Tsakos Energy Navigation (Tsakos Energy Navigation) continued its fleet modernization and upgrade process by selling its oldest tanker, Andes. This tanker, built in 2003 and classified among the Panamax and LR1 tankers, has been sold to independent buyers.
Details of the Sale of the Andes Tanker
This transaction will provide Tsakos Energy Navigation with approximately $13 million in free capital and $4.6 million in capital gains, which are expected to be recorded in the third quarter. No further details about the buyer and the total sale price have been disclosed. The Andes tanker was one of the options for sale that had long been considered for exit from the fleet.
Nicholas Tsakos, CEO of Tsakos Energy Navigation, had told analysts earlier this month that this tanker, which has primarily served major oil companies, is likely to be the next ship to exit the fleet.
Modernization Plan and Recycling Cycle
This sale follows the exit of two other Suezmax tankers from the company that were built in 2006. These two tankers have collectively added over $100 million to the company's cash position. This action is part of a broader plan to recycle old assets while new tankers are added to the fleet.
Tsakos Energy Navigation currently has a fleet modernization plan for 26 ships, of which seven have already been delivered. This production line includes five new Panamax/LR1 tankers, with the tankers Amazona, Maya, and Inca to be added to the fleet in 2027, and the Aztec tanker and the new Andes tanker in 2028. Additionally, the company's broader order book includes three VLCC tankers, nine shuttle tankers, and two LNG carriers.
Tsakos Energy Navigation has declared its fleet as pro forma 80 ships with a total gross weight of approximately 10.4 million tons. This modernization and changes in the fleet allow Tsakos to respond more effectively to market needs while optimizing costs and increasing profitability.
