TSAKOS ENERGY NAVIGATION REPORTS RESULTS FOR FOURTH QUARTER AND FULL YEAR 2008

Total cash dividends with respect to 2008 operations of $1.75 per share
Earnings per share of $5.33 versus $4.79 in 2007

2008 HIGHLIGHTS
- Voyage revenues of $623.0 million versus $500.6 million in 2007, a 25% increase
- Net income of $202.9 million versus $183.2 million in 2007, an 11% increase
- EPS of $5.33 (diluted) compared with $4.79 (diluted) in 2007
- Average TCE rate per vessel per day increased to $34,600 from $29,421 in 2007
- Sale of one vessel with a gain of $34.6 million vs. $68.9 million in 2007
- Delivery of four newbuildings
- Dividends of $1.750 ($0.90 and $0.85) with respect to 2008 operations vs. $1.725 for 2007

2008 FOURTH QUARTER HIGHLIGHTS
- Voyage revenues of $156 million versus $131 million in the fourth quarter of 2007, a 19% increase
- Net income of $27.6 million (no capital gains) versus $52.2 million in the fourth quarter 2007 (including $30.8 million of capital gains)
- EPS of $0.74 (diluted) as compared with $1.36 (diluted) in 2007
- Average TCE rate per vessel per day increased to $33,768 from $29,935 in the fourth quarter of 2007
- Payment of semi-annual dividend of $0.90 per share
- 61 continuous profitable quarters since inception

ATHENS, GREECE – March 19, 2009 – TSAKOS ENERGY NAVIGATION LIMITED (TEN or the “Company”) (NYSE: TNP) today reported results for the fourth quarter and full year ended December 31, 2008.

Full Year 2008 Results
TEN earned its highest annual net income to date in 2008, earning $203.0 million as compared with $183.2 million for 2007. Diluted EPS based on weighted average number of shares outstanding was $5.33 versus diluted EPS of $4.79 in 2007. Net revenues (voyage revenues net of commissions and voyage expenses) were $516.98 million in 2008 compared with $410.57 million in 2007. Net income before depreciation was $288.39 million in 2008 versus $264.74 million in 2007.

Revenues from voyages were 25% higher compared with 2007, while the average number of vessels increased from 41.7 in 2007 to 44.1 in 2008. The average TCE rate earned per vessel (voyage revenues less voyage expenses) rose to $34,600 per day in 2008 from $29,421 per day in 2007. TEN’s continued policy towards fixed employment with minimum base rates and profit sharing agreements enabled the company to exploit the higher rates of the spot market while ensuring continuous employment and guaranteed rates in market downturns. In 2008, 83% of total operating days were under time charter with either a fixed rate or profit sharing, compared to 76% in 2007, and the number of days employed on time charter with profit sharing increased by nearly 18% in 2008 from 2007. Utilization of the fleet was 97.3% in 2008 compared with 96.6% in the prior year, due to slightly lower dry-docking activity in 2008.

Operating expenses per vessel per day increased to $9,450 from $7,669 in 2007. This year over year increase was primarily due to increases in crew wages and the decline of the US dollar against the Euro as compared to 2007. In addition, the cost of insurance and repairs increased. Overhead expenses decreased to $1,514 per vessel per day in 2008 from $1,565 in 2007.

Interest and finance costs increased to $82.9 million in 2008 from $77.4 million in 2007, due mainly to negative fluctuations in the value of interest rate swaps. Gains from vessel sales was $34.6 million in 2008 relating to the sale of the aframax Olympia in the first quarter compared to capital gains of $68.9 million in 2007 from the sales of three vessels, reflecting the Company’s continued policy of fleet renewal and opportunistic divestments.

Fourth Quarter 2008 Results
Voyage revenues increased by 19% to $156 million as compared to $131 million in the fourth quarter of 2007. This increase is primarily due to stronger freight rates as well as to the higher average number of vessels during 2008 compared to 2007 and slightly higher fleet utilization over the same period.

Net income in the fourth quarter of 2008 was $27.62 million versus $52.18 million in the same quarter of 2007. EPS (diluted) based on weighted average number of shares outstanding was $0.74 in the 2008 fourth quarter versus $1.36 in the same period one year earlier. Net revenues (voyage revenues net of commissions and voyage expenses) were $130.31 million in the fourth quarter of 2008 in comparison with $109.68 million in the prior year’s fourth quarter.

The size of the Company’s fleet increased to an average of 45.3 vessels in 2008 from an average of 43.0 vessels in the same period of 2007. Average TCE rates rose to $33,768 per day in the fourth quarter of 2008 from $29,935 in the fourth quarter of 2007. The rate environment in the fourth quarter of 2008 was significantly better than the solid rates during the fourth quarter of 2007.

Operating expenses per vessel per day increased to $9,662 from $8,542 in the fourth quarter of 2007. This increase is mainly due to increased insurance expense and increased repair costs Visit our company website at: http://www.tenn.gr incurred during the dry-docking of vessels. The dollar began to strengthen in the latter part of 2008, therefore there was no significant change in crew costs in the fourth quarter of 2008.

Interest and finance costs increased to $31.0 million in the fourth quarter of 2008 from $23.5 million in the fourth quarter of 2007, due to the negative movements in interest rate swap valuations, which offset much of the benefits of reduced interest rates.

There were no sales of vessels in the fourth quarter of 2008 while in the fourth quarter of 2007 the Company sold one aframax tanker realizing a capital gain of $30.8 million. “We are extremely proud of management and the results they achieved for 2008. Record profits, record earnings per share, a return on equity of 24% along with record cash dividends and the continued execution of a share repurchase program are clear indications of their success,” observed D. John Stavropoulos, Chairman of the Board.

He added, “However, the challenges ahead are new and significantly different. The dual perils of economic and financial crisis are evident throughout the world in both industrialized and developing countries. A key impact has been demand erosion for petroleum products with current forecasts suggesting that 2009 will experience the second consecutive annual decline in worldwide oil consumption. At the same time, tanker capacity is expanding but it remains to be seen how the singe-hull phase-out affecting about 16.5% of the worldwide fleet, will impact global shipping.”

Mr. Stavropoulos continued, “I am pleased that our corporate strategies address these issues in several ways. TEN has a young and balanced fleet serving its clients in both their crude oil and products transport requirements with a very competitive cost basis. TEN deploys its fleet with a balanced approach with emphasis on term employment on both a fixed basis and time charters with minimum rates plus profit-sharing. It has committed employment for 70% of the remaining available ship days in 2009. We remain confident that TEN will produce operating results that sustain strong financial status.”

Dividend Distributions
Tsakos Energy Navigation Limited announced today that its Board of Directors has declared the Company’s semi-annual dividend of $0.85 per share payable April 30th 2009 with a record date of April 24th 2009. Mr. Stavropoulos stated, “We are pleased to announce a semi-annual dividend of $0.85 per share. This dividend, which is attributable to TEN’s fiscal 2008 operations, raised the total for the year to $1.75, representing the sixth consecutive year of increased dividends since initiation of cash dividends in 2002.”

Mr. Stavropoulos added, “This latest declaration reaffirms our policy to reward shareowners with generous dividends complemented by periodic share buybacks while reinvesting in the dynamic growth of the enterprise. As always, dividend declarations will be made in the context of the economic and financial environment and the liquidity requirements necessary to maintain our prudent fiscal posture designed to support future needs and growth of the enterprise.”
Detailed report at: http://www.tenn.gr

Tsakos Energy Navigation press release