Thank you for standing by, ladies and gentlemen, and welcome to the Tsakos Energy Navigation Conference Call on the second quarter of 2026 Financial Results. We have with us Mr. Takis Arapoglou, Chairman of the Board, Mr. Nikolas Tsakos, Founder and CEO, Mr. George Saroglou, President and Chief Operating Officer, and Mr. Harrys Kosmatos, CFO of the company. At this time, all participants are in a listen-only mode. There will be a presentation followed by a question and answer session. At which time, if you wish to ask a question, please press star 1 on your telephone keypad and wait for your name to be announced. I must advise you that this conference is being recorded today. And now, I pass the floor to Mr. Nikolas Bournosis, President of Capital Link and Investor Relations Advisor to Tsakos Energy Navigation Ltd. Please go ahead, sir.

Thank you very much, and good morning to all of our participants. I am Nikolas Bournosis, president of Capitalink, and investor relations advisor to Tsakos Energy Navigation. This morning, the company publicly released its financial results for the six months and second quarter ended June 30, 2026. In case we do not have a copy of today's earnings release, please call us at 212- 661-7566 or email us at 10 at capitolink.com and we will have a copy for you emailed right away. Please note that parallel to today's conference call there is also a live audio and slide webcast which can be accessed on the company's website on the front page at www.tenn.gr. The conference call will follow the presentation slides So please we urge you to access the presentation slides on the company's website. Please note that the slides of the webcast presentation will be available and archived on the website of the company after the conference call. Also please note that the slides of the webcast presentation are user controlled and that means that by clicking on the proper button you can move to the next or to the previous slide on your own. And at this time I would like to read the safe harbor statement This conference call and slide presentation of the webcast contain certain forward-looking statements within the meaning of the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties which may affect tense business prospects and results of operations. And at this moment, I would like to pass the floor to Mr. Arapoglou, the chairman of Tsakos Energy Navigation. And before doing that, I'd like to congratulate the company for the record revenue performance, and it seems that you are on course to break the $1 billion revenue target for the year. So, Mr. Saroglou, the floor is yours.

Thank you, Nikolas. Good morning and good afternoon to all. Thank you for joining our call today. presenting second quarter first half results of TEN. And, of course, once again, congratulations to Nikolas Tsakos and the team for the stellar results as briefly described by Mr. Bournosis. Our model, TEN's model, has proven that it works even in weak markets, so no surprise that it works so well also in this market where current market conditions are very favorable. And it's a great opportunity for TEN to continue generating cash from operations, to continue from selling all the vessels to renew the fleet and generate more cash, to fund A record order book, as you have seen in the press release. Keep cash for contingencies, perhaps if the board decides to repay, redeem the cities he preferred. Nobody knows. It's a next year issue. And more importantly, rewarding our investors. I want to emphasize this because During the calendar year 2026, we paid dividends of $0.60 and $1 for a total of $1.60 per share. And it's obvious that this can only go higher if approved by the board and if current conditions are maintained. This is a solid yield of very close to 4 percent, and it's a generous payout. compared to other companies in the sector. So we want to underline that we want to reward our shareholders for staying with us, who have actually benefited also from a nearly doubling of the stock price in the last two years. Finally, TEN is making use of the strong market and of the high time charter rates to lock in high returns for its fleet. and up to now, the total of forward committed earnings is approaching $3.5 billion. So this is a great cushion and a great base to look forward to continued success in the next two to three years. So once again, congratulations to Nikolas Tsakos and the team. for the stellar results and sincere wishes for continued success. Thank you very much. And now, Nikolas Tsakos, the floor is yours. I pass on the floor to you. Thank you.

