Tsakos Energy Navigation (TEN) Reports EPS of $10.30 For Full Year 2006 and $4.05 For Fourth Quarter 2006

ATHENS, Greece, March 12 /PRNewswire-FirstCall/ -- TSAKOS ENERGY NAVIGATION LIMITED (TEN) today reported results for the full year and fourth quarter ended December 31, 2006.

Net income was $196.4 million for 2006 as compared with $161.8 million for 2005. Basic earnings per share based on average number of shares outstanding rose to $10.30 versus earnings per share of $8.18 in 2005. Net revenues (voyage revenues net of commissions and voyage expenses) were $343.15 million in 2006 as compared with $248.05 million in 2005. Income before depreciation was $255.46 million in 2006 against $197.45 million a year earlier.

Revenues from voyages were 45% higher than the prior year, while the average number of vessels increased from 26.1 in 2005 to 33.8 in 2006. The average rates earned per vessel also increased despite the softer market compared to the prior year. More specifically Suezmax, Aframax and Handysize product carrier rates achieved by our vessels rose, more than offsetting the slight drop in VLCC and Panamax rates. A change in chartering policy towards fixed employment with guaranteed minimum and profit sharing agreement in the upside of the market enabled the company to exploit the higher rates of the spot market while ensuring continuous employment and guaranteed rates on the downside. In 2006, 54% of total operating days were under time charter with either a fixed rate or profit sharing, compared to 62% in 2005. However, the number of days employed on time charter with profit sharing actually doubled between 2005 and 2006. Average TCE rates (voyage revenues less voyage expenses) rose from $28,645 per day in 2005 to $30,154 per day in 2006. Utilization of the fleet was 97.4% in 2006 compared with 96.5% in the prior year, due to lower dry-docking activity in 2006.

Operating expenses per vessel per day increased by 7% from $6,534 to $6,979 mainly reflecting, increases in lubricant prices, insurance premiums and some further weakness of the Dollar against the Euro compared to 2005. However, overhead expenses dropped by 5% from $1,217 per vessel per day in 2005 to $1,162 in 2006 due to economies of scale, the direct result of a larger fleet.

Interest and finance costs increased from $11.2 million in 2005 to $42.5 million in 2006 due to the increase in amount of loans to partly finance the new vessels delivered, as well as the increase of average interest rates by over 1%.

Capital gains from vessel sales, including the sale of the minority interest in two Panamaxes to FLOPEC of Ecuador, increased from $45.3 million in 2005 to $63.3 million in 2006, a 39.8% increase, reflecting the Company's policy to actively participate in the sale & purchase market when lucrative opportunities arise.

Fourth Quarter 2006

Net income in the fourth quarter of 2006 was $77.11 million versus $60.83 million in the like quarter of 2005. Earnings per share (basic) based on weighted average number of shares outstanding were $4.05 in the 2006 quarter versus $3.16 in the same period one year earlier. Net revenues (voyage revenues net of commissions and voyage expenses) were $93.73 million in the fourth quarter of 2006 in comparison with $77.70 million in the year earlier quarter.

The size of the fleet rose from an average of 25.3 vessels in the fourth quarter of 2005 to 37.0 vessels in the same period of 2006. Average TCE revenues earned by the vessels fell from $35,388 in the last quarter of 2005 to $29,796 in fourth quarter of 2006. The market was softer in the fourth quarter 2006 compared with the fourth quarter of 2005 as a result of the mild winter in the northern hemisphere and the high oil inventories in the USA. On a year over year basis this was offset by the unexpectedly strong market during the summer months of 2006.

Operating expenses per vessel per day increased from $7,134 to $7,811, or 9%, due to increased lubricant costs and the weakening of the Dollar against the Euro by an average of 8.5% between the two equivalent quarters which affected other operating expenses in Euro.

Interest and finance increased from $4.7 million in 2005 fourth quarter to $14.8 million in the fourth quarter of 2006 due to the increase of average loan balances and the increase of average interest rates from 4.8% to 5.6%.

In the fourth quarter of 2006 the company sold the panamax tanker Aztec realizing capital gains of $24.7 million whereas in the fourth quarter of 2005 the company sold the Handysize product carrier Dionisos and the Aframax tanker Tamyra realizing capital gains of $20.5 million.

