Exhibit 99.1

TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

MARCH 31, 2012 AND DECEMBER 31, 2011

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

	March 31, 2012			December 31, 2011
	Unaudited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	185,623		$	175,708
Restricted cash		4,434			5,984
Marketable Securities (Note 3)		2,618			2,534
Accounts receivable, net		26,787			23,421
Insurance claims		4,930			2,448
Due from related companies (Note 2)		847			1,641
Advances and other		6,723			7,508
Vessels held for sale		41,427			41,427
Inventories		18,421			19,835
Prepaid insurance and other		2,845			5,372
Current portion of financial instruments-Fair value (Note 7)		2,437			1,755
Total current assets		297,092			287,633
INVESTMENTS		1,000			1,000
FIXED ASSETS (Note 4)
Advances for vessels under construction		38,012			37,636
Vessels		2,640,428			2,639,878
Accumulated depreciation		(469,173	)		(445,518	)
Vessels’ Net Book Value		2,171,255			2,194,360
Total fixed assets		2,209,267			2,231,996
DEFERRED CHARGES, net (Note 5)		17,712			14,708
Total assets	$	2,525,071		$	2,535,337
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt (Note 6)	$	215,777		$	196,996
Payables		33,274			23,707
Due to related companies (Note 2)		1,015			1,063
Accrued liabilities		15,222			14,168
Accrued bank interest		6,926			7,081
Unearned revenue		6,539			7,469
Current portion of financial instruments - Fair value (Note 7)		24,452			29,228
Total current liabilities		303,205			279,712
LONG-TERM DEBT, net of current portion (Note 6)		1,298,596			1,318,667
FINANCIAL INSTRUMENTS - FAIR VALUE, net of current portion (Note 7)		15,422			17,800
STOCKHOLDERS’ EQUITY:
Common stock, $1.00 par value; 100,000,000 shares authorized; 46,208,737 issued and outstanding at March 31, 2012 and 46,208,737 at December 31, 2011.		46,209			46,209
Additional paid-in capital		351,719			351,566
Accumulated other comprehensive loss		(30,806	)		(35,030	)
Retained earnings		538,578			554,314
Total Tsakos Energy Navigation Limited stockholders’ equity		905,700			917,059
Noncontrolling Interest		2,148			2,099
Total stockholders’ equity		907,848			919,158
Total liabilities and stockholders’ equity	$	2,525,071		$	2,535,337

The accompanying notes are an integral part of these consolidated financial statements

1

TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

FOR THE THREE MONTHS ENDED MARCH 31, 2012 AND 2011

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

	Three months ended March 31
	2012			2011
VOYAGE REVENUES:	$	102,230		$	99,196
EXPENSES:
Commissions		3,669			3,356
Voyage expenses		32,312			23,533
Vessel operating expenses		35,541			31,596
Depreciation		23,684			24,235
Amortization of deferred dry-docking costs		1,057			1,108
Management fees (Note 2(a))		3,991			3,885
General and administrative expenses		832			1,139
Stock compensation expense		153			371
Foreign currency losses		(50	)		397
Gain on sale of vessel		—			(5,802	)
Total expenses		101,189			83,818
Operating income		1,041			15,378
OTHER INCOME (EXPENSES):
Interest and finance costs, net (Note 7)		(10,298	)		(6,425	)
Interest income		483			590
Other, net		18			(121	)
Total other expenses, net		(9,797	)		(5,956	)
Net loss/income		(8,756	)		9,422
Less: Net income attributable to the noncontrolling interest		(49	)		(136	)
Net loss/income attributable to Tsakos Energy Navigation Limited	$	(8,805	)	$	9,286
Loss/earnings per share, basic attributable to Tsakos Energy Navigation Limited common shareholders	$	(0.19	)	$	0.20
Loss/earnings per share, diluted attributable to Tsakos Energy Navigation Limited common shareholders	$	(0.19	)	$	0.20
Weighted average number of shares, basic		46,208,737			46,081,487
Weighted average number of shares, diluted		46,208,737			46,172,417

The accompanying notes are an integral part of these consolidated financial statements

2

TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES

STATEMENT OF CONSOLIDATED COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED MARCH 31, 2012, AND 2011

(Expressed in thousands of U.S. Dollars)

	2012			2011
Net (loss)/income	$	(8,756	)	$	9,422
Other comprehensive income/(loss)
Unrealized gains/(losses) from hedging financial instruments
Unrealized gain on interest rate swaps		3,773			3,925
Amortization of deferred loss on de-designated financial instruments		367			405
Total unrealized gains from hedging financial instruments		4,140			4,330
Unrealized gain on marketable securities		84			—
Other Comprehensive income		4,224			4,330
Comprehensive (loss)/income		(4,532	)		13,752
Less: comprehensive income attributable to the noncontrolling interest		(49	)		(136	)
Comprehensive (loss)/income attributable to Tsakos Energy Navigation Limited	$	(4,581	)	$	13,616

