Q1 2026 Tsakos Energy Navigation Ltd Earnings Call

May 21, 2026

Operator 3: Thank you for standing by, ladies and gentlemen, and welcome to the Tsakos Energy Navigation conference call on the Q1 2026 financial results. We have with us Mr. Efstratios-Georgios Arapoglou, Chairman of the Board, Mr. Nikolas Tsakos, Founder and CEO, Mr. George Saroglou, President and Chief Operating Officer, and Mr. Harrys Kosmatos, CFO of the company. At this time, all participants are in a listen-only mode. There will be a presentation followed by a question and answer session. At which time, if you wish to ask a question, please press star one on your telephone keypad and wait for your name to be announced. I must advise that this conference is being recorded today. Now I pass the floor over to Mr. Nicolas Bornozis, President of Capital Link and Investor Relations Advisor for Tsakos Energy Navigation Limited. Please go ahead, sir.

Operator: Thank you for standing by, ladies and gentlemen, and welcome to the Tsakos Energy Navigation Conference Call on the Q1 2026 financial results. We have with us Mr. Takis Arapoglou, Chairman of the Board, Mr. Nikolas Tsakos, Founder and CEO, Mr. George Saroglou, President and Chief Operating Officer, and Mr. Harrys Kosmatos, CFO of the company. At this time, all participants are in a listen-only mode. There will be a presentation followed by a question and answer session. At which time, if you wish to ask a question, please press star one on your telephone keypad and wait for your name to be announced. I must advise that this conference is being recorded today. Now I pass the floor over to Mr. Nicolas Bornozis, President of Capital Link and Investor Relations Advisor for Tsakos Energy Navigation Limited. Please go ahead, sir.

Speaker #2: We have with us Mr. TAKIS ARAPOGLOU, Chairman of the Board, Mr. NICOLAS TSAKOS, Founder and CEO, Mr. GEORGE SAROGLOU, President and Chief Operating Officer, and Mr. HARRIS KOSMATOS, CFO of the company.

Speaker #2: At this time, all participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. At which time, if you wish to ask a question, please press star 1 on your telephone keypad and wait for your name to be announced.

Speaker #2: I must advise that this conference is being recorded today. And now, I pass the floor over to Mr. Nicolas Bornozis, President of Capital Link and Investor Relations Advisor for Tsakos Energy Navigation Ltd. Please go ahead, sir.

Speaker #2: Thank you very much. And good morning to all of our participants. I'm Nicolas Bornozis, President of Capital Link and Investor Relations Advisor to Tsakos Energy Navigation.

Nicolas Bornozis: Thank you very much. Good morning to all of our participants. I am Nicolas Bornozis, President of Capital Link and Investor Relations Advisor to Tsakos Energy Navigation. This morning, the company publicly released its financial results for the 3 months ended 31 March 2026. In case you do not have a copy of today's earnings release, please call us at 212-661-7566 or email us at ten, T-E-N, @capitallink.com and we will have a copy for you emailed right away. Please note that parallel to today's conference call, there is also a live audio and slide webcast, which can be accessed on the company's website on the front page at www.tenn.gr. The conference call will follow the presentation slides, so please, we urge you to access the presentation slides on the company's website.

Nicolas Bornozis: Thank you very much. Good morning to all of our participants. I am Nicolas Bornozis, President of Capital Link and Investor Relations Advisor to Tsakos Energy Navigation. This morning, the company publicly released its financial results for the three months ended 31 March 2026. In case you do not have a copy of today's earnings release, please call us at 212-661-7566 or email us at TEN, ten@capitallink.com and we will have a copy for you emailed right away. Please note that parallel to today's conference call, there is also a live audio and slide webcast, which can be accessed on the company's website on the front page at www.tenn.gr. The conference call will follow the presentation slides, so please, we urge you to access the presentation slides on the company's website.

Speaker #2: This morning, the company publicly released its financial results for the three months ended March 31, 2026. In case we do not have a copy of today's earnings release, please call us at 212-661-7566 or email us at 10TEN@capitalink.com, and we will have a copy for you emailed right away.

Speaker #2: Please note that parallel to today's conference call, there is also a live audio and slide webcast, which will be accessed on the company's website on the front page at www.tenn.gr.

Speaker #2: The conference call will follow the presentation slides, so please we urge you to access the presentation slides on the company's website. Please note that the slides of the webcast presentation will be available and archived on the website of the company after the conference call.

Nicolas Bornozis: Please note that the slides of the webcast presentation will be available and archived on the website of the company after the conference call. Also, please note that the slides of the webcast presentation are user-controlled, and that means that by clicking on the proper button, you can move to the next or to the previous slide on your own. At this time, I would like to read the safe harbor statement. This conference call and slide presentation of the webcast contains certain forward-looking statements within the meaning of the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties which may affect TEN's business prospects and results of operations. At this moment, I would like to pass the floor to Mr. Arapoglou, the Chairman of Tsakos Energy Navigation. Please go ahead, Mr. Arapoglou.

Speaker #2: Also, please note that the slides of the webcast presentation are user-controlled and that means that by clicking on the proper button, you can move to the next or to the previous slide on your own.

Speaker #2: At this time, I would like to read the safe harbor statement. This conference call and slide presentation of the webcast contains certain forward-looking statements within the meaning of the safe harbor provision of the Private Securities Litigation Reform Act of 1995.

Speaker #2: Investors are cautioned that such forward-looking statements involve risks and uncertainties which may affect tens business prospects and results of operations. And at this moment, I would like to pass the floor to Mr. Arapoglou, the Chairman of TSAKOS ENERGY NAVIGATION.

Speaker #2: Please go ahead, Mr. Arapoglou.

Speaker #3: Thank you, NICOLAS. Good morning. Good afternoon to everyone. It's even another time when the TEN model has proved it works in good and in bad markets.

Efstratios-Georgios Arapoglou: Thank you, Nikolas. Good morning. Good afternoon to everyone. It's even another time when the TEN model has proved it works in good and in bad markets. That's the way it's structured. It's been run as a portfolio of vessels rather than a number of individual vessels. This has led to sustainable profitability throughout the years while continuously increasing dividends. It was just highlighted to me that the total dividend per share paid since inception to every preferred or common share of TEN is $1 every year. While at the same time renewing fleets and always maintaining a cash buffer of well above $350, although this number increases as the quarters roll out. This number is not a static number. It's a number that rolls over through the sale and purchase situation. It's not because we want to have $350 steady there. That's not the policy.

Takis Arapoglou: Thank you, Nikolas. Good morning. Good afternoon to everyone. It's even another time when the TEN model has proved it works in good and in bad markets. That's the way it's structured. It's been run as a portfolio of vessels rather than a number of individual vessels. This has led to sustainable profitability throughout the years while continuously increasing dividends. It was just highlighted to me that the total dividend per share paid since inception to every preferred or common share of TEN is $1 every year. While at the same time renewing fleets and always maintaining a cash buffer of well above $350, although this number increases as the quarters roll out. This number is not a static number. It's a number that rolls over through the sale and purchase situation. It's not because we want to have $350 steady there. That's not the policy.

