Tsakos Energy Navigation Ltd · NYSE:TEN

Tsakos Energy Navigation — Q3 2014 Earnings Presentation

19 slides from Tsakos Energy Navigation's earnings presentation, Nov 21, 2014

1. Slide 1: Q3 & 9mo 2014 Earnings Conference Call

   TEN Ltd Tsakos Energy Navigation November 21, 2014 Q3 & 9mo 2014 Earnings Conference Call

2. Slide 2: Forward-looking statements

   This presentation may contain forward-looking statements that are not based on historical fact, including without limitation, statements containing the words “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions. Because these forward-looking statemen

3. Slide 3: Corporate Facts

   Corporate Facts  63 vessels (pro forma)  Active fleet utilization in Q3 & 9mo 2014 at 97.4% and 97.8% respectively  50 in operation  9 x Aframax crude carriers under construction (w/employment)  49% of 2015 and 30% of 2016 available days in secured revenue contracts (including CoAs / Pools)  2

4. Slide 4: 9mo 2014 Highlights

   9mo 2014 Highlights  For the nine-month 2014 period, net income of $20.0 million or $0.18 per diluted share, compared to a $1.9 million loss for the same period in 2013. $5.2 million net income for the third quarter or $0.04 per diluted share, compared to a $1.4 million loss in the third quarter of

5. Slide 5: Fleet Composition – 63 vessels (pro-forma)

   Fleet Composition – 63 vessels (pro-forma) CRUDE TRADING PRODUCTS DP2/LNG 44 14 5 5.3m dwt 0.6m dwt 0.7m dwt VLCC Suezmax Aframax Aframax LR Panamax Handymax Handysize DP2 Shuttle LNG One World Trade 1,100 900 850 850 750 615’ 570’ 900 750 1,775 300,000dwt 160,000dwt 100,000dwt 100,000dwt 74

6. Slide 6: Fleet Details (as of November 21, 2014)

   Fleet Details (as of November 21, 2014) CRUDE TANKERS Dwt Built Yard Hull Ice Class/Other COATED TANKERS Dwt Built Yard Hull Ice Class/Other VLCC AFRAMAX - LR 1 Millennium 301,171 1998 HHI DH 1 Proteas 117,055 2006 HHI DH 1A SUEZMAX 2 Promitheas 117,055 2006 HHI DH 1A 1 Eurovision 158,000 2013 Sungd

7. Slide 7: Long-Term Strategic Alliances

   Long-Term Strategic Alliances Top Customers Rating (1) % of 2013 Revenue 1. Petrobras A3 / BBB 21.3% Statoil (2) Aa2/AA- 14.0% 2. Shell Aa1/AA 10.6% 3. Flopec NR / NR 8.3% 4. BG A2 / A 7.0% 5. ExxonMobil Aaa/AAA 6.8% 6. Clearlake NR/NR 6.1% 7. HMM A- / A- 5.8% 8. BP A2 / A 3.5% 70% Long-term, blue-c

8. Slide 8: Net Income Breakeven (Q3) vs. Market Average Tanker Rates On The Rise

   Net Income Breakeven (Q3) vs. Market Average Tanker Rates On The Rise… 1 VLCC VLCC $15,000 12 SUEZMAX $19,000 Av. Tanker Spot Rates 17 VLCC $51,049 AFRAMAX $18,000 3 AFRAMAX Suezmax $87,701 LR2 $18,500 11 PANAMAX Aframax $48,589 LR1 $16,500 6 HANDYMAX LR2 $28,363 MR $16,000 8 HANDYSIZE LR1 $15,535 M

9. Slide 9: Employment Details (as of November 21, 2014)

   Employment Details (as of November 21, 2014) 11 2 1 17 19 TC (Fixed) TC (P/S) CoA (Spot Related) Pool (Spot Related) Spot Secured Employment (33 vessels) Flexible Employment (31 vessels) 9