The accompanying notes are an integral part of these consolidated financial statements

3

TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE THREE MONTHS ENDED MARCH 31, 2012, AND 2011

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

	Common Stock		Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Tsakos Energy Navigation Limited			Noncontrolling Interest			Total
BALANCE, January 1, 2011	$	46,081	$	350,946		$	671,480		$	(52,329	)	$	1,016,178		$	3,752		$	1,019,930
Net income							9,286						9,286			136			9,422
- Expenses of 2010 common stock-offering				(73	)								(73	)					(73	)
- Cash dividends paid ($0.15 per share)							(6,912	)					(6,912	)					(6,912	)
- Cash dividends declared ($0.15 per share)							(6,912	)					(6,912	)					(6,912	)
-Distribution from Subsidiary to non controlling interest													0			(2,199	)		(2,199	)
- Other comprehensive income (loss)										4,330			4,330						4,330
- Amortization of restricted share units				371									371						371
BALANCE, March 31, 2011	$	46,081	$	351,244		$	666,942		$	(47,999	)	$	1,016,268		$	1,689		$	1,017,957
BALANCE, January 1, 2012	$	46,209	$	351,566		$	554,314		$	(35,030	)	$	917,059		$	2,099		$	919,158
Net loss							(8,805	)					(8,805	)		49			(8,756	)
- Cash dividends paid ($0.15 per share)							(6,931	)					(6,931	)					(6,931	)
- Other comprehensive income (loss)										4,224			4,224						4,224
- Amortization of restricted share units				153									153						153
BALANCE, March 31, 2012	$	46,209	$	351,719		$	538,578		$	(30,806	)	$	905,700		$	2,148		$	907,848

The accompanying notes are an integral part of these consolidated financial statements

4

TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED MARCH 31, 2012 AND 2011

(Expressed in thousands of U.S. Dollars)

	2012			2011
Cash Flows from Operating Activities:
Net (loss)/income	$	(8,756	)	$	9,422
Adjustments to reconcile net (loss)/income to net cash provided by operating activities:
Depreciation		23,684			24,235
Amortization of deferred dry-docking costs		1,057			1,108
Amortization of loan fees		232			236
Stock compensation expense		153			371
Change in fair value of derivative instruments		(3,725	)		(5,754	)
Gain on sale of vessels		—			(5,802	)
Payments for dry-docking		(3,528	)		(32	)
(Increase) Decrease in:
Receivables		(4,269	)		2,932
Inventories		1,414			(4,117	)
Prepaid insurance and other		2,527			11
Increase (Decrease) in:
Payables		9,519			7,886
Accrued liabilities		899			2,532
Unearned revenue		(930	)		(5,310	)
Net Cash provided by Operating Activities		18,277			27,718
Cash Flows from Investing Activities:
Advances for vessels under construction and acquisitions		(376	)		(23,042	)
Vessel acquisitions and/or improvements		(550	)		(324	)
Purchase of marketable securities		—			(2,500	)
Proceeds from the sale of vessels		—			32,787
Net Cash (used in)/provided by Investing Activities		(926	)		6,921
Cash Flows from Financing Activities:
Proceeds from long-term debt		28,358			—
Financing costs		(765	)		(137	)
Payments of long-term debt		(29,648	)		(44,240	)
Decrease in restricted cash		1,550			1,838
Cash dividend		(6,931	)		(6,912	)
Distribution from subsidiary to noncontrolling interest owners		—			(2,199	)
Net Cash used in Financing Activities		(7,436	)		(51,650	)
Net increase/(decrease) in cash and cash equivalents		9,915			(17,011	)
Cash and cash equivalents at beginning of period		175,708			276,637
Cash and cash equivalents at end of period	$	185,623		$	259,626

The accompanying notes are an integral part of these consolidated financial statements

5

TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED) MARCH 31, 2012 AND 2011

(Expressed in thousands of U.S. Dollars, except for share and per share data, unless otherwise stated)

1. Basis of Presentation

The accompanying unaudited consolidated financial statements of Tsakos Energy Navigation Limited (the “Holding Company”) and subsidiaries (collectively, the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 6-K and Article 10 of Regulation S-X of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for fair presentation have been included. Operating results for the three months ended March 31, 2012 are not necessarily indicative of the results that may be expected for the year ending December 31, 2012.

The consolidated balance sheet as of December 31, 2011 has been derived from the audited financial statements at that date, but does not include all of the footnotes required by generally accepted accounting principles for complete financial statements.

A discussion of the Company’s significant accounting policies can be found in the Company’s Consolidated Financial Statements included in the Annual Report on Form 20-F for the year ended December 31, 2011. There have been no material changes to these policies in the three-month period ended March 31, 2012.

