Greek Shipping : Greece’s steaming force Dr. Nikolas P. Tsakos President & CEO 1 Tsakos Energy Navigation, Ltd A New York Stock Exchange Listed Company
WORLD FLEET WORLD FLEET by the nationality of owner by the nationality of owner WORLD FLEET BY THE NATIONALITY OF OWNER COUNTRY DWT POPULATION DWT/PRS 1 GREECE 190 11 17,30 2 CYPRUS 9 0,863 , 10,43 , 3 NORWAY 40 5 8,00 4 SINGAPORE 32 4 8,00 5 DENMARK 33 5,5 6,60 6 HONG KONG 34 7 4,90 7 U.A.E. 5 3 1,66 8 JAPAN 183 128 1,43 9 GERMAN 103 82 1,26 10 CHINA (TAIWAN) 29 23 1,26 11 BELGIUM 12 11 1,10 12 S. KOREA 45 49 0,92 13 CANADA 13 CANADA 18 18 33 33 0 55 0,55 14 NETHERLANDS 9 17 0,53 15 SWITZERLAND 4 8 0,50 16 SAUDI ARABIA 13 27 0,48 17 U.K. 26 60 0,43 18 MALAYSIA 18 MALAYSIA 12 12 28 28 0 43 0,43 19 ITALY 22 60 0,37 20 TURKEY 16 75 0,21 21 IRAN 13 74 0,18 22 U.S.A. 41 310 0,13 23 RUSSIA RUSSIA 19 19 142 142 0,13 0,13 24 FRANCE 7 64 0,11 25 CHINA 104 1.500 0,07 26 BRAZIL 8 191 0,04 27 INDONESIA 9 230 0,04 28 INDIA 17 1.200 0,01
FOREIGN CURRENCY INFLOWS from Shipping Sector from Shipping Sector 30000 30000 25000 $ $ $ $ 20000 $ $ ions US$ $ 15000 millions us $ $ $ milli $ 10000 $ $ $ $ 5000 5000 $ 0 1960 1970 1980 1990 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2000-2011 shipping contributed 154bn euro in foreign exchange earnings 3 to the Greek Economy
New Building Orders New Building Orders 10% 13 billion Greek W World ld 490 vessels equals 50 m dwt 128 tankers 20% of world tonnage 96 billion 296 b lk 296 bulkers 13% of world tonnage 13% f ld 90% 4
5 7 e e c n a r F 9 s s u r p y Merchant fleets of the EU C C 22 y y l l a t Merchant Fleets of the EU I 26 K K U U in million dwt 33 k k r a m n 40 e e y y D D a w r o 103 N N y y n a m 190 r e e e e G G c e e r 200 150 100 100 50 0 G
TEN Ltd TEN Ltd Tsakos Energy Navigation Tsakos Energy Navigation Tsakos Energy Navigation Tsakos Energy Navigation December 2011
Scale & Diversified Operations Crude Crude LNG LNG Product Product LNG LNG LNG LNG Aframax Aframax Aframax Aframax Empire State VLCC Empire State Empire State Empire State VLCC VLCC VLCC Suezmax Suezmax Suezmax Suezmax Aframax Aframax Aframax Aframax Panamax Panamax Panamax Panamax Handymax Handymax Handymax Handymax Handysize Handysize Handysize Handysize 1,250 750 850 1,100 900 850 750 1,250 1,100 900 850 750 850 750 615’ 615’ 570’ 570’ 85,000dwt 85,000dwt 100,000dwt 100,000dwt 300,000dwt 300,000dwt 150,000dwt 150,000dwt 100,000dwt 100,000dwt 70,000dwt 70,000dwt 50,000dwt 50,000dwt 37,000dwt 37,000dwt 8 3 12 8 1 3 9 6 8
Corporate Highlights – Value Proposition HISTORY 18 years of profitable operations Public markets experience: 1993-2005 Oslo Stock Exchange, 2002 New York Stock Exchange Since NYSE listing in 2002: Average ROE 21% pa, accumulated Net Income of over $1bn => Total Capital Gains at $280 million p Total Dividends of $340 million paid since NYSE listing (2Q 2002) – approx. $1/share average dividend per year $9.075/share in total dividends against an IPO price of $7.50/share (in 2002) Growth: 4 ships in 1993 – 50 today SCALE One of the largest transporters of energy in the world Carried 405m barrels of oil in 2010 – the equivalent of about 37 days of current US imports 50 vessels of 5.4 million dwt (proforma): 23 crude oil carriers + 27 product tankers (incl. one LNG vessel) 48 operating 2 2 under construction d i Modern diversified fleet: 100% double hull vs. 93% of world fleet – 6.8 yrs average age vs. 8.5 of world fleet $3.2 billion investment in 57 newbuildings since 1997 One of the largest ice-class owners in the world (21 ice-class vessels) VALUE PROPOSITION Share price at significant discount to Book Value ($21.16/share) Share price at significant discount to Book Value ($21.16/share) Dividend yield today at about 12.0% - Consistent dividend payments – Dividend sustainability Tsakos family, insiders and management control about 40% of the equity 9
