Greek shipowner TEN has signed construction contracts for two scrubber-fitted MR product tankers, the company revealed.
These 50,000 dwt vessels, ordered in August from an unnamed shipbuilder, are slated for delivery in the first quarter of 2026.
According to Intermodal, the vessels were ordered from Yangzijiang in China for $43 million a piece.
The Greek shipping giant’s latest move is part of its fleet rejuvenation program which now comprises 10 green vessels. These include four dual-fuel LNG-powered Aframax vessels, two DP2 shuttle tankers, two scrubber-fitted Suezmax vessels, and two scrubber-fitted MR product tankers under construction.
TEN’s management took advantage of the historically high asset prices and divested eight of its older product tankers at significant profits this year.
“Taking advantage of the positive environment in the tanker market the Company has timely monetized a big part of its first-generation tankers and has reinvested the proceeds for new and environmentally friendly vessels, common share dividend distributions and a significant reduction of its preferred shares,” George Saroglou, President and COO of TEN commented.
“The recent appetite from our major clients for accretive long-term business, particularly in the LNG and tanker segments, has given us the comfort to secure over $1.5 billion in forward revenues and ensure continuity in providing healthy returns and increased dividends to our shareholders.”
TEN reported over 350 percent increase in net income in the first half of 2023 when compared to the same period last year. Net income experienced a near fivefold increase from the 2022 first half level of $51.7 million and reached $237.2 million.
The strength of tanker markets is primarily spurred by favorable supply and demand fundamentals and favorable trade dislocations caused by the war in the Ukraine continuing and with no signs of abating.
As informed, TEN has secured over $1.5 billion in fleet revenue backlog and long-term market fundamentals remain strong.
TEN’s diversified energy fleet currently consists of 68 double-hull vessels, including ten newbuilds, totaling 8.4 million dwt.