Q2 2026 Tsakos Energy Navigation Ltd Earnings Call

September 10, 2026

Speaker #1: Ladies and gentlemen, thank you for standing by. Your conference will begin in approximately two to three minutes. Again, please continue to hold; your conference will begin shortly.

Operator: Ladies and gentlemen, thank you for standing by. Your conference will begin in approximately two to three minutes. Again, please continue to hold. Your conference will begin shortly. Thank you for standing by, ladies and gentlemen, and welcome to the Tsakos Energy Navigation conference call on the Q2 2026 financial results. We have with us Mr. Efstratios Arapoglou, Chairman of the Board, Mr. Nikolas Tsakos, Founder and CEO, Mr. George Saroglou, President and Chief Operating Officer, and Mr. Theoharrys 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 you that this conference is being recorded today.

Speaker #1: Thank you for standing by, ladies and gentlemen, and welcome to TSAKOS ENERGY NAVIGATION conference call on the second quarter of 2026 financial results. We have with us Mr. Tsakos Arapoglou, chairman of the board, Mr. Nicolas Tsakos, founder and CEO, Mr. George Saroglou, president and chief operating officer, and Mr. Harrys Kosmatos, CFO of the company.

Speaker #1: 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 #1: I must advise you that this conference is being recorded today. And now, I pass the floor to Mr. Nicolas Bornozis, president of Capital Link and investor relations advisor to TSAKOS ENERGY NAVIGATION LTD. Please go ahead, sir.

Operator: Now I pass the floor to Mr. Nicolas Bornozis, President of Capital Link and Investor Relations Advisor to Tsakos Energy Navigation Ltd. Please go ahead, sir.

Speaker #3: Thank you very much, and good morning to all of our participants. I am Nicolas Bornozis, president of Capital Link and investor relations advisor to TSAKOS ENERGY NAVIGATION.

Nicolas Bornozis: Thank you very much, and 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 six months and Q2 ended 30 June 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@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 #3: This morning, the company publicly released its financial results for the six months and second quarter ended June 30, 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 10@capitalink.com, and we will have a copy for you emailed right away.

Speaker #3: 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.ten.gr.

Speaker #3: 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 buttons, 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 contain 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.

Speaker #3: 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 #3: And at this time, I would like to read the Safe Harbor statement. This conference call and the slide presentation of the webcast contain certain forward-looking statements within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.

Speaker #3: Investors are cautioned that such forward-looking statements involve risks and uncertainties which may affect TEN's 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, and before doing that, I'd like to congratulate the company for the record revenue performance and it seems that you are on course to break the $1 billion revenue target for the year.

Nicolas Bornozis: At this moment, I would like to pass the floor to Mr. Arapoglou, the Chairman of Tsakos Energy Navigation. Before doing that, I'd like to congratulate the company for the record revenue performance, and it seems that you are on course to break the $1 billion revenue target for the year. Mr. Arapoglou, the floor is yours.

Speaker #3: So, Mr. Arapoglou, the floor is yours.

Speaker #4: So, thank you, Nicolas. Good morning and good afternoon to all. Thank you for joining our call today. Presenting second quarter, first half results of TEN.

Efstratios Arapoglou: Thank you, Nikos. Good morning and good afternoon to all. Thank you for joining our call today, presenting Q2 H1 results of TEN. Of course, once again, congratulations to Nikos Tsakos and the team for the stellar results, as briefly described by Mr. Bornozis. Our model, TEN's model, has proven that it works even in weak markets, so no surprise that it works so well also in this market where current market conditions are very favorable. It's a great opportunity for TEN to continue generating cash from operations, to continue from selling all the vessels to renew the fleet and generate more cash, to fund a record order book, as you have seen in the press release, keep cash for contingencies. Perhaps if the board decides, repay, redeem the Series E preferred. Nobody knows. It's a next year issue. More importantly, rewarding our investors.

Efstratios Arapoglou: Thank you, Nicolas. Good morning and good afternoon to all. Thank you for joining our call today, presenting Q2 H1 results of TEN. Of course, once again, congratulations to Nicolas Tsakos and the team for the stellar results, as briefly described by Mr. Bornozis. Our model, TEN's model, has proven that it works even in weak markets, so no surprise that it works so well also in this market where current market conditions are very favorable. It's a great opportunity for TEN to continue generating cash from operations, to continue from selling all the vessels to renew the fleet and generate more cash, to fund a record order book, as you have seen in the press release, keep cash for contingencies. Perhaps if the board decides, repay, redeem the Series E preferred. Nobody knows. It's a next year issue. More importantly, rewarding our investors.

Speaker #4: And of course, once again, congratulations to Nicolas Tsakos and the team for the stellar results as briefly described by Mr. Bornozis. Our model TEN's model has proven that it works even in weak markets, so no surprise that it works so well also in this market where current market conditions are very favorable.

Speaker #4: And it's a great opportunity for TEN to continue generating cash from operations to continue from selling all the vessels to renew the fleet and generate more cash to fund a record order book as you have seen in the press release keep cash for contingencies perhaps if the board decides repay redeem the city.

Speaker #4: He preferred. Nobody knows. It's a next-year issue. And more importantly, a rewarding our investors. I want to emphasize this because during the calendar year 2026, we paid dividends of 60 cents and $1 for a total of 160 per share.

Efstratios Arapoglou: I want to emphasize this because during the calendar year 2023, we paid dividends of $0.60 and $1 for a total of $1.60 per share. It is obvious that this can only go higher if approved by the board and if current conditions are maintained. This is a solid yield of very close to 4%, and it is a generous payout compared to other companies in the sector. We want to underline that we want to reward our shareholders for staying with us, who have actually benefited also from a nearly doubling of the stock price in the last two years. Finally, TEN is making use of the strong market and of the high time charter rates to lock in high returns for its fleet. Up to now, the total of forward committed earnings is approaching $3.5 billion.

Speaker #4: And it's obvious that this can only go higher if approved by the board and if current conditions are maintained. This is a solid yield of very close to 4%.

Speaker #4: And it's a generous payout compared to other companies in the sector. So we want to underline that we want to reward our shareholders for staying with us who have actually benefited also from a nearly doubling of the stock price in the last two years.

Speaker #4: Finally, TEN is making use of the strong market and of the high time charter rates. To lock in high returns for its fleet and up to now, the total of forward committed earnings is approaching 3.5 billion dollars.

Speaker #4: So this is a great cushion and a great base to look forward to continued success in the next two to three years. So once again, congratulations to Nicolas Tsakos and the team for the stellar results, and sincere wishes for continued success.

Efstratios Arapoglou: This is a great cushion and a great base to look forward to continued success in the next two to three years. Once again, congratulations to Nikos Tsakos and the team for the stellar results and sincere wishes for continued success. Thank you very much. Now, Nikos Tsakos, the floor is yours. I pass on the floor to you. Thank you.

Efstratios Arapoglou: This is a great cushion and a great base to look forward to continued success in the next two to three years. Once again, congratulations to Nikos Tsakos and the team for the stellar results and sincere wishes for continued success. Thank you very much. Now, Nikolas Tsakos, the floor is yours. I pass on the floor to you. Thank you.

Speaker #4: Thank you very much. And now, Nicolas Tsakos, the floor is yours. I pass on the floor to you. Thank you.

Nikolas Tsakos: Chairman, thank you very much for your kind words, and hopefully we will continue this trend. Before that, of course, from all of us here in TEN and the family, we all remember 9/11. We all have been living in the US and New York for the last 45 years. Many of us around this table were there 25 years ago. Our office, our original office in New York is just on Rector Street, two blocks south of Ground Zero. Just to remind you that we were the first company to go public after 9/11. We went public in March 2002. We were actually starting our roadshow after Labor Day, originally in 2001, before these terrible events. It is, I would say, very much into our mind and in our hearts, and we do not forget 9/11.

