Leading the way; Making a difference

INTERTANKO

Chairman’s Report

UAE

October 2018 International Association ofIndependent Tanker Owners

Leading the way; Making a difference

A true Members’ Association

FORUM for Members to meet and share information and best practice ADVISOR providing guidance on issues affecting Members interestsCHAMPION that speaks on behalf of and acts for independent tanker owners

Leading the way; Making a differenceLeading the way; making a difference

INTERTANKO evolution

1970 establishment of INTERTANKO in Oslo

1970s/1980s

INTERTANKO’s role mainly commercial. Protecting owners’ interests in the

aftermath of the ‘73 – ‘79 oil crisis

1990s/2000s OPA 90

INTERTANKO primarily focused on technical, operational and regulatory

issues following the “EXXON VALDEZ” incident and OPA90 implementation

2015/2018

INTERTANKO Members keep valued technical/operational/ regulatory work

and add back focus on commercial issues and sustainabilty

2018

INTERTANKO represents more than two thirds of the independently-owned

tanker fleet and gas fleet

Leading the way; Making a difference

INTERTANKO 2018

2017

Leading the way; Making a difference

2018 Membership by Registration

Single members

Azerbaijan

Bahamas

Belgium

Bermuda

Cayman Island

China

China - Taipei

Croatia

Finland

France

Iran

Ireland

Isle of Man

Malaysia

Malta

Mexico

Qatar

Russia

South Africa

South Korea

Venezuela

Vietnam

63

15

13

12

10

8

7

6

5

5

5

5

4

4

4

4

3

3

3

2

2

Greece

Italy

Germany

Singapore

Norway

Japan

Turkey

Hong Kong, China

Cyprus

UAE

United Kingdom

USA

India

Netherlands

Sweden

Switzerland

Canada

Denmark

Spain

Luxembourg

Monaco

Member Companies

799

368

273

266

216

202

182

147

145

140

133

114

112

103

94

72

67

58

54

50

381

Greece

Japan

Switzerland

Cyprus

Hong Kong, China

Norway

Singapore

Luxembourg

Monaco

Germany

Russia

Bahamas

Italy

Malaysia

United Kingdom

China

USA

Bermuda

Denmark

Iran

Other

Vessels

Leading the way; Making a difference

2018 Member Fleet

Crude 35%

Chem/Oil

29%

Product

13%

Chem 6%

LNG 6%LPG 10%

Vessel Type by number of tankers

Gas tonnage from 7 mio dwt in 2015 to 30 mio Jan 2018 635 gas carriers registered by 43 Members

7 pure gas fleet Members

Leading the way; Making a difference

Members working for Members

Leading the way; Making a difference

Safety Seafarers Environment OperationsCommercial

Sustainability

Tanker design/construction

- Enforcement of CSR- Classification standards

Machinery/ equipment- Lifesaving appliances- Classification standards

Fuel- Quality- Sampling- Switching operations- LNG, Biofuels- Alternate fuels

Cargo- Properties- Safe tank entry- Gas detection- Inert gas- Biofuels

Fair treatment - Criminalization- Shore access/visas- Medical treatment

Crew competence- Training requ’mnts

(ECDIS, BWM)- Tanker Officer

TrainingStandards (TOTS)

- Officer matrix

Seafarer welfare - Accomm’n. space - Cadet berths- Fatigue/rest hours

Emissions to water- Ballast water - Reception facilities& waste minimization- Hull fouling man’t

Emissions to air- SOX, NOX, VOC

MARPOL Annex VI - Greenhouse gas

emissions- Energy efficiency- Monitoring,

Reporting &Verification (MRV)

Ship Recycling

EPA VGP- Recordkeeping- Monitoring

Vetting & Risk Assessment

Port state control

Ports- Ports & Terminals- Offshore Ops

Maritime Security- Piracy- Sanctions

Safe navigation- ECDIS- Pilotage- eNavigation

Chemical tanker ops

Gas tanker ops

Payment performance

Charter party terms &Documentation

Worldscale

Insurance- Compensation- Liability limits- Reinsurance

Anti-corruption

Main Focus Areas

Leading the way; Making a difference

Tripartite Meetings with Class & Yards, Seoul, Rep. Korea

Tanker Safety Initiative with OCIMF & others

Tanker Associations ‘square table’

Round Table of Shipping Associations coordination

Cooperation with Industry partners

0

1

2

3

4

5

6

7

8

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

FLEET DEVELOPMENT SINCE INCEPTION – 25 YEARS OF GROWTH

Million D

WT

Fleet from 4

vessels in 1993

(start of Company –

Oslo

Stock Exchange) to

12 in 1996

11Source: Clarkson Research Studies

1 yr VLCC TC Rates

Credit CrisisIraq War

Preferred Shares

Common Shares

$125m

$65m

$85m

1993-1996

4 66

$130m +

Mar.