2. Transactions with Related Parties

The following amounts were charged by related parties for services rendered:

	Three months ended March 31,
	2012		2011
Tsakos Shipping and Trading S.A. (commissions)		1,248		1,652
Tsakos Energy Management Limited (management fees)		3,916		3,810
Tsakos Columbia Shipmanagement S.A.		323		296
Argosy Insurance Company Limited		2,408		2,454
AirMania Travel S.A.		851		261
Total expenses with related parties		8,746		8,473

Balances due from and to related parties are as follows:

	March 31, 2012		December 31, 2011
Due from related parties
Tsakos Columbia Shipmanagement Ltd.		634		1,641
Tsakos Energy Management Limited		213		—
Total due from related parties		847		1,641
Due to related parties
Tsakos Shipping and Trading S.A.		289		89
Tsakos Energy Management Limited		—		52
Argosy Insurance Company Limited		317		607
AirMania Travel S.A.		409		315
Total due to related parties		1,015		1,063

6

TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED) MARCH 31, 2012 AND 2011

(Expressed in thousands of U.S. Dollars, except for share and per share data, unless otherwise stated)

2. Transactions with Related Parties (continued)

There is also, at March 31, 2012 an amount of $536 ($691 at December 31, 2011) due to Tsakos Shipping and Trading S.A. and $258 ($243 at December 31, 2011) due to Argosy Insurance Limited, included in accrued liabilities which relates to services rendered by related parties not yet invoiced.

(a) Tsakos Energy Management Limited (the “Management Company”): The Holding Company has a Management Agreement (“Management Agreement”) with the Management Company, a Liberian corporation, to provide overall executive and commercial management of its affairs for a monthly fee. Per the Management Agreement of March 8, 2007, effective from January 1, 2008, there is a prorated adjustment if at beginning of each year the Euro has appreciated by 10% or more against the U.S. Dollar since January 1, 2007. In addition, there is an increase each year by a percentage figure reflecting 12 month Euribor, if both parties agree. From July 1, 2010, the monthly management fees for operating vessels were $27.0 per owned vessel except for the LNG carrier which bears a monthly fee of $32.0 of which $7.0 is paid to the Management Company and $25.0 to a third party manager. The monthly management fees for chartered-in vessels or for owned vessels chartered out on a bare-boat basis were $20.0. Those fees applied until December 31, 2011. From January 1, 2012 monthly fees for operating vessels are $27.5, for vessels chartered out or on a bare-boat basis are $20.4 and from April 1, 2012 for the LNG carrier $35.0 of which $10.0 is paid to the Management Company and $25.0 to a third party manager.

The Holding Company and the Management Company have certain officers and directors in common. The President, who is also the Chief Executive Officer and a Director of the Holding Company, is also the sole stockholder of the Management Company. The Management Company may unilaterally terminate its Management Agreement with the Holding Company at any time upon one year’s notice. In addition, if even one director was elected to the Holding Company’s Board of Directors without having been recommended by the existing board, the Management Company would have the right to terminate the Management Agreement on ten days notice, and the Holding Company would be obligated as at March 31, 2012 to pay the Management Company an amount of approximately $142,157 calculated in accordance with the terms of the Management Agreement. Under the terms of the Management Agreement between the Holding Company and the Management Company, the Holding Company may terminate the Management Agreement only under specific circumstances, without the prior approval of the Holding Company’s Board of Directors.

Estimated future management fees payable over the next ten years under the Management Agreement, exclusive of any incentive awards and based on existing vessels and known vessels as at March 31, 2012, scheduled for future delivery, are:

Year	Amount
April to December 2012		12,026
2013		15,523
2014		15,630
2015		15,630
2016		15,630
2017 to 2022		85,965
		160,404

7

TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED) MARCH 31, 2012 AND 2011

(Expressed in thousands of U.S. Dollars, except for share and per share data, unless otherwise stated)

2. Transactions with Related Parties (continued)

(a) Tsakos Energy Management Limited (continued): Management fees for vessels are included in the accompanying Consolidated Statements of Income. Also, under the terms of the Management Agreement, the Management Company provides supervisory services for the construction of new vessels for a monthly fee of $20.4 from January 1, 2012 and $20.0 per vessel in 2011. These fees in total amounted to $122, and $120 during the three months ended March 31, 2012 and 2011, respectively, and are either accounted for as part of construction costs for delivered vessels or are included in Advances for vessels under construction.

(b) Tsakos Columbia Shipmanagement S.A. (“TCM”): The Management Company appointed TCM to provide technical management to the Company’s vessels from July 1, 2010. TCM is owned jointly and in equal part by related party interests and by a private German Group. TCM, at the consent of the Holding Company, may subcontract all or part of the technical management of any vessel to an alternative unrelated technical manager.