Speaker #5: Chairman, thank you very much for your kind words, and hopefully we will continue this trend. Before that, of course, from all of us here in TEN and the family, we all remember 9/11.

Speaker #5: We are all been living in the US and New York since for the last 45 years. Many of us around this table were there, 25 years ago, our office our original office in New York is just on Rector Street two blocks south of Ground Zero.

Speaker #5: And just to remind you that we were the first company to go public after 9/11. We went public in March 2002. And we were actually starting our roadshow in after Labor Day originally in 2001 before this terrible events so it's I would say very much into our mind and in our hearts and we do not forget 9/11.

Speaker #5: Well, on a happier note, I have to say that this is a record-breaking period for our results. In many segments. But it's not only but it's not looking back at it.

Nikolas Tsakos: On a happier note, I have to say that this is a record-breaking period for our results in many segments. It is not looking back at it. It seems that even after the first six months, which have been very profitable, the second part is actually doing even stronger. The appetite of the major oil companies and all the charter is unprecedented. I have never seen that in my 30-plus years in business. A year ago, I would be happy when we said we had business for one, two, or three years for our existing ships. Right now, charterers are there to take anything which is 10 years or younger for up to seven years, and their appetite. We are actually balancing this luxury problem to have.

Speaker #5: It seems that even after the first six months, which have been very profitable, the second part is actually doing even stronger.

Speaker #5: The appetite of the major oil companies and all the charter is unpresented. I've never seen that in my 30-plus years in business. A year ago, I would be happy when we said we had business for one, two, or three years for our existing ships, right now charterers are there to take anything which is 10-year or younger for up to 7 years.

Speaker #5: And their appetite. So we are actually balancing this luxury problem together with our commercial department. We are making sure that the TEN is taking advantage of the highs and, at the same time, secures long-term employment for when things become, for a rainy day.

Nikolas Tsakos: Together with our commercial department, we are making sure that the team is taking advantage of the highs, and at the same time secures long-term employment for a rainy day as they say. It is actually also very rewarding to see that we had our largest new building program of 26 vessels started 2 years ago. We have already taken delivery of 7 of those ships, and the valuation of those ships has already increased by at least 30%. So I think our $3 billion new building program value today close to $3.8, $3.9 million and growing on a monthly basis. So we are very well in the money. We took the decision to rebuild a big part of our fleet at a time where new building values were, I would say, more logical. Looking forward, we are looking for a good year.

Speaker #5: As they say. It is actually also very rewarding to see that we had our largest new building program of 26 vessels started two years ago.

Speaker #5: We have already taken delivery of seven of those ships. And the valuation of those ships has already increased by at least 30%. So I think our 3 billion new building program is close to value today close to 3.8, 3.9 million, and growing on a monthly basis.

Speaker #5: So we are very well in the money. We took the decision to rebuild a big part of our fleet at a time where values new building values were I would say more logical.

Speaker #5: So looking forward, we're looking for a good year. As the chairman said, we're looking to increase the dividend for our shareholders and we always make this announcement after our strategy meeting in November.

Nikolas Tsakos: As the Chairman said, we are looking to increase the dividend for our shareholders, and we always make this announcement after our strategy meeting in November. Looking forward for an increase of that, and hopefully, the market will maintain its strength right now. For more details, I will ask Mr. Saroglou, our President, to give us what has happened in the first 6 months and subsequent events.

Speaker #5: So, looking forward to an increase in that, and hopefully the market will maintain its strength right now. And for more details, I will ask Mr. Saroglou, our President, to give us an overview of what has happened in the first six months and subsequent events.

Speaker #2: Thank you, Nicolas. We are very pleased today to report another profitable quarter. Excluding capital gains, this is a record-breaking quarter and first half for net income.

George Saroglou: Thank you, Nikos. We are very pleased today to report another profitable quarter. Excluding capital gains, this is a record-breaking quarter and H1 for net income. 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. The Strait of Hormuz experienced its most severe disruption in modern history, effectively halting normal global oceangoing commerce. The world was hoping for a resolution following the signing of a ceasefire agreement, which quickly unraveled halfway through the 60-day period it was supposed to last. There is a US naval blockade that tries to manage the safe passage of tankers in and out of this narrow, high-risk area.

George Saroglou: Thank you, Nikolas. We are very pleased today to report another profitable quarter. Excluding capital gains, this is a record-breaking quarter and H1 for net income. 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. The Strait of Hormuz experienced its most severe disruption in modern history, effectively halting normal global oceangoing commerce. The world was hoping for a resolution following the signing of a ceasefire agreement, which quickly unraveled halfway through the 60-day period it was supposed to last. There is a US naval blockade that tries to manage the safe passage of tankers in and out of this narrow, high-risk area.

Speaker #2: We maintain a steady course in the most turbulent geopolitical environment in recent memory. The year started with a political development in Venezuela and escalated with the war in the Middle East and the closure of the Strait of Hormuz.

Speaker #2: The Strait of Hormuz experienced its most severe disruption in modern history effectively halting normal global ocean-going commerce. The world was hoping for a resolution following the signing of a ceasefire agreement which quickly unraveled halfway through the 60-day period it was supposed to last.

Speaker #2: There is a U.S. naval blockade that tries to manage the safe passage of tankers in and out of this narrow, high-risk area. We have attacks on ocean-going vessels that attempt to cross the straits on their own or with the protection of the U.S. Navy.

George Saroglou: We have attacks on oceangoing vessels that attempt to cross the straits on their own or with the protection of the US Navy. Vessels have been attacked and seafarers serving on board have been injured and killed while trying to do their job and keep the world and global commerce going. Our company continues to avoid the Strait of Hormuz. Our thoughts and prayers are with all the seafarers that are stranded inside the area and have to endure every day the unnecessary stress and psychological mental fatigue for which they are not responsible. Tanker market fundamentals were strong even before geopolitics took center stage at the end of February. 2026 was forecasted to be another year with growth in global oil demand while tonnage supply remained very balanced.

Speaker #2: Vessels have been attacked and seafarers serving on board have been injured and killed while trying to do their job and keep the world and global commerce going.

Speaker #2: Our company continues to avoid the Strait of Hormuz. Our thoughts and prayers are with all the seafarers that are stranded inside the area and have to endure every day the unnecessary stress and psychological mental fatigue for which they are not responsible.

Speaker #2: Tanker market fundamentals were strong even before geopolitics took center stage at the end of February. 2026 was forecasted to be another year with growth in global oil demand while tonnage supply remained very balanced.

Speaker #2: The effect of the war in the Middle East and the ongoing closure of the Strait of Hormuz resulted in elevated crude and product prices that affected global oil demand.

George Saroglou: The effect of the war in the Middle East and the ongoing closure in the Strait of Hormuz resulted in elevated crude and product prices that affected global oil demand. Despite higher prices, these geopolitical events have significantly added to the market strength. The tanker freight market has gone from strength to strength. TEN's diversified fleet with each new charter renewal and the fleet's market exposure to spot and profit-sharing rates will continue to further benefit from this unprecedented market dislocation. This is basically what we have done in the 33-year history we have as a public company. This is what basically we say in slide number one on page four, that we managed since 1993 to turn every crisis the world has faced into a growth opportunity.

Speaker #2: Despite higher prices, these geopolitical events have significantly added to the market strength. And the tanker market, the tanker freight market, has gone from strength to strength and tends diversified fleet with each new charter renewal, and the fleet's market exposure to spot and profit-sharing rates will continue to further benefit from this unprecedented market dislocation.

Speaker #2: And this is basically what we have done in the 33-year history we have as a public company. And this is what basically we say in slide number one on page four that we manage since 1993 to turn every crisis the world has faced into a growth opportunity.