Speaker #3: That's the way it's structured. It's been run as a portfolio of vessels rather than a number of individual vessels. This has led to sustainable profitability throughout the years.

Speaker #3: While continuously increasing dividends, it was just highlighted to me that the total dividend per share paid since inception to every preferred or common share of TEN is $1 every year.

Speaker #3: So while at the same time renewing fleets, and always maintaining a cash buffer of well above 350, although this number increases in the as the quarters roll out.

Speaker #3: This number is not a static number. It's a number that rolls over through the sale and purchase situation. So it's not because we want to have 360 steady there that's not the policy.

Efstratios-Georgios Arapoglou: The policy is to be able to have either a buffer or the ability to make acquisitions. At the moment, this model has booked upfront revenues for the next 2 years of $3.6 billion of all kinds, profit sharing and time charges, which is part of the strength that we have. All this is benefiting, allow me to say, in a way, ironically, from strong market fundamentals. The result is continued strong business growth, as evidenced by the steadily increasing stock price, which I'm sure you have noticed. Thank you all. I now wish to once again congratulate Nikos Tsakos and his team for the excellent performance on all fronts. For Nikos, the floor is yours.

Takis Arapoglou: The policy is to be able to have either a buffer or the ability to make acquisitions. At the moment, this model has booked upfront revenues for the next two years of $3.6 billion of all kinds, profit sharing and time charges, which is part of the strength that we have. All this is benefiting, allow me to say, in a way, ironically, from strong market fundamentals. The result is continued strong business growth, as evidenced by the steadily increasing stock price, which I'm sure you have noticed. Thank you all. I now wish to once again congratulate Nikos Tsakos and his team for the excellent performance on all fronts. For Nikos, the floor is yours.

Speaker #3: The policy is to be able to have either a buffer or the ability to make acquisitions. At the moment, this model has booked upfront revenues for the next two years of 3.6 billion dollars.

Speaker #3: Of all kinds. Profit sharing and time charges. Which is part of the thing that we have. And all this is benefiting allow me to say in a way ironically from strong market fundamentals.

Speaker #3: The result is continued strong business growth as evidenced by the steadily increasing stock price which I'm sure you have noticed. Thank you all. I now wish to once again congratulate NICOLAS TSAKOS and his team for the excellent performance on all fronts.

Speaker #3: For NICOLAS, the floor is yours.

Speaker #2: The Chairman, thank you very much. And good morning and good afternoon to everybody. It's with great pleasure that we announce another successful and very productive quarter.

Nikolas Tsakos: Chairman, thank you very much, and good morning and good afternoon to everybody. It's with great pleasure that we announce another successful and very productive quarter. However, Q1 is, as I said, or as it was said in our press release, reflects market conditions, market fundamentals, and has a small effect in its latter part on geopolitics. However, the quarter that we're actually into now, and we're more than halfway into Q2, is a quarter that when we will report, we will have the very strong market effects. It looks like it's going to be a much stronger quarter even than this record quarter because of geopolitical effects.

Speaker #2: However, the first quarter is, as I said, or as it was said in our press release, is reflects market conditions market fundamentals and has a small effect in its latter part on geopolitics.

Speaker #2: However, the quarter that we are actually in now, and second quarter, is a quarter that when we will report it will be, we will have the very strong market effects, so it's going to be or it looks like it's going to be a much stronger quarter, either than this record quarter.

Speaker #2: Because of geopolitical effects. And of course, the company is placed in a way over the last 33 years that it can sustain prolonged periods of crisis and also grow at the same time, modernize at the same time, and distribute significant dividends to its shareholders having the, I would say, the management being the largest shareholder since inception of this company and continuing growing its shareholding.

Nikolas Tsakos: Of course, the company is placed in a way over the last 33 years that it can sustain prolonged periods of crisis and also grow at the same time, modernize at the same time, and distribute significant dividends to its shareholders, having the management being the largest shareholder since inception of this company and continuing growing its shareholding. I think the statistic our Chairman mentioned is that through thick and thin, since we've been 24 years public on the New York Stock Exchange and 33 years public all over, is a period that we have been able to pay an average of $1 a share to our shareholders, both to our 30 million outstanding shares of the common stock and the 10 or 10 plus million of our preferred.

Speaker #2: And I think the statistic our Chairman mentioned is that through thick and thin since our 20 we've been 24 years public on the New York Stock Exchange and 33 public 33 years public all over, is a period that we have been able to pay an average of $1 a share to our shareholders both to our 30 million outstanding shares of the common stock and the 10 or 10-plus million of our preferred.

Speaker #2: So this so as I said, the year started with events in Venezuela that created again dislocation but opened new 10 miles and new barriers and then, of course, more than halfway in that in the first quarter, we have had the Ormuz Strait which, as we speak right now, has really isolated more than 20,000 seafarers who are trapped for the last three months.

Nikolas Tsakos: As I said, the year started with events in Venezuela that created, again, dislocation, but opened new ton-miles and new barriers. Then, of course, more than halfway in the first quarter, we have had the Hormuz straits, which as we speak right now, has really isolated more than 20,000 seafarers who are trapped for the last 3 months. We have a very important issue for our seafarers. A grave situation. Of course, we are in a situation where almost 5% of the world's tonnage is being blocked, and this is a big number. Even more than that, more than 10% of the world's VLCCs, which are the vessels that usually trade the Hormuz straits, are being blocked. It's a time of dislocation that has created opportunities.

Speaker #2: So we have very important issue with for our seafarers a crave situation. And of course, we are in a situation where almost 5% of the world's tonnage is being blocked and this is a big number.

Speaker #2: But even more than that, more than 10% of the world's VLCCs which are the vessels that usually trade the Ormuz Strait are being blocked.

Speaker #2: So it's a time of dislocation that has created opportunities. We, as many say, we prefer for us to earn our living when the seas are open, when there are not tariffs, there's no sanctions.

Nikolas Tsakos: We, as many say, we prefer for us to earn a living when the seas are open, when there are no tariffs, there's no sanctions, but we have to navigate things the way we are. With that, George, would you like to give us a bit more detailed developments of what has happened? It's been, as I said, operationally, emotionally because of the human factor, a roller coaster of a quarter, and we had to think more than once outside the box to be able to navigate and maintain the efficient chain of supply of energy for our clients. George.

Speaker #2: But we have to navigate things the way we are. And with that, George, would you like to give us a bit more detailed developments of what has happened?

Speaker #2: It's been, as I said, the operationally emotionally because of the human factor a roller coaster. Of a quarter. And we had to think more than once outside the box to be able to navigate and maintain an efficient the efficient chain of supply of energy for our clients.

