Tsakos Energy Navigation : Annual Report for Fiscal Year Ending DECEMBER 31, 2025 (Form 20-F)

About this update from Tsakos Energy Navigation Ltd

Operating and Financial Review and Prospects Company Overview As of March 30, 2026, the fleet consisted of 64 double-hull vessels with an average age of 10.3 years, comprised of 56 conventional tankers, two LNG carriers and six DP2 suezmax shuttle tankers providing world-wide marine transportation services for national, major and other independent oil companies and refiners under long, medium and short-term charters. We also have ten DP2 suezmax shuttle tankers, five LR1 tankers, three VLCC tankers and one LNG carrier under construction with expected deliveries in 2026, 2027, and 2028. The current operational fleet consists of three VLCCs, twenty suezmaxes (including six DP2 suezmax shuttle tankers), twenty-four aframaxes, two aframax LR2s, nine panamax LR1s, two MRs, two handysize tankers and one LNG carrier. All vessels are owned by our subsidiaries, other than two suezmax tankers, one aframax tanker and one LNG carrier, which are bareboat chartered-in by our subsidiaries. The charter rates that we obtain for these services are determined in a highly competitive global tanker charter market. The tankers operate in markets that have historically exhibited both cyclical and seasonal variations in demand and corresponding fluctuations in charter rates. Tanker markets are typically stronger in the winter months because of increased oil consumption in the northern hemisphere. In addition, unpredictable weather conditions in the winter months in various regions around the world tend to disrupt vessel scheduling. The oil price volatility resulting from these factors has historically led to increased oil trading activities. Changes in the availability of vessel supply are also a contributing factor in affecting the cyclicality and overall volatility present in the tanker sector which is reflected both in charter rates and asset values. Results from Operations-2025 The following discussion of our financial condition and results of operations should be read in conjunction with the financial statements and the notes to those statements included elsewhere in this Annual Report. This discussion includes forward-looking statements that involve risks and uncertainties. As a result of many factors, such as those set forth under "Risk Factors" and elsewhere in this Annual Report our actual results may differ materially from those anticipated in these forward-looking statements. In 2025, the various geopolitical incidents around the world and in particular the ongoing war between Russia and Ukraine and the various hostilities in the Middle East continued to positively impact the Company as the shifts in trade flows and the severe sanctions imposed by the Western world on Russian seaborne petroleum cargoes remained unabated. The sanctions introduced by the United States, the European Union and others, including the United Kingdom, to penalize the Russian government for its aggression against Ukraine, unintentionally created structural changes in the seaborne transportation of oil with possible long-lasting effects. In particular, Europe, a major recipient of Russian oil over the years, replaced Russian oil imports with barrels from far away distances like the USA, Guyana, West Africa, and the Middle East, creating therefore a positive ton-mile impact, as vessels remained engaged and unavailable for new cargoes for longer periods, which positively influenced freight rates. The instability in the Middle East which impacted shipping markets since October 2023, and resulted in attacks on merchant ships in the Red Sea by the Houthi rebels during 2024, even though somewhat subsided after the temporary ceasefire between Israel and Hamas in January 2025, remained prevalent as a threat with many companies, including TEN, continuing to avoid the transit and seeking alternative routes - via the Cape of Good Hope- further increasing ton-miles. While it is impossible to predict how geopolitical events, particularly those involving Russia, China and Iran, will unfold especially in light of the February 28, 2026 attacks on Iran with the "unofficial" closure of the Strait of Hormuz by the Islamic Revolutionary Guard Corps (IRGC), we expect that the rerouting of cargos will continue. Currently it is estimated that approximately 250 oil tankers are stranded in the Persian Gulf creating an international tonnage shortage and therefore the need from various importing nations, particularly in Asia, to source oil from elsewhere intensifies. The result of this has been a material elevation in spot rates which are expected to remain at high levels for as long as such transit disruptions remain. According to the International Energy Agency (IEA), global oil demand reached a record 103.9 million barrels per day in 2025 and is expected to increase by approximately 0.9 million barrels per day to a new record of 104.8 million barrels per day in 2026, however this would ultimately be determined by the level of escalation and duration of hostilities in the Middle East. In general, and despite the ongoing energy transition debate for renewables and alternative fuels, global oil demand continues to expand for the foreseeable future, the world should continue to be reliant on oil and LNG, for periods longer from what was originally anticipated and possibly beyond 2050. Prior to the hostilities in the Middle East, the outlook for the global economy was expected to remain stable, with the International Monetary Fund (IMF) forecasting global GDP growth for 2026 and 2027 at 3.3% and 3.2%, respectively. For 2025 it stood at 3.3%. It remains to be seen if a continuation of the war with Iran and a prolongation of hostilities, including neighboring countries getting drawn into the conflict, will lead the IMF to materially revise such forecasts for the worse. Geopolitics aside, tanker fleet supply fundamentals continue to remain attractive. With about 275 vessels of all types scheduled to be delivered in 2026 of about 30 million deadweight tons, the global fleet orderbook of 889 vessels, as at the end of February 2026, stood at 15.9% of the existing fleet, a still relatively low number when compared to the last 20 years. Imminent orderbook growth is not expected due to little spare shipyard capacity before 2028. The combination of low tanker orderbook, lack of shipyard capacity, and an aging fleet, older and possibly substandard vessels performing sanctioned trades and therefore out of the competitive environment we operate, as well as the ongoing discussions for alternative fuels which could alter future vessel designs, should lead to manageable levels of tanker fleet growth over the next two to three years. In summary and assuming the war in Iran would not elevate oil prices to levels that can lead to demand destruction, we expect that a combination of healthy oil demand, currently the case, and positive fleet supply fundamentals should continue to support a healthy tanker market over the next two to three years both in terms of freight and asset prices. Continuous geopolitical instability in various regions of the world and the ongoing sanctions on Russian oil exports, despite the certain waivers recently granted for exports to India, should maintain the existing bifurcation of the global fleet which has led to the creation of the "shadow" fleet and the rerouting of tankers for longer haul voyages. Both considered additive to tanker market's performance going forward. Our fleet achieved voyage revenues of $798.7 million in 2025, a decrease of 0.7% from $804.1 million in 2024. The average size of our fleet remained 61.8 in 2025 and in 2024, and fleet utilization increased to 96.6% during 2025 compared to 92.5% 2024. In 2025, geopolitical events, such as the war in Ukraine, Gaza and the Houthi attacks in the Red Sea continued and led to changes in trade flows maintaining a situation where tankers performed long-haul voyages adding positive ton-mile effects for tanker demand and rates. Our average daily time charter rate per vessel, after deducting voyage expenses, decreased to $32,130 in 2025 from $32,550 in 2024, mainly due to softer market rates despite the increased number of operating vessels. Operating expenses increased by 6.5% to $211.0 million in 2025 from $198.0 million in 2024, mainly due to insurances, higher stores procurement toward the end of the year and the increased spares supply along with repairs and maintenance expenses. Depreciation and amortization totaled $170.1 million in 2025 compared to $159.9 million in 2024 due to increased depreciation expenses from $138.4 million in 2024 to $148.3 million in 2025, mainly due to newly acquired vessels and due to increased amortization of dry-docking expenses from $17.3 million to $20.7 million due to high number of dry-docking vessels during 2024. General and administrative expenses, which include management fees and incentive awards, were $42.1 million in 2025 and $45.4 million in 2024, a 7.3% decrease, mainly due to the management incentive award amounted to $3.0 million in 2025 compared to $7.0 million in 2024. In 2025 and 2024, the review of the carrying amounts in connection with the estimated recoverable amount and the probability of sale for certain of the Company's vessels as of December 31, 2025, and December 31, 2024, indicated no impairment. There was operating income of $252.3 million in 2025 compared to operating income of $278.6 million in 2024. Interest and finance costs, net, decreased by 12.8% in 2025 or $14.3 million, mainly due to the decreased interest rates. Net income attributable to the Company in 2025 was $160.9 million compared to $176.2 million in 2024. The effect of preferred dividends in 2025, inclusive of deemed dividends and undistributed and distributed income allocated to non-vested restricted common stock, was $28.6 million compared to $28.0 million in 2024. Net income per share, basic and diluted, was $4.45 in 2025 based on 29,739,492 weighted average shares outstanding, compared to net income per share, basic and diluted, $5.03 in 2024, based on 29,505,603 weighted average shares outstanding basic and outstanding. Some of the most significant developments for the Company during 2025 were: • the dry-docking of Propontis, Arctic, Antarctic, Sapporo Princess, Uraga Princess, Aegeas, Andromeda, Sakura Princess, Bosporos and Byzantion , for their mandatory special or intermediate survey; • the deliveries of newbuilding vessels, the DP2 suezmax shuttle tankers Athens 04 and Paris 24 , and the suezmax tankers Dr Irene Tsakos and Silia T. ; • the sale of Aegeas, Andromeda, Ise Princess, and Pentathlon ; • the payment to holders of Series E preferred shares of dividends totaling $11.0 million in aggregate; • the payment to holders of Series F preferred shares of dividends totaling $16.0 million in aggregate; and • dividends to holders of common shares totaling $1.10 per share or $33.1 million in aggregate. The Company operated the following types of vessels during and at the end of 2025: Vessel Type LNG carrier VLCC Suezmax DP2 suezmax shuttle Aframax Panamax Handysize MR1 Total Fleet Average number of vessels 2.0 3.0 13.1 5.1 26.5 9.0 3.1 61.8 Number of vessels at end of year 2.0 3.0 14.0 6.0 26.0 9.0 2.0 62.0 Dwt at end of year (in thousands) 187 898 2,234 931 2,916 662 75 7,903 Percentage of total fleet (by dwt at year end) 2.4% 11.4% 28.3% 11.8% 36.9% 8.4% 0.8% 100.0% Average age, in years, at end of year 6.6 8.2 11.9 6.5 9.2 15.9 18.5 10.1 We believe that the key factors which determined our financial performance in 2025, within the given freight rate environment in which we operated, were: • the diversified aspect of the fleet, including purpose-built vessels to access ice-bound ports, carry LNG and operate DP2 shuttle tankers between offshore installations and on-shore terminals, which allowed us to take advantage of all tanker sectors; • the benefits of the new vessels acquired in recent years in terms of operating efficiencies and desirability on the part of charterers; • our balanced chartering strategy (discussed further below), which ensured a stable cash flow while allowing us to take advantage of potential upside in the freight market; • the long-established relationships with our chartering clients and the development of new relationships with renowned oil-majors; • the level of utilization