Speaker #2: Today, we have an 81-vessel fleet and we are one of the largest energy-transported in the world with a very young diversified and versatile proforma fleet of 81 vessel.

George Saroglou: Today, we have an 81-vessel fleet, and we are one of the largest energy transporters in the world with a very young, diversified, and versatile pro forma fleet of 81 vessels. In slide four, we list this pro forma fleet of all conventional tankers, both crude and product carriers. The red color shows the vessels that trade in the spot market, and we have currently 10 tankers trading spot and our new buildings under construction. With light blue, we have the vessels that are on time charter with profit sharing. We have 13 vessels. With dark blue, the vessels that are on fixed rate time charters. We have 39 vessels. In the next slide, we list the pro forma diversified fleet, which consists of our four LNG vessels, two in the water, plus two new buildings, and our 16-vessel shuttle tanker fleet.

Speaker #2: In slide four, we list the pro forma fleet of all conventional tankers, both crude and product carriers. The red color shows the vessels that trade in the spot market, and we currently have 10 tankers trading spot.

Speaker #2: And our new buildings under construction. With light blue, we have the vessels that are on time charter with profit sharing we have 13 vessels and with dark blue, the vessels that are on fixed rate time charters.

Speaker #2: We have 39 vessels. In the next slide, we list the proforma diversified fleet which consists of our four LNG vessels to in the water plus two new buildings and our 16 vessel shuttle tanker fleet.

Speaker #2: We are one of the largest shuttle tanker operators in the world with a fleet with a young and technologically advanced vessels. On July 28, we took delivery of the DP shuttle tanker Anfield from Samsung Heavy Industries in South Korea the third in a series of 12 DP2 shuttle tankers under construction at that yard.

George Saroglou: We are one of the largest shuttle tanker operators in the world with a fleet with a young and technologically advanced vessels.

Theoharrys Kosmatos: Give me the next one, please.

George Saroglou: On 28 July, we took delivery of the DP shuttle tanker, Anfield, from Samsung Heavy Industries in South Korea, the third in a series of 12 DP2 shuttle tankers under construction at that yard. The vessel commenced a 10-year employment to a U.S. oil major with charter options to extend until the vessel's 20th-year anniversary. Assuming charterers employ the vessel to the maximum duration, the expected gross revenue should approach $500 million. Following the Anfield delivery, we have seven shuttle tankers in full operation. If we combine the two slides and account only for the current operating fleet of 62 vessels, we have 23 vessels or 37% of the operating fleet with market exposure, spot, and time charter with profit sharing. While 52 vessels or 84% of the fleet is in secured revenue, which is time charters and time charters with profit sharing.

George Saroglou: On 28 July, we took delivery of the DP shuttle tanker, Anfield, from Samsung Heavy Industries in South Korea, the third in a series of 12 DP2 shuttle tankers under construction at that yard. The vessel commenced a 10-year employment to a US oil major with charter options to extend until the vessel's 20th-year anniversary. Assuming charterers employ the vessel to the maximum duration, the expected gross revenue should approach $500 million. Following the Anfield delivery, we have seven shuttle tankers in full operation. If we combine the two slides and account only for the current operating fleet of 62 vessels, we have 23 vessels or 37% of the operating fleet with market exposure, spot, and time charter with profit sharing. While 52 vessels or 84% of the fleet is in secured revenue, which is time charters and time charters with profit sharing.

Speaker #2: The vessel commenced a 10-year employment to a US oil major with charter options to extend until the vessel's 20th year anniversary. Assuming charterers employ the vessel to the maximum duration the expected gross revenue should approach 500 million.

Speaker #2: Following the Anfield delivery, we have seven shuttle tankers in full operation. If we combine the two slides, an account only for the current operating fleet of 62 vessels we have 23 vessels or 37% of the operating fleet with market exposure, spot and time charter with profit sharing.

Speaker #2: While 52 vessels or 84% of the fleet is in secure revenue which 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.

George Saroglou: 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. Equinor, Shell, Chevron, TotalEnergies, and BP follow. The left side of the next slide presents the all-in break-even cost for the various vessel types we operate in TEN. Our operating model is very simple. We try to have our time charter vessels generate revenue to cover the company's cash expenses, paying for the vessel operating and finance expenses for overheads, chartering costs, and commissions, and let revenue from the spot and profit-sharing trading vessels to contribute to the profitability of the company.

Speaker #2: ExxonMobil is the largest revenue client. Equinor, Shell, Chevron, Total Energies and BP follow. The left side of the next slide presents the all-in break-even course for the various vessel types we operate in 10.

Speaker #2: Our operating model is very simple. We try to have our time charter vessels generate revenue to cover the company's cash expenses paying for the vessel operating and finance expenses for overheads, chartering costs and commissions and let revenue from the spot and profit sharing trading vessels to contribute to the profitability of the company.

Speaker #2: Thanks to the profit sharing element for every 1,000 dollars per day increase in spot rate we have 11 cents positive impact on the annual earnings per share based on the number of vessels that currently the company has exposure to spot rates.

George Saroglou: Thanks to the profit-sharing element, for every $1,000 per day increase in spot rate, we have $0.11 positive impact on the annual earnings per share based on the number of vessels that currently the company has exposure to spot rates, which is 23 vessels. We have a solid balance sheet with strong cash reserves. The fair market value of the pro forma of the fleet is approximately $4.9 billion against $2 billion debt, and net debt to cap is around 44.5%. Fleet renewal and investing in eco-friendly vessels has been key to our operating model. Since 1 January 2023, we have further upgraded the quality of the fleet by divesting from our third-generation conventional tankers, replacing them with more energy-efficient new buildings and modern second-hand tankers, including, of course, dual fuel vessels.

Speaker #2: Which is 23 vessels. We have a solid balance sheet with strong cash reserves. The fair market value of the proforma of the fleet is approximately 4.9 billion against 2 billion debt and net debt to cap is around 44.5%.

Speaker #2: Fleet renewal and investing in eco-friendly vessels has been key to our operating vessel. Model. Since January 1st of 2023, we have further upgraded the quality of the fleet by divesting from our first generation conventional tankers replacing them with more energy efficient new buildings and modern secondhand tankers.

Speaker #2: Including of course dual fuel vessels. In summary, we sold 20 vessels with an average age of 17.3 years and capacity of 2 million dead weight ton and replaced them with 35 contracted and modern acquired vessels with an average age of 0.5 years and 4.8 million dead weight ton.

George Saroglou: In summary, we sold 20 vessels with an average age of 17.3 years and capacity of 2 million deadweight ton and replaced them with 35 contracted and modern acquired vessels with an average age of 0.5 years and 4.8 million deadweight ton. We announced today the sale of two 2006-built Suezmax tankers to independent third parties for net proceeds of $100 million. Prior to the sale, and as previously reported, the vessels were part of a sale and leaseback structure. TEN repurchased them for cash upon maturity of their lease at a significant discount to fair market value. As we continue to transition our fleet to greener and dual-fuel vessel, we must note of our well-timed new building program and how well is in the money today. Our 26 new building vessels that were contracted in 2003 are today at much lower levels than current new building prices.

Speaker #2: We announced today the sale of two 2006 build Suezmax tankers to third independent third parties for net proceeds of 100 million. Prior to the sale, and as previously reported, the vessels were part of a sale and leased back structure.

Speaker #2: Then repurchased them for cash upon maturity at of their lease at a significant discount to fair market value. And as we continue to transition our fleet to greener and dual fuel vessel, we must note of our well-timed new building program and how well is in the money today.

Speaker #2: Our 26 new building vessels that were constructed contracted in 2003 are today at much lower levels than current new building prices. In a new building program of approximately 3.1 billion, cost we have today at least a 30% appreciation in value even before some of these vessels are delivered to the company.