Effective July 1, 2010, the Management Company, at its own expense, pays technical management fees to TCM, and the Company bears and pays directly to TCM most of its operating expenses, including repairs and maintenance, provisioning and crewing of the Company’s vessels, as well as certain charges which are capitalized or deferred, including reimbursement of the costs of TCM personnel sent overseas to supervise repairs and perform inspections on Company vessels. The Company also pays to TCM certain fees to cover expenses relating to internal control procedures and information technology services which are borne by TCM on behalf of the Company.

(c) Tsakos Shipping and Trading S.A. (“Tsakos Shipping”): Certain members of the Tsakos family are involved in the decision-making processes of Tsakos Shipping and of the Management Company, and are also shareholders of the Holding Company.

Tsakos Shipping provides chartering services for the Company’s vessels by communicating with third party brokers to solicit research and propose charters. For this service, the Company pays to Tsakos Shipping a chartering commission of approximately 1.25% on all freights, hires and demurrages. Such commissions are included in Commissions in the accompanying Consolidated Statements of Income. Tsakos Shipping also provides sale and purchase of vessels brokerage service. For this service, Tsakos Shipping may charge brokerage commission. In 2011 this commission was approximately 1% of the sale price of a vessel. Tsakos Shipping may also charge a fee of $200 (or such other sum as may be agreed) on delivery of each newbuilding vessel in payment for the cost of design and supervision of the newbuilding by Tsakos Shipping. In the first quarter of 2012 no such fee was charged whereas in 2011, $2,800 has been charged for fourteen vessels delivered between 2007 and September 2011. This amount was added to the cost of the vessels concerned and is being amortized over the remaining life of the vessels.

8

TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED) MARCH 31, 2012 AND 2011

(Expressed in thousands of U.S. Dollars, except for share and per share data, unless otherwise stated)

2. Transactions with Related Parties (continued)

(c) Tsakos Shipping and Trading S.A. (continued): Commissions due to Tsakos Shipping by the Company have been netted-off against amounts due from Tsakos Shipping for advances made, and the net amount is included in Due from related Companies.

(d) Argosy Insurance Company Limited (“Argosy”): The Company places its hull and machinery insurance, increased value insurance and war risk and certain other insurance through Argosy, a captive insurance company affiliated with Tsakos Shipping.

(e) AirMania Travel S.A. (“AirMania”): Apart from third-party agents, the Company also uses an affiliated company, AirMania, for travel services.

3. Marketable Securities

In March 2011, the Company placed $2,500 in highly liquid, low risk marketable securities which are considered to be available-for-sale for reporting purposes. The fair value of these marketable securities as of March 31, 2012 was $2,618, and the change in fair value during the three months ended March 31, 2012, amounting to $84 (positive) is included in Accumulated other comprehensive loss.

4. Vessels

Sales

There were no vessel sales in the first quarter of 2012. In the first quarter of 2011, the Company sold the aframax tanker Opal Queen for $34,000 realizing a gain of $5,802, which is separately reflected in the accompanying Consolidated Statements of Income.

Held for sale and impairment

In the latter part of 2011, events occurred and circumstances changed, which in the ensuing period indicated that the carrying amounts of the VLCC tankers La Madrina and La Prudencia, built in 1994 and 1993 respectively were not fully recoverable. More specifically, market conditions led to a significant drop in VLCC tanker hire rates and the preference for younger vessels. The Company determined that these vessels met the criteria to be classified as held for sale at December 31, 2011. Therefore, the Company remeasured the vessels at fair value less costs to sell and recognized a total impairment charge of $39,434. Consequently, the total carrying values at December 31, 2011 of $30,987 for La Madrina and $49,875 for La Prudencia were written down to $20,714 each, which is a level 3 measurement of fair market value of the vessel as determined by management taking into consideration valuations from independent marine valuers and making use of current available market data relating to the vessel and similar vessels (Note 12(c)). The vessels are still classified as held for sale at March 31, 2012. At March 31, 2011, the aframax tanker Vergina II was classified as held for sale.

9

TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED) MARCH 31, 2012 AND 2011

(Expressed in thousands of U.S. Dollars, except for share and per share data, unless otherwise stated)

5. Deferred Charges

Deferred charges, consisted of dry-docking and special survey costs, net of accumulated amortization, amounted to $13,143 and $10,672, at March 31, 2012 and December 31, 2011, respectively, and loan fees, net of accumulated amortization, amounted to $4,569 and $4,036 at March 31, 2012 and December 31, 2011, respectively. Amortization of deferred dry-docking costs is separately reflected in the accompanying Consolidated Statements of Income, while amortization of loan fees is included in Interest and finance costs, net.

6. Long - Term Debt

Facility	March 31, 2012			December 31, 2011
(a) Credit Facilities		1,039,588			1,030,798
(b) Term Bank Loans		474,785			484,865
Total		1,514,373			1,515,663
Less - current portion		(215,777	)		(196,996	)
Long-term portion		1,298,596			1,318,667

(a) Credit facilities

As at March 31, 2012, the Company had seven open reducing revolving credit facilities, all of which are reduced in semi-annual installments, and two open facilities which have both a reducing revolving credit component and a term bank loan component. In January 2012, the Company drew down the unused amount at December 31, 2011 of $28,358.