In the same quarter, the company enhanced its strategic alliance with FLOPEC by selling 49% of its shares in a subsidiary which holds 100% of the shares in the shipowning companies of the panamax vessels Maya and Inca, realizing capital gains of $25.3 million.

"Record fourth quarter profits boosted full year net income to record levels marking the fourth consecutive year of record earnings," observed Mr. D. John Stavropoulos, Chairman of the Board. He further added "the corporate strategy of maintaining a young and growing fleet combined with the excellence of management had produced these outstanding results. The platform of today's modern and diverse fleet, the newbuildings to be added over the years, the balanced employment program, and the prospects for future demand for petroleum and its products are the basis of our optimism about the future of TEN."

SUBSEQUENT EVENTS - M/T Arctic a 1A ice-class Suezmax was delivered to TEN on January 10, and immediately entered the spot market ex-shipyard on a repositioning voyage. - LNGC Neo Energy the Company's first LNG carrier was delivered from the yard on February 6 and is completing all preparatory works including crew familiarization in order to sail from the shipyard in South Korea to enter the spot market. - M/T Andromeda, a 1A ice class Handysize product carrier, was delivered to TEN on March 8 and immediately entered the spot market ex-shipyard on a repositioning voyage. - TEN commissioned two additional DNA Aframax tankers at Sumitomo Shipyard in Japan (the 7th and 8th sister vessels) for delivery in late 2009 and early 2010, respectively. - M/T Bregen a 1989-built Panamax tanker was delivered to her new owners during January. From this sale TEN will record a $5 million capital gain in Q1 2007. - The Company re-acquired the ownership of M/T Olympia, a 1999 built Aframax tanker, from a German KG system at a pre-agreed price of $31.1 million. The vessel's current market price is valued at over $60 million by management. FLEET EXPANSION

2006 was another year in which TEN put its capital to use effectively. Encouraged by the healthy markets and the outlook for the industry, coupled with demand from its clients, TEN invested over $1 billion in expanding the Company's fleet. This expansion was achieved in three ways. In particular, TEN acquired fleets and individual vessels from the open market, acquired newbuilding contracts from third party owners for vessels under construction and finally, true to its roots in generic growth, placed eight new building orders (two of which in early 2007) for delivery over the next three years. TEN's fleet renewal and expansion goals are to continually increase the earnings capacity of the fleet while solidifying its foundation for the future.

This expansion was heavily weighted towards further diversifying the versatility of the fleet while further reducing the fleet's already low average age. To accelerate this reduction, TEN proceeded with selling three vessels, the handysize product tankers Libra and Crux built in 1988 and 1989, respectively, and the Aztec, a 2003-built Panamax product tanker. In addition TEN sold to Flota Petrolera Ecuatoriana (FLOPEC) of Ecuador a 49% stake in the 2003-built, Maya and Inca.

The table below highlights the new vessels and newbuildings acquired by TEN in 2006 and those delivered so far in 2007.

Name Type Dwt Built Delivery Design Delivered in 2006 1. La Prudencia VLCC 298,900 Jan. 1993 Jan. 2006 - 2. Archangel Suezmax 162,400 Jan. 2006 Jan. 2006 1A 3. Alaska Suezmax 162,400 Feb. 2006 Feb. 2006 1A 4. Proteas Aframax 116,000 May 2006 May. 2006 1A 5. Promitheas Aframax 116,000 Aug. 2006 Aug. 2006 1A 6. Propontis Aframax 116,000 Oct. 2006 Oct. 2006 1A 7. Aris Handysize 53,000 Apr. 2005 May 2006 1A 8. Ajax Handysize 53,000 Mar. 2005 May 2006 1A 9. Afrodite Handysize 53,000 Aug. 2005 Apr. 2006 1A 10. Artemis Handysize 53,000 Aug. 2005 Apr. 2006 1A 11. Ariadne Handysize 53,000 Nov. 2005 Apr. 2006 1A 12. Apollon Handysize 53,000 May 2005 May 2006 1A 13. Delphi Handysize 37,432 Sep. 2004 May 2006 - 14. Antares Handysize 36,660 May 2006 May 2006 1A 15. Arion Handysize 36,660 Oct. 2006 Oct. 2006 1A Newbuilding Orders 1. Byzantion Handysize 37,340 May 2007 May 2007 1B 2. Bosporos Handysize 37,340 Aug. 2007 Aug. 2007 1B 3. H/N 3003 Panamax 73,800 Nov. 2007 Nov. 2007 LR 1 4. H/N 3004 Panamax 73,800 Nov. 2007 Nov. 2007 LR 1 5. H/N 1342 Aframax 105,000 Nov. 2008 Nov. 2008 DNA 6. H/N 1344 Aframax 105,000 Nov. 2008 Nov. 2008 DNA 7. H/N 1349 Aframax 105,000 Q3 2009 TBD DNA 8. H/N 1350 Aframax 105,000 Q4 2009 TBD DNA 2007 Deliveries (YTD) 1. Arctic Suezmax 162,400 Hyundai Jan. 2007 1A 2. Neo Energy LNG 150,000m3 Hyundai Feb. 2007 - 3. Andromeda Handysize 37,340 Hyundai Mar. 2007 1A