George Saroglou: In a new building program of approximately $3.1 billion cost, we have today at least a 30% appreciation in value, even before some of these vessels are delivered to the company. Tanker market fundamentals have remained strong with a global order book still at a level equal to about 40% of the number of vessels that are 50 years of age or older, and CPRs operate at full capacity. While at the same time, geopolitical conflicts continue to increase ton-mile dislocation, and that provides further support to an already robust tanker market. I will pass the floor to Theoharrys Kosmatos, who will walk us through the financial performance of the H1. Harry?

Speaker #2: Tanker market fundamentals have remained strong with global order book still with a global order book still at a level equal to about 40% of the number of vessels that are 50 years of age or older and shipyards operate at full capacity.

Speaker #2: While at the same time, geopolitical conflicts continue to increase on mild dislocation and that provides further support to an already robust tanker market. And with that, I will pass the floor to Harrys Kosmatos who will walk us through the financial performance of the first half.

Speaker #2: Harry.

Speaker #3: Thank you. Thank you, George. So let me start with a brief summary of our six-month results. So a favorable tanker market fundamentals continues geopolitical tensions along with the ever-present trading inefficiencies that have been created continue to propel the market to levels that on the one hand incentivize owners with a long-term outlook to fix for longer periods as demand for term tunnels remains unabated while on the other encourage the divestment of vessels of old ages for lofty profits.

Theoharrys Kosmatos: Thank you, George. Let me start with a brief summary of our six-month results. Favorable tanker market fundamentals, continuous geopolitical tensions, along with the ever-present trading inefficiencies that have been created, continue to propel the market to levels that on the one hand, incentivize owners with a long-term outlook to fix for longer periods. As demand for term tonnage remains unabated, while on the other, encourage the divestment of vessels of all ages for lofty profits. TEN, since the beginning of the year, has been active on both fronts and has reaped the benefits of such an extraordinary confluence of circumstances. The results of the H1 and Q2 2026 are a vivid reflection of that.

Speaker #3: Then since the beginning of the year has been active on both fronts and has ripped the benefits of such an extraordinary confluence of circumstances.

Speaker #3: The results of the first half and second quarter of 2026 are a vivid reflection of that. Benefiting from a modern versatile and efficiently operated fleet, catering in its majority to the long-term needs of our clients, fleet utilization in the first six months of 2026 was almost identical to the 2025 first half level.

Theoharrys Kosmatos: Benefiting from a modern, versatile, and efficiently operated fleet, catering in its majority to the long-term needs of our clients, fleet utilization in the first six months of 2026 was almost identical to the 2025 H1 level, at 96.5%, despite having six ships undergoing scheduled dry docks from five in last year's H1. As a result of the fleet operating at almost full capacity with an employment policy inclined towards long-term charters with upside optionality through vessels operating under spot and profit-sharing contracts, gross revenues during the H1 2026 increased to well over half a billion dollars. $551 million to be exact, or $161 million above the 2025 H1 level. This was accomplished with an average fleet of 63.5 vessels, just a vessel and a half above the 2025 H1 fleet. Quite an achievement.

Speaker #3: At 96.5%. Despite having six ships undergoing scheduled dry docks from five in last year's first half. As a result of the fleet operating at almost full capacity with an employment policy inclined towards long-term charters with upside optionality through vessels operating under spot and profit sharing contracts, gross revenues during the first half of 2026 increased to well over half a billion dollars 551 million to be exact or 161 million above the 2025 first half level.

Speaker #3: This was accomplished with an average fleet of 63.5 vessels, just a vessel and a half above the first half 2025 fleet. Quite an achievement.

Speaker #3: Our interest profit sharing arrangements contributed $71 million of revenue during the first half of 2026, compared to $10 million in the same period of 2025.

Theoharrys Kosmatos: Of interest, profit-sharing arrangements contributed $71 million of revenue during the H1 2026, compared to $10 million in the 2025 same period. This substantial increase occurred despite a 22% decline in actual operating days under market-related contracts, while available days on fixed rate time charters rose by 23% over the corresponding periods. The time charter equivalent rate per ship per day impacting the above results, and by extension, reflecting the continuous robustness of the tanker markets and operational efficiency of the fleet, reached $43,503 per day from $30,754 per day in the 2025 H1, a 41% increase. Fleet voyage's expenses in the H1 2026 climbed to about $82 million from $68 million in last year's H1. The result, to a large extent, of increases in bunker prices of about 25%, impacting vessels operating spot.

Speaker #3: This substantial increase occurred despite a 22% decline in actual operating days under market related on fixed time or fixed rate times orders rose by 23% over the corresponding periods.

Speaker #3: The time charter equivalent rate per ship per day impacting the above results and by extension reflecting the continuous robustness of the tanker markets and operational efficiency of the fleet reached 43,503 dollars per day from 30,754 dollars per day in the 2025 first half.

Speaker #3: A 41% increase. Fleet voyage expenses in the first half of 2026 climbed to about 82 million from 68 million in last year's first half the result to a large extent of increases in bike and prices of about 25% impacting vessels operating spot.

Speaker #3: Vessel operating expenses during the first half of 2026 reached $111 million, up from $102 million in the same period of 2025. This is a modest and expected increase, the result of a slightly bigger fleet, higher dry-docking expenses, and the customary inflationary pressures.

Theoharrys Kosmatos: Vessel operating expenses during the 2026 H1 reached $111 million from $102 million in the 2025 same period, a modest unexpected increase. The result of the slightly bigger fleet, higher dry docking expenses, and the customary inflationary pressures. On a per ship per day basis, this translated to $10,298, about a quarter of the TCE rate mentioned above. Depreciation amortization expenses, again, driven by the increased size of the fleet, which included the delivery of 2 MR product tankers and the repatriation of 2 Suezmax tankers from five-year operating leases, came in at $90 million from $83 million in last year's H1. General and administrative expenses at $27 million from $23 million in the 2025 H1 reflected a somewhat higher management performance-based compensation from the 2025 H1 level and inflationary pressures.

Speaker #3: On a per ship per day basis this translated to 10,298 dollars about a quarter of the TCE rate mentioned above. Depreciation amortization expenses again driven by the increased size of the fleet which included the delivery of two MR product tankers and the repatriation of two Suezmax tankers from five-year operating leases came in at 90 million from 83 million in last year's first half.

Speaker #3: General and administrative expenses at $27 million, up from $23 million in the first half of 2025, reflected a somewhat higher management performance-based compensation from the first half 2025 level and inflationary pressures.

Speaker #3: As a result of all the above, for the first half of 2026 we generated operating income of $273 million, up from $111 million in last year's first half, inclusive of a $38 million and a $3.6 million of capital gains, respectively.

Theoharrys Kosmatos: As a result of all the above, TEN, for the H1 of 2026, generated operating income of $273 million from $111 million in last year's H1, inclusive of a $38 million and a $3.6 million of capital gains, respectively. An increase of 146%. Despite an increase in our financial obligations related to the growth of the fleet, $2.1 billion at the end of June 2026 from $1.8 billion at the end of June 2025, increase in finance costs fell by $5.6 million, the result of lower global interest rates and lower spreads on new and refinanced loans. Interest income, on the other hand, remained similar to last year's equivalent period at $5.6 million. Reflecting the performance outlined above, the result of commercial and operational efficiencies, as well as positive market fundamentals, the net income generated by the company reached one of the highest levels in recent memory.

Speaker #3: An increase of 146%. Despite an increase in our financial obligations related to the growth of the fleet 2.1 billion at the end of June 2026 from 1.8 billion at the end of June 2025 increase in finance cost fell by 5.6 million the result of lower global interest rates and lower spreads on new and refinance loans.