Interest is payable at a rate based on LIBOR plus a spread. At March 31, 2012, interest on these facilities ranged from 1.23% to 5.19%.

(a) Term bank loans

Term loan balances outstanding at March 31, 2012 amounted to $474,785. These bank loans are payable in U.S. Dollars in semi-annual installments with balloon payments due at maturity between October 2016 and April 2022. Interest rates on the outstanding loans as at March 31, 2012, are based on LIBOR plus a spread.

At March 31, 2012, interest on these term bank loans ranged from 1.09% to 3.24%.

The weighted-average interest rates on the above executed loans for the applicable periods were:

Three months ended March 31, 2012	1.84	%
Three months ended March 31, 2011	1.64	%

10

TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED) MARCH 31, 2012 AND 2011

(Expressed in thousands of U.S. Dollars, except for share and per share data, unless otherwise stated)

6. Long - Term Debt (continued)

The above revolving credit facilities and term bank loans are secured by first priority mortgages on substantially all vessels, and to assignments of earnings and insurances of the respectively mortgaged vessels, and by corporate guarantees of the relevant ship-owning subsidiaries. The loan agreements include, among other covenants, covenants requiring the Company to obtain the lenders’ prior consent in order to incur or issue any financial indebtedness, additional borrowings, pay dividends in an amount more than 50% of cumulative net income (as defined in the related agreements), sell vessels and assets, and change the beneficial ownership or management of the vessels. Also, the covenants require the Company to maintain a minimum liquidity, a minimum hull value in connection with the vessels’ outstanding loans, insurance coverage of the vessels against all customary risks and maintenance of operating bank accounts with minimum balances. As at March 31, 2012 and December 31, 2011, the Company was in non-compliance with minimum value-to-loan ratios contained in certain of its debt agreements under which a total of $723,967 at March 31, 2012 and $621,021 at December 31, 2011 were outstanding at those dates. These agreements include two loans which relate to the vessels La Madrina and La Prudencia which are accounted for as held for sale both at March 31, 2012 and December 31, 2011 and which management expects to sell within 2012. On sale of these vessels it is expected that, in accordance with the terms of the respective loans, prepayments will be calculated on a basis that takes into account the value-to-loans ratios of the remaining vessels covered by the loans. These prepayments, based on existing values, are expected to amount to $62,791 at March 31, 2012 and $56,855 at December 31, 2011. These agreements also include further loans in non-compliance with minimum value-to-loan ratios in relation to which the Company may be required to prepay indebtedness in the form of cash or provide additional security in the total of $21,400 at March 31, 2012 and $8,555 at December 31, 2011. Accordingly, in addition to the required scheduled payments, the amounts of $84,191 at March 31, 2012 and $65,410 at December 31, 2011 have been classified as current liabilities.

As of December 31, 2011, a subsidiary, in which the Company has 51% interest, was not in compliance with the leverage ratio required by its loan, under which the amount of $48,125 was outstanding as of that date. In this respect on April 16, 2012, the subsidiary entered into an amendatory agreement with the lenders which waives the non-compliance of the leverage ratio covenant referred to above for the period from December 31, 2011 through December 31, 2012. The Company made on April 20, 2012 a prepayment of $8,125 on the loan (classified in current liabilities at December 31, 2011 and March 31, 2012) against the balloon installment due in 2016 and pay increased interest rate margins during the waiver period and remaining term of the loan.

The annual principal payments required to be made after March 31, 2012, including balloon payments totaling $728,554 due through April 2022, are as follows:

Period/Year	Amount
April to December 2012		144,225
2013		177,464
2014		109,742
2015		204,310
2016		212,069
2017 and thereafter		666,563
		1,514,373

11

TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED) MARCH 31, 2012 AND 2011

(Expressed in thousands of U.S. Dollars, except for share and per share data, unless otherwise stated)

7. Interest and Finance Costs, net

	March 31, 2012			March 31, 2011
Interest expense		11,787			10,672
Less: Interest capitalized		(303	)		(898	)
Interest expense, net		11,484			9,774
Interest swap cash settlements non-hedging		2,964			3,391
Bunkers swap cash settlements		(816	)		(1,249	)
Amortization of loan fees		232			236
Bank charges		29			26
Amortization of deferred loss on de-designated financial instruments		367			405
Change in fair value of non-hedging financial instruments		(3,962	)		(6,158	)
Net total		10,298			6,425

At March 31, 2012, the Company was committed to thirteen floating-to-fixed interest rate swaps with major financial institutions covering notional amounts aggregating to $744,734 maturing from August 2012 through May 2018, on which it pays fixed rates averaging 4.64% and receives floating rates based on the six-month London interbank offered rate (“LIBOR”) (Note 12).

