Company: TEN-PE
Filing Date: 2025-04-11
Form Type: 20-F
Source: 0001193125-25-079101
Chunk: 194

Company: TSAKOS ENERGY NAVIGATION LTD
Filing Date: 2025-04-11
Form: 20-F
Item: Item 11
Chunk 194
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 with expiration dates July 2024 (two swaps), August 2024 (two swaps), September 2024 (four swaps), March 2025 (four swaps) and December 2025 (one swap). As of April 4, 2025, the Company has one swap agreement that expires in December 2025.

EUAs price risk

The Company enters into EUAs swap agreements to manage its spot trading vessels exposure to the EUAs obligations, that the Company must surrender latest by September 30, 2025, for the previous calendar year.

Foreign exchange rate fluctuation

The currency the international tanker industry is primarily using is the U. S. dollar. Virtually all of our revenues are in U. S. dollars and the majority of our operating costs are incurred in U. S. dollars. We incur certain operating expenses in foreign currencies, the most significant of which are in Euros. During fiscal 2024, approximately 24.3% of the total of our vessel and voyage costs and overhead expenditures were denominated in Euro. Based on 2024 Euro expenditure, therefore, we estimate that for every 1% change in the Euro/U. S. dollar rate there would be a 0.3% impact on vessel operating expenses and minimal impact on other cost categories apart from dry-docking which would depend on the location of the selected yard. However, we have the ability to shift our purchase of goods and services from one country to another and, thus, from one currency to another in order to mitigate the effects of exchange rate fluctuations. We have a policy of continuously monitoring and managing our foreign exchange exposure. On occasion, we do directly purchase amounts of Euro with U. S. dollars, but to date, we have not engaged in any foreign currency hedging transactions, as we do not believe we have had material risk exposure to foreign currency fluctuations.

Inflation

Although inflation has had a moderate impact on operating expenses, dry-docking expenses, our management does not consider inflation to be a significant risk to direct costs in the current economic environment.

Item 12. Description of Securities Other than Equity Securities