	Q3 2028	Under Construction	TBA
21	TBN	Panamax LR1 – Scrubber Fitted	Q3 2028	Under Construction	TBA

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 82 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 10.1 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/dfb4d64a-5abe-45b0-b5ae-1cc55c8d4d64

FAQ

What is the value of TEN's new contracts for the Athens 04 and Paris 24 shuttle tankers?

The two vessels secured seven-year contracts expected to generate approximately $300 million in gross revenues, with options to extend up to 15 years.

How many vessels are in TEN's current newbuilding program?

TEN's newbuilding program consists of 21 vessels: 12 DP2 shuttle tankers and 9 conventional tankers (including Suezmaxes, MRs, and Panamax LR1s).

What is TEN's total contracted revenue backlog as of May 2025?

TEN's minimum contracted revenues stand at $3.7 billion from its 82-vessel pro-forma fleet.

When will the Paris 24 shuttle tanker be delivered to TEN's fleet?

The Paris 24 is expected to be delivered to TEN's fleet in June 2025.

How many shuttle tankers will TEN operate after completing its newbuilding program?

TEN will operate 16 shuttle tankers after completing its newbuilding program, making it one of the largest shuttle tanker owners in the world.