for our vessels; • the continued control over costs by our technical managers despite pressures caused by rising operating costs; • our ability to mitigate financial costs by negotiating competitive terms with reputable banks; • our ability to manage leverage levels through cash generation and repayment/prepayment of debt; • our ability to comply with the terms of our financing arrangements, including loan-to-value requirements; • our ability to reward our shareholders through cash dividends; • our ability to raise new financing through bank debt at competitive terms despite a generally tight credit environment; and • the sale of vessels when attractive opportunities arise. We believe that the above factors will also influence our future financial performance and will play a significant role in the current world economic climate as we proceed into 2026. To these may be added: • continued strength or any decline in the product and crude oil tanker charter markets during the year; • any additional vessel acquisitions or newbuildings; • any additional vessel sales; • the appetite of oil majors to fix vessels on medium to long term charters at attractive rates; and • our ability to build our cash reserves through operations, vessel sales and capital market products. Below please see data regarding our fleet for the years ended December 31, 2025, 2024 and 2023, which we use in analyzing our performance. Fleet Data 2025 2024 2023 Average number of vessels 61.8 61.8 59.5 Number of vessels (at end of period) 62.0 62.0 60.0 Average age of fleet (in years) (1) 10.1 10.2 10.7 Earnings capacity days (2) 22,554 22,625 21,713 Off-hire days (3) 777 1,701 810 Net earnings days (4) 21,777 20,924 20,903 Percentage utilization (5) 96.6% 92,5% 96.3% Average TCE per vessel per day (6) $ 32,130 $ 32,550 $ $ 36,822 Vessel operating expenses per ship per day (7) $ 9,990 $ 9,350 $ $ 9,617 Vessel overhead burden per ship per day (8) $ 1,866 $ 2,005 $ $ 1,535 (1) The average age of our fleet is the age of each vessel in each year from its delivery from the builder or the seller, weighted by the vessel's deadweight tonnage ("dwt") in proportion to the total dwt of the fleet for each respective year. (2) Earnings capacity days are the total number of days in a given period that we own or control vessels. (3) Off-hire days are days related to repairs, dry-dockings and special surveys, vessel upgrades, initial positioning after delivery of new vessels and vessel repositioning up to the fixing date of employment. (4) Net earnings days are the total number of days in any given period that we own vessels less the total number of off-hire days for that period. (5) Percentage utilization represents the percentage of earnings capacity days that the vessels were actually employed, i.e., net earnings days as a percentage of earnings capacity days. (6) The shipping industry uses time charter equivalent, or TCE, to calculate revenues per vessel in dollars per day for vessels on voyage charters. The industry does this because it does not commonly express charter rates for vessels on voyage charters in dollars per day. TCE allows vessel operators to compare the revenues of vessels that are on voyage charters with those on time charters. TCE is a non-GAAP measure. For vessels on voyage charters, we calculate TCE by taking revenues earned on the voyage and deducting voyage expenses (bunker fuel, port expenses, canal dues, charter commissions) and dividing by the actual number of voyage days. For the year ended December 31, 2025, and 2024, TCE is calculated by taking voyage revenue less voyage costs divided by the number of revenue days less 267 days and 468 days, respectively, lost as a result of calculating revenue on a loading to discharge basis. For vessels on bareboat charter, for which we do not incur either voyage or operation costs, we calculate TCE by taking revenues earned on the charter and adding a representative amount for vessel operating expenses. TCE differs from average daily revenue earned in that TCE is based on revenues after voyage expenses and does not take into account off-hire days. (7) Vessel operating expenses per ship per day represents vessel operating expenses divided by the earnings capacity days of vessels incurring operating expenses. Earnings capacity days of vessels on bareboat charters have been excluded. (8) Vessel overhead burden per ship per day is the total of management fees, management incentive awards, stock compensation expense and general and administrative expenses divided by the total number of earnings capacity days. Derivation of time charter equivalent per day (amounts in thousands of U.S. dollars except for days and per day amounts): 2025 2024 2023 Voyage revenues $ 798,689 $ 804,061 $ 889,566 Less: Voyage expenses (122,184) (152,875) (155,724) Add: Representative operating expenses for bareboat charter ($10,000 daily) 14,600 14,640 14,600 Time charter equivalent revenues 691,105 665,826 748,442 Net earnings days 21,510 20,456 20,326 Average TCE per vessel per day $ 32,130 $ 32,550 $ 36,822 U.S./Israel-Iran and Russian-Ukraine Conflicts The ongoing war between the U.S. and Israel and Iran and the war in Ukraine has each had a significant direct and indirect impact on the trade of crude oil and refined petroleum products. The conflict in Ukraine has resulted in the United States, United Kingdom, and the European Union, among other countries, implementing sanctions and executive orders against individuals, entities, and activities connected to Russia. Some of these sanctions and executive orders target the Russian oil sector, including a prohibition on the import of oil from Russia to the United States or the United Kingdom, and the European Union's recent ban on Russian crude oil and petroleum products which took effect in December 2022 and February 2023, respectively. The carriage of Russian crude oil and refined petroleum products to non-EU, US or UK destinations is still permitted by the current sanctions and other restrictions subject to compliance with Price Cap Framework rules. Russia's invasion of Ukraine also led to a disruption in supply chains for crude oil and refined petroleum products, changing volumes and trade routes, thus increasing ton-mile demand for the seaborne transportation of refined petroleum products, which resulted in a prolonged spike in freight rates. Boycotts by Western oil majors and many ship owners resulted in lower product flows from Russia to Europe, while high arbitrage spreads incentivized Middle Eastern and U.S. diesel flows to Europe, increasing ton-mile demand for vessels. The U.S., EU nations and other countries could impose wider sanctions and take other actions. Further sanctions imposed or actions taken by the U.S., EU nations or other countries, and retaliatory measures by Russia in response, could lead to increased volatility in global oil demand, which could have a material impact on our business, results of operations and financial condition. In March 2026, the outbreak of war in the Middle East between Iran and the U.S. and Israel, including strikes by Iran on energy infrastructure in a number of other Middle Eastern countries, and related disruption of shipping in the Persian Gulf and the effective closure of the Strait of Hormuz, has resulted in a sharp increase in oil prices and concerns that the supply of crude oil, petroleum products and LNG may be significantly constrained for some period of time. The resulting volatility in the market for crude oil, petroleum products and LNG and in the tanker and LNG carrier charter markets, could result in lower tanker and LNG carrier charter rates and adversely affect our business. In addition, it is possible that third-parties with which we do business may be impacted by events in the Middle East or in Russia and Ukraine, which could adversely affect us. Impact of Inflation and Interest Rates Inflation has increased significantly on a worldwide basis since mid-2021, with many countries facing their highest inflation rates in decades and could adversely affect our business and financial results. Inflation has had a moderate impact on operating expenses, dry-docking expenses, with main engine overhauls and higher costs for routine repairs and maintenance increasing costs of maintenance, and corporate overhead in 2023, 2024 and 2025. Interest rates have increased rapidly and substantially as central banks in developed countries raise interest rates in an effort to subdue inflation. The eventual implications of tighter monetary policy, and higher long-term interest rates has and may continue to drive a higher cost of capital for our business. Chartering Strategy We typically charter our subsidiaries' vessels to third-parties on any of five basic types of charter. First are "voyage charters" or "spot voyages," under which a shipowner is paid freight on the basis of moving cargo from a loading port to a discharging port at a given rate per ton or other unit of cargo. Port charges, bunkers and other voyage expenses (in addition to normal vessel operating expenses) are the responsibility of the shipowner. Second are "time charters," under which a shipowner is paid hire on a per day basis for a given period. Normal vessel operating expenses, such as stores, spares, repair and maintenance, crew wages and insurance premiums, are incurred by the shipowner, while voyage expenses, including bunkers and port charges, are the responsibility of the charterer. The time charterer decides the destination and types of cargoes to be transported, subject to the terms of the charter. Time charters can be for periods of time ranging from one or two months to more than three years. The agreed hire may be for a fixed daily rate throughout the period or may be at a guaranteed minimum fixed daily rate plus a share of a determined daily rate above the minimum, based on a given variable charter index or on a decision by an independent brokers' panel for a defined period. Many of our charters have been renewed on this time charter with profit share basis over the past years. Time charters can also be "evergreen," which means that they automatically renew for successive terms unless the shipowner or the charterer gives notice to the other party to terminate the charter. Third are "bareboat charters" under which the shipowner is paid a fixed amount of hire for a given period. The charterer is responsible for substantially all the costs of operating the vessel including voyage expenses, vessel operating expenses, dry-docking costs and technical and commercial management. Longer-term time charters and bareboat charters are sometimes known as "period charters." Fourth are "contracts of affreightment" which are contracts for multiple employments that provide for periodic market related adjustments, sometimes within prescribed ranges, to the charter rates. Fifth are "pools". Where one or more of our subsidiaries' vessel may also operate within a pool of similar vessels for part of the year whereby all income (less voyage expenses) is earned on a market basis and shared between pool participants on the basis of a formula which takes into account the vessel's age, size and technical features. During 2025 and 2024, two of our subsidiaries had vessels operating in a pool. During 2023, no subsidiaries had vessels operating in a pool. Our chartering strategy continues to be one of fixing the greater portion of our fleet on medium to long-term employment to secure a stable income flow, but one which also ensures a satisfactory return. This strategy has enabled us to smooth the effects of the cyclical nature of the tanker industry, achieving almost optimal utilization of the fleet. In order to capitalize on possible upturns in rates, we have chartered out several of our vessels at a fixed minimum rate plus an extra agreed percentage of an amount based on market spot or time-charter rates ("profit-share"). Our Board of Directors, through its Business Development and Capital Markets Committee, formulates our chartering strategy and our commercial manager Tsakos Energy Management implements this strategy through the Chartering Department of TST, which evaluates the opportunities for each type of vessel, taking into consideration the strategic preference for medium and long-term charters and ensure optimal positioning to take account of redelivery opportunities at advantageous rates. The cooperation with TST, which provides the