Company: TEN-PE
Filing Date: 2025-04-11
Form Type: 20-F
Source: 0001193125-25-079101
Chunk: 102

Company: TSAKOS ENERGY NAVIGATION LTD
Filing Date: 2025-04-11
Form: 20-F
Item: Item 5
Chunk 102
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 world oil demand in 2024, a level expected for 2025 as well.

The outlook for the global economy is expected to remain stable, with the International Monetary Fund (IMF) revising its forecast for global GDP growth in 2025 from 3.2% to 3.3%, with similar growth of 3.3% in 2026.

Tanker fleet supply fundamentals continue to remain attractive. With just under 7 million deadweight tons scheduled to be delivered in 2025, the orderbook as at the end of January 2024 stood at 13.4% of the existing fleet, a still low number when compared to the last 20 years, however, imminent orderbook growth remains restricted due to little spare shipyard capacity before 2028. The combination of a still low tanker orderbook, an aging fleet, lack of shipyard capacity, as well as the ongoing discussions for alternative fuels which could alter the vessel designs of the future, should lead to manageable levels of tanker fleet growth over the next two to three years.

In summary, we expect that a combination of robust oil demand and positive fleet supply fundamentals should continue to support a healthy tanker market over the next two to three years both in terms of freight and asset prices. Continuous geopolitical instability in various regions of the world and the ongoing sanctions on Russian oil exports, which are expected to remain in place for some time, irrespective of any ceasefire with Ukraine, should maintain the existing bifurcation of the global fleet which has led to the creation of the “shadow” fleet and the rerouting of tankers for longer haul voyages. Both considered additive to the tanker market’s performance going forward.

Our fleet achieved voyage revenues of $804.1 million in 2024, a decrease of 9.6% from $889.6 million in 2023. The average size of our fleet increased to 61.8 in 2024 from 59.5 vessels in 2023, and fleet utilization decreased to 92.5% during 2024 compared to 96.3% 2023. In 2024, geopolitical events, such as the war in Ukraine, Gaza and the Houthi attacks in the Red Sea continued and led to changes in trade flows maintaining a situation where tankers performed long-haul voyages adding positive ton-mile effects for tanker demand and rates. Our average daily time charter rate per vessel, after deducting voyage expenses, decreased to $32,550 in 2024