Mr. Nikolas P. Tsakos, President & CEO of TEN observed, "2006 was a pivotal year for our company. Not only did we increase the capacity of our fleet by over 55% but we also became one of the largest independent ice-class owners in the world which enabled us to form strategic alliances with one of the world's prime ice-class traders, Neste Oil of Finland. This, together with expanding our long-established cooperation with FLOPEC, elevated our operations to a level that will benefit both the Company and shareholders alike."

Mr. Tsakos concluded, "Our sale and purchase activity also enabled us to become an exclusively double-hull operator which, combined with a fleet age half that of the world's average, will make our vessels even more attractive to oil majors worldwide. With a fleet profile like ours and our high expectations for our newbuilding program we can only view the future with renewed confidence."

Taking into consideration the newbuildings cited above, TEN's overall newbuilding program now consists of fourteen vessels. These are:

Name Type Dwt Yard Delivery Ice-Class / Design 1. Antarctic Suezmax 162,400 Hyundai Apr. 2007 1A 2. Aegeas Handysize 36,660 Hyundai Apr. 2007 1A 3. Byzantion Handysize 37,340 Hyundai May 2007 1B 4. Bosporos Handysize 37,340 Hyundai Aug. 2007 1B 5. H/N 3003 Panamax 73,800 Sungdong Nov. 2007 LR 1 6. H/N 3004 Panamax 73,800 Sungdong Nov. 2007 LR 1 7. Izumo Princess Aframax 105,000 Sumitomo Mar. 2007 DNA 8. Sakura Princess Aframax 105,000 Sumitomo Jun. 2007 DNA 9. H/N 1342 Aframax 105,000 Sumitomo Nov. 2008 DNA 10. H/N 1344 Aframax 105,000 Sumitomo Nov. 2008 DNA 11. H/N 1349 Aframax 105,000 Sumitomo Q3 2009 DNA 12. H/N 1350 Aframax 105,000 Sumitomo Q4 2009 DNA 13. H/N tbn Aframax 105,000 Sumitomo Q4 2009 DNA 14. H/N tbn Aframax 105,000 Sumitomo Q1 2010 DNA

The following table outlines the composition of TEN's fleet after the deliveries cited above assuming no interim disposals:

Vessels Proforma - Ice-Class Existing - Ice-Class VLCC 3 3 - SUEZMAX 10 6 9 5 AFRAMAX 18 3 10 3 PANAMAX 7 2 5 2 HANDYMAX 6 6 6 6 HANDYSIZE 8 6 5 3 LNG 1 1 - TOTAL 53 23 39 19 TOTAL DWT 5,641,835 4,380,495 TANKER INDUSTRY

2006 developed as a decidedly atypical year for tankers, especially as to unusual seasonal behavior for spot tanker rates exhibited by third quarter freight rates higher than fourth quarter freight rates. This was largely the result of excess inventory built up during the third quarter in the OECD countries that had to be brought back down in the fourth quarter simultaneously with a fall in US seaborne imports due to the revival of US oil and gas production following the 2005 hurricane season and increases in Canadian oil production. Mostly affected were VLCCs, with Suezmax and Aframax tankers experiencing the usual fourth quarter freight rate rally, ending the year on a high note. World oil demand growth in 2006 was a modest 1.0%. At the same time the world tanker tonnage experienced 6.1% growth reflecting a strong new-building delivery schedule and anemic retirements. Nevertheless, 2006 provided tanker operators with good revenues and profits for the fourth consecutive year.