fleet with chartering services, enables us to take advantage of the long-established relationships TST has built with many of the world's major oil companies and refiners over 50 years of existence and high quality commercial and technical service. Critical Accounting Estimates The consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles. Significant accounting policies are described in Note 1 of the consolidated financial statements included elsewhere in this annual report. The application of such policies may require management to make estimates and assumptions. We believe that the following are the more critical accounting estimates used in the preparation of our consolidated financial statements that involve a higher degree of judgment and could have a significant impact on our future consolidated results of operations and financial position: Impairment. The carrying value of the Company's vessels includes the original cost of the vessels plus capitalized expenses since acquisition relating to improvements and upgrading of the vessel, less accumulated depreciation. Carrying value also includes the unamortized portion of deferred special survey and dry-docking costs. The carrying value of vessels usually differs from the fair market value applicable to any vessel, as market values fluctuate continuously depending on the market supply and demand conditions for vessels, as determined primarily by prevailing freight rates and newbuilding costs. The Company reviews and tests all vessels and vessels under construction for impairment when indications of impairment are present and at any time that specific vessels may be affected by events or changes in circumstances indicating that the carrying amount of the vessel including any unamortized dry-docking costs may not be recoverable, such as during severe disruptions in global economic and market conditions, and unexpected changes in employment, in accordance with ASC 360 "Property, Plant and Equipment". A vessel to be held and used is tested for recoverability by comparing the estimate of future undiscounted net operating cash flows expected to be generated by the use of the vessel over its remaining useful life and its eventual disposition to its carrying amount including any unamortized dry-docking costs. The average age of our vessels is approximately 10.3 years as of March 30, 2026. The average remaining operational life is, therefore, 14.7 years, excluding the LNG carriers. Given the extensive remaining lives, we do not believe that there is a significant risk of not generating future undiscounted net operating cash flows in excess of carrying values including any unamortized dry-docking costs, however, as indicated above, circumstances may change at any time which would oblige us to reconsider the extent of risk of impairment. Future undiscounted net operating cash flows are determined by applying various assumptions regarding future revenues net of commissions, operating expenses, scheduled dry-dockings and expected off-hire and scrap values. Our projections for charter revenues are based on existing charter agreements for the fixed fleet days and an estimated daily average hire rate per vessel category for the unfixed days based on the most recent ten-year historical averages publicly provided by major brokers, which, given the wide spread of annual rates between the peaks and troughs over the decade, we believe provides as fair as any other assumption that could be used in determining a rate for a long-term forecast. In addition, we apply a 2.0% annual escalation in rates to take account of published long-term growth and inflation expectations in the developed world. Future operating costs are based on the 2025 average per individual vessel and vessel type to which we also apply a 2.8% escalation. Residual or scrap value is based on the same scrap price used for depreciation purposes as described above. All such estimations are inevitably subjective. In addition, the Company performs sensitivity analyses on the key parameters of the exercise by making use of publicly available market forecasts. Actual freight rates, industry costs and scrap prices may be volatile. As a consequence, estimations may differ considerably from actual results. Where a vessel is deemed to be a risk, we also take into account the age, condition, specifications, marketability and likely trading pattern of each such vessel, and apply various possible scenarios for employment of the vessel during its remaining life. We prepare cash flows for each scenario and apply a percentage possibility to each scenario to calculate a weighted average expected cash flow for the vessel for assessing whether an impairment charge is required. The estimations also take into account regulations regarding the permissible trading of tankers depending on their structure and age. While management, therefore, is of the opinion that the assumptions it has used in assessing whether there are grounds for impairment are justifiable and reasonable, the possibility remains that conditions in future periods may vary significantly from current assumptions, which may result in a material impairment loss. If current economic conditions stall, worsen or if the upward trend in oil prices continues rise for an extended period, oil demand could be negatively impacted over an extended period of time. This would exacerbate the consequences of overcapacity in the tanker sector. In such circumstances, the possibility will increase that both the market value of the older vessels of our fleet and the future cash flow they are likely to earn over their remaining lives will be less than their carrying value and an impairment loss will occur. Should the carrying value of the vessel, including any unamortized dry-docking costs exceed its future undiscounted cash flows, impairment is measured based on the excess of the carrying amount over the fair value of the asset. The fair values are determined based principally on or by corroborated observable market data. Inputs considered by management in determining the fair value include independent brokers' valuations. In cases where sale and purchase activity in the market does not exist or is limited, the Company uses future discounted net operating cash flows or a combination of future discounted net operating cash flows and third-party valuations to estimate the fair value of an impaired vessel, respectively. As vessel values are also volatile, the actual market value of a vessel may differ significantly from estimated values within a short period of time. The Company would not record an impairment charge for any of the vessels for which the fair market value is below its carrying value including any unamortized dry-docking costs unless and until the Company either determines to sell the vessel for a loss or determines that the vessel's carrying amount including any unamortized dry-docking costs is not recoverable. For the impairment of right-of-use assets under operating leases, we compare the carrying amount including any leasehold improvements, with the estimated future undiscounted net operating cash flows expected to be generated by the use of the vessels, considering one-year charter rates estimates for the unfixed days and the average of those, over the remaining lease term, under ASC 360 "Property, Plant and Equipment". As noted above, for vessels and vessels under construction, we determine projected cash flows for unfixed days using an estimated daily time charter rate based on the most recent ten-year historical average rates, inflated annually by a 2.0% growth rate. We consider this approach to be reasonable and appropriate. However, charter rates are subject to change based on a variety of factors that we cannot control and we note that charter rates over the last few years have been, on average, above their historical ten year average. If as at December 31, 2025 and 2024, we were to utilize an estimated daily time charter equivalent for our vessels' unfixed days based on the most recent five year, three year or one year historical average rates for one-year time charters, the impairment results based on independent brokers' valuations would be the following: As of December 31, 2025 As of December 31, 2024 Number of Vessels Amount (U.S.$ millions)(*) Number of Vessels Amount (U.S.$ millions)(*) 5-year historical average rate 0 0 0 0 3-year historical average rate 0 0 0 0 1-year historical average rate 1 34.4 0 0 (*) Aggregate carrying value that would not have been recovered. Although we believe that the assumptions used to evaluate as well as measuring potential impairment are reasonable and appropriate, such assumptions are highly subjective. There can be no assurance as to how long charter rates and vessel values will remain at their current levels or whether they will again decline or improve by any significant degree. Charter rates declined to historically low levels during 2020 and 2021, before rebounding significantly in the first half of 2022. Throughout 2023 and into 2024, the Company benefited from favorable shifts in global trade flows, which supported strong charter markets and improved earnings. During 2025 and through the date of this annual report, market conditions have remained relatively firm, although with increased volatility driven by macroeconomic uncertainty, geopolitical tensions, and changes in energy and commodity demand patterns. Despite the generally positive market environment in recent years, ongoing geopolitical developments, including conflicts in Ukraine and the Middle East, as well as broader global economic pressures such as inflation, interest rate fluctuations, and potential slowdowns in key economies, may adversely impact the Company's revenue, profitability, and future assessments of vessel impairment. At December 31, 2025, the market value of the fleet owned by our subsidiary companies, as determined based on management estimates and assumptions and by making use of available market data and taking into consideration third-party valuations, was $4.0 billion, compared to a total carrying value of $3.2 billion. There were five vessels in our fleet, whose carrying value exceeded its market values. The future undiscounted net operating cash flows expected to be generated by these vessels in the fleet was comfortably in excess of its respective carrying value. As determined at December 31, 2025, the carrying value of these vessels was $280.9 million, and the market value of these vessels was $239.8 million. Respective vessels were: • LNG: Maria Energy • Panamax: Selecao, Socrates, World Harmony, Chantal In addition, at December 31, 2025, the Company reviewed and tested its three right-of-use assets under operating leases for impairment by comparing their carrying amount plus any unamortized leasehold improvements with the estimated future undiscounted net operating cash flows expected to be generated by the use of the vessel, which were comfortably in excess of their respective carrying value. At December 31, 2025, our review of the carrying amounts of the vessels, including advances for vessels under construction and right-of-use assets under operating leases, in connection with the estimated recoverable amount did not result in an impairment charge of their carrying values. Critical Accounting Policies Critical accounting policies are those that are both most important to the portrayal of the company's financial condition and results, and require management's most difficult, subjective, or complex judgments, often as a result of the need to make estimates about the effects of matters that are inherently uncertain. Together with critical accounting estimates above, we have also described below our critical accounting policies, because they potentially result in material different results under different assumptions and conditions. Significant accounting policies are described in Note 1 of the consolidated financial statements included elsewhere in this annual report. Accounting for Revenue . The Company's subsidiaries' vessels are employed under a variety of charter contracts, including voyage charters and contracts of affreightment, time charter, bareboat charter agreements (including profit sharing clauses) or pooling arrangements. Time and bareboat charter revenues are accounted as operating leases in accordance with ASC 842 (Company acts as lessor) and are recorded ratably over the term of the