At March 31, 2012, the Company held ten of the thirteen interest rate swap agreements in order to hedge its exposure to interest rate fluctuations associated with its debt covering notional amounts aggregating to $535,128. The fair value of such financial instruments as of March 31, 2012 and December 31, 2011 in aggregate amounted to $24,962 (negative) and $28,835 (negative), respectively. The estimated net amount of cash flow hedge losses at March 31, 2012 that is estimated to be reclassified into earnings within the next twelve months is $18,952.

At March 31, 2012 and December 31, 2011, the Company held three interest rate swaps that did not meet hedge accounting criteria. As such, the changes in their fair values during the quarters ended March 31, 2012 and 2011 have been included in change in fair value of non-hedging financial instruments, in the table above and amounted to $3,280 (positive) and $3,533 (positive), respectively. During 2010, one of these swaps was de-designated as a hedging swap and the remaining loss included in Accumulated other comprehensive loss, and for which the associated future cash flows are deemed probable of occurring ($2,837 at March 31, 2012), is being amortized to income over the term of the original hedge provided that the variable-rate interest obligations continue. The amount of such loss amortized during the quarters ended March 31, 2012 and 2011 was $367 and $405, respectively and for the next year up to March 31, 2013, amortization is expected to be $1,471.

At March 31, 2012 and December 31, 2011, the Company had three bunker swap agreements, in order to hedge its exposure to bunker price fluctuations associated with the consumption of bunkers by its vessels. The fair value of these financial instruments as of March 31, 2012 and December 31, 2011 was $2,437 (positive) and $1,755 (positive), respectively.

12

TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED) MARCH 31, 2012 AND 2011

(Expressed in thousands of U.S. Dollars, except for share and per share data, unless otherwise stated)

7. Interest and Finance Costs, net (continued)

The changes in their fair values during the first quarter of 2012 and 2011 amounting to $682 (positive) and $2,625 (positive) respectively have been included in Change in fair value of non-hedging financial instruments in the table above, as such agreements do not meet the hedging criteria.

8. Stockholders’ Equity

During the three-month period ended March 31, 2012 the Company declared dividends of $6,931 which were paid on February 14, 2012 to shareholders on record February 9, 2012.

9. Accumulated other comprehensive loss

In the first quarter of 2012, Accumulated other comprehensive loss decreased with unrealized gains of $4,224 of which $3,773 resulted from changes in fair value of financial instruments, $367 related to losses which were amortized to income on the de-designation of one interest rate swap and $84 resulted from unrealized gains on marketable securities. In the first quarter of 2011, Accumulated other comprehensive loss decreased with unrealized gains of $4,330 of which $3,925 resulted from changes in the fair value of financial instruments and $405 related to losses which were amortized to income on the de-designation of one interest rate swap.

10. Earnings per Common Share

The computation of basic earnings per share is based on the weighted average number of common shares outstanding during the period. The computation of diluted earnings per share assumes the foregoing and the exercise of all RSUs using the treasury stock method.

	2012			2011
Net (loss)/income available to common stockholders	$	(8,805	)	$	9,286
Weighted average common shares outstanding		46,208,737			46,081,487
Dilutive effect of RSUs		—			90,930
Weighted average common shares - diluted		46,208,737			46,172,417
Basic (loss)/earnings per common share	$	(0.19	)	$	0.20
Diluted (loss)/earnings per common share	$	(0.19	)	$	0.20

For the three months ended March 31, 2012, the RSU’s are considered anti-dilutive due to the loss from continuing operations which have resulted in their exclusion from the computation of diluted earnings per common share. For the three months ended March 31, 2011, there were no RSUs considered anti-dilutive; therefore, they are included in the computation of diluted earnings per common share.

13

TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED) MARCH 31, 2012 AND 2011

(Expressed in thousands of U.S. Dollars, except for share and per share data, unless otherwise stated)

11. Commitments and Contingencies

As at March 31, 2012, the Company had under construction two DP2 suezmax shuttle tankers. The total contracted amount remaining to be paid for the two vessels under construction, plus the extra costs agreed as at March 31, 2012 was $148,712. Scheduled remaining payments as of March 31, 2012 were $55,200 from April to December 2012 and $93,512 in 2013.

In the ordinary course of the shipping business, various claims and losses may arise from disputes with charterers, agents and other suppliers relating to the operations of the Company’s vessels. Management believes that all such matters are either adequately covered by insurance or are not expected to have a material adverse effect on the Company’s results from operations or financial condition.

Charters-out

The future minimum revenues of vessels in operation at March 31, 2012, before reduction for brokerage commissions, expected to be recognized on non-cancelable time charters are as follows:

Year	Amount
April to December 2012		138,649
2013		131,239
2014		78,686
2015 to 2023		172,111
Net minimum charter payments		520,685

These amounts do not assume any off-hire.