Nikolas Tsakos Chairman, thank you very much for your kind words, and hopefully we will continue this trend. Before that, of course, from all of us here in TEN and the family, we all remember 9-11. We have all been living in the U.S. and New York for the last 45 years. Many of us around this table were there 25 years ago. Our office, our original office in New York, is just on Rector Street, two blocks south of Ground Zero. and just to remind you that we were the first company to go public after 9-11. We went public in March 2002. And we were actually starting our roadshow after Labor Day, originally in 2001, before these terrible events. So it's, I would say, very much into our mind and hurts We do not forget 9-11. Well, on a happier note, I have to say that this is a record-breaking period for our results in many segments, but it's not looking back at it. It seems that even after the first six months, which have been very profitable, The second part is actually doing even stronger. The appetite of the major oil companies and all the charter is unimpresented. I've never seen that in my 30-plus years in business. A year ago I would be happy when we said we had business for one, two years. Thank you very much. Together with our commercial department, we are making sure that TEN is taking advantage of the highs and at the same time secures long-term employment for when things become for a rainy day, as they say. It is actually also very rewarding to see that we had our largest new building program of 26 vessels started two years ago. We have already taken delivery of seven of those ships. have already increased by at least 30%. So I think our 3 billion new building program is close to 3.8, 3.9 million and growing on a monthly basis. So we are very well in the money. We took the decision to rebuild a big part of our fleet at a time where new building values were, I would say, more logical. So looking forward, We're looking for a good year. As the chairman said, we're looking to increase the dividend for our shareholders, and we always make this announcement after our strategy meeting in November. So we're looking forward for an increase of that, and hopefully the market will maintain its strength right now. and for more details I will ask Mr. Saroglou, our president, to give us what has happened in the first six months and subsequent events.