Speaker #3: George. Thank you, NICOLAS. We are pleased to report today on another profitable quarter. We maintain a steady course in the most turbulent geopolitical environment in recent memory.

George Saroglou: Thank you, Nikos. We are pleased to report today on another profitable quarter. We maintain a steady course in the most turbulent geopolitical environment in recent memory. The year started with the political developments in Venezuela and escalated with the war in the Middle East and the closure of the Strait of Hormuz. Even before geopolitics took center stage at the end of February, tanker market fundamentals were strong. 2026 was forecasted to be another year with growth in global oil demand, with each passing year after 2022 establishing a new record for oil demand, while at the same time, tonnage supply remained very balanced. Since March and so far, for the most part of the Q2, geopolitical events have significantly added to the market strength.

Speaker #3: The year started with a political development in Venezuela and escalated with a war in the Middle East and the closure of the Strait of Hormuz.

Speaker #3: Even before geopolitics took center stage at the end of February, tanker market fundamentals were strong. 2026 was forecasted to be another year with growth in global oil demand.

Speaker #3: With its passing year after 2022 establishing a new record for oil demand. While at the same time, tonnage supply remained very balanced. Since March, and so far, for the more part of the second quarter, geopolitical events have significantly added to the market strength.

Speaker #3: Tense diversified fleet with its new charter renewal together with the spot fleet and the profit sharing market exposure will continue to further benefit from this unprecedented market dislocation.

George Saroglou: TEN's diversified fleet, with its new charter renewal, together with the spot fleet and the profit-sharing market exposure, will continue to further benefit from this unprecedented market dislocation. We have a 33-year history as a public company. From 4 vessels back in 1993, we have turned every crisis the world and shipping has faced through the years into a growth opportunity. Today, TEN is one of the largest energy transporters in the world with a young, diversified, versatile pro forma fleet of 83 vessels. In slide 4, we list the pro forma fleet of our conventional tankers, both crude and product carriers. The red color shows the vessels that trade in the spot market, and we have currently 11 tankers and our new buildings under construction. With light blue, we have the vessels that are on time charter with profit sharing, 12 vessels.

Speaker #3: We have a 33-year history as a public company. From four vessels back in 1993, we have turned every crisis the world and shipping has faced through the years into a growth opportunity.

Speaker #3: Today, 10 is one of the largest energy transporters in the world with a young, diversified, versatile pro-forma fleet of 83 vessels. In slide four, we list the pro-forma fleet of four conventional tankers both crude and product carriers.

Speaker #3: The red color shows the vessels that trade in the spot market and we have currently 11 tankers. And our new buildings under construction. With slide blue, we have the vessels that are on tank charter with profit sharing, 12 vessels, and with dark blue, the vessels that are on fixed rate tank charters, 40 vessels.

George Saroglou: With dark blue, the vessels that are on fixed rate time charters, 40 vessels. In the next slide, we list the pro forma diversified fleet, which consists of 3 LNG vessels, plus 1 LNG new building option, and our 16-vessel shuttle tanker fleet. We are one of the largest shuttle tanker operators in the world with very young and technologically advanced vessels. We have six shuttle tankers in full operation after we took delivery of both Athens 2004 and Paris 2024 last year, which immediately commenced long-time charters to an energy major.

Speaker #3: In the next slide, we have the we list the pro-forma diversified fleet which consists of three LNG vessels plus one LNG new building option and our 16 vessels shuttle tanker fleet.

Speaker #3: Where one of the largest shuttle tanker operators in the world with very young and technologically advanced vessels. We have six shuttle tankers in full operation after we took delivery of both Athens 04 and Paris 24 last year with immediate commenced long-time charters to an energy major.

Speaker #3: If we combine the two slides together and account only for the current operating fleet of 63 vessels, 23 vessels—or 37% of the operating fleet—have market exposure, that is spot and time charter with profit sharing, while 55 vessels, or 83% of the fleet, are in secured revenue contracts, that is, time charters and time charters with profit sharing.

George Saroglou: If we combine the two slides together and account only for the current operating fleet of 63 vessels, 23 vessels or 37% of the operating fleet has market exposure, that is spot and time charter with profit sharing, while 55 vessels or 83% of the fleet is in secured revenue contracts, that is time charters and time charters with profit sharing. In the next slide, we list our clients with whom we do repeat business through the years, thanks to our industrial model. ExxonMobil is the largest revenue client, followed by Equinor, Shell, Chevron, TotalEnergies, and BP. We believe that over the years, we have become the carrier of choice to energy majors, thanks to the fleet that we have built, the operational and safety record, the disciplined financial approach, the strong balance sheet, and the strong financial performance.

Speaker #3: In the next slide, we list our clients with whom we do repeat business through the years. Thanks to our industrial model. ExxonMobil is the largest revenue client.

Speaker #3: Followed by Equinor, Shell, Chevron, TotalEnergies, and BP. We believe that over the years, we have become the carrier of choice to energy majors thanks to the fleet that we have built, the operational and safety record, the disciplined financial approach, the strong balance sheet, and the strong financial performance.

Speaker #3: Slide seven presents the oil and bread given cost for the various vessel types we operate in the company. We have a very simple operating model.

George Saroglou: Slide 7 presents the all-in break-even cost for the various vessel types we operate in the company. We have a very simple operating model. We try to have our time charter vessels generate enough revenue to cover for the company's cash expenses. That is paying for vessel operating and finance expenses, for overheads, charter incurred, and commissions, and we let the revenue from the spot and profit-sharing trading vessels make contributions to the profitability of the company. Thanks to the profit-sharing element, every $1,000 per day increase in spot rates has a +$0.13 impact on the annual earnings per share based on the number of 10 vessels that currently have exposure to the spot rates, 23 vessels. We have a solid balance sheet with strong cash reserves.

Speaker #3: We try to have our tank charter vessels generate enough revenue to cover for the company's cash expenses that is paying for vessel operating and finance expenses for overheads, chartering costs, commissions, and we let the revenue from the spot and profit sharing trading vessels make contributions to the profitability of the company.

Speaker #3: Thanks to the profit-sharing element, every $1,000 per day increase in spot rates has a positive $0.13 impact on the annual earnings per share, based on the number of 10 vessels that currently have exposure to the spot rates.

Speaker #3: 23 vessels. We have a solid balance sheet with strong cash reserves. The fair market value of the operating fleet exceeds 4.6 billion against 2.1 billion of debt and net debt to cap is around 48.4%.

George Saroglou: The fair market value of the operating fleet exceeds $4.6 billion against $2.1 billion of debt and Net Debt to Cap is around 48.4%. Fleet renewal and investing in eco-friendly, greener vessel has been key to our operating model. Since 1 January 2023, we have further upgraded the quality of the fleet by divesting from our first generational conventional tankers, replacing them with more energy efficient new buildings and modern secondhand tankers, including dual fuel vessels. In summary, we sold 18 vessels with an average age of 17 years and capacity of 1.7 million deadweight ton and replaced them with 34 contracted and modern acquired tankers with an average age of 0.5 years and 4.7 million deadweight capacity.

