6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR

15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of May, 2006

Commission File Number 001-3136

TSAKOS ENERGY NAVIGATION LIMITED

(Translation of registrant’s name into English)

367 Syngrou Avenue, 175 64 P. Faliro, Athens, Greece

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F    x            Form 40-F    ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):             

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):             

Indicate by check mark whether the registrant by furnishing the information contained in the Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes    ¨                        No    x

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-            .

EXHIBIT INDEX

99.1	Consolidated Financial Statements (Unaudited), December 31, 2005
99.2	Management’s Discussion and Analysis of Financial Condition and Results of Operations

This report on Form 6-K is hereby incorporated by reference into the following Registration Statements of the Company:

• Registration Statement on Form F-3 (No. 333-110495) filed with the SEC on November 14, 2003;

• Registration Statement on Form F-3 (No. 333-111615) filed with the SEC on December 30, 2003;

• Registration Statement on Form S-8 (No. 333-104062) filed with the SEC on March 27, 2003; and

• Registration Statement on Form S-8 (No. 333-102860) filed with the SEC on January 31, 2003.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: May 5, 2006

TSAKOS ENERGY NAVIGATION LIMITED
By:	/s/ Nikolas P. Tsakos
	Nikolas P. Tsakos
	President

EX-99.1

Exhibit 99.1

TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2005 and 2004

(Expressed in thousands of U.S. Dollars - except per share data)

	December 31, 2005			December 31, 2004
	(Unaudited)			(Audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	145,769		$	116,922
Cash, restricted		271			1,453
Receivables-
Trade accounts receivable, net		17,620			20,206
Insurance claims		652			1,282
Due from related companies		1,736			5,173
Advances and other		2,750			3,828
		22,758			30,489
Short-term investments		10,240			—
Inventories		5,406			4,059
Prepaid insurance and other		2,363			2,347
Financial instruments - Fair value		4,927			981
Total current assets		191,734			156,251
INVESTMENTS		21,881			10,000
FIXED ASSETS:
Advances for vessels under construction		150,428			121,260
Vessels		882,210			805,148
Accumulated depreciation		(170,848	)		(168,874	)
Vessels’ Net Book Value		711,362			636,274
Total fixed assets		861,790			757,534
DEFERRED CHARGES, net		13,769			15,184
Total assets	$	1,089,174		$	938,969
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt	$	51,496		$	39,693
Accounts payable-
Trade		13,489			14,937
Due to related companies		1,385			2,657
Other		542			1,454
		15,416			19,048
Accrued liabilities		10,139			8,632
Accrued bank interest		5,478			2,653
Unearned revenue		5,332			6,435
Deferred income, current portion		3,168			4,005
Financial instruments - Fair value		489			1,059
Total current liabilities		91,518			81,525
LONG-TERM DEBT, net of current portion		382,023			325,471
DEFERRED INCOME, net of current portion		8,447			12,452
STOCKHOLDERS’ EQUITY:
Common stock, $ 1.00 par value; 100,000,000 shares authorized at December 31, 2005 and December 31, 2004; 19,177,195 and 20,175,536 issued and outstanding at December 31, 2005 and December 31, 2004, respectively.		19,177			20,176
Additional paid-in capital		269,237			282,451
Other comprehensive income		3,067			1,136
Retained earnings		315,705			215,758
Total stockholders’ equity		607,186			519,521
Total liabilities and stockholders’ equity	$	1,089,174		$	938,969

TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

FOR THE YEAR ENDED DECEMBER 31, 2005 AND 2004

(Expressed in thousands of U.S. Dollars - except per share data)

	Year ended December 31,
	2005			2004
VOYAGE REVENUES:	$	295,623		$	318,278
EXPENSES:
Commissions		11,604			13,065
Voyage expenses		35,970			42,109
Charter hire expense		24,317			24,341
Vessel operating expenses		52,945			53,900
Depreciation		35,697			35,377
Amortization of deferred dry-docking costs		6,583			8,753
Provision for doubtful receivables		40			933
Management fees		5,460			5,328
General and administrative expenses		3,631			3,099
Management incentive award		2,500			2,500
Foreign currency (gains)/losses		(181	)		185
Amortization of deferred gain on sale of vessels		(3,168	)		(3,167	)
Gain on sale of vessels, net		(34,540	)		(13,608	)
Total expenses		140,858			172,815
Operating income		154,765			145,463
OTHER INCOME (EXPENSES):
Gain on sale of non-operating vessels, net		10,765			7,757
Interest and finance costs, net		(11,247	)		(10,135	)
Interest income		7,360			761
Other, net		112			(556	)
Total other income (expenses), net		6,990			(2,173	)
Net Income	$	161,755		$	143,290
Earnings per share, basic	$	8.18		$	7.53
Earnings per share, diluted	$	8.17		$	7.51
Weighted average number of shares, basic		19,772,270			19,034,727
Weighted average number of shares, diluted		19,786,846			19,080,975

TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

FOR THE THREE MONTHS ENDED DECEMBER 31, 2005 AND 2004

(Expressed in thousands of U.S. Dollars - except per share data)

	Three months ended December 31,
	2005			2004
VOYAGE REVENUES:	$	89,427		$	94,005
EXPENSES:
Commissions		3,441			3,822
Voyage expenses		8,282			9,267
Charter hire expense		6,126			6,105
Vessel operating expenses		14,021			14,988
Depreciation		9,069			8,854
Amortization of deferred charges		2,802			1,838
Provision for doubtful receivables		40			689
Management fees		1,312			1,383
General and administrative expenses		1,397			1,056
Management incentive award		2,500			2,500
Foreign currency (gains)/losses		(31	)		117
Amortization of deferred gain on sale of vessels		(792	)		(792	)
Gain on sale of vessels, net		(20,496	)		(12,610	)
Operating income		61,756			56,788
OTHER INCOME (EXPENSES):
Gain on sale of non-operating vessels, net		4			—
Interest and finance costs, net		(4,720	)		(2,404	)
Interest income		3,666			445
Other, net		128			(556	)
Total other income (expenses), net		(922	)		(2,515	)
Net Income	$	60,834		$	54,273
Earnings per share, basic	$	3.16		$	2.69
Earnings per share, diluted	$	3.16		$	2.69
Weighted average number of shares, basic		19,232,408			20,170,742
Weighted average number of shares, diluted		19,241,710			20,196,151

TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)

FOR THE YEARS ENDED DECEMBER 31, 2004 AND 2005

(Expressed in thousands of U.S. Dollars - except per share data)

	Comprehensive Income (Loss)			Common Stock			Additional Paid-in Capital			Accumulated Other Comprehensive Income (Loss)			Retained Earnings			Total Stock- Holders’ Equity
BALANCE, January 1, 2004				$	17,152		$	203,631		$	(1,431	)	$	95,217		$	314,569
Net income		143,290			—			—						143,290			143,290
- Issuance of common stock					2,875			78,143									81,018
- Expenses related to the issuance of common stock								(926	)								(926	)
- Exercise of stock options					149			1,603									1,752
- Cash dividends declared and paid ($0.50 per share)														(8,631	)		(8,631	)
- Cash dividends declared and paid ($0.70 per share)														(14,118	)		(14,118	)
- Fair value of financial instruments		1,706									1,706						1,706
- Reclassification of losses on undesignated cash flow hedges		861									861						861
Comprehensive income	$	145,857
BALANCE, December 31, 2004				$	20,176		$	282,451		$	1,136		$	215,758		$	519,521
Net income		161,755												161,755			161,755
- Exercise of stock options					18			203									221
- Repurchase and cancellation of common stock (1,016,790 shares)					(1,017	)		(13,417	)					(23,322	)		(37,756	)
- Cash dividends declared and paid ($01.95 per share)														(38,486	)		(38,486	)
- Fair value of financial instruments		4,265									4,265						4,265
- Reclassification of gains on undesignated cash flow hedges		(2,334	)								(2,334	)					(2,334	)
Comprehensive income	$	163,686
BALANCE, December 31, 2005				$	19,177		$	269,237		$	3,067		$	315,706		$	607,187

TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

FOR THE YEAR AND THE THREE MONTHS ENDED DECEMBER 31, 2005 AND 2004

(Expressed in thousands of U.S. Dollars)