Thank you, Nikos. We are very pleased today to report another profitable quarter. Excluding capital gains, this is a record-breaking quarter and first half for net income. We maintain a steady course in the most turbulent geopolitical environment in recent memory. The year started with the political developments in Venezuela and escalated with the war in the Middle East and the closure of the Strait of Hormuz. The Strait of Hormuz experienced its most severe disruption in modern history, effectively halting normal global ocean-going commerce. The world was hoping for a resolution following the signing of a ceasefire agreement which quickly unraveled halfway through the 60-day period it was supposed to last. There is a U.S. naval blockade that tries to manage the safe passage of tankers in and out of this narrow, high-risk area. We have attacks on ocean-going vessels that attempt to cross the straits on their own or with the protection of the U.S. Navy. Vessels have been attacked and seafarers serving on board have been injured and killed while trying to do their job and keep the world and global commerce going. Our company continues to avoid the strait of Hormuz. Our thoughts and prayers are with all the seafarers that are stranded inside the area and have to endure every day the unnecessary stress and psychological mental fatigue for which they are not responsible. Dunkirk market fundamentals were strong even before geopolitics took center stage at the end of February. 2026 was forecasted to be another year with growth in global oil demand, while tonnage supply remained very balanced. The effect of the war in the Middle East and the ongoing closure in the Straits of Hormuz resulted in elevated crude and product prices that affected global oil demand. Despite higher prices, these geopolitical events have significantly added to the market strength. And the tanker market, the tanker freight market, has gone from strength to strength And this is basically what we have done. In the 33-year history we have as a public company, and this is what basically we say in slide number one on page four, that we managed since 1993 to turn every crisis the world has faced into a growth opportunity. Today we have an 81-vessel fleet, and we are one of the largest energy transporters in the world. and the Proforma fleet of 81 vessels. In the next slide, we list the pro forma diversified fleet which consists of our four LNG vessels, two in the water, plus two new buildings, and our 16-vessel shuttle tanker fleet. We are one of the largest shuttle tanker operators in the world. of the DP shuttle tanker Anfields from Samsung Heavy Industries in South Korea, the third in a series of 12 DP-2 shuttle tankers under construction at that yard. The vessel commenced a 10-year employment to a U.S. oil major, with charter options to extend until the vessel's 20th year anniversary. Assuming charters employ the vessel's The expected gross revenue should approach 500 million. Following the unfilled delivery, we have seven shuttle tankers in full operation. If we combine the two slides and account only for the current operating fleet of 62 vessels, we have 23 vessels, or 37% of the operating fleet, with market exposure, spot and time charter with profit sharing, while 52 vessels, or 84% In the next slide we list our clients with whom we do repeat business through the years thanks to our industrial model. Exxon Mobil is the largest revenue client. Equinor, Shell, Chevron, Total Energies and BP follow. The left side of the next slide presents the all-in break-even course for the various vessel types we operate in 10. Our operating model is very simple. We try to have our time charter vessel generate revenue to cover the company's cash expenses, paying for the vessel operating and finance expenses for overheads, chartering costs and commissions, and let revenue from the squat and profit-sharing trading vessels to contribute to the profitability of the company. Thanks to the profit-sharing element, for every $1,000 per day increase in spot rate, we have 11 cents positive impact on the annual earnings per share, We have a solid balance sheet with strong cash reserves. The fair market value of the pro forma of the fleet is approximately 4.9 billion against 2 billion debt and net debt to cap is around 44.5%. Fleet renewal and investing in eco-friendly vessels has been key to our operating model. Since January 1st of 2023 we have further upgraded the quality of the fleet by divesting from our first-generation conventional tankers, replacing them with more energy-efficient new buildings and modern second-hand tankers, including, of course, dual-fuel vessels. In summary, we sold 20 vessels with an average age of 17.3 years and capacity of 2 million deadweight ton, and replaced them with 35 contracted and modern acquired vessels with an average age of 0.5 years and 4.8 million dead weight on. We announced today the sale of two 2006 built Suez Max tankers to independent third parties for net proceeds of 100 million. Prior to the sale, and as previously reported, the vessels were part of a sale and leaseback structure. then repurchase them for cash upon maturity of their lease at a significant discount to fair market value. And as we continue to transition our fleet to green and dual fuel vessels, we must note of our well-timed new building program and how well is in the money today. Our 26 new building vessels that were contracted in 2003, are today at much lower levels than current new building prices. In a new building program of approximately 3.1 billion cost, we have today at least a 30 percent appreciation in value, even before some of these vessels are delivered to the companies. Banker market fundamentals have remained strong. with a global order book still at a level equal to about 40% of the number of vessels that are 50 years of age or older, and CPRs operate at full capacity. While at the same time, geopolitical conflicts continue to increase on mild dislocation, and that provides further support to an already robust tanker market. And with that, I will pass the floor to Harrys Kosmatos, who will walk us through the financial performance of the first half. Harrys? Thank you, thank you, George.