Speaker #3: Fleet renewal and investing in eco-friendly greener vessel has been key to our operating model. Since January 1st, 2023, we have further upgraded the quality of the fleet by divesting from my first generational conventional tankers replacing them with more energy-efficient new buildings and modern second-hand tankers including dual fuel vessels.

Speaker #3: In summary, we sold 18 vessels with an average age of 17 years and capacity of 1.7 million deadweight ton and replaced 34 contracted and modern acquired tankers with an average age of 0.5 years and 4.7 million deadweight capacity.

Speaker #3: We announced today the sale and delivery to her new owners of a 10-year-old VLCC and tens agreement to buy until the end of July two in the money 2007 build Swiss Max tankers currently operating under a sale and lease back agreement.

George Saroglou: We announced today the sale and delivery to her new owners of a 10-year-old VLCC and TEN's agreement to buy, until the end of July, two in the money 2007-built Suezmax tankers currently operating under a sale and leaseback agreement. We continue to transition our fleet to greener and dual fuel vessels. We are currently one of the largest owners of dual fuel LNG-powered Aframax tankers with six vessels in the water. Tanker market fundamentals remain positive with the global order book still at a level equal to about one-third of the number of vessels over 15 years of age. Shipyards are operating at full capacity. Scrapping activity is increasing and global oil demand is at record levels. The recent war in Iran, which resulted in the closure of the Strait of Hormuz, has provided further support to an already robust tanker market.

Speaker #3: We continue to transition our fleet to greener and dual fuel vessels. We are currently one of the largest owners of dual fuel LNG powered Afromax tankers with six vessels in the water.

Speaker #3: Tanker market fundamentals remain positive with global with the global order book still at a level equal to about one-third of the number of vessels over 15 years of age.

Speaker #3: CPRs are operating at full capacity scrapping activity is increasing and global oil demand is at record levels. The recent war in Iran which resulted in the closure of the Strait of Hormuz has provided further support to an already robust tanker market.

Speaker #3: And with that, I will pass the floor to Harrys Kosmatos, who will walk us through the financial performance of the first quarter. Harrys, thank you.

George Saroglou: With that, I will pass the floor to Harrys Kosmatos, who will walk us through the financial performance of Q1. Harrys?

Harrys Kosmatos: Thank you, George. Well, as both Nikos and George mentioned, 2026 started on a high note for the tanker markets as the event in Venezuela allowed for more barrels to be transported on non-sanctioned vessels, adding to global ton-miles already at high levels as a result of the war in Ukraine and the ongoing sanctions of Russian exports. On top of that, the war in Iran, which has led to over 5% of the global tanker fleet to be stranded within the Persian Gulf, has made countries like China and India to seek barrels from alternative sources, primarily from the Atlantic Basin, adding further miles to global seaborne transportation.

Speaker #3: Thank you. Thank you, George. Well, as both Nicolas and George mentioned, 2026 started on a high note for the tanker markets as they went in Venezuela allowed for more barrels to be transported on non-sanctioned vessels.

Speaker #3: Adding to global ton miles. Already at high levels as a result of the war in Ukraine and the ongoing sanctions of Russian exports. On top of that, the war in Iran which has led to over 5% of the global tanker fleet to be stranded within the Persian Gulf has made countries like China and India to seek barrels from alternative sources.

Speaker #3: Primarily from the Atlantic basin adding further miles to global seaboard transportation. Against this backdrop which spurred major oil companies to secure reliable tonnage for their long-term needs 10 with its modern fleet and operational expertise was a prime beneficiary which resulted in fleet utilization almost touching but practicably unattainable the perfect 100%.

Harrys Kosmatos: Against this backdrop, which spurred major oil companies to secure reliable tonnage for their long-term needs, TEN, with its modern fleet and operational expertise, was a prime beneficiary, which resulted in fleet utilization almost touching, but practicably unattainable, the perfect 100%. 98.3% compared to 97.2% in Q1 2025. Quarters where each had just two vessels undergoing scheduled dry dockings. These, combined with the fleet slightly larger than the one of Q1 2025, both in terms of vessels and deadweight tons and vessels under secure revenue contracts, that is fixed time charters or time charters with pro rata provisions, were 15% higher than Q1 2025, and assisted TEN to generate voyage revenues of $253 million, $56 million higher from Q1 2025.

Speaker #3: 98.3% compared to 97.2% in the 2025 first quarter. Quarters where each had just two vessels undergoing scheduled dry dockings. This combined with a fleet slightly larger than the one of the 2025 first quarter both in terms of vessels and deadweight tons and vessels under secure revenue contracts that is fixed time charters or time charters with profit sharing provisions were 15% higher than the 2025 first quarter.

Speaker #3: Assisted an assisted 10 to generate voyage revenues of 253 million dollars 56 million higher from the first quarter of 2025. The resulting time charter equivalent rate per sea per day reflecting the continuous robustness of the tanker markets reached almost 41,000 dollars per day from about 31,000 dollars per day in the 2025 first quarter.

Harrys Kosmatos: The resulting time charter equivalent rate per ship per day, reflecting the continuous robustness of the tanker markets, reached almost $41,000 per day from about $31,000 per day in Q1 2025, a 33% increase. The significant reduction of vessels operating in the spot trades, 48% lower from Q1 2025, resulted in a $6.2 million drop in voyage expenses to settle at $29.8 million. Vessel operating expenses during Q1 2026 were at $53.3 million from $49.6 million in the Q1 2025 corresponding quarter, a modest increase as a result of a bigger fleet in terms of vessels and deadweight tons. The resulting operating expenses per ship per day came in at a still competitive $9,952, about one-fourth of the TCE rate mentioned above, a very comfortable level.

Speaker #3: A 33% increase. The significant reduction of vessels operating in the spot trades 48% lower from the 2025 first quarter resulted in a 6.2 million drop in voyage expenses to settle at 29.8 million.

Speaker #3: Vessel operating expenses during the 2026 first quarter were at $53.3 million, up from $49.6 million in the 2025 corresponding quarter, a modest increase as a result of a bigger fleet in terms of vessels and deadweight tons.

Speaker #3: The resulting operating expenses per sea per day came in at a still competitive $9,952, about one-fourth of the TCE rate mentioned above. A very comfortable level.

Speaker #3: The appreciation amortization expenses, reflecting the increase in vessel sizes since the end of the 2025 first quarter, came in at $44.1 million, up from $41.1 million in the last year.

