Okeanis Eco Tankers Corp. Q1 FY2025 earnings call

• Fleet: 14 vessels with an average age of 5.6 years, the youngest crude oil tanker fleet among listed peers, pure eco and fully scrubber fitted. Built at first class yards in Korea and Japan, resilient to USTR policies. Extensive VLCC drydock program in 2024, with two Suezmax drydocks expected in Q3 2025.
• Financials: Entered the quarter with $43 million in cash. Balance sheet debt stood at $634 million as of quarter-end, book leverage at 59%, and market adjusted net LTV around 40%.
• Dividends: Board declared a $0.32 per share dividend, 12th consecutive, with total distributions over the last four quarters at $2.22 per share (91% of earnings).

Fleetwide time-charter equivalent (TCE) was approximately $38,500 per vessel per day, with VLCCs at $38,000 and Suezmaxes at $39,200. Adjusted EBITDA was $32.5 million, adjusted net profit was $11.4 million, and adjusted EPS was $0.36. TCE revenue stood at $48.6 million, EBITDA was $23.5 million, and reported net income was $12.6 million, or $0.39 per share. Revenue contribution details were shown in the income statement, with TCE revenue at $48.6 million, EBITDA at $23.5 million, and reported net income at $12.6 million.

• Q2 guidance: 72% of VLCC spot days at $46,700 per day and 64% of Suezmax spot days at $60,600 per day.
• Market trends: OPEC+ unwinding cuts faster than expected, supporting market, VLCC and Suezmax rates trending, utilization high, tonne-mile demand rising.
• Iran impact: Potential Iran deal could boost trade, with shadow fleet reintegration issues, and long-term demand and strategic stockpiling factors.

• Geopolitical uncertainties affecting trade flows and sanction dynamics.
• Shadow fleet aging, under-maintained, and sanctions making reintegration difficult.
• USTR policies risks, though fleet built in first class yards mitigates some risks.

Q: You expect the same terms on the refinancing of the third VLCC out of sailing leasebacks?

A: We are actively working on securing the financing for the Kea. I expect it to be in similar, if not better, terms than the ones we have announced.

Q: Are Suezmax rates benefiting from the increase in non-OPEC+ crew production?

A: The main driver of Suezmax rates was increased Kazakhstani production, which was arbitraged from Europe to Asia, stretching Suezmax voyages and supporting rates.

Q: Are there other facilities where you can refinance at this term without penalties?

A: Other than the two vessels (Rhenia and Despotiko), we have no penalties to refinance any of our other vessels earlier. Similar terms expected for Ocean Yield refinances.

Q: What would you like to see happen in the term market for you to consider TC coverage?

A: TC rates need to move up to cover the gap between asset values and spot earnings expectations. Opportunities for TC coverage exist once charters can profit on the first voyage.

Q: There are reports of stronger prices for older tankers around selling a 2007 built at $48 million to 50 million. In the case of an Iran; a, what should we expect for this market; and b, how would that impact newer tonnage?

A: Older tanker prices have moved up due to Iran-related sanctions. In an Iran deal, the big upside would be on newer vessels as compliance requires efficient eco tonnage with scrubbers, making younger tonnage more valuable.