So let me start with a brief summary of our six-month results. So, favorable tanker market fundamentals. continue to propel the market to levels that, on the one hand, incentivize owners with a long-term outlook to fix for longer periods as demand for term tenants remains unabated, while on the other, encourage the divestment of vessels for lofty profits. TEN, since the beginning of the year, has been active on both fronts and has reaped the benefits of such an extraordinary confluence of circumstances. The results of the first half and second quarter of 2026 are a vivid reflection of that. Benefiting from a modern, versatile and efficiently operated fleet, catering in its majority to the long-term needs of our clients, fleet utilization in the first six months of 2026 was almost identical to the 2025 first half level, at 96.5%, despite having six ships undergoing scheduled dry docks, from five in last year's first half. As a result of the fleet operating at almost full capacity, with an employment policy inclined towards long-term charters with upside optionality through vessels operating under spot and profit-sharing contracts, gross revenues during the first half of 2026 increased to well over half a billion dollars, $551 million to be exact, or $161 million above the 2025 first half level. This was accomplished with an average fleet of 63.5 vessels, just a vessel and a half above the 2025 first half fleet. Quite an achievement. Of interest, profit-sharing arrangements contributed 71 million of revenue during the first half of 2026, compared to 10 million in the 2025 same period. Thank you very much. Thank you very much. Vessel operating expenses during the 2026 first half reached $111 million from $102 million in the 2025 same period, a modest and expected increase. The result of the slightly bigger fleet, higher dry docking expenses, and the customary inflationary pressures. On a per-ship per-day basis, this translated to $10,298, about a quarter of the TCE rate mentioned above. Depreciation amortization expenses, again driven by the increased size of the fleet, which included the delivery of two MR product tankers and the repatriation of two Suez Max tankers from five-year operating leases, came in at $90 million from $83 million in last year's first half. General and administrative expenses at $27 million from $23 million in the 2025 first half reflected a somewhat higher management performance-based compensation from As a result of all the above, 10 for the first half of 2026 generated operating income of $273 million from $111 million in last year's first half, inclusive of $38 million and $3.6 million of capital gains respectively, an increase of 146%. Despite an increase in our financial obligations related to the growth of the fleet, 2.1 billion at the end of June 2026 from 1.8 billion at the end of June 2025, interest and finance costs fell by 5.6 million, the result of lower global interest rates and lower spreads on new and refinanced loans. Interest income, on the other hand, remained similar to last year's equivalent period at 5.6 million. Reflecting the performance outlined above, the result of commercial and operational efficiencies as well as positive market fundamentals, the net income generated by the company reached one of the highest levels in recent memory. 228 million from 64.5 million in the equivalent 2025 first half, a 253% increase. Now, if we're to exclude the capital gains recorded in both 2026 and 2025 first half period, as some of you are accustomed in doing, the 2026 first half net income experienced a 12% increase from the 2025 first half, or in dollar terms, $129 million more. In terms of EPS, earnings pursued $7.12 in the first half of this year from $1.70 in last year's first half. In other words, a 318% increase. Adjusted EBITDA for the period was higher by $131 million from the 2025 first six months and reached $324 million, a 68% increase. Cash at the end of June 2026 stood at 466 million, 179 million above the June 30th 2025 level, and 168 million above cash balances at year end of 2025. And now let's go quickly on our Q2 results. Following the above pattern, and again by operating a fleet of 63.5 vessels from 62 in last year's second quarter, with four vessels on dry dock to three in the 2025 same period, gross revenues climbed to $298 million from $193 in the 2025 second quarter, a $105 million increase. Voyage expenses during the second quarter of Thank you very much. Thank you very much. The depreciation amortization expenses for the 2026 second quarter period were 46.3 million from 42.1 million in the 2025 second quarter. The result of a marginally larger fleet and the reintroduction of the two Suez Maxis mentioned earlier. General and administrative expenses. during the 2026 second quarter reached 14.8 million from 13.2 million in the 2025 second quarter, a marginal 1.6 million increase. Interest and finance costs in the second quarter came in lower from the 2025 second quarter, 22.6 million from 25 million, or a 2.3 million reduction. On the other hand, interest income during the 2026 second quarter was marginally higher than the 2025 equivalent period, at 3.4 million. Reflecting the overall performance, the net income for the second quarter of 2026, after a $38 million capital gain, climbed to $139.3 million, from $26.8 million in last year's second quarter, which, unlike this one, had no gains or losses recorded. In terms of EPS, the above figures translate to $4.40 for this year's second quarter, compared to $0.67 in last year's second quarter, a 557% increase. In ending, adjusted EBITDA for the second quarter of 2026, Thank you, Harrys.

There has been a very detailed presentation of the growth of the company. I mean, we've been operating a similar-sized ship. If you go back, George, to the slide of over the years, you will see that we have been operating a fleet of similar size for the last 10 years. There you go. So I think we've been operating a fleet of around 60 to 65 vessels for the last 10 years, and of course there you can see the big effect, the growth of the cash, the growth of earnings, the growth of EBITDA, and hopefully 2026 will be a milestone year. I think, as Nick Bornozzi said, the company will be exceeding in revenues the billion dollars significantly. and of course a very strong EBITDA. And with this I would like to open the floor for any questions.

Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Thank you. Our first question comes from the line of Poe Fratt with Alliance Global Partners. Please proceed with your question.

Hello. Harry, I would just like to clarify the profit sharing contribution for the second quarter. I think I heard you say that the first half contribution was $71 million, and I had the first quarter contribution of $40 million. So was the second quarter contribution $31 million?

No, no. You're right, you heard. The contribution for the first half of 26 was $71 million, while last year it was $10 million, $4.5 million, and... and kind of 5.6 million. That was the profit sharing we received at the same period last year. So effectively, we generated seven times more the profit sharing that we did this time last year. And perhaps an interesting tidbit is that for the entire 2025 period, the profit share was at 46 million. So you can imagine at 70 million in the first half that things are looking rosier.

Yeah, I just wanted to clarify what the contribution was in the second quarter. Sorry, in the second quarter of 26, it was $30.5 million, correct. Okay, great. Yep, that's helpful. And then can you help me understand the outlook for the second half of the year from a profit-sharing standpoint? It looks like some of the Vs may have moved on to profit-sharing agreements, and so... Relative to the second quarter, should we see the profit sharing contribution increase or stay about the same? Any color would be helpful in the profit sharing contribution.

We're expecting significant increase in profit sharing for the second half of the year. We have renegotiated drastic increases in minimums and also the profit sharing arrangements are much more favorable to the owners. As I said, the chapters are very eager to employ good quality and others. So they are much more giving. And of course at the same time it's a win-win situation, because as you know the refinery margins are on all-time highs. So our clients, and we're very happy about that, are making very good returns. So they are not stingy in selling some of their returns with us, the transporters.

It's very positive, Paul, because we have 13 vessels today on profit sharing arrangements, nine of which are of the bigger sizes, Suez Maxis and VLs. So we have seven Suez Maxis and two VLs in profit sharing arrangements. So as you can imagine, we expect that the profit sharing will be quite significant. I hope with a lot of stuffing.

When you look at the asset sales program, you know, you sold two in August. Can you just highlight the gain that you're going to report in third quarter from those sales? And then more importantly, you know, what other assets might you sell over the second half of the year looking into the first half of 27?

Well, you know, as I said... We look at those vessels. All the vessels that are in the list have been billed by then on behalf of our clients, who are still the same, the Actions, the Severance, the Totals, 20 years ago or 15 years ago. So they're very good quality ships. I have to drag them out of our new building department because they get... I will be sentimental also because it's a vessel that is older than my kids. So I think it's one of our older ships, the Andes, which was built around 2003. So she's going to be the next one to go. And of course for further trading, she's been trading for one of the big majors since she was built. And the major wants the vessel up to now, keeps on chartering the vessel up to now at very, very healthy rates. But I think there's always a time to, you know, when someone becomes of legal age of 21 and over, we let them go.

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

For us as a company, we are actually very busy right now absorbing one of our largest growths, I think a big milestone of 26 vessels with a cost of 3.2. Thank you very much. Thank you very much. and 26 new buildings. So I think we are not right now, and we are actually, to be correct, we are looking again at vessels with long employment, specialized vessels, like the shuttle tankers, against accretive long-term contracts. But I think we are very well placed, we're in a good place, and we still have 19 new buildings that are well into the

Great, yeah, I think you said that 30% higher than, you know, your $3.1 billion stated program, so closer to market value to $4 billion. Great, thank you. I'll turn it back. Thank you.

As a reminder, if you would like to ask a question, press star 1 on your telephone keypad. Our next question comes from the line of Clement Mullins with Value Investors Edge. Please proceed with your question.