Speaker #3: Interest income on the other hand remained similar to last year's equivalent period at 5.6 million. Reflecting the performance outlined above the result of commercial and operational efficiencies as well as positive market fundamentals the net income generated by the company reached one of the highest levels in recent memory.

Speaker #3: 228 million from 64.5 million in the equivalent 2025 first half a 253% increase. Now if we're to exclude the capital gains recorded in both 2026 and 2025 first half period as some of you are accustomed in doing the 2026 first half net income experienced a 212% increase from the 2025 first half or in dollar terms 129 million dollars more.

Theoharrys Kosmatos: Two hundred and twenty-eight million from $64.5 million in the equivalent 2025 H1, a 253% increase. Now, if we are to exclude the capital gains recorded in both 2026 and 2025 H1 period, as some of you are accustomed in doing, the 2026 H1 net income experienced a 112% increase from the 2025 H1, or in dollar terms, $129 million more. In terms of EPS, earnings per share, $7.12 in the H1 of this year from $1.70 in last year's H1. In other words, a 318% increase. Adjusted EBITDA for the period was higher by $131 million from the 2025 first 6 months and reached $324 million, a 68% increase. Cash at the end of June 2026 stood at $466 million, $179 million above the 30 June 2025 level, and $168 million above cash balances at year-end of 2025.

Speaker #3: In terms of EPS earnings per share 7 dollars and 12 cents in the first half of this year from a dollar 70 in last year's first half in other words a 318% increase.

Speaker #3: Adjusted EBITDA for the period was higher by 131 million from the 2025 first six months. And reached 324 million. A 68% increase. CAS at the end of June 2026 stood at 466 million.

Speaker #3: 179 million above the June 30th 2025 level and 168 million above CAS balances at year end of 2025. And now let's go quickly on our Q2 results.

Theoharrys Kosmatos: Now let us go quickly on our Q2 results. Following the above pattern, and again by operating the fleet of 63.5 vessels from 62 in last year's Q2, with 4 vessels on dry dock to 3 in the 2025 same period. Gross revenues climbed to $298 million from $193 million in the 2025 Q2, a $105 million increase. Voyage expenses during the Q2 of 2026 increased to $52 million from $32 million in the corresponding 2025 Q2, primarily reflecting higher bunker prices affecting vessels operating in the spot market. Spot market employment accounted for approximately 12% of total fleet operating days during the 2026 Q2.

Speaker #3: Following the above pattern, and again by operating the fleet of 63.5 vessels—up from 62 in last year's second quarter, with four vessels on dry dock then and three in the 2025 same period—gross revenues climbed to $298 million.

Speaker #3: From $193 million in the 2025 second quarter, a $105 million increase. Voyage expenses during the second quarter of 2026 increased to $52 million from $32 million in the corresponding 2025 second quarter, primarily reflecting higher bunker prices affecting vessels operating in the spot market.

Speaker #3: Spot market employment accounted for approximately 12% of total fleet operating days during the 2026 second quarter. Operating expenses on the 63.5 vessels in the fleet were at 57.7 million.

Theoharrys Kosmatos: Operating expenses on the 63.5 vessels in the fleet were at $57.7 million, or a $5 million reduction from the 2025 Q2, primarily due to the slightly larger fleet and an extra vessel over the three that underwent special service in the Q2 of 2025. Depreciation and amortization expenses for the 2026 Q2 period were $46.3 million from $42.1 million in the 2025 Q2, the result of a marginally larger fleet and the reintroduction of the two straight months as mentioned earlier. General and administrative expenses during the 2026 Q2 reached $14.8 million from $13.2 million in the 2025 Q2, a marginal $1.6 million increase. Interest and finance costs in the Q2 came in lower from the 2025 Q2, $22.6 million from $25 million, or a $2.3 million reduction.

Speaker #3: Or a 5 million dollar reduction from the 2025 second quarter. Primarily due to the slightly larger fleet and an extra vessel over the three that underwent special surveys in the second quarter of 2025.

Speaker #3: Depreciation amortization expenses for the 2026 second quarter period were 46.3 million from 42.1 million in the 2025 second quarter. The result of a marginally larger fleet and the reintroduction of the two Suezmaxes mentioned earlier.

Speaker #3: General and administrative expenses during the 2026 second quarter reached 14.8 million from 13.2 million in the 2025 second quarter. A marginal 1.6 million increase.

Speaker #3: Interest and finance costs in the second quarter came in lower from the 2025 second quarter. 22.6 million from 25 million or a 2.3 million reduction.

Speaker #3: On the other hand, interest income during the 2026 second quarter was marginally higher than the 2025 equivalent period at $3.4 million. Reflecting the above performance, the net income for the second quarter of 2026, after a $38 million capital gain, climbed to $139.3 million.

Theoharrys Kosmatos: On the other hand, interest income during the 2026 Q2 was marginally higher than the 2025 equivalent period at $3.4 million. Reflecting the above performance, the net income for the Q2 of 2026 after a $38 million capital gain climbed to $139.3 million from $26.8 million in last year's Q2, which unlike this one, had no gains or losses recorded. In terms of EPS, the above figures translate to $4.40 for this year's Q2, compared to $0.67 in last year's Q2, a 557% increase. In ending, adjusted EBITDA for the Q2 of 2026 was 81% higher from the 2025 Q2 to reach $170.4 million or $76.5 million higher. And with this, I'll pass it back to Nikos. Thank you.

Speaker #3: From $26.8 million in last year's second quarter, which, unlike this one, had no gains or losses recorded. In terms of EPS, the above figures translate to $4.40 for this year's second quarter compared to $0.67 in last year's second quarter.

Speaker #3: A 557 dollar a 557% increase. In ending adjusted EBITDA for the second quarter of 2026 was 81% higher from the 2025 second quarter to reach 170.4 million.

Speaker #3: Or 76.5 million higher. And with this I'll pass it on pass it back to Nicholas. Thank you.

Speaker #1: Thank you Harris and I think that has been a very detailed presentation of the growth of the company. I mean we've been operating a similar size ship if you go back George to the to the slide of over the years.

Nikolas Tsakos: Thank you, Harry. I think that has been a very detailed presentation of the growth of the company. We've been operating a similar size ship. If you go back, George, to the slide of over the years, you will see that we have been operating a fleet of similar size for the last 10 years, where you see the financial statistics of where you go.

Speaker #1: And you will see that we have been operating a fleet of similar size for the last 10 years. Where you see the financial statistics—there you go.

Theoharrys Kosmatos: Slide 10.

Speaker #1: So I think we've been operating a fleet of around 60 to 65 vessels in for the last 10 years. And of course there you can see the big effect the growth of of of the CAS the growth of earnings the growth of EBITDA.

Nikolas Tsakos: I think we've been operating a fleet of around 60 to 65 vessels for the last 10 years. There you can see the big effect, the growth of the cash, the growth of earnings, the growth of EBITDA. Hopefully 2026 will be a milestone year where I think as Nicolas Bornozis said the company will be exceeding in revenues the billion dollars significantly and of course, a very strong EBITDA. With this, I would like to open the floor for any questions.

Speaker #1: And hopefully 2026 will be a milestone year, where I think, as Nick Bornozis said, the company will be exceeding $1 billion in revenues significantly, and of course, a very strong EBITDA.

Speaker #1: And with this, I would like to open the floor for any questions.

Speaker #2: 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.

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 Poe Fratt with Alliance Global Partners. Please proceed with your question.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: Thank you. Our first question comes from line of Poe Fratt with Alliance Global Partners. Please proceed with your question.

Speaker #4: Hello Harry I would just like to clarify the profit sharing contribution for the second quarter. If I think I heard you say that the first half contribution was 71 million.