	Year ended December 31,						Three months ended December 31,
	2005			2004			2005			2004
Cash Flows from Operating Activities:
Net income	$	161,755		$	143,290		$	60,834		$	54,273
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		35,697			35,377			9,069			8,854
Amortization of deferred dry-docking costs		6,583			8,753			2,801			1,838
Amortization of loan fees		1,034			368			583			90
Amortization of deferred income		(4,842	)		(4,005	)		(792	)		(1,002	)
Change in fair value of interest rate swaps		(2,584	)		(2,452	)		(1,370	)		1,214
Change in fair value of investments		(2,122	)		—			(2,122	)		—
Payments for dry-docking		(9,279	)		(3,632	)		1,579			(1,046	)
Gain on sale of vessels, net		(45,305	)		(21,365	)		(20,500	)		(12,610	)
(Increase) Decrease in:
Receivables		7,731			(4,917	)		(4,718	)		(3,234	)
Inventories		(1,347	)		(678	)		674			220
Prepaid insurance and other		(16	)		(1,142	)		1,793			760
Increase (Decrease) in:
Accounts payable		(3,632	)		(1,712	)		(7,319	)		1,257
Accrued liabilities		4,333			2,897			3,980			(909	)
Unearned revenue		(1,103	)		2,824			(22	)		2,638
Net Cash from Operating Activities		146,904			153,606			44,471			52,343
Cash Flows from Investing Activities:
Advances for vessels under construction		(70,705	)		(95,923	)		(26,084	)		(13,602	)
Vessel acquisitions and/or improvements		(175,429	)		(70,377	)		(1,722	)		(33	)
Investments		(19,999	)		(10,000	)		(4,326	)		(10,000	)
Proceeds from sale of vessels, net		157,164			83,637			55,241			44,730
Net Cash (used in)/from Investing Activities		(108,969	)		(92,663	)		23,109			21,095
Cash Flows from Financing Activities:
Proceeds from long-term debt		330,685			40,000			75,450			—
Financing costs		(2,603	)		(1,020	)		(1,057	)		(833	)
Payments of long-term debt		(262,330	)		(127,456	)		(98,387	)		(32,229	)
Proceeds from public offering, net of related issuance costs		—			80,092			—			50
Proceeds from exercise of stock options		221			1,752			48			164
(Increase/decrease in restricted cash relating to long-term debt		1,182			(1,453	)		(249	)		(1,453	)
Cash dividend		(38,486	)		(22,749	)		(19,326	)		(14,118	)
Repurchase and cancellation of common stock		(37,756	)		—			(9,498	)		—
Net Cash from/(used in) Financing Activities		(9,087	)		(30,834	)		(53,019	)		(48,419	)
Net increase in cash and cash equivalents		28,848			30,109			14,560			25,019
Cash and cash equivalents at beginning of period		116,922			86,813			131,210			91,903
Cash and cash equivalents at end of period	$	145,770		$	116,922		$	145,770		$	116,922

EX-99.2

Exhibit 99.2

TSAKOS ENERGY NAVIGATION LIMITED

THREE MONTHS ENDED DECEMBER 31, 2005

Results of operations – management discussion

Three months ended December 31, 2005 versus quarter ended December 31, 2004

(Percentage changes are based on the full numbers in the accompanying financial statements)

The Company previously announced unaudited results for the three months and year ended December 31, 2005, in a press release dated March 2, 2006. While net income and earnings per share for the year and for the three months remain unchanged from amounts disclosed in the press release, certain reclassifications and adjustments were made while finalizing the accounts which reduced operating income by $1.7 million for the three months and for the year ended December 31, 2005. Adjusted operating income for the three months and for the year ended December 31, 2005 was $61.8 million and $154.8 million, respectively, compared to $56.8 million and $145.5 million for the three months and for the year ended December 31, 2004, respectively. Reference is made to the Form 20-F which contains the Company’s 2005 Annual Report.

Voyage revenues

Voyage revenues from vessels were $89.4 million during the quarter ended December 31, 2005 as compared to $94.0 million during the quarter ended December 31, 2004, a decrease of $4.6 million or 4.9%. The decrease was primarily due to there being the equivalent of 1.5 vessels less or, in terms of days available for trading, a reduction of 145 days compared to the same quarter in 2004. The average number of vessels during the fourth quarter 2005 was 25.3 compared to 26.8 in the fourth quarter 2004 as a result of the sale of the Panos G, Tamyra, Pella, Dion and Toula Z and the acquisition of the Didimon, Eurochampion 2004 and Euronike within the intervening period.

Revenue earned per vessel on average within the fourth quarter was in fact almost exactly the same as the previous year’s fourth quarter, despite the freight market not reaching the peaks achieved in 2004. It was still nevertheless a strong market buoyed by strong world wide demand, in particular from the Far East. Most of the reduction in days affected the share of days relating to vessels employed on time charters (average 10.5 vessels compared to 11.5 in Quarter 4, 2004). The number of days employed on voyages subject to variable rates (on profit-sharing arrangements, on spot or on continuous employment at rates totally dependent on the market) was consistent with the equivalent period of 2004.