charter as the service is provided. Revenue under pooling arrangements is accounted for as a variable rate operating leases and is recognized for the applicable period, when the collectability is reasonably assured, based on the net revenue distributed by the pool. Revenues from profit sharing arrangements are recognized to the extent the variable amounts earned beyond an agreed fixed minimum hire at the reporting date and all other revenue recognition criteria are met. Revenues generated under voyage charter agreements and contracts of affreightment are recognized ratably from the date of loading (Notice of Readiness to the charterer, that the vessel is available for loading) to discharge of cargo (loading-to-discharge), in accordance with ASC 606. Basis of Presentation and General Information Voyage revenues. Revenues are generated from freight billings and time charters. Time and bareboat charter revenues are recorded over the term of the charter as the service is provided. Revenues from voyage charters on the spot market or under contracts of affreightment are recognized from the date of loading (Notice of Readiness to the charterer, that the vessel is available for loading) to discharge date of cargo (loading-to-discharge). The operating revenues of vessels operating under a tanker pool are pooled and are allocated to the pool participants on a time charter equivalent basis according to an agreed upon formula. Revenues from profit sharing arrangements are accounted for as a variable consideration and included in the transaction price to the extent that variable amounts earned beyond an agreed fixed minimum hire are determinable at the reporting date and when there is no uncertainty associated with the variable consideration. Profit sharing revenues are calculated at an agreed percentage of the excess of the charter's average daily income over an agreed amount. Voyage revenues include the value of the EUAs to be provided to the Company pursuant to the terms of its agreements with the charterers of its vessels. Unearned revenue represents cash received prior to the year-end for which related service has not been provided, primarily relating to charter hire paid in advance to be earned over the applicable charter period and to revenue resulting from charter agreements with varying rates. Time Charter Equivalent ("TCE") allows vessel operators to compare the revenues of vessels that are on voyage charters with those on time charters. For vessels on voyage charters, we calculate TCE by taking revenues earned on the voyage (on a loading to discharge basis) and deducting the voyage costs and dividing by the actual number of net earning days, which does not take into account off-hire days. For vessels on bareboat charters, for which we do not incur either voyage or operating costs, we calculate TCE by taking revenues earned on the charter and adding a representative amount for the vessels' operating expenses. TCE differs from average daily revenue earned in that TCE is based on revenues after commissions less voyage expenses and does not take into account off-hire days. Commissions. We pay commissions on all chartering arrangements to TST, as our broker, and to any other broker we employ. Each of these commissions generally amounts to around 1.25%, although there can be some limited variance, particularly for charters involving multiple brokers, of the daily charter hire or lump sum amount payable under the charter. In addition, on some trade routes, certain charterers may include in the charter agreement an address commission which is a payment due to the charterer, usually ranging from 1.25% to 3.75% of the daily charter hire or freight payable under the relevant charter. These commissions, as well as changes in prevailing charter rates, will cause our commission expenses to fluctuate from period to period. Commissions are expensed as incurred. Voyage expenses. Voyage expenses include all our costs, other than vessel operating expenses, that are related to a voyage, including charter commissions, port charges, canal dues and bunker fuel costs. Voyage expenses include t he value of the EUA obligations incurred by the Company under the EU Emissions Trading System . Voyage expenses that qualify as contract fulfillment costs and are incurred from the latter of the end of the previous vessel employment, provided that the vessel is fixed, or from the date of inception of a voyage charter contract until the arrival at the loading port, are capitalized and amortized ratably over the total transit time of the voyage (loading-to-discharge) when the relevant criteria under ASC 340-40 are met. Charter hire expense. We hire certain vessels from third-party owners or operators for a contracted period and rate in order to charter the vessels to our customers. These vessels may be hired when an appropriate market opportunity arises or as part of a sale and lease back transaction or on a short-term basis to cover the time-charter obligations of one of our vessels in dry dock. As of December 31, 2025, the Company had three vessels which were sold and chartered back to the Company for five years. Following adoption of ASC 842 and the package of practical expedients, the Company continues to account for these three transactions as operating leases, recognizing right-of-use asset and corresponding lease liability. Vessel operating expenses. These expenses consist primarily of manning, hull and machinery insurance, P&I and other vessel insurance, repairs and maintenance, spares, stores and lubricant costs. All vessel operating expenses are expensed as incurred. Depreciation and Amortization of deferred charges and leasehold improvements. We depreciate our vessels on a straight-line basis over their estimated useful lives, after considering their estimated scrap values. In assessing the useful lives of vessels, we have estimated them to be 25 years (40 years for the LNG carriers), which is in line with the industry wide accepted practice, assuming that all classification society rules have been adhered to concerning survey certification and statutory regulations are followed. Useful life is ultimately dependent on customer demand and if customers were to reject our vessels, either because of new regulations or internal specifications, then the useful life of the vessel will require revision. We amortize the costs of dry-docking and special surveys of each of our ships over the period up to the ship's next scheduled dry-docking (generally every 5 years for vessels aged up to 15 years and every 2.5 years thereafter). These charges are part of the normal costs we incur in connection with the operation of our fleet. We amortize the costs of leasehold improvement costs on a straight-line basis over the shorter of the useful life of those leasehold improvements and the remaining lease term, unless the lease transfers ownership of the underlying asset to us or it is reasonably certain that we will exercise an option to purchase the underlying asset, in which case we amortize the leasehold improvements to the end of their useful life. Impairment . An impairment for an asset held for use, for advances for vessels under construction and for right-of-use assets under operating leases should be recognized when indicators of impairment exist and when the estimate of undiscounted cash flows expected to be generated by the use of the asset is less than its carrying amount (the vessel's net book value plus any unamortized deferred dry-docking charges or leasehold improvements). Measurement of the impairment is based on the fair value of the asset as determined by reference to available market data and considering valuations provided by third-parties. In cases where sale and purchase activity in the market does not exist or is limited, the Company uses future discounted net operating cash flows or a combination of future discounted net operating cash flows and third-party valuations to estimate the fair value of an impaired vessel, respectively. An impairment for an asset held for sale is recognized when its fair value less cost to sell is lower than its carrying value at the date it meets the held for sale criteria and at subsequent measurement dates. In this respect, management reviews regularly the carrying amount of the vessels in connection with the estimated recoverable amount for each of the Company's vessels. As a result of such reviews, there was no impairment charge as of December 31, 2025 and as of December 31, 2024. General and administrative expenses. These expenses consist primarily of professional fees, office supplies, investor relations, advertising costs, directors' and officers' liability insurance, directors' fees, reimbursement of our directors' and officers' travel-related expenses and incentive awards and management fees. Management fees are the fixed fees we pay to Tsakos Energy Management under our management agreement with them. In 2025, monthly management fees, were $31.0 thousand for all conventional vessels, apart from the LNG carriers, the DP2 suezmax shuttle tankers, the third-party managed vessels, chartered-in vessels or chartered-out on a bare-boat basis, and for vessels under construction. Monthly fees for third-party managed vessels were $29.3 thousand for the suezmax tanker Decathlon , $31.0 thousand for the VLCCs Ulysses , Hercules I , $47.1 thousand for LNG carrier Maria Energy and $38.8 thousand for the LNG carrier Tenergy , $31.0 thousand for the aframax tanker Maria Princess , and $30.0 thousand for the aframax tanker Ise Princess (up to the sale on July 14, 2025), respectively. Monthly fees for VLCC Dias I amounted to $29.2 thousand. For the aframax tankers Alpes, Aspen , and the suezmax tanker Popi Sazaklis , monthly fees amounted to $28.7 thousand and $28.4 thousand for the dual-fuel LNG aframax tankers DF Montmartre and DF Mystras, respectively. For chartered-in vessels or chartered-out on a bare-boat basis and for vessels under construction, monthly fees were $21.7 thousand. For 2025 there were increases of $1.0 thousand for all conventional vessels, $1.2 thousand for DP2 suezmax shuttle tankers, $0.7 thousand for vessels under construction. For 2026 increases of about $4.7 million have been agreed, based on vessels as of December 31, 2025, including a $3.5 million one-off payment to correspond to a similar strengthening of the Euro against the U.S. dollar exchange rate in 2025 as per management agreement. The fees are recorded under "General and Administrative Expenses." Insurance claim proceeds. In the event of an incident involving one of our vessels, where the repair costs or loss of hire is insurable, we immediately initiate an insurance claim and account for such claim when it is determined that recovery of such costs or loss of hire is probable and collectability is reasonably assured within the terms of the relevant policy. Depending on the complexity of the claim, we would generally expect to receive the proceeds from claims within a twelve-month period. During the 2024 /25 policy year, we received approximately $21.1 million in net proceeds from hull and machinery and loss of hire claims arising from incidents where damage was incurred by four of our vessels in a previous policy year. Such settlements were generally received as credit-notes from our insurer, Argosy Insurance Company Limited, and set off against insurance premiums due to that company. Therefore, within the consolidated statements of cash flows, these proceeds are included in decreases in receivables and in decreases in accounts payable. There is no material impact on reported earnings arising from these settlements. (Gain) Loss on sale of vessels . (Gain) Loss on sale of vessels include (gain) loss from the sale of our vessels that occurred during the year. Interest and Finance Costs. We incur interest expense and finance costs in connection with our outstanding debt and other financing liabilities. We also incur loan costs for obtaining new loans or refinancing of existing loans, which are presented as a reduction from the outstanding debt and other financial liabilities and amortize them to interest and finance costs over the term of the respective loan, using the effective interest rate method. We expect to incur additional interest expense in future periods as we increase our level of borrowings to finance a portion of the purchase price of our contracted newbuildings and potentially future