Company: TEN-PE
Filing Date: 2025-04-11
Form Type: 20-F
Source: 0001193125-25-079101
Chunk: 49

Company: TSAKOS ENERGY NAVIGATION LTD
Filing Date: 2025-04-11
Form: 20-F
Item: Item 4
Chunk 49
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 extend the term of the charter for up to eleven additional years.  

  (4)      The charterer has the option to extend the term of the charter for up to ten additional years.  

  (5)      The charter rate for these vessels is based on a fixed minimum rate for the Company plus different levels of profit sharing above minimum rate, determined and settled on a calendar month basis.  

We have arranged charters starting from the delivery of our DP2 suezmax shuttle tankers and our suezmax tankers under construction, for period of three to fifteen years, excluding charterer options for extension. The new buildings have a double hull design compliant with all classification requirements and prevailing environmental laws and regulations. Tsakos Shipping works closely with the shipyards in the design of the new buildings and provides supervisory personnel present during the construction.

Fleet Deployment

Depending on management’s view of the state of the current spot market and future prospects for the market, we aim to optimize the financial performance of our fleet by deploying at least half of our fleet on either time charters or period employment with variable rates, as we take proactive steps to meet any potential negative impact of the expanding world fleet on freight rates. As at April 4, 2025, the percentage of the fleet that is in employment at fixed rates (including time charters with a profit share component) was 82%, which is higher compared to prior periods. If the prospects for the spot market appear to management to generate sustainable positive returns, management may decide to deploy immediately to the spot market vessels coming off time-charter. We believe that our fleet deployment strategy and flexibility provide us with the ability to benefit from increases in tanker rates while at the same time maintaining a measure of stability through cycles in the industry. The following table details the respective employment basis of our fleet during 2024, 2023 and 2022 as a percentage of operating days.

                                               Year Ended December 31,                          
  Employment Basis                                                2024        2023        2022  
 ────────────────────────────────────────────────────────────────────────────────────────────────
  Time Charter—fixed rate                                          55%         46%         37%  
  Time Charter—variable rate and pool                              27%         30%         36%  
  Period employment coa at variable rates                           2%          1%          2%  
  Spot Voyage                                                      16%         23%         25%  
  Total Net