The average daily revenue per vessel after deducting voyage expenses for the quarter was $35,388 per day compared to $35,400 for the previous year’s fourth quarter. All tanker categories achieved good average rates during the fourth quarter as follows (last year’s fourth quarter averages in parentheses):- VLCCs earned an average $54,154 ($70,053), Suezmaxes $38,522 ($35,858), Aframaxes $38,620 ($42,460), Panamaxes $30,502 ($25,961), and Product Carriers $21,652 ($15,538).

Total productivity achieved by the fleet in the fourth quarter 2005 was 99.8% compared to 98.1% for the fourth quarter of 2004. In the same quarter last year, days lost related mainly to the voyage of the Bregen on route for its special survey due to commence in January 2006.

Commissions

Commissions were $3.4 million, or 3.8% of revenue from vessels, during the quarter ended December 31, 2005, compared to $3.8 million, which was 4.1% of revenue from vessels, for the quarter ended December 31, 2004. The decrease was due to changes in employment of several vessels to alternative employment on which lower commission was charged.

Voyage expenses

Voyage expenses include costs that are directly related to a voyage, such as port charges, agency fees, canal dues and bunker (fuel) costs. They are borne by the Company in the case of spot market single voyages or for voyages under contract of affreightment. Otherwise, in the case of time and bare-boat charters they are borne by the charterer. For vessels trading under a pool arrangement, allocation of revenue to pool members is determined after accounting for total voyage expenses by the pool managers. Voyage expenses were $8.3 million during the quarter ended December 31, 2005, compared to $9.3 million during the prior year’s fourth quarter, a 10.6% decrease.

Although voyage expenses are highly dependent on the voyage patterns followed, much of the decrease can simply be explained by the fact that the total operating days on spot charter and contract of affreightment decreased from 675 days in the fourth quarter of 2004 to 613 days in the fourth quarter of 2005. On the other hand, bunker prices were higher in the fourth quarter 2005 compared to the previous year’s period due to the significant increase in the price of oil during 2005.

Charter hire expense

During the fourth quarter 2004 and 2005 total charter hire expenses relating to the vessels as Cape Baker, Cape Balboa and Olympia amounted to $6.1 million.

Vessel operating expenses.

Vessel operating expenses include crew costs, maintenance repairs and spares, stores, lubricants, insurance and sundry expenses such as tonnage tax, registration fees, and communications costs. They are borne by the Company for all vessels of the fleet except for the one vessel on bare-boat charter (Millennium), and the three vessels which are chartered-in (Cape Baker, Cape Balboa and Olympia). Total operating costs were $14.0 million during the quarter ended December 31, 2005 as compared to $15.0 million during quarter ended December 31, 2004, a decrease of 6.5%, mainly due to the reduction in average number of vessels during the period.

Vessel operating expenses per ship per day for the those vessels in the fleet incurring operating expenses increased from $7,041 for the quarter ended December 31, 2004 to $7,134 for the quarter ended December 31, 2005, a relatively modest 1.3% increase. Costs have been held on an average basis due to the addition of new cost effective vessels and disposal of old vessels during 2005 which were becoming increasingly costly to maintain. However, although the dollar enjoyed some strengthening in the fourth quarter especially compared to the lows it had achieved against the Euro in the fourth quarter of 2004 and the beginning of 2005, the high relative level of the Euro continued to impact the cost of crew in particular. The high oil prices also have resulted in higher lubricant costs and there were increases in insurance costs. Certain charges associated with the recent dry-dockings of the panamaxes Victory III, Bregen and Hesnes have also been written-off in the Quarter.

Depreciation.

Depreciation was $9.1 million during the quarter ended December 31, 2005 compared to $8.9 million during the quarter ended December 31, 2004, an increase of only 2.4%, due mainly to the addition of the two ice-class suezmaxes and the product carrier Didimon in 2005, offset by the sale of the Toula Z, Pella, Dion and Tamyra (the vessel Panos G, which was also sold was already borne in the books at residual value).

Amortization of deferred charges.

During the quarter ended December 31, 2005, amortization of deferred drydocking charges was $2.8 million compared to $1.8 million during the quarter ended December 31, 2004, an increase of 52.4%. Increases in amortization were due partly to three vessels that underwent dry-docking in the period between the fourth quarter 2004 and fourth quarter 2005, which was offset by reduced overall amortization relating to four vessels with previously deferred dry-docking charges which were sold. Also, in the fourth quarter we changed the method of estimation relating to the period for amortizing the costs of dry-docking per vessel from the period to the next special survey to the period to the next scheduled dry-docking (generally 2.5 years).