Harrys Kosmatos: Depreciation amortization expenses reflecting the increase in vessel sizes since the end of the 2025 Q1 came in at $44.1 million from $41.1 million in last year same quarter. General and administrative expenses were at $12.4 million from $10 million in the 2025 Q1, a still competitive level in the fleet of over 63 vessels. As a result of all the above, TEN, for the Q1 2026, generated an operating income of just about $110 million, without having any gains or losses from vessel sales, from $57 million in last year's Q1, net of a $3.5 million capital gain. In other words, a $53 million increase or 93% higher from the levels of the 2025 Q1.

Speaker #3: In last year same quarter. General and administrative expenses were at 12.4 million from 10 million in the 2025 first quarter a still competitive level in a fleet of over 63 vessels.

Speaker #3: As a result of all the above 10 for the first quarter of 2026 generated an operating income of just about 110 million dollars without having any gains or losses from vessel sales.

Speaker #3: From $57 million in last year's first quarter, net of a $3.5 million capital gain. In other words, a $53 million increase, or 93% higher from the levels of the 2025 first quarter.

Speaker #3: Despite an increase in our overall loans to correspond to the growth of the fleet—$2.1 billion this quarter from $1.9 billion at the end of the 2025 first quarter—interest cost fell by $3.2 million.

Harrys Kosmatos: Despite an increase in our overall loans to correspond to the growth of the fleet, $2.1 billion this quarter from $1.9 billion at the end of the 2025 Q1, interest costs fell by $3.2 million, the result of a lower interest rate environment and lower spreads. Interest income remained more or less the same as last year's quarter at $2.2 million. Reflecting the above performance, both in terms of commercial and operational efficiencies and positive tanker market fundamentals, the resulting net income reached one of the highest levels over the last 10 years. $89 million from $37.7 million in the 2025 Q1. 136% increase, or in dollar terms, a $51 million betterment. In terms of earnings per share, $2.72 this time from $1.04 in last year's Q1, with an almost similar share count.

Speaker #3: The result of lower interest of a lower interest rate environment and lower spreads. Interest income remained more or less the same as last year.

Speaker #3: Last year's quarter was at $2.2 million. Reflecting the above performance, both in terms of commercial and operational efficiencies and positive tanker market fundamentals, the resulting net income reached one of the highest levels over the last 10 years.

Speaker #3: Earnings rose to $89 million from $37.7 million in the 2025 first quarter. That's a 136% increase, or in dollar terms, a $51 million betterment. In terms of earnings per share, it was $2.72 this time, compared to $1.04 in last year's first quarter, with a similar share count.

Speaker #3: Adjusted EBITDA for the quarter was higher by almost 55 million from the 2025 first quarter at 154 million. A 55% increase. This results have enabled the company to reward common shareholders with a handsome dividend.

Harrys Kosmatos: Adjusted EBITDA for the quarter was higher by almost $55 million from the 2025 Q1 at $154 million, a 55% increase. These results have enabled the company to reward common shareholders with a handsome dividend, $1 per common share to be paid within July of this year, which is 67% higher the level paid at the same time last year. If we are to include the February $0.50 payment, which we should, 36% higher from the total distributions made during 2025. From $1.10 in 2025 to $1.50 today, a very healthy $45 million distribution. On this happy note, I'll pass it back to Nikos. Thank you.

Speaker #3: $1 per common share to be paid within July of this year which is 67% higher the level paid at the same time last year or if we are to include the February 50 cent payment which we should 36% higher from the total distributions made during 2025.

Speaker #3: From a dollar 10 in 2025 to a dollar 50 today. A very healthy 45 million distribution. And on this happy note I'll pass it back to Nicholas.

Speaker #3: Thank you. Thank you. Thank you, Harry. And I hope you keep on bringing happy news in the quarters that follow. Again, I think as we said it's been a period that we have not seen before in general the last six years have been years of continuous turmoil.

Nikolas Tsakos: Thank you. Thank you, Harry, and I hope you keep on bringing happy news in the quarters that follow. I think as we said, it's been a period that we have not seen before. In general, the last 6 years have been years of continuous turmoil. For all of us who that we remember, we started with the pandemic, with COVID. All of a sudden, we had the world pausing for a while. We had the events in Ukraine followed immediately almost by 24 October. Followed by the events in the collision events. Geopolitics have been driving part of the market. Even looking under those effects, the market still has legs, has good fundamentals, and we believe that in a peaceful, normalized, and open border world, the market will continue to be healthy.

Speaker #3: We started for all of us that we remember we started with the pandemic with COVID all of a sudden we had the world pausing for a while and then we had the events in Ukraine followed immediately almost by October 24 and then followed by the events in the more recent events.

Speaker #3: So, it's been—geopolitics have been driving part of the market, but even looking under those effects, the market still has legs, has good fundamentals, and we believe that in a peaceful, normalized, open-border world, the market will continue to be healthy.

Speaker #3: And with that as I said we would open the floor for any questions. Thank you. We will now be conducting a question and answer session.

Nikolas Tsakos: With that, as I said, we would open the floor for any questions.

Operator 3: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. Thank you. Our first question comes from the line of Omar Nokta with Clarksons Securities. Please proceed with your question.

Operator: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. Thank you. Our first question comes from the line of Omar Nokta with Clarksons Securities. Please proceed with your question.

Speaker #3: If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue.

Speaker #3: You may press star two if you would like to remove your question from the queue. For participants using speaker equipment it may be necessary to pick up your handset before pressing the star keys.

Speaker #3: One moment please while we pull for questions. Thank you. Our first question comes from a line of Omar Nocta with Clarkson Securities. Please proceed with your question.

Speaker #3: Thank you. Hi guys. Good afternoon. Good morning. Hi Omar. Hi. Just a couple of questions. And maybe just first perhaps maybe big picture on the shuttle tankers.

Omar Nokta: Thank you. Hi, guys. Good afternoon. Good morning.

Nikolas Tsakos: Hi, Omar.

Omar Nokta: Hi. Just a couple of questions. Just first, perhaps big picture on the shuttle tankers. That segment provides a good amount of revenue visibility and also built-in earnings growth. That's obviously being built out quite a bit here over the next couple of years as you take delivery of those new buildings. How do you envision that business looking forward after those ships deliver? Do you think that they coexist within the broader conventional tanker business? Does it stay within TEN, or do you consider carving that out as its own separate vehicle?

Speaker #3: That segment provides a good amount of revenue visibility and also built-in earnings growth. And that's obviously being built out quite a bit here over the next couple of years as you take delivery of those new buildings.

Speaker #3: How do you envision that business looking forward after those shifts deliver? Do you kind of think that they coexist within the broader conventional tanker business?

Speaker #3: Does it stay within 10, or do you consider carving that out as its own separate vehicle? Well, we are open to suggestions from people of your experience and not only, but I mean, we are working as exactly one entity right now.

Nikolas Tsakos: Well, we are open to suggestions from people of your experience, and not only. We are working as exactly one entity right now. Our new building department is busy making sure that sea trials are happening and the ships are being delivered. The focus right now is the operational focus. We're not planning to do the first Well, the third delivery of the series is at the end of July. I think sea trials are taking part in Samsung, and the ships are state-of-the-art, very modern vessels at one of the best yards in the world. I think we have time to take this decision. No decision has been taken. Right now they are an integral part of TEN.