On December 9, 2010, the Company signed two charter-party agreements with the same charterer, each for the charter of a DP 2 suezmax shuttle tanker for a period of fifteen years to commence on delivery of the vessels, expected in the first and second quarter of 2013 respectively. The revenue to be generated by these vessels has not been included in the above table.

12. Financial Instruments

(a) Interest rate risk: The Company’s interest rates and loan repayment terms are described in Notes 6 and 7.

(b) Concentration of credit risk: Financial Instruments consist principally of cash, trade accounts receivable, marketable securities, investments and derivatives. The Company places its temporary cash investments, consisting mostly of deposits, primarily with high credit qualified financial institutions. The Company performs periodic evaluations of the relative credit standing of those financial institutions that are considered in the Company’s investment strategy. The Company limits its credit risk with accounts receivable by performing ongoing credit evaluations of its customers’ financial condition and generally does not require collateral for its accounts receivable and does not have any agreements to mitigate credit risk. The Company limits the exposure of non-performance by counterparties to derivative instruments by diversifying among counterparties with high credit ratings, and performing periodic evaluations of the relative credit standing of the counterparties.

14

TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED) MARCH 31, 2012 AND 2011

(Expressed in thousands of U.S. Dollars, except for share and per share data, unless otherwise stated)

12. Financial Instruments (continued)

(c) Fair value: The carrying amounts reflected in the accompanying Consolidated Balance Sheet of financial assets and accounts payable approximate their respective fair values due to the short maturity of these instruments. The fair value of long-term bank loans with variable interest rates approximate the recorded values, generally due to their variable interest rates. The present value of the future cash flows of the portion of one long-term bank loan with a fixed interest rate is estimated to be approximately $67,803 as compared to its carrying amount of $70,512 (Note 6). The fair value of the investment discussed in note 3 equates to the amount that would be received by the Company in the event of sale of that investment.

The fair values of the one long-term bank loan with a fixed interest rate, the interest rate swap agreements, bunker swap agreements discussed in Note 7 above and marketable securities discussed in Note 3 above are determined through Level 2 of the fair value hierarchy as defined in FASB guidance for Fair Value Measurements and are derived principally from or corroborated by observable market data, interest rates, yield curves and other items that allow value to be determined. The fair value of the investment is determined through Level 3 of the fair value hierarchy as defined in FASB guidance for Fair Value Measurements and is determined by the Company’s own data.

The fair value of the impaired vessels discussed in Note 4 are determined through Level 3 of the fair value hierarchy as defined in FASB guidance for Fair Value Measurements and are based on management estimates and assumptions and by making use of available market data and taking into consideration third party valuations.

The estimated fair values of the Company’s financial instruments, other than derivatives at March 31, 2012 and December 31, 2011 are as follows:

	Carrying Amount March 31, 2012		Fair Value March 31, 2012		Carrying Amount December 31, 2011		Fair Value December 31, 2011
Financial assets/(liabilities)
Cash and cash equivalents		185,623		185,623		175,708		175,708
Restricted cash		4,434		4,434		5,984		5,984
Marketable securities		2,618		2,618		2,534		2,534
Investments		1,000		1,000		1,000		1,000
Debt		1,514,373		1,511,664		1,515,663		1,512,651

Tabular Disclosure of Derivatives Location

Derivatives are recorded in the balance sheet on a net basis by counterparty when a legal right of setoff exists. The following tables present information with respect to the fair values of derivatives reflected in the balance sheet on a gross basis by transaction. The tables also present information with respect to gains and losses on derivative positions reflected in the income statement or in the balance sheet, as a component of Accumulated other comprehensive loss.

15

TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED) MARCH 31, 2012 AND 2011

(Expressed in thousands of U.S. Dollars, except for share and per share data, unless otherwise stated)

12. Financial Instruments (continued)

(c) Fair value (continued):

Fair Value of Derivative Instruments

		Asset Derivatives				Liability Derivatives
		March 31, 2012		December 31, 2011		March 31, 2012		December 31, 2011
Derivative	Balance Sheet Location	Fair Value		Fair Value		Fair Value		Fair Value
Derivatives designated as hedging instruments
Interest rate swaps	Current portion of financial instruments - Fair value		—		—		17,481		20,421
	FINANCIAL INSTRUMENTS - FAIR VALUE, net of current portion		—		—		7,481		8,414
	Subtotal		—		—		24,962		28,835

		Asset Derivatives				Liability Derivatives
		March 31, 2012		December 31, 2011		March 31, 2012		December 31, 2011
Derivative	Balance Sheet Location	Fair Value		Fair Value		Fair Value		Fair Value
Derivatives not designated as hedging instruments
Interest rate swaps	Current portion of financial instruments - Fair value		—		—		6,971		8,807
	FINANCIAL INSTRUMENTS - FAIR VALUE, net of current portion		—		—		7,941		9,386
Bunker swaps	Current portion of financial instruments-Fair value		2,437		1,755		—		—
	FINANCIAL INSTRUMENTS - FAIR VALUE, net of current portion		—		—		—		—
	Subtotal		2,437		1,755		14,912		18,193
	Total derivatives		2,437		1,755		39,874		47,028