2

Provision for doubtful receivables.

There was a decrease of $0.6 million in the provision for doubtful receivables during the fourth quarter 2005 compared to the like quarter of 2004. The provision is made up primarily of demurrages and freight believed due for time lost for causes beyond the Company’s control which is disputed by the charterers concerned. Of the provision made in 2004, some $0.4 million was in fact recovered in 2005. New charges in the quarter amounted to $40 thousand.

Management fees.

The Company pays to Tsakos Energy Management Ltd. fixed fees per vessel under a management agreement between the companies. Since July 1, 2004, the monthly fee is $18,000 for all vessels except the chartered-in vessels where the fee is $12,500 per month. The fee pays for services that cover both the management of the individual vessels and of the enterprise as a whole. Management fees totaled $1.3 million during the quarter ended December 31, 2005 compared to $1.4 million for the quarter ended December 31, 2004, a decrease of 5.1%, due to the reduction in number of vessels.

General and administrative expenses.

G&A expenses consist primarily of professional fees, office supplies, investor relations, advertising costs, directors’ liability insurance, and travel-related expenses. General and administrative expenses were $1.4 million during the quarter ended December 31, 2005 compared to $1.1 million during the previous year’s fourth quarter, an increase of 32.3%. The increase was mostly due to one-off expenses relating to the issuance of the rights plan announced in October.

The sum of these expenses, together with the management fees payable to Tsakos Energy Management Ltd., represents the overheads of the Company. On a per vessel basis, daily overhead costs, excluding the new management incentive award, were $1,166 for the three months ended December 31, 2005 compared to $988 for the fourth quarter of 2004 and an average $954 for the year 2005, the increase being due to the reasons stated above. Together with the incentive award the daily overhead was $2,241 for the quarter compared to $2,000 in Quarter 4, 2004.

Management incentive award

In accordance with the revised management agreement between the Company and Tsakos Energy Management, its managers, $2.5 million is due as an award to Tsakos Energy Management due to the success of the Company during 2005 in achieving a return on equity in excess of the target 25% for 2005. A similar award was achieved in 2004 for exceeding the 25% target.

Amortization of the deferred gain on the sale of vessels.

The Company sold two suezmaxes in a sale and leaseback transaction in Quarter 4, 2003. The total gain of $15.8 million was deferred and is being amortized over the five year minimum charter period. The amortization of this gain amounted to $0.8 million for both fourth quarters of 2004 and 2005.

Gain on sale of vessels

The Company sold the single-hull aframax Tamyra during the fourth quarter for $10.4 million realizing a capital gain of $1.8 million and the product carrier Dionisos for $48.0 million with a capital gain of $18.7 million. The gains are recognized in full in the fourth quarter. In the fourth quarter 2004, the tanker Toula Z. had been sold for a capital gain of $12.7 million. There were also late charges in the fourth quarter of 2004 of $0.1 million relating to a previously sold vessel.

3

Operating income

As a result of the reasons stated above, income from vessel operations was $61.8 million during the quarter ended December 31, 2005 versus $56.8 million during the quarter ended December 31, 2004, representing an 8.7% increase.

Interest and finance costs.

Interest and finance costs were $4.7 million for the quarter ended December 31, 2005 compared to $2.4 million for the quarter ended December 31, 2004 an overall 96.3% increase. Loan interest nearly doubled to $5.4 million from $2.8 million, a 95.3% increase. Total average bank loans were approximately $440.0 million for Quarter 4, 2005 compared to $392.0 million for the previous year’s quarter. The average all-in loan finance cost in Quarter 4, taking account of swap interest, was 4.78% compared to 3.17% in last year’s fourth quarter.

There was a net positive movement of $1.4 million, including reclassification adjustments on undesignated cash flow hedges, in the fair value (mark-to-market) of the non-hedging interest rate swaps in the fourth quarter 2005 compared to a negative movement of $1.2 million in the fourth quarter of 2004.

Capitalized interest in the fourth quarter of 2005 was $1.5 million compared to $0.9 million in the previous year, due to the extra number of vessels under construction during the past year, and a significant increase in average interest rates.

Amortization of Loan expenses was $0.6 million compared to $0.1 million due to write-offs of loan expenses on the refinancing of older loans. Other loan charges also increased from $0.1 million in 2004 to $1.1 million due to extra commitment fees and other charges on new loans.

