TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (Unaudited)

DECEMBER 31, 2003 and 2002

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

ASSETS	December 31, 2003			December 31, 2002
CURRENT ASSETS:
Cash and cash equivalents	$	86,813		39,674
Cash, restricted		—		7,000
Receivables—
Trade accounts receivable		13,405		12,244
Insurance claims		2,750		3,277
Due from related party		3,836		3,820
Advances and other		6,623		5,179
		26,614		24,520
Inventories		3,381		3,275
Prepayments and other		1,205		1,283
Total current assets		118,013		75,752
INVESTMENT		—		10,577
FIXED ASSETS:
Advances for vessels under construction		33,421		41,963
Vessels		800,870		670,452
Accumulated depreciation		(146,208	)	(117,309	)
Net Book Value		654,662		553,143
Total fixed assets		688,083		595,106
DEFERRED CHARGES, net		20,454		13,110
Total assets	$	826,549		694,545
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt	$	41,602		30,211
Accounts payable—
Trade		19,588		17,188
Other		2,067		—
		21,655		17,188
Accrued liabilities		6,092		6,731
Accrued bank interest		2,279		1,385
Financial instruments, fair value		5,097		7,838
Unearned revenue		3,611		2,003
Deferred income, current portion		4,005		838
Total current liabilities		84,341		66,194
LONG-TERM DEBT, net of current portion		411,018		355,741
DEFERRED INCOME, net of current portion		16,457		5,166
CONTINGENCIES		—		—
STOCKHOLDERS’ EQUITY:
Common stock, $ 1.00 par value; 40,000,000 shares authorized at December 31,2003 and 2002; 17,169,623 and 17,022,723 issued and outstanding at December 31, 2003 and 2002, respectively.		17,170		17,023
Additional paid-in capital		203,793		202,862
Other comprehensive (loss)/income		(1,431	)	(629	)
Retained earnings		95,201		48,188
Total stockholders’ equity		314,733		267,444
Total liabilities and stockholders’ equity	$	826,549		694,545

TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

FOR THE YEAR ENDED DECEMBER 31, 2003 AND 2002

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

	Year ended December 31,
	2003				2002
REVENUES:
Revenue from vessels	$	241,365			$	130,004
Commissions		(11,296	)			(6,364	)
Revenue from vessels, net		230,069				123,640
EXPENSES:
Voyage expenses		61,325				32,838
Vessel operating expenses		49,922				32,347
Depreciation		32,877				24,429
Impairment loss		—				10,781
Amortization of deferred charges		7,835				4,315
Provision for doubtful debts		696
Management fees		4,470				3,239
General and administrative expenses		2,415				1,261
Operating income		70,529				14,430
OTHER INCOME (EXPENSES):
Interest and finance costs, net		(12,375	)			(11,385	)
Interest Income		387				736
Foreign currency gains (losses)		(389	)			(84	)
Share of profits of joint-venture		602				197
Gain on sale of vessels		541				0
Other, net		(242	)			0
Total other income (expenses), net		(11,476	)	–		(10,536	)
Net Income	$	59,053			$	3,894
Earnings per share, basic	$	3.44			$	0.25
Earnings per share, diluted	$	3.43			$	0.25
Weighted average number of shares, basic		17,153,750				15,717,065
Weighted average number of shares, diluted		17,201,456				15,854,904

TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

FOR THE THREE MONTHS ENDED DECEMBER 31, 2003 AND 2002

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

	Three months ended December 31,
	2003				2002
REVENUES:
Revenue from vessels	$	63,532			$	41,144
Commissions		(3,117	)			(1,902	)
Revenue from vessels, net		60,415				39,242
EXPENSES:
Voyage expenses		14,532				11,422
Vessel operating expenses		15,277				9,880
Depreciation		8,551				7,084
Impairment loss		—				10,781
Amortization of deferred charges		1,946				1,224
Provision for doubtful debts		696				—
Management fees		1,215				915
General and administrative expenses		1,114				563
Operating income		17,085				(2,627	)
OTHER INCOME (EXPENSES):
Interest and finance costs, net		(3,540	)			(1,676	)
Interest Income		88				77
Foreign currency gains (losses)		(130	)			(36	)
Share of profits of joint-venture		(19	)			197
Gain on sale of vessels		541				0
Other, net		261				—
Total other income (expenses), net		(2,799	)	–		(1,438	)
Net Income	$	14,286			$	(4,065	)
Earnings per share, basic	$	0.83			$	(0.24	)
Earnings per share, diluted	$	0.83			$	(0.24	)
Weighted average number of shares, basic		17,169,623				17,037,401
Weighted average number of shares, diluted		17,210,602				17,175,240

TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

FOR THE YEAR ENDED DECEMBER 31, 2003 AND 2002

(Expressed in thousands of U.S. Dollars)

	Year ended December 31,						Three months ended December 31,
	2003			2002			2003			2002
Cash Flows from Operating Activities:
Net income (loss)	$	59,053		$	3,894		$	14,285		$	(4,065	)
Adjustments to reconcile net income to net cash provided by operating											—
activities:											—
Depreciation		32,877			24,429			8,551			7,085
Impairment Loss		—			10,781						10,781
Amortization of deferred dry-docking costs		7,835			4,315			1,946			1,224
Amortization of loan fees		685			286			44			117
Amortization of deferred income		(1,379	)		(838	)		(751	)		(210	)
Change in fair value of interest rate swaps		(3,543	)		3,822			(704	)		683
Share of profits of joint-venture		(602	)		(197	)		19			(197	)
Payments for dry-docking		(15,114	)		(8,265	)		(1,631	)		(2,114	)
(Increase) Decrease in:											—
Receivables		(2,109	)		(12,589	)		2,019			(11,316	)
Inventories		(106	)		(1,847	)		1,407			(433	)
Prepayments and other		78			153			258			477
Increase (Decrease) in:											—
Accounts payable		4,467			7,185			(4,023	)		4,671
Accrued liabilities		272			1,412			(3,281	)		2,908
Unearned revenue		1,607			204			461			354
Net Cash from Operating Activities		84,021			32,745			18,600			9,965
Cash Flows from Investing Activities:
Advances for vessels under construction		(32,096	)		(39,771	)		(7,438	)		(4,160	)
Vessel acquisitions and/or improvements		(186,775	)		(210,898	)		—			(74,520	)
Payments for investment in joint venture		(36	)		(7,130	)		(19	)		(7,130	)
Return of investment in joint venture		11,215			—			3,250			—
Proceeds from sale of vessels		108,854			—			108,854			—
Restricted cash for performance guarantee		7,000			815			3,800			—
Net Cash (used in)/from Investing Activities		(91,838	)		(256,984	)		108,447			(85,810	)
Cash Flows from Financing Activities:
Proceeds from long-term debt		159,910			185,371			—			90,553
Financing costs		(749	)		(716	)		363			(421	)
Payments of long-term debt		(93,242	)		(43,877	)		(71,449	)		(875	)
Proceeds from public offering, net of related costs		—			100,382			—			(7	)
Exercise of stock options		2,870			—			—			—
Cash dividend		(12,040	)		(8,542	)		(8,584	)		(8,542	)
Repurchase and cancellation of common stock		(1,792	)		(1,979	)		—			(613	)
Net Cash from/(used in) Financing Activities		54,957			230,639			(79,670	)		80,095
Net increase in cash and cash equivalents		47,139			6,400			47,377			4,250
Cash and cash equivalents at beginning of period		39,674			33,274			39,436			35,424
Cash and cash equivalents at end of period	$	86,813		$	39,674		$	86,813		$	39,674