TSAKOS ENERGY NAVIGATION REPORTS RECORD Q3 PROFITS

05 November 2007

Record third quarter profits of $50.0 million, up 12.4%
Record nine month profits of $131.0 million, up 9.8%

Company announces 2:1 Stock Split in the form of a 100% share dividend

2007 THIRD QUARTER HIGHLIGHTS

  • Net income of $50.0 million up from $44.5 million in Q3 2006
  • Earnings per share of $2.61 (diluted) versus $2.33 in Q3 2006, up 12.0%
  • Period-end fleet of 44 vessels, with over 4.7 million dwt, and an average age 5.4 years
  • Fleet utilization of 96.7% versus 96.8% in Q3 2006
  • Average TCE per vessel $26,467 per day versus $29,779 for Q3 2006
  • Agreement to sell three 90s-built aframaxes for a total capital gain of $96 million
  • Delivery of handysize product tanker Bosporos and immediate long-term charter with profit-share provisions to a major European charterer
  • Declaration of semi-annual dividend of $1.65 paid in October 2007

2007 NINE-MONTH HIGHLIGHTS

  • Net income of $131.0 million versus $119.3 million for the first nine months of 2006
  • Earnings per share of $6.86 (diluted) up 9.8% from $6.25 in first nine months of 2006
  • Sale of 1989-built panamax Bregen and 1998-built aframax Maria Tsakos for capital gains of $38.2 million
  • Net average fleet expansion of 8.5 vessels
  • Delivery and charter of nine newbuilding vessels at attractive levels
  • Delivery and time-charter of LNG carrier Neo Energy to a major international gas trader
  • Re-acquisition of 1999-built aframax Olympia for $31.1 million
  • Average TCE per vessel $29,233 per day versus $30,290 for the first nine months of 2006
  • Declaration of two semi-annual dividends of $1.50 paid in April and $1.65 in October


ATHENS, GREECE – November 5, 2007 – TSAKOS ENERGY NAVIGATION LIMITED (TEN) (NYSE: TNP) today reported financial results (unaudited) for the third quarter and first nine months of 2007.

Net income was a record $50.0 million for the third quarter of 2007, (including capital gains of $31.8 million) as compared with $44.5 million (including capital gains of $13.3 million) for the third quarter of 2006. Net revenues (voyage revenues net of commissions and voyage expenses) expanded 3.9% to $97.2 million from $93.5 million reflecting growth of the fleet (43.6 vessel average in Q3 2007 versus 37.1 vessel average in Q3 2006) and the effect of the Company’s balanced employment policy to provide contracted rates in cyclical markets. The time charter equivalent per ship per day was $26,467 in the third quarter of 2007 versus $29,779 in the third quarter of 2006. Operating income rose 15.8% to $71.1 million (including capital gains of $31.8 million) in this year’s third quarter from $61.4 million (including capital gains of $13.3 million) in the similar period of last year.

Depreciation was higher at $21.3 million from $16.6 million as a result of the growth and continuous modernization of the fleet. Net financing costs also grew reflecting financing of the fleet expansion, higher interest rates and interest rate swap valuations. Net income before depreciation rose by 16.7% to $71.3 million as against $61.1 million in the same quarter last year. Diluted earnings per share increased 12% to $2.61 from $2.33 in the third quarter of 2006.

For the nine months of 2007, net income was a record $131.0 million (including capital gains of $38.2 million), exceeding the previous record for the 2006 nine months of $119.3 million (including capital gains of $13.3 million). Net revenues (voyage revenues net of commissions and voyage expenses) grew 20.6% to $300.9 million from $249.4 million in the 2006 similar period reflecting a growing fleet (41.2 vessel average for the nine months of 2007 versus 32.7 vessel average in the similar 2006 period) and a chartering policy that includes profit-sharing components.

The time charter equivalent was $29,233 per ship per day as compared to $30,290 in the nine months of 2006. Operating income rose significantly by 24.7% to $175.9 million from $141.1 million. Depreciation was $60.0 million versus $42.1 million as a result of the expansion and continuous modernization of the fleet. Net financing costs were higher reflecting increased debt and higher interest rates. Net income before depreciation rose by 18.3% to $191.0 million from $161.4 million in the 2006 period. Diluted per share earnings grew 9.8% to $6.86 as opposed to $6.25 in the nine months of 2006.

“The record profits of the first nine months of 2007 reconfirmed the efficacy of TEN’s corporate strategy and business plan,” observed D. John Stavropoulos, Chairman of the Board. “A diversified, young, and growing fleet combined with a balanced employment program has resulted in strong secular earnings growth. These results have enabled a dynamic newbuilding program, consolidation exploitation, increased dividends and a complementary share repurchase program. The litmus test of TEN’s strategy and business plan will be measured in the months ahead as we navigate an uncertain economic and financial environment. I believe they will continue to provide a safe passage,” Mr. Stavropoulos concluded.

Tsakos Energy Navigation