02

May.

04

Oct. 1

0

May 1

2

May.

13

Jan/A

pr.

14

Apr.

15

Jul.

15

22 46

$28m

Successful LT Countercyclical Growth – Access to Capital

$105m $192m

$50m

$85m

Mar.

17

$115m

Sep.

13

$50m

$150m

Jun.

18

Well-Balanced Fleet – Emphasis on Secured Contracts

(1) Sale & Leaseback(2) 51% ownership

Av. TC Employment 2.5 years => $1.2 Billion in Minimum Secured Revenues

Vessels in Secured Contracts (at Sep. 17, 2018)

Spot contracts

Dwt Built Yard Hull Ice Class/Other Dwt Built Yard Hull Ice Class/Other

1 Hercules 300,000 2017 South Korean DH 35 Proteas 117,055 2006 South Korean DH 1A

2 Ulysses 300,000 2016 South Korean DH 36 Promitheas 117,055 2006 South Korean DH 1A

3 Euro 158,000 2012 South Korean DH 37 Propontis 117,055 2006 South Korean DH 1A

4 Spyros K 158,000 2011 South Korean DH 38 Sunrise 74,000 2016 South Korean DH

5 Dimitris P 158,000 2011 South Korean DH 39 Sunray 74,000 2016 South Korean DH

6 Arctic 163,216 2007 South Korean DH 1A 40 World Harmony 74,200 2009 South Korean DH

7 Antarctic 163,216 2007 South Korean DH 1A 41 Chantal 74,329 2009 South Korean DH

8 Archangel 163,216 2006 South Korean DH 1A 42 Selini 74,296 2009 South Korean DH

9 Alaska 163,250 2006 South Korean DH 1A 43 Salamina 74,251 2009 South Korean DH

10 Eurochampion 2004 (1)

164,608 2005 South Korean DH 1C 44 Selecao 74,296 2008 South Korean DH

11 Euronike (1)

164,565 2005 South Korean DH 1C 45 Socrates 74,327 2008 South Korean DH

12 Eurovision 158,000 2013 South Korean DH 46 Maya (2)

68,439 2003 Japanese DH

13 Decathlon 158,000 2012 South Korean DH 47 Inca (2)

68,439 2003 Japanese DH

14 Pentathlon 158,000 2009 South Korean DH 48 Andes 68,439 2003 Japanese DH

15 Silia T 164,286 2002 South Korean DH 49 Apollon 53,149 2005 South Korean DH 1A

16 TBN 115,000 2020 South Korean DH 50 Ariadne 53,021 2005 South Korean DH 1A

17 TBN 115,000 2019 South Korean DH 51 Artemis 53,039 2005 South Korean DH 1A

18 Bergen TS 112,700 2017 South Korean DH 52 Afrodite 53,082 2005 South Korean DH 1A

19 Sola TS 112,700 2017 South Korean DH 1B 53 Ajax 53,095 2005 South Korean DH 1A

20 Oslo TS 112,700 2017 South Korean DH 1B 54 Aris 53,107 2005 South Korean DH 1A

21 Stavanger TS 112,700 2017 South Korean DH 1B 55 Andromeda 37,061 2007 South Korean DH 1A

22 Marathon TS 112,700 2017 South Korean DH 1B 56 Aegeas 37,061 2007 South Korean DH 1A

23 Parthenon TS 112,700 2016 South Korean DH 57 Byzantion 37,275 2007 South Korean DH 1B

24 Leontios H 112,700 2016 South Korean DH 58 Bosporos 37,275 2007 South Korean DH 1B

25 Thomas Zafiras 112,700 2016 South Korean DH 59 Amphitrite 37,061 2006 South Korean DH 1A

26 Elias Tsakos 112,700 2016 South Korean DH 60 Arion 37,061 2006 South Korean DH 1A

27 Asahi Princess 105,372 2009 Japanese DH 61 Didimon 37,432 2005 South Korean DH

28 Ise Princess 105,361 2009 Japanese DH 62 Maria Energy 86,000 2016 South Korean DH 174,000m3

29 Nippon Princess 105,346 2008 Japanese DH 63 Neo Energy 85,602 2007 South Korean DH 150,000m3