16

TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED) MARCH 31, 2012 AND 2011

(Expressed in thousands of U.S. Dollars, except for share and per share data, unless otherwise stated)

12. Financial Instruments (continued)

(c) Fair value: (continued)

The Effect of Derivative Instruments on the Statement of Financial Performance for the three month periods ended March 31, 2012, and 2011

Derivatives in Cash Flow Hedging Relationships

	Gain (Loss) Recognized in Accumulated OCI on Derivative (Effective Portion)
Derivative		Amount Three months ended March 31,
		2012			2011
Interest rate swaps			(813	)		(2,447	)
Total			(813	)		(2,447	)
	Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
Derivative	Location	Amount Three months ended March 31,
		2012			2011
Interest rate swaps	Depreciation expense		(29	)		(29	)
Interest rate swaps	Interest and finance costs, net		(4,923	)		(4,344	)
Total			(4,952	)		(4,373	)
Derivatives Not Designated as Hedging Instruments
	Gain (Loss) Recognized on Derivative
Derivative	Location	Amount Three months ended March 31,
		2012			2011
Interest rate swaps	Interest and finance costs, net		316			142
Bunker swaps	Interest and finance costs, net		1,498			3,875
Total			1,814			4,017

17

TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED) MARCH 31, 2012 AND 2011

(Expressed in thousands of U.S. Dollars, except for share and per share data, unless otherwise stated)

12. Financial Instruments (continued)

(c) Fair value: (continued)

The following tables summarize the fair values for assets and liabilities measured on a recurring basis as of March 31, 2012 and December 31, 2011:

Recurring measurements	March 31, 2012			Quoted Prices in Active Markets for Identical Assets/(Liabilities) (Level 1)		Significant Other Observable Inputs Assets/(Liabilities) (Level 2)			Unobservable Inputs Assets/(Liabilities) (Level 3)
Interest rate swaps		(39,874	)		—		(39,874	)		—
Marketable Securities		2,618			—		2,618			—
Bunker swaps		2,437			—		2,437			—
		(34,819	)		—		(34,819	)		—
Recurring measurements	December 31, 2011			Quoted Prices in Active Markets for Identical Assets/(Liabilities) (Level 1)		Significant Other Observable Inputs Assets/(Liabilities) (Level 2)			Unobservable Inputs Assets/(Liabilities) (Level 3)
Interest rate swaps		(47,028	)		—		(47,028	)		—
Marketable Securities		2,534			—		2,534			—
Bunker swaps		1,755			—		1,755			—
		(42,739	)		—		(42,739	)		—

The following tables present the fair values of items measured at fair value on a nonrecurring basis for the quarter ended March 31, 2012 and year ended December 31, 2011:

Nonrecurring basis	March 31, 2012		Unobservable Inputs (Level 3)
Vessels held for sale (Note 4)	$	43,674	$	43,674
	$	43,674	$	43,674
Nonrecurring basis	December 31, 2011		Unobservable Inputs (Level 3)
Vessels held for sale (Note 4)	$	43,674	$	43,674
	$	43,674	$	43,674

18

TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED) MARCH 31, 2012 AND 2011

(Expressed in thousands of U.S. Dollars, except for share and per share data, unless otherwise stated)

13. Subsequent Events

(a) On April 17, 2012, the Company announced a quarterly dividend of $0.15 per share, which was paid on May 25, 2012 to shareholders of record on May 21, 2012.

(b) On April 18, 2012 the Company completed an offering of 10 million common shares at a price of $6.50 per share. The net proceeds from the sale of these common shares in this offering, after deducting underwriting discounts and estimated expenses relating to the offering was $62,660.

(c) On April 20, 2012, the Company prepaid $8,125 to the lending bank in relation to the waiver obtained as discussed in Note 6.

(d) On May 31, 2012 the Company agreed to the terms of a bank loan for an amount of $73,600 relating to the financing of the second DP2 suezmax shuttle tanker, expected to be delivered in the second quarter of 2013.

(e) On June 4, 2012 the Company signed a contract with a major Korean shipyard for the construction of one 162,000 cubic meter LNG carried at $209,600, with expected delivery in the first quarter of 2015. On July 2, 2012 the Company made the first installment of $20,960 to the yard. The Company has an option to purchase an additional 162,000 cubic meter LNG carrier. If the Company exercises this option, the LNG carrier would be delivered in the fourth quarter of 2015.

(f) On July 2, 2012 the Company drew down $13,800 on an 8 year loan, agreed on January 31, 2012, relating to the financing of the first DP2 suezmax shuttle tanker, expected to be delivered in the first quarter of 2013.

19