Rahul Sengupta Avinash Nagaraja

Kyle SamaniNeha Gaddam

Agenda

Thesis Industry Overview Our Company Macroeconomic Catalysts Valuation Summary Q&A

Thesis

Diverse portfolio of modern tankers Stable future contracts Worldwide increased demand and production of

energy resources High dividend yield

Investment Philosophy

"Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell”

- John M. Templeton

Industry Overview

How oil is transported Pipelines Ships Trains Trucks

Pipelines

Oil Reserves Worldwide

Shipping

Deliver goods from point A to point B

Value is based on: Type of Ship Age of Ship Long Haul Short Haul

Our Company

Transport crude oil and petroleum products worldwide

Major clientele include major national and independent oil companies

Versatile fleet of modern crude and product tankers with strong ice class capabilities

Our Fleet Diversity

48 Tankers in service 23 Crude oil carriers: 3 VLCC (Very Large Crude Carrier) 10 Suezmax 10 Aframax

25 Product carriers: 3 Aframax LR 7 Panamax 6 Handymax MR 8 Handysize 1 LNG (Liquefied Natural Gas)

4 more Aframax vessels under construction

VLCC

Most effective way of transporting large volume of oil over long distances

Capacity: 2 million barrels

Panamax

Can transit the Panama Canal fully loaded

Capacity: 0.5 million barrels

Ice Class

23 ships in our fleet are ice class rated

Increased oil demand in winter in the Northern Hemisphere

New Regulations

New Regulations

Double Hull Requirements

International Marine Organization “All single hulled oil

tankers must be decomissioned by 2010”

18% of tankers still single hulled

Tsakos advantage Entire fleet is double

hulled

Risks

Calibration of supply and demand Prolonged lower oil production Piracy Higher operating costs

Map of Operations

Our Fleet Age

One of the youngest fleets in the industry Average age of our fleet: 6.3 years Average age of industry: 9.8 years

Tankers usually scrapped after 20-30 years

Them

Us

Types of Contracts

Time charter Vessel leased for a specific amount of time Few months to several years

Payment 30% on fixed rate 70% on variable rate

Predictable cash flows

Spot charter Single voyage Payment based on market rates Either on a $/tonne or on a lump sum basis

Higher profit margins

Operational Costs

Vessel Costs Includes: Crew, maintenance, insurance, etc. Between $8,500 – $9,500/day

Voyage Costs Includes: Fuel costs, port and canal fees, etc. Fuel accounts for 59% of voyage cost

Who Pays What?

Time charter Charterer bears voyage costs Short term contracts – Tsakos bears vessel costs Long term contracts – Charterer bears vessel costs “Rental car”

Spot charter Tsakos bears all costs “Taxi”

Tsakos’ Contracts

2/3 of fleet on time charters Most due to expire between 2011-2013 Just re-signed a 2 year extension on a Suezmax

(Decathlon)

1/3 of fleet on spot charters Single voyage

Above average fleet utilization: 97.1% 59% of 2010 days are booked

Fleet Utilization

Our Customers

Tsakos Group Affiliation

Technical management by Tsakos Shipping 87 vessels under

management One of the largest

tanker managers in the world

Economies of scale Procuring supplies Underwriting insurance

Macroeconomic Catalysts

Future oil consumption Location of oil wells Emerging markets

Do I See China?

China is on a materials rampage

Buying up as much resources as possible Nigerian Oil Well Bid Kazak Oil Fields

And India?

75% of crude oil is imported $61.72 billion worth of crude oil

Cars, Cars, Cars!

Today

Tomorrow

Oil Production and Consumption

Oil Consumption by Region

Baltic Dry Index

Compiled daily by the Baltic Exchange Tracks international shipping prices of dry bulk

cargoes Accurate barometer of future global trade

Baltic Dry Index and TNP

Baltic Dry Index

Baltic Dry Index

TNP Stock Performance

Relative Valuation

CompanyMarket

CapP/E Revenue/Ship

($ Millions) ROE

Tsakos Energy Navigation

550M 5.02 12.07 11.91%

Hornbeck Offshore Services

726.85M 7.85 10.42 13.91%

General Maritime Corporation 445.13M 10.45 16.39 11.82%

Overseas ShipholdingGroup 1,110M 5.94 12.05 12.2%

Ship Revenue

0

2

4

6

8

10

12

14

16

18

Taskos Energy Navigation

Hornbeck Offshore Services

General Maritime Corporation

Overseas Shipholding Group

Reve

nue/

Ship

($

Mill

ions

)

Revenue per Ship

Dividends

Company Dividend Yield (%)

Tsakos Energy Navigation 7.05

Teekay Corp. 5.09

Overseas Shipholding Group 4.23

Diana Shipping None

Hornbeck Offshore Services None

Next Ex-Dividend date: October 20th, 2009

Dividend Yield

Book Value/Share

Price/Book Value per Share

Summary

Fleet Diverse portfolio to meet our customers’ needs Modern ships – complies with new regulations

Long term stability High fleet utilization Generated a net profit every year since inception Economies of scale arising from our relationship with Tsakos

Shipping Macroeconomic catalysts

Increased demand for oil transportation by sea Financials

Great dividend yield

Q & A

Questions?