acquisitions and investments. To the extent prevailing interest rates increase, we expect this would further increase our interest expenses, as borrowings under our credit facilities are advanced at a floating rate based on SOFR. Interest Income. We earn interest income on our cash and cash equivalents, cash deposits and investments in the debt securities. Fair value of above/below market acquired time charters: If time charters are attached when vessels are acquired, we recognize any related asset or liability based on the market value of the assumed charters. The value of the acquired time charters is calculated by comparing the existing charter rate in the acquired time charter agreement with the market rates for a similar charter, with the same duration, on the acquisition date. Any intangible asset or liability is amortized over the remaining term of the charter. Financial Analysis (Percentage calculations are based on the actual amounts shown in the accompanying consolidated financial statements) Year ended December 31, 2025 versus year ended December 31, 2024 Voyage revenues Voyage revenues earned in 2025 and 2024 per charter category were as follows: 2025 2024 U.S. $ million % of total U.S. $ million % of total Time charter-bareboat 24.1 3% 25.1 3% Time charter-fixed rate 389.3 49% 350.1 44% Time charter-variable rate (profit share) 237.4 30% 208.1 26% Pool arrangement 11.2 1% 2.2 1% Voyage charter-contract of affreightment - - 7.1 1% Voyage charter-spot market 136.7 17% 211.5 25% Total voyage revenue 798.7 100 % 804.1 100 % Revenue from vessels amounted to $798.7 million for the year ended December 31, 2025, compared to $804.1 million for the year ended December 31, 2024, representing a decrease of $5.4 million, or 0.7%. The decrease is primarily attributable to lower average charter rates during 2025, reflecting a moderation in tanker market conditions compared to 2024, when market rates were supported by tight vessel availability and strong demand. The average number of operating vessels remained the same at 61.8 vessels in both 2025 and 2024. Fleet utilization improved during 2025, with employment increasing to 96.6%, compared to 92.5% in 2024, based on the proportion of operating days to total available days. The increase in utilization was primarily attributable to a lower number of dry-docking days, as ten vessels underwent dry-docking in 2025 compared to fifteen vessels in 2024. Voyage revenue was also impacted by the amortization of liabilities assumed in connection with time charters attached to vessel acquisitions, including the aframax tankers DF Montmartre, DF Mystras, Alpes and Aspen , and the suezmax tanker Popi Sazaklis. The amortization of these liabilities increased voyage revenue by $18.8 million in 2025, compared to $15.8 million in 2024. In addition, voyage revenue benefited from the expanded application of the European Union Emissions Trading System (EU ETS) to the maritime sector, which resulted in the recognition of European Union Allowances (EUAs) of $21.4 million in 2025, compared to $8.2 million in 2024. During 2025, the tanker market remained relatively healthy but more balanced compared to the exceptionally strong conditions experienced in 2024. Freight rates moderated during the year as vessel supply gradually normalized and global oil demand growth slowed, leading to lower spot market volatility across several tanker segments. Despite this moderation, market fundamentals remained supportive. Shifts in global trade flows resulting from sanctions on Russian oil, geopolitical tensions, and the increasing distance between crude supply and refining centers continued to support ton-mile demand. These factors contributed to longer voyage distances and helped maintain a constructive underlying environment for the tanker market. At the same time, limited fleet growth and an aging global tanker fleet, combined with continued regulatory uncertainty regarding future environmental propulsion technologies, have constrained newbuilding activity. As a result, tanker supply growth remained relatively modest, helping to support market fundamentals despite the normalization of freight rates. The average time charter equivalent ("TCE") rate per vessel was $32,130 per day in 2025, compared to $32,550 per day in 2024, representing a decrease of 1.3%. The decrease primarily reflects the overall moderation in tanker freight rates during 2025, which affected most vessel classes in the Company's fleet exposed to market-based charter rates. The Company's VLCC tankers were the only vessel category to record an increase in average earnings compared to the prior year. For the remaining vessel categories, average daily TCE rates were lower than in 2024, reflecting the broader normalization of tanker market conditions following the strong freight market observed in 2024. Average daily TCE rates earned for the years ended December 31, 2025 and 2024, were as follows: Year ended December 31, 2025 2024 U.S. $ U.S. $ LNG carrier 42,331 53,835 VLCC 42,650 34,728 Suezmax 32,967 32,300 DP2 suezmax shuttle 52,477 56,083 Aframax 29,765 30,093 Panamax 25,395 29,687 Handysize 16,731 18,020 TCE is calculated by taking voyage revenues less voyage costs divided by the number of revenue days less 267 days lost as a result of calculating revenue on a loading to discharge basis for the year ended December 31, 2025, compared to 468 days lost for the year ended December 31, 2024. In the case of a bare-boat charter, we add an estimate of operating expenses of $10,000 per day in order to render the bare-boat charter comparable to a time-charter. Time charter equivalent revenue and TCE rate are not measures of financial performance under U.S. GAAP and may not be comparable to similarly titled measures of other companies. However, TCE is a standard shipping industry performance measure used primarily to compare period-to-period changes in shipping performance despite changes in the mix of charter types (i.e. spot voyage charters, time charters and bare-boat charters) under which the vessels may be employed between the periods. The following table reflects the calculation of our TCE rates for the periods presented (amount in thousands of U.S. dollars, except for TCE rate, which is expressed in U.S. dollars, and operating days): Year ended December 31, 2025 2024 Voyage revenues $ 798,689 $ 804,061 Less: Voyage expenses (122,184) (152,875) Add: Representative operating expenses for Bareboat charter ($10,000 daily) 14,600 14,640 Time charter equivalent revenues $ 691,105 $ 665,826 Divided by: net earnings (operating) days 21,510 20,456 Average TCE per vessel per day $ 32,130 $ 32,550 Voyage expenses Total voyage expenses per category Average daily voyage expenses per relevant vessel Year ended December 31, Year ended December 31, 2025 2024 % increase/ (decrease) 2025 2024 % increase/ (decrease) U.S.$ million U.S.$ million U.S.$ U.S.$ Bunkering expenses 48.7 81.0 (39.8)% 20,368 21,859 (6.8)% Port and other expenses 20.5 31.9 (35.9)% 8,553 8,592 (0.4)% European Union Allowances (EUAs) 28.3 13.0 117.1% 11,828 3,518 236.2% Commissions 24.7 27.0 (8.5)% 10,331 7,293 41.7% Total voyage expenses 122.2 152.9 (20.1)% 51,080 41,262 23.8% Days on spot and Contract of Affreightment (COA)employment 2,392 3,705 35.4% Voyage expenses include port charges, agents' fees, canal dues, commissions, European union allowances (EUAs) and bunker (fuel) costs relating to spot charters or contracts of affreightment (COAs). These voyage expenses are borne by the Company unless the vessel is on time charter or bareboat charter, in which case they are borne by the charterer. Commissions are borne by the Company for all types of charters. Voyage expenses were $122.2 million during 2025 compared to $152.9 million in 2024, a 20.1% decrease, primarily due to lower bunkering expenses and reduced port related expenses, reflecting fewer vessels operating under spot and COAs. Voyage expenses are highly dependent on the voyage patterns followed and size of vessels employed on spot charter or COA. Bunkering purchases typically constitute the largest part of voyage expenses and therefore the usual volatility and price swings of crude oil in any given time of the year affect bunker prices and consequently voyage expenses. In addition, European Union Allowances (EUAs), traded under the European Union Emissions Trading System (EU ETS), directly impact voyage expenses by adding a carbon cost to fuel consumption. Bunkering expenses decreased by 39.8% in 2025 compared to 2024. This decline was primarily attributable to lower oil prices during 2025, which resulted in an approximately 7.5% decrease in the average delivered price paid by the Company for bunkers procured globally during 2025. The decrease in bunker expenses was partially offset by the impact of EUAs, which amounted to $28.3 million for the year ended December 31, 2025, compared to $13.0 million in 2024, representing an increase of 117.1%. The average daily EUA expense increased from $3,518 to $11,828, reflecting the increase in the percentage of emissions subject to the EU ETS from 40% in 2024 to 70%, in 2025. The average daily bunker expenses per relevant vessel decreased by 6.8% while total bunker expenses declined by 39.8%, primarily due to a 35.4% decrease in the number of days on spot charters and COAs. This decrease resulted from a reduction in the number of vessels trading under spot and COA arrangements, which declined from ten in the prior year to approximately seven vessels during the period of 2025. Port and other voyage-related expenses decreased to $20.5 million in 2025 from $31.9 million in 2024, representing a decrease of $11.4 million, or 35.9%, primarily due to a lower number of port calls during the year. Commissions totaled $24.7 million in 2025, compared to $27.0 million in 2024, representing a decrease of 8.5% . As commissions are highly correlated with revenue patterns, the decrease in commissions is attributed to the overall decrease of revenue. Commissions represented 3.1% and 3.4%, respectively, of revenue from vessels in 2025 and 2024. Vessel operating expenses Operating expenses per category Year ended December 31, Average daily operating expenses per relevant vessel Year ended December 31, 2025 2024 % increase/ (decrease) 2025 2024 % increase/ (decrease) U.S.$ million U.S.$ million U.S.$ U.S.$ Crew expenses 109.3 106.0 3.2% 5,185 5,008 3.5% Insurances 26.4 23.1 14.2 % 1,253 1,087 15.2% Repairs and maintenance, and spares 35.9 32.9 8.9% 1,701 1,557 9.3% Stores 13.0 11.9 9.3% 616 562 9.7% Lubricants 8.9 9.1 (1.9)% 421 428 (1.6)% Other (quality and safety, taxes, registration fees, communications and legal) 16.6 15.4 7.0% 777 723 4.6% Foreign currency (gains)/ losses 0.9 (0.3) (354.1)% 37 (15) (354.9)% Total operating expenses 211.0 198.0 6.5% 9,990 9,350 6.8% Earnings capacity days excluding vessels on bare-boat charter 21,094 21,161 Vessel operating expenses include crew costs, insurances, repairs and maintenance, spares, stores, lubricants, quality and safety costs and other expenses such as tonnage tax, registration fees and communication costs, as well as foreign currency gains and losses. Total operating costs were $211.0 million in 2025, compared to $198.0 million during 2024, an increase of 6.5%. The increase is mainly attributable to a rise of $3.3 million in insurance expenses following fleet renewal activities, whereby higher-value vessels joined the fleet, replacing older vessels with lower insured values and associated premiums. Furthermore, the overall increase is also attributed to higher stores procurement toward the end of the year and the increased spares supply along with repairs and maintenance expenses for routine repairs and main engine overhauls during 2025. In addition, the corresponding increase was counterbalanced by a 1.9% decrease in lubricants, attributable to the decreased crude oil prices compared to the equivalent period in 2024, while quality and safety, communication, and legal expenses increased by 6.8%, due to increased legal expenses. Average daily operating expenses increased by $640 or 6.8%, to $9,990 in 2025 from $9,350 in the corresponding period of 2024, mainly attributable to higher insurance costs, repairs and maintenance, and spares expenses, while the U.S. dollar remained strong compared to the prior-year levels. Charter hire expense Charter hire expense amounted to $13.6 million in 2025 compared to $18.0 million