10. Slide 10: Positive Market Outlook

    Positive Market Outlook BARRELS OF OIL PER CAPITA PER ANNUM (Source: BP Statistical Review of World Energy June 2013  Strong potential of China and India with a combined population of 2.5 billion in a world of 7.0 billion. Their per capita oil consumption is at extremely low levels and have already

11. Slide 11: Tankers over 15 years old vs. Delivery Schedule

    Tankers over 15 years old vs. Delivery Schedule  Total Orderbook of 674 tankers (300 of which MR products) vs. 640 vessels (241 of which MR products) in fleet over 15 years of age 600 550 Expected to be phased out over the next two/three years 500 450 Number of Ships 400 674 350 300 250 200 150 100

12. Slide 12: Secured Revenues (TC, TCPS, COA, POOL)

    Secured Revenues (TC, TCPS, COA, POOL) Based on employable dates and includes vessels under time charter, time charter with profit share (only minimum rate) and Pool/CoAs (Subject to deliveries and potential changes in TEN’s chartering policy ) 2015 (as of 11/21) 2015 30% 49% Fixed Fixed Minimum Rev

13. Slide 13: Sale & Purchase Activity – Capital Gains

    Sale & Purchase Activity – Capital Gains  Sale & Purchase activity integral to operations – Close to 100 transactions - realizing actual value  Timely acquisitions of modern tonnage  Since 2003 TEN has generated capital gains from its sale & purchase activity close to $280 million  $25 million a

14. Slide 14: Continuous Dividend Payments

    Continuous Dividend Payments  Dividend payments far in excess of original IPO price of $7.50/share  Today investors have gotten $9.935/share in dividends (incl. November and early 2015 distributions), 32.4% higher over their original $7.50 IPO investment plus….  Close to $1 billion total net inco

15. Slide 15: Attractive Valuation – Steep Discount to NAV

    Attractive Valuation – Steep Discount to NAV NAV (Sep 30, 2014) (Line items for reference only) FMV: $1.9 billion Cash: $213 million NB Advance + Extra Value: $211 million $2.3 billion Liabilities: $1.4 billion Common Shares: 84.7 million NAV (Fair Value): $9.57/share NAV (Book Value): $12.68/share

16. Slide 16: Income Statement

    Income Statement Three months ended Nine months ended September 30 September 30 STATEMENT OF OPERATIONS DATA 2014 2013 2014 2013 Voyage revenues $ 120,881 $ 107,564 $ 363,565 $ 313,348 Commissions 4,565 4,166 13,662 12,018 Voyage expenses 33,837 29,557 102,516 86,501 Vessel operating expenses 37,182

17. Slide 17: Balance Sheet

    Balance Sheet BALANCE SHEET DATA September 30 December 31 September 30 2014 2013 2013 Cash 213,023 171,764 173,094 Other assets 94,201 80,546 82,813 Vessels, net 2,223,125 2,173,068 2,223,546 Advances for vessels under construction 155,151 58,521 57,997 Total assets $ 2,685,500 $ 2,483,899 $ 2,537,4

18. Slide 18: Other Financial / Fleet Data

    Other Financial / Fleet Data Three months ended Nine months ended OTHER FINANCIAL DATA September 30 September 30 2014 2013 2014 2013 Net cash from operating activities $ 33,932 $ 31,668 $ 60,801 $ 104,230 Net cash used in investing activities $ (108,498) $ (15,578) $ (219,286) $ (142,779) Net cash f

19. Slide 19: Tsakos Energy Navigation, Ltd contact

    TSAKOS ENERGY NAVIGATION, LTD For more information please contact: Paul Durham: Chief Financial Officer pdurham@tenn.gr George Saroglou: Chief Operating Officer gsaroglou@tenn.gr Harrys Kosmatos: Corporate Development Officer hkosmatos@tenn.gr Tsakos Energy Navigation, Ltd 367 Syngrou Avenue Athens

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