Poe Fratt: Hello. Harry, I would just like to clarify the profit sharing contribution for the Q2. I think I heard you say that the H1 contribution was $71 million, and I had the Q1 contribution at $40 million. So was the Q2 contribution $31 million?

Speaker #4: And I had the first quarter contribution of 41 40 million. So was the second quarter contribution 31 million?

Speaker #5: No no the you rightly heard the the contribution for the first half of 26 was was 71 million seven one 71 million. While last year it was 10 4.5 and and and kind of 5 5.6 million.

Theoharrys Kosmatos: No, you rightly heard the contribution for the H1 of 2026 was $71 million, while last year it was $10 million, $4.5 million and kind of $5.6 million. That was the profit sharing received at the same period last year. So effectively, we generated seven times more the profit sharing that we did this time last year.

Speaker #5: That was the the the profit sharing received at the same period last last year. So effectively we generated seven times more the the the profit sharing that we did this time last year.

Speaker #5: And an interesting tidbit is that for the entire the entire 2025 period the the profit share was at 46 million. So you can imagine at 70 million the first half that things are looking rosier.

Poe Fratt: Yeah.

Theoharrys Kosmatos: And perhaps an interesting tidbit is that for the entire 2025 period, the profit share was at $46 million. So you can imagine at $70 million in the H1 that things are looking rosier.

Speaker #4: Yeah I just wanted to clarify what the contribution was in the second quarter.

Poe Fratt: Yeah, I just wanted to clarify what the contribution was in the Q2.

Speaker #5: Oh yeah sorry in the second quarter of 26 it was 30.5 million correct.

Theoharrys Kosmatos: Sorry, in the Q2 of 2026, it was $30.5 million. Correct.

Speaker #4: Okay great. And then yep that's helpful. And then can you help me understand the outlook for the second half of the year from a profit sharing standpoint?

Poe Fratt: Okay, great.

Theoharrys Kosmatos: $30.4 million, $30.5 million.

Poe Fratt: Yep, that's helpful. Can you help me understand the outlook for the H2 of the year from a profit-sharing standpoint? It looks like some of the V's may have moved on to profit-sharing agreements. Relative to the Q2, should we see the profit-sharing contribution increase or stay about the same? Any color would be helpful on the profit-sharing contribution.

Speaker #4: It looks like some of the Vs may have moved on to profit sharing agreements and so you know that relative to the second quarter should we see the profit sharing contribution increase or stay about the same?

Speaker #4: It's just. Any color would be helpful on the profit sharing contribution.

Speaker #1: Well we're expecting significant increase in profit sharing for for the second half of the year. We have renegotiated drastic increases in minimums and also the profit sharing arrangements.

Nikolas Tsakos: Well, we're expecting significant increase in profit-sharing for the H2 of the year. We have renegotiated drastic increases in minimums and the profit-sharing arrangements are much more favorable to the owners. As I said, the charterers are very eager to employ good quality vessels. They are much more giving. At the same time, it's a win-win situation because as you know, the refinery margins are on all-time highs. So our clients, and we're very happy about that, are making very good returns. They are not stingy in sharing some of their returns with us, the transporters.

Speaker #1: Much more favorable to to the owners. As I said the charters are very eager to employ good quality vessels. And so they they are much more giving and of course at the same time it's a win-win situation because as you know the you know the refinery margins are on all time highs so our clients and we're very happy about that are making you know very good returns.

Speaker #1: So they're not stingy in selling some of their returns with us, the transporters.

Speaker #5: Now, Luke, it's very positive, Paul, because we have 13 vessels today on profit-sharing arrangements, nine of which are of the bigger sizes—Suezmaxes and VLCCs.

George Saroglou: No, look, it's very positive, Paul, because we have 13 vessels today on a profit-sharing arrangement, nine of which are of the bigger sizes, Suezmax and VLCC. So we have seven Suezmax and two VLCCs in the profit-sharing arrangement. As you can imagine, we expect that the profit sharing will be quite meaningful going forward.

Speaker #5: So we have seven Suezmaxes and two VLs in a profit sharing arrangement. So, as you can imagine, we expect that the profit sharing will be quite meaningful going forward.

Speaker #1: We'll be able to afford Turkey for Thanksgiving it seems this year.

Nikolas Tsakos: We'll be able to offer turkey for Thanksgiving, it seems, this year.

Speaker #4: I hope with a lot of stuff in. When you look at the asset sales program you know you sold two in August. Can you just highlight the gain that you're going to report in third quarter from that sale from those sales?

Poe Fratt: I hope with a lot of stuffing. When you look at the asset sales program, you sold two in August. Can you just highlight the gain that you're going to report in Q3 from those sales? And then more importantly, what other assets might you sell over the H2 of the year looking into the H1 of 2027?

Speaker #4: And then more importantly you know what other assets might you sell over the second half of the year looking at into the first half of 27?

Speaker #5: Well you know as I said we look at those vessels all the vessels that are in the list have been billed by then on behalf of our our clients who are still the same.

Nikolas Tsakos: Well, as I said, we look at those vessels. All the vessels that are in the list have been built by then on behalf of our clients who are still the same, the Exxon, the Chevrons, the Total, 20 years ago or 15 years ago. So they're very good quality ships. I have to drag them out of our new building department because they get sentimental with this. But actually, the next sale is going to be, I would be sentimental also because it's a vessel that is older than my kids. So I think it's one of our older ships, the Andes, which was built around 2003. So she's going to be the next one to go.

Speaker #5: The actions the severance the totals you know 20 years ago or 15 years ago. So they're very good quality ships. It you know I I have to drag them out of our new building department because they get sentimental with this.

Speaker #5: But actually the next sale is going to be I will be sentimental also because it's a vessel that is older than than than my kids.

Speaker #5: So I think it's one of our older ships. The Anders which was built you know around 2003. So she's going to be the next one to go.

Nikolas Tsakos: And of course, for further trading, she's been trading for one of the big majors since she was built, and the major wants the vessel up to now, keeps on chartering the vessel up to now at very healthy rates. But I think there's always a time to when someone becomes of legal age of 21 and over, we let them go.

Speaker #5: And of course for further trading she's been trading for one of the big majors since she was built. And the major ones the vessel up to now keeps on chartering the vessel up to now at very very healthy rates.

Speaker #5: But I think there's always a time to to you know when some someone becomes of legal age of 21 and over we let them go.

Speaker #4: Good idea. And then can you just talk about your appetite for new builds? I thought I heard you say that new build pricing had moved up where it's less maybe I thought I heard you say less reasonable than it was.

Poe Fratt: Got you. Can you just talk about your appetite for new builds? I thought I heard you say that new build pricing has moved up where it is less, maybe I thought I heard you say less reasonable than it was. What should we expect on the new building side as we look out over the next 12 months?

Speaker #4: What should we expect on the new building side as we look out over the next 12 months?

Speaker #1: Well for us as a company we are actually very busy right now absorbing one of our largest growths I think a big milestone of 26 vessels.

Nikolas Tsakos: Well, for us as a company, we are actually very busy right now absorbing one of our largest growths, I think a big milestone of 26 vessels with a cost of $3.2 billion. We still have to take over 19. I think we are going to see a huge effect to our earnings, to our revenues because three VLCCs are coming in. Of course, our VLCCs, less than a year ago, we contracted them, and they have almost, I would say, doubled in price since then. Today, if we decided not to sell them as contracts, we would almost double the price that we ordered them. The same goes for all our 26 new buildings.

Speaker #1: With a cost of 3.2 billion billion dollars. And we still have to take over 19. And I think we're going to see a huge effect to our to our earnings to our revenues because three VLs are coming in.

Speaker #1: And of course our VLs we just less than a year ago we contracted them and they have almost I would say doubled in price since then.

Speaker #1: So today, if we decided, you know, not to sell them as contracts, we would almost double the price that we ordered them on. And the same goes for all our 26 new buildings.