Hidden Value of TNP stock vs. Actual Market In USD mill In USD mill SUEZMAX SUEZMAX AFRAMAX AFRAMAX Market Cap: $230m Share price at 11/01/11: $5.00 50 45 45 52 wk High (03/22/11): 52-wk High (03/22/11): $11 18 $11.18 Actual Value 52-wk Low (11/29/11): $4.84 Hidden value 40 $23.0m per vsl Discount/Analyst NAV: 40-50% 35 e Actual Value Hidden value 30 Continues profitability $17.5m per vsl 25 Average ROE since 2002: 21% … on Share Value… Consistent dividends 20 are Value… Versatile / flexible employment 15 Active in Sales & Purchase 10 10 Based Based on Sh - More than 100 transactions - Realizing actual value - $280m in capital gains 5 Attractive comparison to peer group Pentathlon/Decathlon Parthenon / Marathon Sale Price: $51.5m each Sale Price: $39.0m each Total Capital Gains: $6.0m Total Capital Gains: $14.2m Free Cash: $101m Free Cash: $19.4m 10 Total ROI: 56.0% Total ROI: 88.2%
Virtual Reality…..Valuation Imbalance ? ? The stock market ascribes no value to more than half of th h lf f TEN’s fleet… Equity value of TEN as of 12/31/10: $1.0 billion Market Cap today: $227 million Market values TNP as a 15-vessel company – 35 modern vessels at NO value Real market values Stock market values as of 30/09/11 as of 30/09/11 * LNG 1 $200m $66m 12 Suezmax $48m $16m 11 Aframax $37m $12m Product $30m $10m *All based on Clarkson's 5 year vessels 23 11
Continuous Dividend Payments On June 4th, 2010 the Board of Directors declared a change in TEN’s dividend policy from semi-annual to quarterly payments Total dividends for 2010: $0.60/share First and second dividend for 2011: $0.15/share & $0.15/share Since initiation of dividend payments and including the recently announced quarterly payment, TEN has distributed a total of $9.075 per share to its shareholders (IPO price, split adjusted: $7.50) The basis of dividends will continue to target a payout ratio of 25% to 50% of net income subject to maintaining an appropriate level of liquidity as a function of a prudent and strong financial position $1.8 Semi-annual distributions $1.6 $1.4 $0.85 $0 90 $0.90 $1.2 $1.0 $0.75 $0.8 $0.55 $0.6 $0.48 0.15 $0.90 $0.30 $0.83 $0.4 $0.25 $0.15 $0.63 $0.10 $0.50 $0.15 $0.15 $0.2 $0.35 $0.30 $0.25 $0.25 $0.15 $0.15 $0.0 12 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1st 2nd 3rd 4th
13 Fleet Operation & Growth Fleet Operation & Growth
Timely Fleet Expansion 21% average ROE pa since 2002 NYSE listing A deadweight CAGR of 25% since inception (1993) Competitive operating expenses per vessel per day compared to peer group Efficient expense maintenance – achieved significant reductions. 12% less in 2010 from 2009 Net income of $3.9m in 2002 (NYSE listing) – record net income $203m in 2008 => Accumulated Net Income since NYSE listing at $1 billion December 2011 50 vessels 5.4m dwt 6 5 March 2002 4 26 vessels t (in mill) 2.3m dwt 3 Dwt October 1993 2 4 vessels 0.2m dwt 1 1 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 14
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