Interest income.

Total income derived from bank deposits and investments was $3.7 million during the fourth quarter of 2005 and $0.4 million during the quarter ended December 31, 2004. The increase was due to partly to higher average bank deposits and higher interest rate and to net increases in the valuation of investments amounting to $1.5 million.

Other, net.

During the period, the Company derived $0.1 million of other income mainly from the recovery of doubtful debts. In the fourth quarter, 2004 the Company wrote-off certain irrecoverable once-off expenses amounting nearly $0.6 million.

Net income

As a result of the foregoing, net income for the quarter ended December 31, 2005 was $60.8 million, or $3.16 per share, basic, versus $54.3 million, or $2.69 earnings per share, basic, during the quarter ended December 31, 2004, an increase of 12.1%.

Liquidity and capital resources

Liquidity requirements relate to servicing debt, funding the equity portion of investments in vessels, funding working capital and controlling fluctuations in cash flow. Net cash flow generated by continuing operations is the main source of liquidity. Additional sources, apart from raising equity, include proceeds from asset sales and borrowings, although all borrowing arrangements to date have specifically related to the acquisition of vessels.

We believe that, unless there is a major and sustained downturn in market conditions, our financial resources are sufficient to meet our liquidity needs through January 1, 2007, taking into account both our existing capital commitments and the minimum debt service requirements as defined by our bank loan covenants.

4

Working capital (non-restricted net current assets) amounted to approximately $99.9 million at December 31, 2005 compared to $73.3 million as at December 31, 2004. The increase is mostly due to the increase in cash balances (including restricted cash) which, as at December 31, 2005, amounted to $146.0 million, compared to $118.4 million a year previously.

Net cash provided by operating activities was $44.5 million in the quarter ended December 31, 2005 compared to $52.3 million in the previous year’s fourth quarter, a 15.0% decrease, due primarily to the decrease in revenues generated by the fleet which was slightly reduced from the previous period.

Expenditure on dry-dockings is deducted from net income to calculate cash generated by operating activities. There was no significant expenditure during Quarter 4, 2005 although expenditure previously incurred on the Victory III was designated upgrading and recategorized as such. In the previous year’s quarter there was dry-docking expenditure of $1.0 million.

Net cash from investing activities was $23.1 million for the quarter ended December 31, 2005, compared to $21.1 million for the quarter ended December 31, 2004. The net funds received relate mainly to the sales proceeds of the Tamyra and Dionisos amounting to $55.2 million. The vessel sales resulted in capital gains of $20.5 million and, after repayment of debt, left $34 million free cash. Installments for the ongoing new building construction programme amounted to $26.1 million. The total number of vessels on order as at December 31, 2005 was eleven to be delivered between January 2006 and June 2007 with a total contract value of $618.3 million of which $142.4 million had been paid by December 31, 2005. The first vessel, the 1A ice-class suezmax Archangel, was delivered on January 7, 2006.

Net cash used in financing activities was $53.0 million in the quarter ended December 31, 2005, compared to $48.4 million derived from financing activities quarter ending December 31, 2004. There were new proceeds from a new credit facility in the quarter amounting to $75.5 million compared to zero in the previous year’s quarter. There were repayments of $1.7 million, and a prepayment of $96.7 million relating to a loan on the Dionisos sold in Quarter 4 and loans refinanced by the new facility mentioned above.

Stock repurchased amounted $9.5 million for 278,000 shares in Quarter 4, as part of the most recent stock repurchase programme. No stock was repurchased in 2004. $48 thousand was raised in Quarter 4, 2005 from the exercise of stock options. $0.2 million were exercised within the fourth quarter of 2004.

An initial $1 dividend was declared for the fiscal year 2005, which was paid in October 2005 and amounted to $19.3 million. Earlier in 2005, a final 95 cent dividend for the fiscal year 2004 was declared in February 2005 and was paid on April 26, 2005, totaling $19.2 million. The dividend policy of the Company is to pay, depending on cash availability and requirements, between 25% and 50% of the net income in any given year, payable in two installments, the first prior to the end of the year based on expected earnings and cash requirements, and the final portion in the early part of the following year based on final earnings and cash requirements.

Total net debt outstanding decreased from $456.4 million at the beginning of the fourth quarter to $433.5 million by the end of the quarter. The debt to capital ratio was 41.7% by December 31, 2005 (or 32.2% on a net of cash basis). No further interest rate swaps were arranged during the fourth quarter. Interest rate swap coverage on outstanding loans was approximately 78%.

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