in 2024, a decrease of $4.4 million, or 24.6%. The decrease being due to the reduced number of vessels being chartered-in compared to the prior year. Depreciation and Amortization Depreciation and amortization charges totaled $170.1 million in 2025 compared to $159.9 million in 2024, a 6.3% increase. Depreciation amounted to $148.3 million in 2025 compared to $138.4 million in 2024, an increase of $9.9 million, or 7.2%. The increase being due to the acquisition of the suezmax tankers Dr Irene Tsakos and Silia T , and the DP2 suezmax shuttle tankers Athens 04 and Paris 24, which was counterbalanced by the sale of the suezmax tanker, Pentathlon, the aframax tanker Ise Princess and the handysize tankers Aegeas and Andromeda . The costs of dry docking of each ship are amortized over the period up to the next scheduled dry docking. During 2025, amortization of deferred dry-docking costs was $20.7 million compared to $17.3 million in 2024, an increase of 19.7%. The increase is attributed to the increased number of vessels that underwent their special survey in the fourth quarter of 2024 which contributed to the increased amortization cost in 2025. The costs of leasehold improvements is amortized on a straight-line basis over the remaining lease term (representing the shorter of the useful life of the leasehold improvement and the remaining lease term). In 2025, amortization of leasehold improvements amounted to $1.1 million compared to $2.8 million in 2024, a decrease of $1.7 million, or 61.6%, due to the repurchase of the two suezmax tankers Archangel and Alaska previously classified as operating leases up to May 31, 2024 and then was classified as finance leases up to July 19 and August 22, 2024, respectively, when the vessels were purchased back by the Company. The amortization of the right-of-use assets under finance lease amounted to $nil million in 2025 compared to $1.4 million in 2024, as vessels Archangel and Alaska previously classified as finance leases up to July 19 and August 22, 2024, respectively , were both purchased back. General and administrative expenses General and administrative expenses include management fees, administrative expenses, management incentive awards and stock compensation expenses. General and administrative expenses (G&A expenses) decreased to $42.1 million in the year ended December 31, 2025, compared to $45.4 million in the prior year, a decrease of $3.3 million, or 7.3%. Total general and administrative expenses plus management fees paid to Tsakos Energy Management, any management incentive award, any special awards (described below) and stock compensation expense, all together represent the overhead of the Company. On a per vessel basis, daily overhead costs decreased by $139, from $2,005 in 2024 to $1,866 in 2025. Management fees, including those paid to third-party managers, totaled $23.3 million in 2025, compared to $22.8 million in 2024, a 2.2% increase reflecting the increase of management fees on January 1, 2025, from the prior year period. The Company pays Tsakos Energy Management fixed fees per vessel under a management agreement. The fee includes remuneration for services that cover both the management of the individual vessels and of the enterprise as a whole. According to the management agreement, there may be an adjustment to the fees based on certain criteria within the agreement, if both parties agree. Office general and administrative expenses consist primarily of professional fees, investor relations, office supplies, advertising costs, directors' liability insurance, directors' fees and reimbursement of our directors' and officers' travel-related expenses. G&A expenses amounted to $8.7 million during the year ended December 31, 2025, compared to $7.5 million during 2024, a 17.0% increase. All vessels in the fleet are technically managed by Tsakos Shipping and Trading, apart from the LNG carriers Maria Energy, Tenergy , the VLCCs Ulysses , Hercules I , Dias I , the suezmax tankers Decathlon, Popi Sazaklis , the aframax tankers Maria Princess, Ise Princess (up to the sale July 14, 2025), DF Montmartre, DF Mystras , Alpes and Aspen , which have been managed by third-party managers. Vessel monthly fees payable to the management company for owned conventional operating vessels amounted to $31,000, for chartered-in vessels or chartered-out on a bareboat basis and for vessels under construction monthly fees were $21,700, for the DP2 suezmax shuttle tankers were $37,200. Monthly fees incurred increases of $1,000 for all conventional vessels, $1,200 for DP2 suezmax shuttle tankers, $700 for vessels under construction in 2025 compared to 2024. Monthly fees for third-party managed vessels increased to $29,256 from $28,756 for the suezmax tanker Decathlon , the VLCCs Ulysses , Hercules I from $30,149 to $31,031, for the LNG carrier Maria Energy increased to $47,068 from $45,858 and the LNG carrier Tenergy to $38,833 from $37,500, for the aframax tanker Maria Princess from $30,149 to $31,031, and from $29,256 to $30,017 for the aframax tanker Ise Princess (up to the sale July 14, 2025), respectively. Monthly fees for VLCC Dias I increased to $29,208 from $28,708. For the aframax tankers Alpes, Aspen , and the suezmax tanker Popi Sazaklis , monthly fees amounted to $28,750 from $29,280 and $28,375 from $28,708 for the dual fuel LNG aframax tankers DF Montmartre and DF Mystras, respectively. In 2025, the Company's Board of Directors approved an award to the management company based on various performance criteria and taking into account cash availability and market conditions amounting to $3.0 million. The corresponding award for the year ended December 31, 2024 amounted to $7.0 million. The Company has one equity incentive plan, the Tsakos Energy Navigation Limited 2024 Equity Incentive Plan (the "2024 Plan"), which was approved by the Board. On July 24, 2024, 625,000 restricted common shares were granted under the "2024 Plan" to Company directors, officers as well as other employees and persons who provide services to the Company and its subsidiaries and employees of any management company. The restricted shares are scheduled to vest upon satisfaction of the time-based and performance-based conditions. The time-based condition will be satisfied so long as the participant continues to have a service relationship with the Company or its subsidiaries or any management company on the applicable vesting dates. The performance-based condition will be satisfied upon determination by the Company that the fleet utilization as defined in the awards, equals or exceeds 85% for the period from January 1, 2024 through the end of the last complete fiscal quarter preceding each vesting date. The vesting schedule is as follows: 25% of the shares granted to each recipient on January 1, 2025, 25% to vest on July 1, 2025, 25% to vest on January 1, 2026, and 25% to vest on July 1, 2026. Total compensation expense for 2025 amounted to $7.1 million, compared to $8.1 million for 2024. As of December 31, 2025, the amount of $1.0 million of stock-based compensation expense is expected to be recognized ratably over the remaining vesting period of these restricted share awards. (Gain) Loss on sale of vessels In 2025, the Company sold its suezmax tanker Pentathlon , the aframax tanker Ise Princess and the handysize tankers Aegeas and Andromeda , for net proceeds of $99.1 million, incurring gain on sales of $12.5 million. In 2024, the Company sold its suezmax tankers Eurochampion 2004, Euronike, the aframax tankers Izumo Princess and Nippon Princess and its LNG carrier Neo Energy , for net proceeds of $228.4 million, incurring net gain on sales of $48.7 million. Impairment charges As of December 31, 2025, vessel market values had increased compared to the prior year. Accordingly, for 54 vessels, the carrying amounts were lower than their respective estimated market values. The Company's fleet is relatively young, with an average age of 10.1 years. Management expects that each vessel will generate cash flows in excess of its carrying amount over its remaining useful life. This assessment is supported by the determination of estimated recoverable amounts, taking into consideration both value-in-use calculations and the probability of sale for each vessel, including vessels under construction, as of December 31, 2025. The Company performed impairment assessments on a vessel-by-vessel basis where impairment indicators were identified. These assessments, based on undiscounted cash flow analyses, did not indicate that the carrying amount of any operating vessel or vessel under construction exceeded its recoverable amount as of December 31, 2025. Accordingly, no impairment charge was recognized. In 2024, there was no impairment charge. In addition, the Company reviews and tests its right-of-use assets for impairment. The review of the carrying amounts in connection with the estimated recoverable amount for the Company's right of use assets as of December 31, 2025, and December 31, 2024, indicated no impairment charge. Operating income For 2025, income from vessel operations was $252.3 million compared to $278.6 million in 2024, a decrease of $26.2 million, or 9.4%. The decrease being mainly attributed to the gain on sale of vessels being reduced by $36.2 million in 2025 compared to 2024. Interest and finance costs, net 2025 2024 U.S.$ million U.S.$ million Loans interest expense 107.4 121.8 Interest expense on the lease liability - 0.6 Interest rate swap cash settlements (0.5) (0.8) Less: Interest capitalized (12.9) (8.3) Interest expense, net 94.0 113.3 Change in fair value of non-hedging interest rate swap 0.5 (0.1) Amortization of deferred gain on termination of financial instruments (1.2) (3.6) Bunkers and other commodities non-hedging instruments cash settlements (0.2) (1.4) Change in fair value of bunker and other commodities non-hedging instruments 1.3 0.2 Amortization of loan expenses 3.3 3.6 Bank loan charges 0.1 0.1 Net total 97.8 112.1 Interest and finance costs, net, were $97.8 million for 2025 compared to $112.1 million for 2024, a 12.8% decrease. Loan interest expense decreased to $107.3 million in 2025 from $121.8 million in 2024, a 11.9% change mainly due to lower weighted-average interest rates during the period of 2025 compared to the respective prior year period. During 2024, the suezmax tankers Archangel and Alaska were classified as finance leases from May 31, 2024, until July 19, 2024, and August 22, 2024, respectively, where both vessels were repurchased. Interest expense on the lease liability was $0.6 million in 2024 and $nil million in 2025. Cash receipts on non-hedging interest rate swaps, based on the difference between fixed payments and variable six and three-month SOFR amounted to $0.5 million in 2025 compared to $0.8 million in 2024 due to the number of effective swaps between the two periods. Capitalized interest, which is based on interest expenditures incurred to date on vessels under construction, was $12.9 million in 2025 compared to $8.3 million in 2024, as the under-construction vessels increased from twelve in 2024 to twenty-three in 2025. As at December 31, 2025, the Company held five non-hedging floating-to-fixed interest rate swaps compared to one non-hedging floating-to-fixed interest rate swap as at December 31, 2024. The changes in fair value amounting to $0.5 million (negative) and $0.1 million (positive) during 2025 and 2024, respectively, have been included in the change in fair value of non-hedging interest rate swap in the table above. In 2022, the Company discontinued ten interest rate swap agreements. For seven out of the ten interest rate swaps that were terminated in 2022, the Company considered the forecasted transactions as still probable and cash receipts of the specific terminations were recognized in the Company's accumulated other comprehensive income and are amortized until the expiry date of each interest rate swap. The amount of $1.2 million (positive) and $3.6 million (positive) was amortized in the period ended December 31, 2025, and 2024, respectively, and has been included in amortization of deferred gain on termination of financial instruments in the table above. As at December 31, 2025, the Company held six bunker swap agreements and one EUAs swap agreement, in order to hedge its exposure to bunker price fluctuations associated with the consumption of bunkers by its vessels and the EU Allowances