Okeanis Eco Tankers Corp. · NYSE:ECO
Okeanis Eco Tankers — Q3 2020 Earnings Presentation
19 slides from Okeanis Eco Tankers's earnings presentation, Nov 12, 2020
Slide 1: Q3 2020 Earnings Presentation
Q3 2020 Earnings Presentation November 12, 2020
Slide 2: Disclaimer
Disclaimer This presentation (the “Presentation”) has been prepared by Okeanis Eco Tankers Corp. (the “Company”). The Presentation reflects the conditions and views of the Company as of the date set out on the front page of this Presentation. This Presentation contains certain forward-looking statem
Slide 3: Highlights
Highlights Q3 2020 Q3 2019 9M 2020 9M 2019 The Board has declared a cash dividend of $0.10 VLCC Daily TCE $44,000 $29,700 $54,300 $30,100 per share, amounting to $3.2 million Suezmax Daily TCE $31,800 $21,100 $49,000 $20,800 Adjusted EBITDA of $35.5m Commercial Aframax/LR2 Daily TCE $15,200 $16,300
Slide 4: Commercial Performance – Q3 2020 Actuals
Commercial Performance – Q3 2020 Actuals Q3 2020 Actuals VLCC SUEZMAX AFRAMAX/LR2 FLEETWIDE Days % of Total TCE Rate 1 Days % of Total TCE Rate1 Days % of Total TCE Rate1 Days % of Total TCE Rate1 Timecharter 546 75% $42,700 43 11% $22,700 – – – 589 44% $41,200 Spot 181 25% $48,000 339 89% $33,000 2
Slide 5: Commercial Performance – Q4 2020 Guidance
Commercial Performance – Q4 2020 Guidance Q4 2020 Guidance VLCC SUEZMAX AFRAMAX/LR2 FLEETWIDE Days % of Total TCE Rate 1 Days % of Total TCE Rate1 Days % of Total TCE Rate1 Days % of Total TCE Rate1 Timecharter 567 79% $41,400 184 34% $28,900 – – – 767 52% $38,200 Spot - Fixed 153 21% $24,000 253 46
Slide 6: Financial Review – Income Statement
Financial Review – Income Statement Income Statement USD Thousands, except per share amounts Q3 2020 Q3 2019 9M 2020 9M 2019 Comments TCE Revenue $47,538 $21,576 $190,264 $50,852 Q3 2020 Fleetwide TCE Vessel operating expenses (10,536) (6,438) (28,523) (15,625) of $35,600 per operating day Managemen
Slide 7: Financial Review – Balance Sheet
Financial Review – Balance Sheet Balance Sheet USD Thousands September 30, 2020 September 30, 2019 Comments Assets Cash & cash equivalents $17,397 $11,841 Total cash of $25.8m Restricted cash 8,430 4,910 Vessels, net 1,206,562 925,094 Total assets of $1,270.5m Newbuildings – 72,755 Other assets 38,0
Slide 8: Financial Review – Cash Flow Statement
Financial Review – Cash Flow Statement Cash Flow Statement USD Thousands Q3 2020 Q3 2019 9M 2020 9M 2019 As of September 30, 2020 Cash Flow from Operating Activities RoY 2020 remaining capex of $2.4m Net income $15,612 ($3,187) $93,814 ($6,318) Total reconciliation adjustments 19,548 16,063 59,713 3
Slide 9: Debt Snapshot
Debt Snapshot Debt Fixed Rate / FY 2021 Vessel Type Outstanding1 Rate Type Margin over LIBOR 2 Daily CBE 4 USDm % USD/day Nissos Heraclea Aframax/LR2 $28.1 Floating L+2.25% $16,800 Nissos Therassia Aframax/LR2 24.1 Floating L+2.60% 16,100 Nissos Schinoussa Aframax/LR2 25.7 Floating L+2.60% 16,100 Mi
Slide 10: VLCC market plagued by too few cargoes and too many ships
VLCC market plagued by too few cargoes and too many ships Strong OPEC compliance and ships returning from floating storage pressuring rates VLCC volumes down 21% in the past three months… …while VLCC availability has risen by net ~80 ships since June Middle East VLCC Loadings VLCC Net Fleet Growth 2
Slide 11: China has been the lone bright spot in the global oil market
China has been the lone bright spot in the global oil market Strong refinery runs and imports set to slow down as refining margins remain low and onshore product stocks high Chinese refinery runs have remained high… …supporting continued crude import strength… …and drawdown of floating storage Total
Slide 12: Jet fuel demand recovery is key to rebalancing the oil market
Jet fuel demand recovery is key to rebalancing the oil market YoY change in demand by oil product type, mb/d JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2021 2021 2021 2021 2021 2021 2021
Slide 13: Old, unlevered VLCCs burning $3-$9m of cash per year
Old, unlevered VLCCs burning $3-$9m of cash per year Cash breakeven for debt-free 15Y & 20Y old VLCC 15Y Old VLCC 20Y Old VLCC Cost Amortization Years 2.5 2.5 A Calendar Days 913 913 B (A x 365) Daily Opex $10,000 $12,000 C Cash Total Opex $9,125,000 $10,950,000 D (B x C) Costs Special Survey Capex
Slide 14: OET is profitable & cash generative in any rate environment
OET is profitable & cash generative in any rate environment OET trades at ~6x FY 2021 P/E ratio assuming spot rates that would result in significant scrapping of older tonnage Illustrative FY 2021 Earnings & P/E Ratio Sensitivity Illustrative FY 2022 Earnings & P/E Ratio Sensitivity $80m 8x P/E $120
Slide 15: Summary & Outlook
Summary & Outlook Track record of consecutive dividends intact; we are cash generative even in today's market due to our charter portfolio and eco, scrubber-fitted fleet. Our growth program has concluded and our sole focus turns to harvesting cash flows. Global oil market rebalancing is the key to a
Slide 16: Appendix
Appendix
Slide 17: OET Fleet Overview
OET Fleet Overview Fleet Attributes Attractive mix of crude tanker vessels Future-proof specifications All vessels with eco design All vessels built at first class S. Korean and Japanese yards Entire fleet scrubber fitted All vessels have BWTS installed No. Type Vessel Yard Country Built Age DWT Emp
Slide 18: OET Emissions Reporting
OET Emissions Reporting OET committed to transparent reporting and reduction of carbon emissions OET adheres to the ABS Monitoring Reporting and Verification Regulation (MRV) framework Reporting Measure Calculation VLCC Suezmax Aframax/LR2 OET Fleet Number of vessels for which we have emissions data
Slide 19: John Papaioannou, CFO
CO N TAC T John Papaioannou, CFO +30 210 480 4099 jvp@okeanisecotankers.com