TEN

Business Context and Reporting Period

Tsakos Energy Navigation Ltd. (TEN) is a Bermuda-based international seaborne crude oil, petroleum product, and LNG transportation company. This Form 20-F covers the fiscal year ended December 31, 2025. As of March 30, 2026, the Company operated a fleet of 64 vessels (56 conventional tankers, 2 LNG carriers, and 6 DP2 Suezmax shuttle tankers) with an average age of 10.3 years. The Company is managed by Tsakos Energy Management and Tsakos Shipping and Trading S.A. (TST).

Key Financial Metrics (Year Ended December 31, 2025)

Material Changes vs. Prior Period

• Revenue Decline: Voyage revenues decreased 0.7% to $798.7 million, primarily due to lower average charter rates despite improved fleet utilization (96.6% in 2025 vs. 92.5% in 2024).
• Profitability: Operating income decreased 9.4% to $252.3 million. This was largely driven by a significant reduction in gains on vessel sales ($12.5 million in 2025 vs. $48.7 million in 2024).
• Expense Increases: Vessel operating expenses rose 6.5% to $211.0 million due to higher insurance premiums, stores, and maintenance costs. Voyage expenses decreased 20.1% to $122.2 million, reflecting fewer spot market days and lower bunker costs, partially offset by a 117.1% increase in EU Allowances (EUAs) costs due to expanded EU ETS coverage.
• Interest Costs: Net interest and finance costs decreased 12.8% to $97.8 million, benefiting from lower weighted-average interest rates (5.76% in 2025 vs. 6.87% in 2024).
• Dividends: Common share dividends totaled $1.10 per share ($33.1 million) in 2025, down from $1.50 per share ($44.8 million) in 2024.

Guidance, Outlook, and Risks

Outlook and Management Commentary: Management expects a healthy tanker market over the next 2-3 years, supported by healthy oil demand and positive fleet supply fundamentals (low orderbook, aging fleet). However, the Company faces significant uncertainty due to geopolitical instability. In March 2026, a war outbreak between Iran, the U.S., and Israel led to the effective closure of the Strait of Hormuz, causing a sharp increase in oil prices and potential supply constraints. The Company has not yet arranged employment for three VLCCs, five LR1s, and one LNG carrier under construction for delivery in 2027-2028.

Key Risks:

• Geopolitical Conflict: Escalating conflicts in the Middle East (Iran/U.S./Israel) and Ukraine, including Houthi attacks in the Red Sea, disrupt trade routes and increase insurance and bunker costs.
• Regulatory Compliance: Increasing costs associated with EU Emissions Trading System (EU ETS) and FuelEU Maritime regulations, which impose carbon costs on voyages.
• Charter Renewals: Approximately 20 vessels have charters expiring in 2026; re-chartering at attractive rates is not guaranteed in a volatile market.
• Liquidity and Debt: The Company has significant capital commitments for 20 newbuildings ($1.97 billion remaining) and must manage debt maturities, with $304.8 million due in 2026.

Investor Verification Checklist

• Newbuilding Financing: Verify the status of debt financing arrangements for the remaining $1.97 billion in newbuilding commitments, particularly for the VLCCs and LR1s not yet secured.
• Geopolitical Impact: Monitor the duration and severity of the Strait of Hormuz closure and its specific impact on the Company's spot market exposure and bunker costs.
• Charter Expirations: Track the re-chartering rates for the 20 vessels with charters expiring in 2026 to assess revenue stability.
• EU ETS Costs: Review the pass-through mechanisms in charter agreements to ensure EU ETS costs are fully reimbursed by charterers.
• Related Party Transactions: Confirm that management fees and insurance premiums paid to Tsakos-affiliated entities remain competitive with market rates.