TEN Ltd. Announces Completion of Viken Fleet Acquisition and Sale of Aframax Tanker and LNG Carrier
TEN (NYSE: TNP) announced the completion of its acquisition of Viken Crude AS, including the delivery of a 2019-built Aframax tanker. The company also sold a 2008-built Aframax and a 2007-built LNG carrier, generating $100 million in free cash. Since early 2023, TEN has sold 13 vessels totaling 1.1 million dwt, averaging 18.5 years old, and acquired or ordered 20 vessels totaling 2.25 million dwt with an average age of 1.2 years. These moves significantly increase the company's fleet size and capacity, modernize its assets, and enhance its environmental footprint.
TEN's ongoing newbuilding program includes several vessels under construction, expected to be delivered between Q2 2025 and Q3 2028.
Positive
Completion of Viken Crude AS acquisition.
Fleet expansion expected to generate over $200 million in minimum gross revenues.
Sale of older vessels generated $100 million in free cash.
Fleet modernization with newer vessels, reducing average age to 1.2 years.
Increased fleet capacity by 2.25 million dwt.
Enhanced environmental footprint due to newer, more efficient vessels.
TEN's newbuilding program includes several vessels under construction, enhancing future capacity.
Negative
Sale of 13 older vessels, which may impact short-term operational capacity.
Potential risks associated with integrating new acquisitions into the existing fleet.
Significant capital expenditure required for new vessel acquisitions and orders.
Long delivery times for new vessels, with some not expected until 2028.