30 Uraga Princess 105,344 2010 Japanese DH 64 Lisboa City 157,000 2017 South Korean DH DP2

31 Sapporo Princess 105,354 2010 Japanese DH 65 Rio 2016 157,000 2013 South Korean DH DP2

32 Maria Princess 105,392 2008 Japanese DH 66 Brasil 2014 157,000 2013 South Korean DH DP2

33 Izumo Princess 105,374 2007 Japanese DH

34 Sakura Princess 105,365 2007 Japanese DH

LN

G

CRUDE TANKERS COATED TANKERS

LR

2P

AN

AM

AX

LR

1H

AN

DY

MA

X

AF

RA

MA

X

HA

ND

YS

IZE

VL

CC

SU

EZ

MA

X

SH

UT

TL

E

Long-Term, Blue-Chip, Customer Base Consisting of Major Global Energy Companies

Industrial Model - LT Strategic Alliances – Repeat Business

Transporter of Choice for Major Oil Companies

Equinor (ex-Statoil) is TEN’s Largest Charterer with 9 Vessels on Long-Term Contracts

Top 10 Customers

(in alphabetical order)

1. BP

2. CHEVRON

3. EQUINOR (ex-Statoil)

4. FLOPEC

5. HMM

6. HYUNDAI GLOVIS

7. KOCH

8. LUKOIL

9. PETROBRAS

10. SHELL

72% of Rev.

Profit Share Contracts

50 vessels out of 66 (76%) in secured revenue contracts (TC, TCPS, COA) 37 vessels (TCPS, COA, Spot) with ability to capture market upside immediately

Average TC duration (existing fleet): 2.5 years – Minimum Secured Revenues: $1.2 billion

Secured Contracts

Spot ContractsN

B2016-17 Newbuilding Program

Upside Potential

N

B

N

B

N

B

N

B

N

B

N

B

N

B

N

B

N

B

N

B

N

B

N

B

N

B

N

B

N

B

N

B

N

B2018 Newbuilding Program

N

B

COA

76% Secured Contracts + 60% of Fleet with Upside Potential

1993 - 2018

TOTAL NET INCOME

$1.25 BILLION

TOTAL DIVIDENDS PAID + BB

$575,000,000VESSELS

4 - > 66

VLCC$21,226

SUEZMAX$19,015

AFRAMAX$18,072

AFRAMAX LR2 $19,015

PANAMAX LR1 $17,021

HANDYMAX MR $16,175

HANDYSIZE $13,688

LNG$36,791

DP2 SHUTTLE $36,264

2(1)

13(2)

17(3)

3

11

6

7

2

3

$0

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000

$120,000,000

TC & Spot Rev (Q2 18) Exp & Depr/Amort (Q2 18)

Dep

r/A

mo

rt

Sp

ot

Exp

en

ses

Tim

e C

hart

er

Note: Expenses = Opex + Finance + Commissions + Overheads + Charter Hire

Every $1,000pd Increase in Spot Rates has a Positive $0.07 Impact in annual EPS (Based on Current Vessels in Spot Contracts)

(1) Excludes the Millennium sold in Q2, 2018

(2) Excludes the Eurochampion 2004 and Euronike which are chartered-in

(3) Excludes two Aframaxes under construction

Low 6mo 2018 B/E Rates* - Secured Charter Coverage*Breakeven rates after Operating Expenses, G&A, Interest and Depreciation

TEN has always paid a dividend irrespective of market cycles; $10.76 per share in total dividends since NYSE listing in 2002

Long-term nature of Company’s employment policy to known industrial concerns provides cash flow sustainability and visibility

NOTE: EBITDA and Dividend numbers in USD millions

Solid Dividend Payments Through Market Cycles

Average Yield Since NYSE Listing: 5.25%

Commencement

of NB Program

Deliveries

Thank you!