Speaker #3: Our new building department is busy making sure that seat trials are happening and the ships are being delivered. So the focus right now is the operational focus.

Speaker #3: We're not planning to do the first well, the third delivery of the series is at the end of July. I think seat trials are taking part in Samsung.

Speaker #3: And the ships are state-of-the-art, very modern vessels, built at one of the best yards in the world. But I think we have time to take this decision, or no decision has been taken, but right now they are an integral part of TEN.

Omar Nokta: Thank you, Nik. Then a follow-up just on the LNG business. You recently ordered that new building plus one option. What does it look like in terms of employment opportunities now? I know there's been this interesting kind of stunted LNG market where there was concern for this year that we were oversupplied, but that as you looked out towards 2028, 2029, as that vessel delivers or those two would deliver, it's much more constructive. What does the charter market look like, or what does interest look like for securing that ship today on a long-term contract?

Speaker #3: Thank you, Nick. And then a follow-up just on the LNG business. You recently ordered that when a new building plus one option what does it look like in terms of employment opportunities now?

Speaker #3: I know there's been this interesting kind of stunted LNG market where there was concern for this year that we were oversupplied. But as you looked out towards '28, '29, as that vessel delivers or those two would deliver, there's a lot more—it's much more constructive.

Speaker #3: What is the charter market look like or what is interest look like for securing that ship today on a long-term contract? Well, I mean the market right now is in turmoil because you know better than me part of the fleet and part of the production is being trapped or kind of damaged.

Nikolas Tsakos: Well, the market right now is in turmoil because you know better than me, part of the fleet and part of the production is being trapped or kind of damaged. I wouldn't say that today really reflects things going forward. The market is still healthy-ish. I think you can see fixers which I don't consider starting for 5 or 7 years in the 80s. We are following this market closely. We have been initially one of the first movers in this market back in 2007 when we took delivery of our first steam turbine, the Neo Energy. Being a diversified fleet, we have the luxury that we do not have to run under every single low digit, mid digit business that is out there, like most of the companies that just specialize in gas.

Speaker #3: So I wouldn't say that today really reflects things going forward. The market is still healthish. I think you can see fixtures which I don't consider something that would be interested starting for five or seven years in the '80s.

Speaker #3: We are following this market closely. We have been initially one of the first movers in this market back in 2007 when we took delivery of our first steam turbine the new energy.

Speaker #3: But being a diversified fleet, we have the luxury that we do not have to run under every single low-digit, mid-digit business that is out there.

Speaker #3: Like most of the companies that just specialize in gas. So we have another 78 vessels at least to carry forward. And for us, it's a market which is very interesting operationally.

Nikolas Tsakos: We have another 7 to 8 vessels at least to carry forward. For us, it's a market which is very interesting operationally. We believe there is a future, but it's not a market that we are depending on. That's why we're taking smaller steps, all of them depending on developments of technology.

Speaker #3: We believe there is a future but it's not a market that we are depending on. And that's why we're taking smaller steps all of them depending on developments of technology.

Efstratios-Georgios Arapoglou: If I may add, there is very strong energy demand throughout the world. Demand is going up, and there are no indications that this demand would dry up anytime soon.

Speaker #3: There is very strong energy demand throughout the world. Demand is going up, and there are no indications that this demand would dry up anytime soon.

Takis Arapoglou: If I may add, there is very strong energy demand throughout the world. Demand is going up, and there are no indications that this demand would dry up anytime soon.

Speaker #3: That's a very right chairman says. We have very strong indications for energy demand including gas from all our clients. I mean today we could charter all our unchartered new buildings including our later delivery VLs which we ordered thank God at the very timely manner.

Nikolas Tsakos: As our Chairman says, we have very strong indication for energy demand, including gas from all our clients. I mean, today we could charter all our unchartered new buildings, including our later delivery VLCCs, which we ordered, thank God at a very timely manner 6 months ago. We have the luxury to have more than $3.5 billion of backlog and waiting for the right trade and the right opportunities with the right client going forward.

Speaker #3: Six months ago. But we have the luxury to have more than 3.5 billion of backlog and waiting for the right trade and the right opportunities with the right client going forward.

Speaker #3: Thank you. Okay. That's clear. And then maybe just one final one and I'll hop off the queue. Do you mind just maybe mentioning that the Asahi Princess that you referenced in the release loading the Aframax cargo using road trucks?

Omar Nokta: Thank you. Okay. That's clear. Then maybe just one final one, then I’ll hop off the queue. Do you mind just maybe mentioning, the Asahi Princess that you referenced in the release, loading up the Aframax cargo using road trucks. Can you just talk about what that is in terms of, is that a means to bypass the Black Sea? How do you see this application being used in other areas?

Speaker #3: Can you just talk about what that is in terms of is that a means to bypass the Black Sea and how do you see this application being used in other areas?

Speaker #3: I think Omar it's closer to your parts of the world. It's bypassing the Red Sea. And of course the Ormuz Strait. This was one of our big Middle East clients wanting to load from these parts of the world.

Nikolas Tsakos: I think, Omar, it's closer to your parts of the world. It's bypassing the Red Sea, and of course, the Hormuz Strait. This was one of our big Middle East clients wanting to load from these parts of the world. We felt that it was too risky for our seafarers and for the crew, and for the vessel, and for the cargo. We gave them the idea, and they came with it to load from Eastern Mediterranean on product that was carried by 7,800 trucks. Actually, the loading took about 2 weeks. We have to try and think out of the box. It was successful. We were able to maintain a refuel that was thirsty for crude, was able not to have to shut down. We're just the messengers. We just carry the stuff.

Speaker #3: But we felt that it was too risky for our seafarers, and for the crew, and for the vessel. And for the cargo. And so they, we gave them the idea, and they came with it, to load from the Eastern Mediterranean on product that was carried by 7,800 trucks.

Speaker #3: Actually, the loading took about two weeks. But we have to try and think out of the box. It was successful. We were able to maintain a refund who was thirsty.

Speaker #3: For crude was able not to have to shut down. And that's we're just we are just the messengers. We just carry the stuff. So we try to do the most we can do safely to make sure that the energy chain continues.

Nikolas Tsakos: We try to do the most we can do safely to make sure that the energy chain continues.

Speaker #3: Yeah, okay. Well, thank you. That's very interesting. I'll pass it back. Our next question comes from Lina Pofrat with Alliance Global Partners. Please proceed with your questions.

Omar Nokta: Yeah. Okay. Well, thank you. That is very interesting. I will pass it back.

Operator 3: Our next question comes from the line of C.K. Poe Fratt with Alliance Global Partners. Please proceed with your questions. C.K. Poe Fratt, your line is live.

