Okeanis Eco Tankers Corp. Q4 FY2024 earnings call

• Q4 2024 fell short of market expectations a few months back but closed a year of healthy commercial and financial results.
• Declared an 11th consecutive dividend of $0.35 per share, with total distributions over last four quarters at $3 per share or 89% of earnings.
• Successfully completed five-year drydock for Nissos Donoussa, concluding six-vessel 2024 VLCC drydock project.
• Fleet of 14 vessels with average age 5.4 years, youngest crude oil fleet among listed peers, pure eco and fully scrubber fitted.
• Ended Q4 with $54 million cash, balance sheet debt at $646 million as of year-end.
• Refinanced most vessels, improving margins by 130 basis points across 12 vessels, interest expense showing material improvement.

For the fourth quarter of 2024, the fleet wide time charter equivalent (TCE) was about $39,000 per vessel per day, with VLCCs at $38,500 and Suezmax at $39,500. Adjusted EBITDA was $37 million, adjusted net profit was $13 million, and adjusted earnings per share was $0.41. For the full year 2024, TCE revenues grew to $262 million with daily fleet-wide TCE of $53,000 per day, $56,000 on VLCCs and $49,000 on Suezmax. EBITDA was approximately $204 million and net income was just shy of $109 million or $3.38 per share.

• In Q1 2025, fixed 81% of VLCC spot days at $39,100 per day and 77% of Suezmax spot days at $33,400 per day.
• Current earnings around $50,000 per day on VLCCs and $45,000 to $50,000 on Suezmax.
• OPEC+ production policies and new U.S. sanctions on Russia and Iran seen to provide further upside potential for ton-mile demand in near-term.

• Market volatility affecting TCE rates and earnings.
• Sanctions impact on fleet utilization and availability of vessels for trade.
• Aging fleet of conventional vessels posing challenges to supply balance.
• Potential effects of balance sheet debt and refinancing on financial position.

Q: What are some positive pressures on Suezmax capacity going forward?

A: A large part of the Russian trading fleet using Suezmax vessels; reduction of interest from Indians and Chinese in buying sanctioned barrels opening arc for longer haul voyages; CPC cargos moving towards Asia.

Q: How easy is it to switch Suezmax back into clean trade?

A: Once you go dirty, cleaning process is similar, with same cost and time allocated when budgeting for voyage.

Q: How would Red Sea transit reopening impact Suezmax markets?

A: Would be positive, bringing back trade priced out due to cost of going around the cape and resuming trade from Black Sea to East.