exposure, respectively, compared to five bunker swap agreements and three EUAs swap agreements as at December 31, 2024. The fair value of bunker swap agreements and EUAs emission swap agreements at December 31, 2025 and 2024, was $0.9 million (negative) and $0.3 million (positive), respectively. The change in the fair values for the years ended December 31, 2025 and 2024 was $1.3 million (negative) and $0.2 million (negative), respectively and have been included in Change in fair value of bunker and other commodities non-hedging instruments in the table above. For the years ended December 31, 2025, and 2024, the total net cash receipts for those agreements amounted to $0.2 million and $1.4 million, respectively. Amortization of loan expenses was $3.3 million in 2025 and $3.6 million in 2024, mainly due to less debt extinguishments. Other bank charges amounted to $0.1 million for the period of 2025 and 2024. Interest income Interest income in 2025 amounted to $10.5 million compared to $15.1 million in 2024. The decrease is due to lower interest rates and cash reserves. Non-controlling interest There is a non-controlling interest of 49% in the subsidiary Mare Success S.A., which owns 100% of each of the companies that own the panamax vessels Selini and Salamina and the handysize vessels, Byzantion and Bosporos. For the year ended December 31, 2025, and 2024, the net income attributable to the non-controlling interest of Mare Success S.A. was $4.0 million and $5.4 million, respectively. Net income attributable to Tsakos Energy Navigation Limited As a result of the foregoing, the net income attributable to Tsakos Energy Navigation Limited for 2025 was $160.9 million, or an income of $4.45 per share basic and diluted, after taking into account the cumulative dividends of $27.0 million, on our preferred shares for 2025, and $1.6 million undistributed and distributed income to non-vested restricted common stock compared to net income of $176.2 million, or an income of $5.03 per share basic and diluted, after taking into account the cumulative dividends of $27.0 million. on our preferred shares for 2024 and $1.0 million undistributed and distributed income to non-vested restricted common stock. Year Ended December 31, 2024 Compared to Year Ended December 31, 2023 For a discussion of our results for the year ended December 31, 2024, compared to the year ended December 31, 2023, please see "Item 5. Operating and Financial Review and Prospects- Financial Analysis-Year Ended December 31, 2024, Versus Year Ended December 31, 2023" contained in our annual report on Form 20-F for the year ended December 31, 2024, filed with the SEC on April 11, 2025. Liquidity and Capital Resources Our liquidity requirements relate to servicing our debt, funding the equity portion of investments in vessels, funding working capital and controlling fluctuations in cash flows. In addition, our newbuilding commitments, vessel acquisitions, other expected capital expenditures on dry-dockings and vessel improvements, which in total equaled $536.5 million in 2025 and $674.8 million in 2024, will again require us to expend a significant amount of cash in 2026. We are also obligated to make certain payments to our manager under our management agreement. See "Long-Term Contractual Obligations" below. Net cash flow generated by operations is our main source of liquidity. Apart from the possibility of raising further funds through the capital markets, additional sources of cash include proceeds from asset sales and borrowings, although all borrowing arrangements to date are related to the acquisition and construction of specific vessels. If market conditions worsen significantly, then our cash resources may decline to a level that may put at risk our ability to service timely our debt and capital expenditure commitments. To avoid such an eventuality, management would expect to be able to raise extra capital through the alternative sources described above. Non-restricted cash balances were $293.3 million as of December 31, 2025, compared to $343.4 million as of December 31, 2024. At December 31, 2025, the Company's working capital (excluding restricted cash and deferred loan costs) was $31.3 million (negative), compared to $35.3 million (positive) as of December 31, 2024. The decrease was primarily attributable to the reclassification of certain loan facilities from non-current to current liabilities due to their contractual maturity, as these facilities had not been refinanced as of the date of this report. Current assets decreased to $434.6 million as of December 31, 2025 from $451.8 million as of December 31, 2024, representing a decrease of $17.2 million. The decrease was primarily attributable to a $50.1 million reduction in cash and cash equivalents, a $16.8 million decrease in advances and other receivables, mainly reflecting the collection of insurance claims over the year, and a $6.4 million reduction in inventories, primarily due to fewer vessels trading in the spot market compared to the prior year ended December 31, 2024, counterbalanced by an investment in debt securities by $30.6 million, an increase of trade receivables by $14.6 million mainly relating to European Union Allowances (EUAs) recoverable from charterers, and an increase of $8.4 million in seller's credits receivable in connection with the sale and leaseback transactions of the vessels, Arctic, Antarctic and Sakura Princess becoming due within a year . Current liabilities increased to $458.0 million at December 31, 2025, from $408.5 million at December 31, 2024, an increase of $49.5 million, attributed mainly to increased short term debt obligations due to debt approaching maturity amounting to $114.6 million, boosted by an increase of $15.1 million in dividends declared and accrued liabilities of EUAs amounting to $28.5 million in 2025, compared to $12.9 million in prior year period, counterbalanced by $20.1 million decrease in unearned revenue due to timing of hire collections and a decrease of $13.2 million in trade payables as ten vessels underwent their scheduled dry-dockings compared to fourteen in the prior year. Net cash provided by operating activities was $297.6 million in 2025 and $307.7 million in 2024. The $10.1 million decrease is primarily attributable to the softening of previously elevated market rates as more fully described in the paragraph "Voyage Revenues" above under "Financial Analysis". Total cash expenditure on voyage expenses, operating expenses, charter-in costs, G&A expenses, finance expenses, net of interest income and other, net expenses amounted to $472.6 million in 2025, compared to $511.6 million in 2024, a decrease of $39.0 million or 7.6%. The expense movements are fully described in the respective paragraphs above under "Financial Analysis". Inventories, mainly consisting of bunker fuel, decreased by $2.8 million to $6.4 million in 2025, compared to a $3.6 million decrease in 2024, reflecting the decrease in oil prices during 2025 by 7.5% and the number of vessels employed on the spot market compared to the period ended December 31, 2024. Payments to repair yards decreased by $10.0 million in 2025 due to decreased dry-docking costs compared to prior year, as ten vessels underwent their scheduled drydock in 2025 compared to fifteen vessels in the year ended December 31, 2024. Payables decreased by $10.9 million mainly relating to the decreased number of vessels that underwent dry dockings compared to an increase of $13.0 million in the prior year. Accrued liabilities for EUAs increased by $15.5 million from $12.9 million to $28.5 million, contributing to the increase in accrued liabilities by $18.2 million in total compared to $10.3 million in the prior year. Unearned revenue, arising from collection of time-charter hire due in future periods, but collected in the current period, decreased by $20.1 million while the number of vessels employed under time charter increased from forty-nine in 2024 to fifty-three in 2025, whereas in 2024 unearned revenue had increased by $5.5 million. Receivables and advances and other decreased by $4.1 million (including $0.9 million of amortization of escalation portion in revenue) compared to a decrease of $15.5 million in 2024 (including $2.0 million of amortization of escalation portion in revenue), mainly due to lower number of claims outstanding at the period ended December 31, 2025, compared to the prior year, which was counterbalanced by $10.7 million increases in EUAs receivables from charterers. Net cash used in investing activities in 2025 amounted to $458.1 million compared to $441.6 million in 2024. During 2025, the Company paid $298.7 million for the acquisition of the suezmax tankers Dr Irene Tsakos and Silia T and the DP2 suezmax shuttle tankers Athens 04 and Paris 24 and $3.5 million for improvements on existing vessels. The Company also paid $219.6 million for nineteen under construction vessels, the DP2 shuttle tanker Anfield , the MR tankers Delos T and Dion , the five LR1s, the nine DP2 suezmax shuttle tankers and the two VLCCs. During 2025, the Company generated $99.1 million cash from the sale of the suezmax tanker Pentathlon , the aframax tanker Ise Princess and the handysize tankers Aegeas and Andromeda . In addition, during 2025, the Company invested $40.5 million in debt securities, $5.0 million in a six-month time deposit and received $10.0 million from an early redemption in two of its debt securities. In 2024, the Company paid $484.9 million for the acquisition of the aframax tankers, Chios DF , Ithaki DF , DF Montmartre, DF Mystras, Alpes, Aspen and the suezmax tanker Popi Sazaklis and $4.7 million for improvements on existing vessels. The Company also paid $160.4 million for the twelve under construction vessels, the three shuttle tankers Athens 04 , Paris 24 , Anfield, the two suezmax tankers Dr Irene Tsakos and Silia T , the two MR tankers, Hull 1521 and Hull 1522, and the five LR1 Hull 1623 , Hull 0307383, Hull 0307384, Hull 0307385, Hull 0307386, which were counterbalanced by cash generated by the sale of the two suezmax tankers, Eurochampion 2004 and Euronike, the two aframax tankers Nippon Princess and Izumo Princess, and the LNG carrier Neo Energy, amounting to $228.4 million. In addition, during 2024, the Company invested $20.0 million in debt securities, featuring interest rates alongside the availability of callable securities. As at December 31, 2025, we had ten DP2 suezmax shuttle tankers, two MR tankers, five LR1 tankers and three VLCC tankers under construction and the remaining yard installments to be paid for those vessels as at December 31, 2025, amounted to $1,968.3 million. The amount of $437.3 million is due to be paid in 2026, the amount of $632.8 million in 2027, and the amount of $898.2 million in 2028. The two MR tankers, Delos T and Dion, delivered on January 12, 2026, and February 12, 2026, respectively. The DP2 shuttle tanker Anfield is expected to be delivered in the third quarter of 2026, the three panamax LR1 Hull 1623 , Hull 0307383, Hull 0307384, one VLCC Hull 5531 and the two DP2 shuttle tankers Ipanemas DP and Copa DP in 2027 and the two panamax LR1 Hull 0307385, Hull 0307386, seven DP2 shuttle tankers Selecao DP, Maracana DP, Leblon DP, Hull 2738, Hull 2739, Hull 2740, Hull 2741 , and two VLCC Hull 5532 and Hull 5535 in 2028. As at December 31, 2025, senior secured debt financing has been arranged for the DP2 shuttle tanker, Anfield, for up to $111.8 million, for the two MRs Delos T and Dion and one panamax LR1 Hull 1623 for up to $108.2 and for the nine DP2 shuttle tankers, Ipanemas DP , Copa DP , Selecao DP, Maracana DP, Leblon DP, Hull 2738, Hull 2739, Hull 2740, Hull 2741 for up to $1,077.3 million. We are currently discussing with financial institutions securing debt financing for the three VLCC tankers Hull 5531, Hull 5532 and Hull 5535 and the four panamax LR1 tankers Hull 0307383, Hull 0307384, Hull 0307385, Hull 0307386 under construction. On February 25, 2026, we entered into construction contract for one LNG carrier for the price of $254.4 million, with the amount of $25.4 million due to be paid in 2026, the amount of $76.3 million in 2027, the amount of $152.7 million in 2028. We currently expect to finance the construction cost with cash from operations and secured debt financing, for which we are in discussions. Net cash provided by financing activities amounted to $110.3 million for the year ended December 