Operator: Our next question comes from the line of C.K. Poe Fratt with Alliance Global Partners. Please proceed with your questions. C.K. Poe Fratt, your line is live.

Speaker #3: Pofrat, your line is live. I apologize. Hello. I have a couple of questions. The first of which is can you just talk about the knock-on impact of cargo switching to the Atlantic?

C.K. Poe Fratt: I apologize. Hello. I have a couple questions. The first of which is, can you just talk about the knock-on impact of cargo switching to the Atlantic? I have heard on another call that there is a squeeze on transits through the Panama Canal. Can you confirm that and then discuss what the impact is on the overall flows would be?

Poe Fratt: I apologize. Hello. I have a couple questions. The first of which is, can you just talk about the knock-on impact of cargo switching to the Atlantic? I have heard on another call that there is a squeeze on transits through the Panama Canal. Can you confirm that and then discuss what the impact is on the overall flows would be?

Speaker #3: I've heard on another call that there's a squeeze on transits through the Panama Canal. Can you confirm that and then sort of discuss what sort of the impact is on the overall flows would be?

Speaker #3: Yes. Again, good morning to you. It goes back to the new routings, and that's another imaginative way. We've been seeing increasing calls to the Far East.

Nikolas Tsakos: Yes. Again, good morning to you. It goes back to the new routings, and that's another imaginative way. We've been seeing increasing calls to the Far East, this time through the Panama Canal. Of course, this really triples the ton-mile distance. It's more activity in the Atlantic, but it's actually through passage through the canal. You do West Africa through Panama Canal to the Far East, which is really something that we would have never thought of six months ago. This way you avoid having Yeah.

Speaker #3: This time through the Panama Canal. And of course, this really triples the ton-mile distance. And yeah, more activity in the Atlantic, but it's actually through passage through the canal.

Speaker #3: So you do West Africa through Panama Canal to the Far East which is really something that we would have never thought of six months ago.

Speaker #3: This way, you avoid having—yeah. Yep. And, is—are transits starting to become an issue there, Nick, Nicholas, or is that sort of a minor issue in the scheme of the global trade?

C.K. Poe Fratt: Yep. Are transits starting to become an issue there, Nikos? Or is that a minor issue in the scheme of the global trade?

Poe Fratt: Yep. Are transits starting to become an issue there, Nikos? Or is that a minor issue in the scheme of the global trade?

Speaker #3: I think the way we see it, if things do not normalize in the next three months, we will be seeing more delays also happening on that side, on this canal.

Nikolas Tsakos: I think the way we see it, if things do not normalize in the next three months, we will be seeing more delays also happening on that side, on this canal.

Speaker #3: Okay, great. And then, Harry, in the last conference call you talked about the impact of profit sharing on the fourth quarter operating results. Do you have a number on the impact for the first quarter results from profit sharing agreements?

C.K. Poe Fratt: Okay, great. Harry, in the last conference call, you talked about the impact of profit sharing on the Q4 operating results. Do you have a number on the impact for the Q1 results from profit sharing agreements?

Poe Fratt: Okay, great. Harry, in the last conference call, you talked about the impact of profit sharing on the Q4 operating results. Do you have a number on the impact for the Q1 results from profit sharing agreements?

Speaker #3: Sure. Hi Paul. Well let me answer this differently. I mean last year in the last quarter when we spoke last time we made 27 million from profit sharing.

Harrys Kosmatos: Sure. Hi, Paul. Well, let me answer this differently. Last year, in the last quarter when we spoke last time, we made $27 million from profit sharing. For the entire year of 2025, profit sharing revenue came in at $45 million. So far this year, in the Q1 alone, profit sharing revenues are in excess of $40 million. As you can imagine, we are very comfortable that this trajectory will last.

Speaker #3: And for the entire year for the entire 2025 profit sharing revenue came in at 45 million. So far this year in the first quarter alone profit sharing revenues are in excess of 40 million.

Speaker #3: So, as you can imagine, we are very comfortable that this trajectory will— That's a good number. That's a good number. So, we are already at the number that we made last year in just the first quarter.

Nikolas Tsakos: That's a good number.

Harrys Kosmatos: We are already at the number that we made last year in just the Q1.

Speaker #3: Yep. That's really helpful. And then can you just talk about your operating expenses looking forward and it looked like there was a one-time impact to G&A of about a three and a half million just due to the exchange rate changes last year.

C.K. Poe Fratt: Yeah. That's really helpful. Can you just talk about your operating expenses looking forward? It looked like there was a one-time impact to G&A of about $ three and a half million just due to the exchange rate changes last year. Can you just talk about G&A levels going forward, too?

Poe Fratt: Yeah. That's really helpful. Can you just talk about your operating expenses looking forward? It looked like there was a one-time impact to G&A of about $ three and a half million just due to the exchange rate changes last year. Can you just talk about G&A levels going forward, too?

Speaker #3: Can you just talk about G&A levels going forward too? Well we believe that we will be able to maintain them. However the dollar has weakened on us and our major expenses are I would say the euro and so yeah this is an effect we might have.

Nikolas Tsakos: We believe that we will be able to maintain them. The dollar has weakened on us, and our major expenses are, I would say, the euro. Yeah, this is an effect we might have. Again, it's a marginal cost in comparison to where we are. I think what we're also very focused on is to maintain our daily running expenses in this demanding environment steady. We were able to be under $10,000 on an average, very diversified fleet, which includes anything from LNGs to shuttle tankers down to MRs. Yes, the weak dollar has an effect on our balance sheet.

Speaker #3: But again, it's a marginal cost in comparison to where we are. And I think what we're also very focused on is to maintain our daily running expenses in this demanding environment steady, and we were able to be under $10,000 on average for a very diversified fleet.

Speaker #3: Which includes anything from LNGs to shuttle tankers down to DMRs. So yes, I mean the euro is—the euro is—I mean, it's not the euro, the weak dollar has an effect on our balance sheet.

Speaker #3: Okay, great. And then looking into July, it looks like you're going to buy into, say, a leaseback. Can you quantify the amount you're going to spend there?

C.K. Poe Fratt: Okay, great. Looking into July, it looks like you're going to buy into sale-leasebacks. Can you quantify the amount you're going to spend there?

Poe Fratt: Okay, great. Looking into July, it looks like you're going to buy into sale-leasebacks. Can you quantify the amount you're going to spend there?

Speaker #3: We cannot give all the secrets, but anyway, Harry's comes up with imaginative ways of describing things, but being from Corfu. But I would say that we are buying assets that have been working for us, that we have built, and on a leaseback at less than 50% of their current market value.

Nikolas Tsakos: We cannot give all the secrets. Anyway, Harrys comes up with imaginative ways of describing things, being from Corfu. I would say that we are buying assets that have been working for us, that we have built on a leaseback at less than 50% their current market value. Less than 50% their current market value.