Speaker #1: So I think we are not right now and we are actually to be to be correct we are looking again at vessels with long employment specialized vessels like the the shuttle tankers against accretive long-term contracts.

Nikolas Tsakos: I think we are not right now, and we are actually, to be correct, we are looking again at vessels with long employment, specialized vessels like the shuttle tankers against accretive long-term contracts. I think we are very well-placed, we are in a good place, and we still have 19 new buildings that are well into the money to take delivery of.

Speaker #1: But I think, you know, we are very well placed. We're in a good place, and we still have 19 new buildings that are well into the money to take delivery of.

Speaker #4: Great. Yeah I think you said that 30% higher than you know your 3.1 billion stated program. So closer to market values of 4 billion.

Poe Fratt: Great. Yeah, I think you said that 30% higher than your $3.1 billion stated program, so closer to market value to $4 billion. Great. Thank you.

Speaker #4: Great. Thank you. I'll turn it back.

Nikolas Tsakos: Yeah.

Poe Fratt: I'll turn it back.

Speaker #1: Thank you.

George Saroglou: Thank you.

Speaker #5: Thanks Paul.

George Saroglou: Thanks, Paul.

George Saroglou: Thanks, Poe.

Speaker #2: As a reminder, if you would like to ask a question, please press star one on your telephone keypad. Our next question comes from the line of Clement Mullins with Value Investors Edge.

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

Operator: As a reminder, if you would like to ask a question, press star one 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 #2: Please proceed with your question.

Speaker #6: Hi good afternoon and thank you for taking my questions. You hinted at higher distribution going forward. Which makes sense considering your financial position and the free cash flow your currently generating.

Clément Mullins: Hi, good afternoon, and thank you for taking my questions. You hint at higher distribution going forward, which makes sense considering your financial position and the free cash flow you are currently generating. In the past, you had mentioned potentially declaring, let's say, supplemental dividends as net proceeds from asset sales rolling. Could you give us an update on this front? It is obviously a discussion for the board, but any color you can give us?

Climent Molins: Hi, good afternoon, and thank you for taking my questions. You hint at higher distribution going forward, which makes sense considering your financial position and the free cash flow you are currently generating. In the past, you had mentioned potentially declaring, let's say, supplemental dividends as net proceeds from asset sales rolling. Could you give us an update on this front? It is obviously a discussion for the board, but any color you can give us?

Speaker #6: In the past you had mentioned potentially declaring let's say supplemental dividends as net proceeds from asset sales roll in. Could you give us an update on this front?

Speaker #6: It's obviously a discussion for the board, but any color you can give us?

Speaker #1: Sure. Well I I think our intention is to significantly reward or increase the reward to to our shareholders. Because I think as our chairman said we like to to share being the major shareholders ourselves we like to share the upside paripasu with them.

Nikolas Tsakos: Well, I think our intention is to significantly reward or increase the reward to our shareholders because I think as our Chairman said, we like to share. Being the major shareholders ourselves, we like to share the upside pari-passu with them. So we are looking forward for a nice dividend announcement after our strategy meeting in November. On the special dividend, we did it a couple of times, but we were told off by the analyst because it complicates, and I think rightly so. It complicates. They do not know if this is something that is going to be recurrent or not. So I would rather add or increase the normal semi-annual dividends because we need to keep our analysts happy and less confused rather than doing a special dividend.

Speaker #1: So we're looking forward for for a nice dividend announcement after our strategy meeting. In November. And on on on the special dividend we did it a couple of times.

Speaker #1: But we were told off by the analyst because it complicates things, and I think rightly so. It complicates—they do not know if this is something that's going to be recurrent or not.

Speaker #1: So I I'd rather add or increase the normal our normal semi-annual dividends because we need to keep our analysts happy. And and less confused.

Speaker #1: Rather than doing a special dividend. They they felt that that was something that you know was one time event and got wasted. Whereas when when you have a company that has significant cash flow significant cash I mean as Harrys I think referred to our cash since the six months has also grown in in in a big way.

Nikolas Tsakos: They felt that was something that was a one-time event and got wasted, whereas when you have a company that has significant cash flow, significant cash, as Harry, I think, referred to our cash since the six months has also grown in a big way. Down the road, we have our perpetual preferred, which is $120 million at 9.25%. We are considering that actually taking this out, it is not an obligation, but I think it will be a very good use of cash. It will add anywhere between 30 and 40 cents to the bottom line, just by saving on the high coupon. Of course, continue to invest in our new building program.

Speaker #1: And down the road we have our our perpetual preferred which is 120 million. At nine and a quarter and we are considering that actually taking this out.

Speaker #1: It's not an obligation, but I think it will be a very good use of cash. It will add, anyway, between $0.30 and $0.40 to the bottom line.

Speaker #1: But just by saving on the high coupon. So I think this is, and of course, we continue to invest in our newbuilding program.

Speaker #6: Yeah taking off the preferred definitely definitely makes sense. And special dividend is not that confusing but obviously it's a board decision. So we'll see.

Clément Mullins: Yeah, taking off the preferred definitely makes sense. Special dividend is not that confusing, but obviously it is a board decision, so we will see. I have another question on the dividend. Is there any appetite to potentially move to a quarterly payment schedule? I mean, all your peers follow that model, so I was wondering whether this is something you would consider.

Climent Molins: Yeah, taking off the preferred definitely makes sense. Special dividend is not that confusing, but obviously it is a board decision, so we will see. I have another question on the dividend. Is there any appetite to potentially move to a quarterly payment schedule? I mean, all your peers follow that model, so I was wondering whether this is something you would consider.

Speaker #6: I have another question on the dividend. Is there any appetite to potentially move to a quarterly payment schedule? I mean, all your peers follow that model.

Speaker #6: So I was wondering whether this is something you'd consider.

Speaker #1: Well, we actually have moved, I think about 10 years ago, from a quarterly dividend to a semi-annual dividend because, for many reasons.

Nikolas Tsakos: Well, we actually have moved, I think about 10 years ago, from a quarterly dividend to a semi-annual dividend for many reasons, for logistical purposes. Shipping is a little operationally a more complicated business. We are not land block, we are not land-based. It is not that we have five or 10 factories in various states that they produce. We have ships all over. Sometimes a voyage takes more than a quarter. So, I think it is more appropriate for shipping, and I think even the President of the United States referred to it about a year ago, saying that the quarterly dividends takes a lot of time from management time, CFO time, and also it does not portray the actuality of the business.

Speaker #1: For logistical purposes I mean shipping is a little operationally a more complicated business. You know we are not land block. We're not land based.

Speaker #1: It's not you know it's not that we have five or ten factories in various in various states that they produce. You know we have ships all over.

Speaker #1: I mean sometimes a voyage takes more than a quarter. So you know I think it's more appropriate for shipping. And I think even the the president of the United States referred to it about a year ago saying that quarterly dividends takes a lot of time you know from management time CFO time and and also it's not actually does not portray the actuality of of the business.

Speaker #1: So I think the the short answer is we will maintain the the semi-annual dividend because I'd rather be able to give a big semi-annual dividend just rather than smaller quarterly ones.

Nikolas Tsakos: I think the short answer is we would maintain the semi-annual dividend because I would rather be able to give a big semi-annual dividend rather than smaller quarterly ones.

Operator: Does that complete your question?

Speaker #2: Is that complete your question?

Speaker #6: Yeah.

Clément Mullins: Yeah.

Climent Molins: Yeah.

Speaker #2: Our next question comes from the line of Paul Fratt with Alliance Global Partners. Please proceed with your question.

Operator: Our next question comes from the line of Poe Fratt with Alliance Global Partners. Please proceed with your question.

