Tsakos Energy Navigation (TEN) has fixed four LR1 product tankers on two-year profit-sharing charters as tanker owners bide their time ahead of the expected rally.
The New York-traded, Athens-based company did not disclose which ships were included in the deal, or the counterparty — simply describing it as an "oil concern" — but expects it to provide at least $40m in revenue.
"These charters highlight our policy of flexible long-term contracts with first-class counterparties that on the one hand provide cash flow security while on the other preserve the company’s ability to capture market upturns in strong freight environments," chief operating officer George Saroglou said.
"These contracts are a reflection of strong industry fundamentals as world economies restart and mirror the ones currently in evidence in the container and dry bulk sectors."
Of its 70 ships, spanning crude tankers, product tankers and LNG carriers, TEN has seven LR1 tankers under its sole ownership and four others with a 51% interest.
Tankers, both crude and product, remain in the doldrums, with the Covid-19 pandemic limiting travel and slowing economies and leaving owners to wait until vaccination becomes widespread to kick-start demand.
The Baltic Clean Tanker Index fell 10 points to 557 on Thursday, continuing a three-day slide, but still higher year to date, with the index starting 2021 at 434 points.
A 75,000-dwt product tanker sailing from the Middle East Gulf to Japan was estimated to be earning $9,319 per day, with a 65,000-dwt ship from the Middle East Gulf to the UK/Europe earning $11,031 per day.
TEN's LR1s range in size from 68,440 dwt to 74,300 dwt.
