Tsakos Energy Navigation Ltd. (TNP)

STA5248 (< 20) Submitted: 3/18/08 12:22 PM : Start Price: $29.79 TNP Score: 3.95

Tsakos Energy Navigation (NYSE:TNP) is an oil tanker company - a laggard niche of the energy industry that has generally suffered from oversupply and falling prices in the last three years. However, Tsakos is different than competitors such as Teekay Shipping (NYSE:TK) and General Maritime (NYSE:GMR). Half of Tsakos' 43 vessel fleet are specially strengthened to be able to sail through icy waters, which allows them to take advantage of the growing number of exports from the Baltic Sea.





Although the Baltic states are not important energy consumers or producers, together they occupy a key transit location for Russian oil exports. Oil exports are a critical factor underlying Russia's recent economic growth, and a key bottleneck for this growth is the availability of viable export routes. The flagship Russian port of Primorsk, on the Baltic sea, transited 1.3 Million barrels per day (bbl/d) of crude oil in 2006, or roughly 19% of Russia's net exports that year, and the U.S. Department of Energy expects that number will grow to 3 million bbl/d as new pipelines to the port come online. Because the Baltic sea is 45% covered in ice during winter months, only ice-capable ships such as those owned by Tsakos are able to transport this Russian oil.

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