Poe Fratt: Thanks for taking the follow-up. Nikos, on the last couple of calls, you have talked about potentially doing a restructuring of the company and maybe carving out the shuttle tankers or other assets that are in long-term charters. Can you update us on any progress on that plan?

Speaker #4: Thanks for taking the follow up. Nicholas on the last couple calls you've talked about you know potentially doing a restructuring of the company and maybe carving out the shuttle tankers or other assets that are in long-term charters.

Speaker #4: Can you update us on any progress on that plan?

Speaker #1: Well, I think restructuring is something that our company, for 33 years, we have never had to do. So, I think perhaps replanning could be the word, because I guess I'm taking the opportunity from what you said to say that TEN is perhaps one of the very few companies that has never restructured or renegotiated any of our loans in the last 33 years.

Nikolas Tsakos: Well, I think restructuring is something that our company for 33 years, we have never had to do. So I think perhaps replanning could be the word because I guess I am taking the opportunity from what you said to say that TEN is perhaps one of the very few companies that we have never restructured or renegotiated any of our loans in the last 33 years. So we have been paying our obligation, paying dividend continuously, paying our lenders continuously, and then maintaining a steady ship. The company is looking at ways to add more value. We will not reduce the size of the fleet. We might consider, again, closer to the end of our new building program to carve out a small part of our fixed, which is the long-term fleet, about 20 vessels. But within TEN. It will be within TEN.

Speaker #1: So we've been you know paying our obligation paying dividend continuously paying our And then maintaining a steady ship. I mean the company is looking at ways to to add more value we will not reduce the size of of of the fleet.

Speaker #1: We might consider again closer to the end of our new building program to carve out a small part of our fixed of our fixed you know which is the long-term fleet about 20 vessels.

Speaker #1: But within within within 10 it will be within 10. I mean we we are approached by a lot of by a lot of investors who would like to participate in what we say.

Nikolas Tsakos: We are approached by a lot of investors who would like to participate in what we say, and I think it is on page 5, which it is called TEN Special. It is like a pizza. So you see the 20 vessels there, and those ships have very long employments, and 10, 15, 20 years. And they appeal to some shareholders that would like to invest into that. But everything would happen within TEN. TEN would maintain at least 60%, 70% of the fleet. So the ships will not be out of the company.

Speaker #1: And I think it's on page 5 which is which it's called 10 special. It's like a pizza. So it is you know and you you hear the 20 the 20 vessels there.

Speaker #1: And you know those ships have very long employments. And you know 10 15 20 years. And and they could they they appeal to some shareholders that would like to invest into that.

Speaker #1: But everything would happen within 10. 10 would maintain you know at least 60 70 percent of the fleet. So it's not really the the ships will not will not be out of the company.

Speaker #4: Great. Thank you.

Poe Fratt: Great. Thank you.

Speaker #2: We have no further questions at this time. Mr. Sakos 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 would like to turn the floor back over to you for closing comments.

Efstratios Arapoglou: Nikos, on the last comment, I would like to just add, if I may, that this is not at the top of our list right now. It is not something that

Speaker #4: Nicholas, on the last comment, I'd like to just add, if I may, that this is not at the top of our list right now.

Speaker #4: It's not something that.

Nikolas Tsakos: Yes

Speaker #1: Yes yes.

Efstratios Arapoglou: we would expect any development

Speaker #4: Any developments in the near future?

Nikolas Tsakos: Yes

Efstratios Arapoglou: in the near future.

Speaker #1: Yes.

Nikolas Tsakos: Yes.

Efstratios Arapoglou: Let's make that clear. Yeah.

Speaker #4: So that's that makes that clear. Yeah.

Efstratios Arapoglou: Let's make that clear. Yeah.

Speaker #1: Exactly. Exactly. It's not on the top of our list but you know it is another way that we might consider to prove the hidden value of those ships that have the very long employment.

Nikolas Tsakos: Exactly. It is not on the top of our list, but it is another way that we might consider to prove the hidden value of those ships that have the very long employment. But always, if something happens, we will be within TEN. So really, the TEN shareholders will not be affected at all. The fleet will maintain its big size, but perhaps a big shareholder will more specifically invest as a minority holder in this asset. But again, as the Chairman said, this is more food for thought at this stage. Thank you, Chairman.

Speaker #1: But always if something happens we'll be within 10. So really 10 shareholders will not be affected at all. The fleet will maintain its big size.

Speaker #1: But perhaps a big shareholder will specifically invest as a minority holder in these. This is more food for thought at this stage.

Speaker #1: Thank you chairman. And and and and and with that again I would like to wish everybody a good beginning of of the of the new season.

Efstratios Arapoglou: Thank you.

Nikolas Tsakos: And with that, again, I would like to wish everybody a good beginning of the new season. We are looking at a healthy period from now to the end of the year. We are actually literally operating in an operational minefield. So not only we have to maintain a steady course, but geopolitical events, mainly in the Middle East, are making the daily business change as we speak, and the decisions we have to make, always with the responsibility to our seafarers, our crews, and of course, the safety of the vessel, the safety of the environment, because those ships are carrying huge quantities of oil, and we do not want to put them in danger. Saying this, these circumstances have created an unprecedented strong market. I think rates right now in the Gulf area, which as you know, has been also attacked by the Houthis, it sounds like a movie.

Speaker #1: We're looking at a healthy period from now to the end of the year. We are actually, literally, operating in an operational minefield.

Speaker #1: So not only do we have to maintain, you know, a steady course, but geopolitical events, mainly in the Middle East, are making the daily business change as we speak and the decisions we have to make.

Speaker #1: Always with responsibility to to our seafarers I mean our crews and and of course the safety of the vessel the safety of the environment because those ships are carrying huge quantities of of oil and we don't want to put them in in danger.

Speaker #1: Saying this, these circumstances have created an unprecedentedly strong market. I think rates right now in the Gulf area—which, as you know, has also been attacked by the Houthis—well, it sounds like a movie.

Speaker #1: The Houthis and are close to 800,000 dollars a day approaching 1 million dollars a day for for for a VLGC in the Gulf. So this is unchartered territory which we're taking advantage of carefully and and steadily.

Nikolas Tsakos: The Houthis are close to USD 800,000 a day, approaching USD 1 million a day for a VLCC in the Gulf. This is uncharted territory, which we are taking advantage of carefully and steadily. We would like the world to be completely peaceful, even if we didn't make the returns that we are making, because it will make the sustainability of our business going forward much better. In the meantime, we are taking advantage of the situations. We are one of the biggest companies in Venezuela. Our vessel was the first vessel to lift legal cargos finally from Venezuela. The Russian situation also is putting almost 25% of the world fleet out of the market. We are looking at least for the next year, at good and growing prospects. The management will be attending the Capital Link and other events at the end of the month.

Speaker #1: We we all we would like the world to be completely peaceful even if we didn't make the returns that we are making because it will make the sustainability of our business going forward much better.

Speaker #1: And in the meantime we are taking advantage of of the situations we are one of the biggest companies in Venezuela our vessel was the first vessel to lift legal cargoes finally from from Venezuela.

Speaker #1: The Russian situation is also putting almost 25 percent of the world fleet out of the market. So, we are looking at, for at least the next year, good and growing prospects.

Speaker #1: And with you know with attending the management will be attending the capital ink another events at the end at the end of the month.

Speaker #1: So we would like to be able to see as many of you live in the United States and also Europe. With that, we would like again to thank you for your support.

Nikolas Tsakos: We would like to be able to see as many of you live in the United States and also Europe. With that, we would like again to thank you for your support, and as we said, always remember 9/11 as a very special day for the world and of course, for us and the company. Thank you very much.

Speaker #1: And I have, as we said, always remembered 9/11 as a very special day for the world, and of course for us and the company.

Speaker #1: Thank you very much.

Speaker #2: 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.