Speaker #3: Less than 50% their current market value. So it's going to be a good situation. Great. Thanks for your help. Thank you. Thank you Paul.

C.K. Poe Fratt: Great.

Poe Fratt: Great.

Nikolas Tsakos: It's going to be a good situation.

C.K. Poe Fratt: Great. Thanks for your help.

Poe Fratt: Great. Thanks for your help.

Nikolas Tsakos: Thank you.

Harrys Kosmatos: Thank you, Paul.

Speaker #3: As a reminder if you would like to ask a question press star one on your telephone keypad. Our next question comes from line of Clement Mollins Valley with values investors edge.

Operator 3: As a reminder, if you would like to ask a question, press star 1 on your telephone keypad. Our next question comes from the line of Climent Molins with Value Investor's Edge. Please proceed with your question.

Operator: As a reminder, if you would like to ask a question, press star 1 on your telephone keypad. Our next question comes from the line of Climent Molins with Value Investor's Edge. Please proceed with your question.

Speaker #3: Please proceed with your question. Hi. Good afternoon and thank you for taking my questions. I wanted to start by following up on Omar's question on the LNG side.

Climent Molins: Hi. Good afternoon, and thank you for taking my questions. I wanted to start by following up on Omar's question on the LNG side. Could you clarify until when is the option you hold for a second new build exercisable, and how are you currently thinking about that?

Speaker #3: Could you clarify until when is the option you hold for a second new build exercisable? And how are you currently thinking about that? Well we have as you I'm sure know or you've seen we have our AGM nicely timed next week just before the Poseidonia events.

Nikolas Tsakos: Well, we have, as you I am sure know or you have seen, our AGM nicely timed next week just before the Posidonia events here in Greece. I think that's when we will be discussing with our board the option of going forward. It won't be that long. I think in the next couple of weeks, within this quarter, we will take a decision.

Speaker #3: Here in Greece and I think that's when we will be discussing with our board the option. Of going forward. So it won't be that long I think we'll have in the next couple of weeks within this quarter we will have we will take a decision.

Speaker #3: Okay. Makes sense. And you sold your leases at very solid pricing. As you think about your fleet positioning is there let's say any appetite to pursue additional sales over the coming months?

Climent Molins: Okay. Makes sense. You sold the leases at very solid pricing. As you think about your fleet positioning, is there, let's say, any appetite to pursue additional sales over the coming months? You have several Suezmax, Aframax, LR2s, and even some smaller vessels built per 2010. How do you balance the free cash flow that you're currently generating in the market versus a potential sale?

Speaker #3: You have several swap maxes after maxes alert to us and even some smaller vessels built per 2010. How do you balance the free cash flow the air currently generating in the market versus a potential sale?

Speaker #3: Well this is a very good point and I mean this is what we try to do is to balance as I said our aim is to part with our first generation vessels and I think the market conditions today are making giving us a lot of chances to do so.

Nikolas Tsakos: This is a very good point. This is what we try to do, is to balance. As I said, our aim is to part with our first-generation vessels. I think the market conditions today are giving us a lot of chances to do so. We will be seeing, I would say, a maximum of half a dozen sales. Don't forget, we have a new building program of 26 vessels. It's the largest new building program than any of our peer group by far. Thanks to our new building department here. We have taken delivery of 4 of those vessels so far, 2 late last year and 2 early this year. We still have a very big modernization program. I think we will be selling at today's strong prices at least half a dozen ships from now to the end of the year.

Speaker #3: So we will be seeing I would say a maximum of half a dozen sales don't forget we have a new building program of 26 vessels.

Speaker #3: It's the largest new building program than any of our peer group by far. Thanks to our new building department here. And we have taken delivery of four of those vessels so far.

Speaker #3: Two late last year and two early this year. So, we still have a very, very big modernization program. So, I think we will be selling at today's strong prices at least half a dozen ships from now to the end of the year.

Speaker #3: Thanks for that Oliver. And final question from me which is more on the modeling side. So Harry's this one may be for you. Could you confirm that the increase in net income attributable to non-controlling interest is attributable to that and this where you hold a 51% stake?

David Brown: Thanks for that call. Final question from me, which is more on the modeling side. Harrys, this one may be for you. Could you confirm that the increase in net income attributable to non-controlling interests is attributable to the Handysize where you hold a 51% stake?

Climent Molins: Thanks for that call. Final question from me, which is more on the modeling side. Harrys, this one may be for you. Could you confirm that the increase in net income attributable to non-controlling interests is attributable to the Handysize where you hold a 51% stake?

Speaker #3: Sorry can you repeat because you were cutting off? Yeah. I was asking about the increase in net income attributable to non-controlling interest and whether that's attributable to the two handies.

Nikolas Tsakos: Sorry, can you repeat because you were cutting off?

Harrys Kosmatos: Sorry, can you repeat because you were cutting off?

Climent Molins: Yeah, I was asking about the increase in net income attributable to non-controlling interest and whether that's attributable to the 2 Handysize?

Speaker #3: Correct. Yes. Okay. Perfect. That's everything from me. I'll turn it over. Thank you for taking my questions. Thank you. Thank you both. We have no further questions at this time.

Nikolas Tsakos: Correct. Yes.

Harrys Kosmatos: Correct. Yes.

Climent Molins: Okay, perfect. That's everything from me. I'll turn it over. Thank you for taking my questions.

Nikolas Tsakos: Thank you.

Harrys Kosmatos: Thank you.

Operator 3: We have no further questions at this time. Mr. Tsakos, I'd like to turn the floor back over to you for closing comments.

Operator: We have no further questions at this time. Mr. Tsakos, I'd like to turn the floor back over to you for closing comments.

Speaker #3: Mr. SAKOS I'd like to turn the floor back over to you for closing comments. Well again thank you very much for attending our first quarter results.

Nikolas Tsakos: Well, again, thank you very much for attending our Q1 results. If anybody is in Greece for the Posidonia, we are having our annual meeting during that time, and we would love to host you so you could see the operation also. They have been very challenging times. We have to be continuously alert and take action, and this is what we do. We want to thank our men and women on the ships and those that are going through difficult times, we're here to support them. We're looking forward to announce, knocking on wood, even better results in a peaceful environment for the Q2. With that, thank you very much. Enjoy the dividend, and we will also, too. Thank you.

Speaker #3: If anybody is in Greece for the Poseidonia we are having our annual meeting during that time and we would love to host you so you could see the operation also.

Speaker #3: These have been very challenging times. We have to be continuously alert and take action, and this is what we do. We want to thank our men and women on the ships, and those that are going through difficult times, and we're here to support them.

Speaker #3: And we're looking forward to announce knocking on wood even better results and hopefully in a peaceful environment for the second quarter. And with that thank you very much.

Speaker #3: Enjoy the dividend, and we will also, too. Thank you. Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time.

Operator 3: Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a wonderful day.

Operator: Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a wonderful day.