31, 2025, compared to $105.5 million for the equivalent period of 2024. During 2025, $280.0 million was drawn to finance the newly acquired vessels, Athens 04, Paris 24, Dr Irene Tsakos, Silia T., $29.8 million was drawn to finance the under-construction vessel Anfield , and the amount of $181.1 million was drawn for the refinancing of the two DP2 suezmax shuttle tankers Porto and Lisboa, and the aframax tanker Sapporo Princess and the four panamax tankers World Harmony, Chantal, Socrates and Selecao. The scheduled repayments amounted to $184.1 million, $123.4 million was prepaid due to the refinancing mentioned above and $10.2 million was prepaid due to sale of the suezmax tanker Pentathlon. During 2024, $319.0 million was drawn to finance the newly acquired vessels , Chios DF, Ithaki DF, Alpes, Aspen, DF Montmartre, DF Mystras, Popi Sazaklis, $66.6 million was drawn to finance the under-construction vessels Athens 04, Paris 24, Anfield and the amount of $25.0 million was drawn for the refinancing of the suezmax tanker Eurovision. The outstanding loan amount of $28.1 million was prepaid for the sold vessel, Neo Energy , $20.7 million was prepaid as part of refinancing loan of Eurovision and $177.3 million was paid in scheduled installments. Proceeds from new bank loans in 2023 amounted to $411.4 million and payments of debt amounted to $426.3 million, which included $241.2 million loan prepayments and $185.1 million scheduled debt repayments. Total debt outstanding increased from $1.76 billion at December 31, 2024, to $1.93 billion at December 31, 2025. In 2025 and 2024, the Company paid dividends aggregating $1.10 and $1.50 per common share, respectively. Total dividend payments to common shareholders in 2025 amounted to $33.1 million, compared to $44.8 million in 2024. On November 20, 2025, the Company declared a dividend of $0.50 per common share which was paid on February 19, 2026. The payment and the amount of dividends on our common shares are subject to the discretion of our Board of Directors and depends on available cash balances, anticipated cash needs, our results of operations, our financial condition, and any loan agreement restrictions binding us or our subsidiaries, as well as other relevant factors. Dividends of $0.5781 per share for the 9.25% Series E Preferred Shares were paid on February 28, May 28, August 28 and November 28, 2025, totaling in aggregate $11.0 million, and on March 2, 2026, $2.7 million. Dividends of $0.59375 per share for the 9.50% Series F Preferred Shares were paid on January 30, April 30, July 30 and October 30, 2025, totaling in aggregate $16.0 million, and on January 30, 2026, $4.0 million. Preferred share dividends on Series F Preferred Shares are payable quarterly in arrears on the 30th day of January, April, July and October of each year, when, as and if declared by the Company's Board of Directors. Preferred share dividends on Series E Preferred Shares are payable quarterly in arrears on the 28th day of February, May, August and November of each year, when, as and if declared by the Company's board of directors. See "Item 10. Additional Information-Description of Share Capital." From time to time and depending upon market conditions, we may consider various capital raising alternatives to finance the strategic growth and diversification of our fleet. Any such capital raising transactions may be at the Tsakos Energy Navigation Limited or subsidiary level, to which interests in certain vessels in our fleet and rights to receive related cash flows would be transferred, as well as other capital raising alternatives available to us at that particular time. Investment in Fleet and Related Expenses We operate in a capital-intensive industry requiring extensive investment in revenue-producing assets. We continue to have an active fleet development program resulting in a fleet of modern and young vessels with an average age of 10.3 years at March 30, 2026. We commonly raise the funds for such investments in new buildings mainly from borrowings and partly from internally generated funds and equity issuance transactions. New building contracts generally provide for multiple staged payments of 10%, with the balance of the vessel's purchase price paid upon delivery. In the case of new buildings, pre-delivery financing and/or financing upon delivery is arranged to finance part of the installment payments and/or the last installment to the shipbuilding yard. Otherwise, for the equity portion of an investment in a new building, we generally pay from our own cash approximately 20% to 30% of the contract price. Repayment of the debt incurred to construct the vessel is made from vessel operating cash flows, typically over two to ten years, compared to the vessel's asset life of approximately 25 years (LNG carriers 40 years). We have arranged senior secured bank loans of up to $1.403 billion and expect to arrange additional senior secured bank loans, to fund the aggregate $565.0 million remaining contract price for our twenty new buildings under construction as of December 31, 2025. Debt As is customary in our industry, we anticipate financing the majority of our commitments on vessel newbuildings with bank debt. Generally, we raise 70% to 80% of the vessel purchase price with bank debt for a period of between four and twelve years. For vessels for which we have secured long-term charters with first-class charterers, we would expect to raise up to 80% of the vessel purchase price with bank debt. Our existing credit facilities require us and certain of our subsidiaries to comply with certain operating and financial covenant restrictions. See "Note 6- Long Term Debt and other financial liabilities" to our audited consolidated financial statements included elsewhere in this report. Loan Vessel Balance at January 1, 2025 New Loans Prepaid Repaid Balance at December 31, 2025 12-year term loan Ulysses, Hercules I 58,984 - - 10,069 48,915 7 1/2-year term loan Lisboa 45,334 - 42,500 2,834 - 8-year term loan Mediterranean Voyager, Caribbean Voyager 60,918 - - 4,597 56,321 5-year term loan Selini, Salamina 4,618 - - 2,309 2,309 7-year term loan Apollo Voyager 45,080 - - 2,818 42,262 10-year term loan Artemis Voyager 42,147 - - 3,010 39,137 7-year term loan Thomas Zafiras, Leontios H. 48,000 - - 4,800 43,200 5-year term loan Elias Tsakos 24,000 - - 2,400 21,600 5-year term loan Byzantion, Bosporos 4,095 - - 2,730 1,365 5-year term loan World Harmony, Chantal, Selecao, Socrates, Sapporo Princess 22,437 - 16,829 5,608 - 6-year term loan Bergen TS 26,517 - - 2,652 23,865 5-year term loan Andes 5,902 - - 5,902 - 5-year term loan Maria Princess 12,136 - - 8,091 4,045 5-year term loan Sunray 20,000 - - 2,000 18,000 4-year term loan Promitheas, Propontis 15,650 - - 3,662 11,988 7-year term loan Porto 66,154 - 64,067 2,087 - 5-year term loan Uraga Princess, Spyros K, Dimitris P. 48,250 - - 5,500 42,750 6-year term loan Brasil 2014 45,000 - - 9,000 36,000 5-year term loan Euro 17,675 - - 3,010 14,665 8-year term loan Njord DF, Ran DF 111,800 - - 6,600 105,200 5-year term loan Sunrise 31,116 - 10,200 2,042 18,874 6-year term loan Rio 2016 49,500 - - 9,000 40,500 5-year term loan Maria Energy, Dias I 165,376 - - 11,812 153,564 5-year term loan Decathlon 27,600 - - 6,867 20,733 5-year term loan Sola TS, Oslo TS 63,131 - - 6,013 57,118 5-year term loan Marathon TS, Stavanger TS 61,450 - - 5,700 55,750 5-year term loan Asahi Princess, Parthenon TS 39,812 - - 6,125 33,687 8-year term loan Chios DF, Ithaki DF 115,111 - - 6,578 108,533 7-year term loan Paris 24 25,864 74,136 - - 100,000 5-year term loan Alpes, Aspen, DF Montmartre, DF Mystras, Popi Sazaklis 236,229 - - 17,541 218,688 7-year term loan Athens 04 25,864 77,592 - 2,874 100,582 7-year term loan Anfield 14,904 29,807 - - 44,711 5-year term loan Eurovision 25,000 - - 3,571 21,429 4 1/4-year term loan Porto, Lisboa - 114,067 - 5,212 108,855 7-year term loan Dr Irene Tsakos - 64,125 - 1,781 62,344 6-year term loan Silia T - 64,125 - - 64,125 5-year term loan World Harmony, Chantal, Selecao, Socrates, Sapporo Princess - 67,000 - - 67,000 Total 1,605,654 490,852 133,596 174,795 1,788,115 Other financial liability Vessel Balance at January 1, 2025 New Loans Prepaid Repaid Balance at December 31, 2025 10-year term loan Tenergy 151,584 - - 9,328 142,256 Total 151,584 - - 9,328 142,256 The above term bank loans are secured by first priority mortgages on all vessels owned by the Company's subsidiaries, by assignments of earnings and insurances of the respectively mortgaged vessels, and by corporate guarantees of the relevant ship-owning subsidiaries and in certain cases by the holding company. As a result of such financing activities, long-term debt and other financial liabilities increased in 2025 by a net amount of $173.1 million compared to $184.5 million in 2024. The debt to capital (equity plus debt) ratio was 50.9% at December 31, 2025, or net of cash, 46.7%, and 49.9% at December 31, 2024 or, net of cash, 44.4%. We have paid all of our scheduled loan installments and related loan consistently without delay or omission. As a percentage of total liabilities against total assets at fair value, our consolidated leverage (a non-GAAP measure) as computed in accordance with our loan agreements at December 31, 2025 was 39.6%, below the original loan covenant maximum of 70%, which is applicable to all the above loans on a fleet and total liabilities basis. Almost all the loan agreements also include a requirement for the value of the vessel or vessels secured against the related loan to be at least 120% (in one case 110%, in one other case 125%) of the outstanding associated debt at all times. The Company continues to be fully compliant with its scheduled debt service requirements, repaying capital and paying interest promptly in accordance with respective bank agreements without fail. Our existing bank loans require us and certain of our subsidiaries to comply with certain operating and financial covenant restrictions. See "Note 6 - Long Term Debt and other financial liabilities" to our audited consolidated financial statements included elsewhere in this report. As at December 31, 2025, the Company and its wholly and majority owned subsidiaries were compliant with the financial covenants in each of its thirty-five loan agreements totaling $1.93 billion. At December 31, 2025, we were also compliant with the leverage ratio covenant contained in all of our bank loans. We do not expect to pay down the Company's loans in 2026 beyond the amounts that we have already classified as current liabilities. Upon an event of default, all the loan agreements, which are secured by mortgages on our vessels and in certain cases by guarantees of the parent company, include the right of lenders to accelerate repayments. All our loan agreements and our interest rate swap agreement also contain a cross-default provision that may be triggered by a default under one of our other loans. A cross-default provision means that a notice of default on one loan would result in a default on other agreements. Interest is usually payable at a variable rate, based on one- or three- or six-month SOFR plus a margin. At December 31, 2025, interest rates on the bank loans ranged from 5.12% to 6.50%. The weighted-average interest rates on all executed loans for the applicable periods were: Year ended December 31, 2025 5.76% Year ended December 31, 2024 6.87% Year ended December 31, 2023 6.68% Long-Term Contractual Obligations as of December 31, 2025 (in millions of U.S. dollars) were: Contractual Obligations Total Less than 1 year (2026) 1-3 years (2027-2028) 3-5 years (2029-2030) More than 5 years (after January 1, 2031) Long-term debt obligations (excluding interest) and other financial liabilities 1,930.4 304.8 648.3 434.8 542.5 Vessel operating leases 1 9.0 9.0 - - - Interest on long-term debt obligations (including interest rate swap payments) 2 277.4 83.0 110.2 63.1 21.1 Purchase Obligations (new-buildings) 3 1,968.3 437.3 1,531.0 - - Management Fees payable to Tsakos Energy Management (based on existing fleet plus contracted future vessel deliveries as at December 31, 2025) 246.10 25.8 52.1 55.6 112.6 Total 4,431.2 859.9 2,341.6 553.5 676.2 (1) The amounts represent Company's commitments under sale and leaseback agreements for three of its vessels as of December 31, 2025. (2) The amounts shown above for in...

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