Global economic prospects for 2007 remain generally bright with an expected soft-landing in the US, continued moderate expansion in the EU and Japan and further strong growth in developing countries, foremost China and India. World economic growth has been revised up slightly to 5.3% in 2006 and 4.6% in 2007. Developing countries excluding China are forecast to grow 5.7% in 2007 from 6.3% in 2006 more than double the OECD rate of 2.4% in 2007 and 3.1% in 2006. Despite government attempts to moderate growth, the Chinese economy is estimated to have expanded at a breakneck pace of 10.7% in 2006 followed by India where an early estimate puts growth at 9.2% for the fiscal year ending 31 March 2007. The Chinese economy is forecast to grow 9.4% in 2007, a modest slowdown, following cooling measurements imposed by the central government.

World oil demand is forecast to grow 1.5 million bpd or 1.8% over 2006 according to IEA. On the supply side, the tanker market faces a challenging task of absorbing an average annual fleet growth of approximately 8% per annum over the next 3 years leading to 2010 and IMO's MARPOL single-hull phase-out. Ton-mile requirements continue to expand and oil majors and commodity players continue to absorb tonnage on medium to long term time charters. Overall, industry dynamics should continue to support growth and consolidation opportunities for well- capitalized and well-managed tankers owners and operators.

OUTLOOK FOR TEN

The shipping markets have historically been of a cyclical nature and have, on occasion, exhibited volatile tendencies that make forecasting a challenging exercise. This combined with an ever increasing array of new regulations has raised the bar to such levels that only companies with sound fleets, strong balance sheets and experienced management teams will successfully confront the challenges of the future. TEN, having one of the most modern fleets in the world and a newbuilding program that safeguards growth and versatility, is well positioned to reap the rewards the more stringent operational environment will offer.

The shift towards double-hull tankers, expected to culminate in 2010, should provide further support in rates which despite the expected declines from recent record levels still remain buoyant compared to historical averages. TEN stands to benefit from this flight to quality with a proforma fleet of 53 double-hull vessels, with an average age well below the world average, employed in a blend of charters ranging from charters with fixed or with profit sharing rates to spot charters. The introduction of the LNG vessel Neo Energy is also expected to become a contributor to the overall earnings.

The emerging economies of China and India, the mature economies of the US and Europe and, to a degree, the advancement of oil exports from the Former Soviet Union together with other geopolitical events could influence the direction of the shipping markets. The current orderbook should not be underestimated, but its impact may be kept in check by the withdrawal of older tonnage and the expected continuation of healthy oil demand by major economies. So far, with 80% of 2007 and 61% of 2008 operating days fixed on some form of fixed employment, which should generate a minimum of $265 million and $208 million in revenues, respectively, the future for TEN continues to look bright.

ABOUT TSAKOS ENERGY NAVIGATION

TEN's proforma fleet consists of 53 vessels of 5.6 million dwt. Today, TEN operates a fleet of 39 vessels all double-hull. Additionally, its newbuilding program has 14 vessels including eight Aframax crude carriers, one Suezmax, two Panamax tankers and three Handysize product carriers representing 1.3 million dwt.

The strategy of a balanced diverse fleet is reflected in 28 crude transporters ranging from VLCCs to Aframaxes and 24 product carriers ranging from Handysize to Aframaxes; complemented by one LNG.

FORWARD-LOOKING STATEMENTS

Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those predicted by such forward-looking statements. TEN undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.

TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES Selected Consolidated Financial and Other Data (Unaudited) (In Thousands of U.S. Dollars, except share, per day and fleet data) Three months ended Year ended December 31 December 31 STATEMENT OF INCOME DATA 2006 2005 2006 2005 Voyage revenues $ 111,590 $ 89,427 $ 427,654 $ 295,623 Commissions 3,822 3,441 15,441 11,604 Voyage expenses 14,035 8,282 69,065 35,970 Charter hire expense 6,149 6,126 24,461 24,317 Vessel operating expenses 23,657 14,021 76,095 52,945 Depreciation 16,980 9,069 59,058 35,697 Amortization of deferred drydocking costs 1,036 2,802 4,857 6,583 Provision for doubtful receivables - 40 - 40 Management fees 1,951 1,312 7,103 5,460 General & Administrative expenses 1,625 1,397 3,726 3,631 Management incentive award 3,500 2,500 3,500 2,500 Foreign currency losses/(gains) 169 (31) 279 (181) Amortization of deferred gain on sale of vessels (792) (792) (3,168) (3,168) Gain on sale of vessels, net (24,688) (20,496) (38,009) (34,540) Total expenses 47,444 27,671 222,408 140,858 Operating income 64,146 61,756 205,246 154,765 Gain on sale of non-operating vessels, net - 4 - 10,765 Gain on sale of shares in subsidiary 25,323 - 25,323 - Interest and finance costs, net (14,759) (4,720) (42,486) (11,247) Interest income 2,642 3,666 7,164 7,360 Other income/(expense) (245) 128 1,159 112 Total other income (expenses), net 12,961 (922) (8,840) 6,990 Minority interest (2) - (2) - Net income $ 77,105 $ 60,834 $ 196,404 $ 161,755 Earnings per share, basic $ 4.05 $ 3.16 $ 10.30 $ 8.18 Earnings per share, diluted $ 4.05 $ 3.16 $ 10.30 $ 8.17 Weighted average number of shares outstanding Basic 19,039,914 19,232,408 19,063,846 19,772,270 Diluted 19,045,461 19,241,710 19,068,402 19,786,846 BALANCE SHEET DATA December 31 December 31 2006 2005 Cash and cash equivalents 174,567 145,769 Current assets, including cash 222,493 191,734 Investments 14,045 21,881 Advances for vessels 261,242 150,428 Vessels at cost 1,649,928 882,210 Accumulated Depreciation (191,281) (170,848) Vessels' Net Book Value 1,458,647 711,362 Deferred charges 13,448 13,769 Total assets $1,969,875 $1,089,174 Current portion of long-term debt 18,981 51,496 Current liabilities, including current portion of long-term debt 97,294 91,518 Long-term debt, net of current portion 1,114,680 382,023 Deferred income, net of current portion 2,626 8,447 Minority interests 2 - Total stockholders' equity 755,273 607,186 Total liabilities and stockholders' equity $1,969,875 $1,089,174 Three months ended Year ended OTHER FINANCIAL DATA December 31 December 31 2006 2005 2006 2005 Net cash from operating activities $48,416 $44,469 $214,998 $146,903 Net cash (used in)/ from investing activities $(7,719) $23,109 $(829,326) $(108,969) Net cash (used in)/ from financing activities $(6,525) $(53,019) $643,126 $(9,087) TCE per ship per day $29,796 $35,388 $30,154 $28,645 Operating expenses per ship per day $7,811 $7,134 $6,979 $6,534 Vessel overhead costs per ship per day $2,081 $2,241 $1,162 $1,217 9,891 9,375 8,141 7,751 FLEET DATA Average number of vessels during period 37.0 25.3 33.8 26.1 Number of vessels at end of period 37.0 25.0 37.0 25.0 Average age of fleet at end of period Years 6.1 6.3 6.1 6.3 Dwt at end of period (in thousands) 4,175.8 2,924.9 4,175.8 2,924.9 Time charter employment - fixed rate Days 688 944 2,606 3,870 Time charter employment - variable rate Days 1,535 460 3,848 1,819 Period employment (pool and coa) at market rates Days 622 578 3,060 2,162 Spot voyage employment at market rates Days 460 337 2,499 1,341 Total operating days 3,305 2,319 12,013 9,192 Total available days 3,401 2,324 12,335 9,527 Utilization 97.2% 99.8% 97.4% 96.5%

TCE represents voyage revenue less voyage expenses. Commission is not deducted.

Operating expenses per ship per day exclude the three chartered-in vessels and the vessel bare-boat chartered out.

CONTACTS: George V. Saroglou, COO Tsakos Energy Navigation Ltd. Tel: 30 210 94 07 710-3 ten@tenn.gr Thomas J. Rozycki, Jr., Investor Relations Cubitt Jacobs & Prosek Communications 212-279-3115 x208 tom@cjpcom.com