Company: TEN-PE
Filing Date: 2025-04-11
Form Type: 20-F
Source: 0001193125-25-079101
Chunk: 118

Company: TSAKOS ENERGY NAVIGATION LTD
Filing Date: 2025-04-11
Form: 20-F
Item: Item 5
Chunk 118
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 on reported earnings arising from these settlements.

(Gain) Loss on sale of vessels. (Gain) Loss on sale of vessels include net (gain) loss from the sale of our vessels that occurred during the year.

Interest and Finance Costs. We incur interest expense and finance costs in connection with our outstanding debt and other financing liabilities. We also incur loan costs for obtaining new loans or refinancing of existing loans, which are presented as a reduction from the outstanding debt and other financial liabilities and amortize them to interest and finance costs over the term of the respective loan, using the effective interest rate method. We expect to incur additional interest expense in future periods as we increase our level of borrowings to finance a portion of the purchase price of our contracted newbuildings and potentially future acquisitions and investments. To the extent prevailing interest rates increase, we expect this would further increase our interest expenses, as borrowings under our credit facilities are advanced at a floating rate based on SOFR.

Interest Income. We earn interest income on our cash and cash equivalents and cash deposits.

Fair value of above/below market acquired time charters: If time charters are attached when vessels are acquired, we recognize any related asset or liability based on the market value of the assumed charters. The value of the acquired time charters is calculated by comparing the existing charter rate in the acquired time charter agreement with the market rates for a similar charter, with the same duration, on the acquisition date. Any intangible asset or liability is amortized over the remaining term of the charter.

Financial Analysis

(Percentage calculations are based on the actual amounts shown in the accompanying consolidated financial statements)

Year ended December 31, 2024 versus year ended December 31, 2023

Voyage revenues

Voyage revenues earned in 2024 and 2023 per charter category were as follows:

                                                            2024                                 2023                  
                                                 U. S. $ million      % of total      U. S. $ million      % of total  
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Time charter-bareboat                                     25.1              3%                 25.2              3%  
  Time charter-fixed rate                                  350.1             44%                293.7             33%  
  Time charter-variable rate (profit share)                208.1             26%                212.6             24%  
  Pool arrangement                                           2.2