In this episode of Capital Link's 2026 Corporate Presentation Series, Tsakos Energy Navigation’s (NYSE:TEN) senior management team discussed the company’s recent milestones and initiatives. The discussion featured Dr. Nikolas P. Tsakos, Founder & CEO, Mr. George Saroglou, President & COO, Mr. Harrys Kosmatos, Co-CFO, Mr. Dimitris Bertolis, CIO, and Ms. Clio Hatzimichalis, General Counsel & Board Member. Management addressed the company's financial performance and market outlook.

Please visit the following link to watch the full presentation:

https://www.youtube.com/watch?v=7QOLSTol9qE

Geopolitical Disruption and the Shortage of High-Quality Tonnage

The company operates a fleet of 82 vessels, including DP-2 shuttle tankers, VLCCs, product tankers, and LNG carriers, with additional newbuildings underway, totaling approximately 11 million dwt.  TEN has become a carrier of choice for leading energy majors, including ExxonMobil, Equinor, Shell, Chevron, Total, and BP.

According to Dr. Tsakos, the past five years have been the most challenging period in the company's history.  He reflected on the succession of crises TEN has navigated since its inception from the Exxon Valdez incident and the introduction of OPA 90, to the Asian Financial Crisis, 9/11, and the 2008 financial crisis. However, the period from 2020 onward has been uniquely volatile. "COVID significantly reduced oil demand and energy consumption." On top of that, the war in Ukraine reshaped the map of energy transportation, introducing new trade routes, Dr. Tsakos explained. He further added that tariffs, instability in the Middle East, developments in Venezuela and turmoil in Iran have further compounded uncertainty. "Virtually everywhere oil is produced, geopolitical events are unfolding on an almost weekly basis" he concluded.

However, he believes that a severe shortage of available tonnage is insulating tanker owners. Nearly 30% of the global fleet has shifted between gray and black trading zones due to sanctions, creating a supply gap for operators such as TEN that trade exclusively with blue-chip oil majors. This, combined with steadily growing oil demand, has driven a sharp acceleration in charter rates. Dr. Tsakos observed that VLCCs exceed $100,000 per day compared with around $50,000 last year.

Disciplined Expansion in a Volatile Market

TEN has recently divested 17 older vessels and taken delivery of 33 modern ones, nearly doubling the fleet size, tripling its dwt capacity, and reducing the fleet's average age.  A key driver of this expansion has been the shuttle tanker segment. Mr. Saroglou announced that TEN was awarded one of the largest ever contracts by Petrobras in Brazil, covering nine newbuild DP2 vessels. Deliveries are already underway, with additional vessels scheduled to be delivered on a quarterly basis through 2028. Both Mr. Saroglou and Mr. Kosmatos explained that the fleet is split between vessels on fixed-rate time charters, time charters with profit-sharing mechanisms, and a portion trading in the spot market. "The rationale behind this structure is to ensure that, irrespective of global market conditions, the fleet will consistently generate sufficient revenue to cover its full operating cost base," Mr. Kosmatos commented.

Conservative Financial Strategy Supported by Strong Market Fundamentals

Leverage, measured by debt-to-equity, has never exceeded 50% and currently sits below that threshold. The current dividend is $1.00 per share for 2025, with half paid in December 2025 and the remainder scheduled for February 19, 2026. On capital allocation, management noted that dividends will continue uninterrupted, while no share buybacks are planned. Mr. Kosmatos also addressed the fact that global oil demand is currently at record levels, while the orderbook for new tanker deliveries remains subdued at about 14% of the existing fleet. "Vessels over 15 years of age will exit the fleet one way or another over the next 2 to 3 years, and they will need to be replaced. The new buildings are not enough. This imbalance points to a runway of at least 2-3 years of healthy market conditions," he concluded.

Regulation and Geopolitics Shaping Market Dynamics

Dr. Tsakos suggested the current ambiguity around the IMO's decarbonization framework is not necessarily a bad thing, as it has contributed to hesitation across the industry and kept newbuilding orders in check. "I know people consider us too conservative, but that is precisely why we’re still around after 32 years" he remarked. Turning to chartering strategy, he noted that there is a huge appetite right now among major oil companies to secure tonnage over the next 18 months. While TEN continues to benefit from elevated spot rates, customers' desire for greater operational control has led to profit-sharing arrangements that have proven mutually advantageous.  

Finally, discussing Europe's shift away from Russian energy, Dr. Tsakos explained the transition has massively increased ton-mile demand.  Voyages that previously took 2 to 3 days from Russia now require roughly twice the distance when sourced from West Africa, three times the distance from the U.S. Gulf, and potentially similar extensions from Venezuela. While LNG carrier rates have lagged tanker markets, he attributed this to a timing mismatch, noting that LNG export facilities take considerably longer to develop than the vessels themselves. Nevertheless, he expressed confidence that growing liquefaction capacity will ultimately drive a recovery in the gas shipping market, potentially by 2028–2029.

Disclosure: Capital Link works with TEN Ltd (NYSE:TEN). This content is for informational purposes only and not intended to be investing advice. We would like to highlight that this is not an article with Capital Link's editorial. It reflects only comments made by management during the company presentation

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