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

Sure. Well, I think our intention is to significantly reward or increase the reward to our shareholders. Because I think as our chairman said, we like to... To share, being the major shareholders ourselves, we'd like to share the upside Paris-Pasou with them. So we're looking forward for a nice dividend announcement after a strategy meeting in November. On the special dividend, we did it a couple of times, but we were told off by the analysts because it complicates, and I think rightly so, it complicates, they do not know if this is something that is going to be recurrent or not. So I'd rather add or increase the normal semi-annual dividends because we need to keep our analysts happy and less confused rather than doing a special dividend. They felt that that was something that was a one-time event and got wasted, whereas when you have a company that has significant cash flow, significant cash, I mean, as Harrys, I think, referred to and many others. and many more. Well, we actually have moved, I think about 10 years ago, from a quarterly dividend to a semi-annual dividend because for many reasons. For logistical purposes, I mean, shipping is a little operationally a more complicated business. You know, we are not land block, we are not land base, it's not that we have five or ten factories in various states that they produce, you know, we have ships. and others. I mean, sometimes a voyage takes more than a quarter. So, you know, I think it's more appropriate for shipping. And I think even the president of the United States referred to it about a year ago, saying The short answer is we would maintain the semi-annual dividend because I'd rather be able to give a big semi-annual dividend rather than smaller quarterly ones.

Does that complete your question? Yeah. Our next question comes from the line of Poe Fratt with Alliance Global Partners. Please proceed with your question.

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

Well, I think restructuring is something that our company for 33 years we have never had to do. So, I think perhaps replanning could be the word because I guess I'm taking the opportunity from what you said to say that 10 is perhaps one of the Very few companies that we have never restructured or renegotiated any of our loans in the last 33 years. So we've been paying our obligations, paying dividends continuously, paying our lenders continuously, and then maintaining a steady ship. I mean, the company is looking at ways to add more value. We will not reduce the size of the fleet. We might consider, again, closer to the end of our new building program to carve out A small part of our fixed long-term fleet, about 20 vessels, but within 10. It will be within 10. We are approached by a lot of investors who would like to participate in what we said. I think it's on page 5. Thanks for watching! Those ships have very long employments, 10, 15, 20 years, and they appeal to some shareholders that would like to invest into that, but everything would happen within 10. 10 would maintain at least 60-70% of the fleet, so the ships will not be out of the company.

Great, thank you.

We have no further questions at this time. Mr. Tsakos, I'd like to turn the floor back over to you for closing comments.

Nikolas, on the last comment, I'd like to just add, if I may, that this is not at the top of our list right now. It's not something that we expect any development in the near future. Yes, so let me make that clear. Yes.

Exactly, exactly. It's not on the top of our list, but it is another way that we might consider to prove the hidden value of those ships that have a very long employment. But always, if something happens, it will be within 10. So really, 10 shareholders will not be affected at all. The fleet will maintain its big size, but perhaps a big shareholder won't. Thank you Chairman. And with that, again, I would like to wish everybody a good beginning of the new season. We're looking at healthy We are actually literally operating in an operational minefield. So not only we have to maintain, you know, a steady course, but geopolitical events, mainly in the Middle East, are making the daily business change as we speak. The decisions we have to make, always with responsibility to our seafarers, our crews, and of course the safety of the vessel, the safety of the environment, because those ships are carrying huge quantities of oil and we don't want to put them in danger. Saying this, these circumstances have created an unappresented strong market. I think the rates right now in the Gulf area, which as you know has been also attacked by the Houthis, it sounds like a move, the Houthis. and close to $800,000 a day, approaching $1 million a day for a VLCC in the Gulf. So this is uncharted territory which we're taking advantage of carefully and steadily. We all would like the world to be... Thank you very much. Russian situation also is putting almost 25% of the world fleet out of the market. So we are looking, at least for the next year, at good and growing prospects. We will be attending the Capital Link and other events at the end of the month so we would like to be able to see as many of you live in the United States and also Europe and with that we would like again to thank you for your support and have a and of course for us and the company. Thank you very much.