Okeanis Eco Tankers Corp. · NYSE:ECO
Okeanis Eco Tankers — Investor Presentation (September 2020)
20 slides from Okeanis Eco Tankers's investor presentation, September 2020
Slide 1: OET Company Presentation September 2020
OET Company Presentation September 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: 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 state
Slide 4: OET Overview & Structure
OET Overview & Structure Overview Corporate Structure Domicile Three Investor External OET incorporated in 2018 in the Marshall Islands. Alafouzos Family Directors Investors Listed on Oslo Axess under ticker OET-OAX. 57% 15% 28% Fleet OKEANIS ECO TANKERS CORP. Three Aframax/LR2 vessels with an avera
Slide 5: 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 to be scrubber fitted All vessels have BWTS installed No. Type Vessel Yard Country Built Age D
Slide 6: OET's ships are bigger and burn less, cheaper fuel
OET’s ships are bigger and burn less, cheaper fuel Our fleet’s attributes contribute to $10kpd advantage in the spot market Illustrative VLCC Spot Voyage Economics OET 320k DWT 2010-built 300k DWT Route: Ras Tanura - Ningbo Eco + Scrubber Non-Eco, Non-Scrubber Comments . Worldscale nominal % 31.0 31
Slide 7: OET Spot Market Performance Relative to Tanker Peers
OET Spot Market Performance Relative to Tanker Peers Top performer in the spot market across all vessel sizes #1 $100,000/day OETv Peer Avg. 21% #1 26% 26% 75,000 VLCC Spot Rates #1 — Tanker Peer Group 50,000 OET Peer A Peer B Peer C 25,000 Peer D Peer E Peer F Peer Avg. 4Q19 1Q20
Slide 8: Financial Review – Income Statement
Financial Review – Income Statement Income Statement USD Thousands, except per share Comments amountsQ2 2020 Q2 2019 H1 2020H1 2019 Q2 2020 Fleetwide TCE TCE Revenue $69,293 of $51,900 per operating day $14,415$142,726$29,277 VLCC: $59,700 per operating day Vessel operating Suezmax: $52,900 expenses
Slide 9: Tanker Market Outlook Summary
Tanker Market Outlook Summary Short term outlook is challenging for tanker demand – with pockets of strength – due to: Unwinding of floating storage (suppression of seaborne trade) and gradual return of VLCCs to spot market Reduced (but now growing) oil production and export volumes globally Depress
Slide 10: Tanker orderbook more than offset by scrapping potential
Tanker orderbook more than offset by scrapping potential High proportion of vessels over 20 years old & minimal NB orders (and thus fleet growth) provides fundamental tailwind VLCC Orderbook v Scrap Candidate Pool Orderbook % of Existing Fleet 90 VLCCs 90 VLCCs Deliveries Active Fleet FY 2020 FY 202
Slide 11: West of Suez volumes will drive ton mile demand
West of Suez volumes will drive ton mile demand Peer comparison of offshore oil projects to be sanctioned between 2020-2025 Country Capacity Reserves Investments Number Number Production to be sanctioned to be sanctioned to be sanctioned of operators of projects 2019 Thousand bpd Million barrels Bil
Slide 12: Oil market shifts from surplus to deficit and rebalances by 2H21
Oil market shifts from surplus to deficit and rebalances by 2H21 Near term pain leads to medium term gain as rebalancing sets the stage for recovery in production/exports by next year Global Crude Oil Balance Comments 85mb/d 6mb/d Details of OPEC+ Agreement Crude Stock Build / (Draw) (rhs) May – Jun
Slide 13: Tanker Fleet Profile is Major Tailwind
Tanker Fleet Profile is Major Tailwind Off-hire & scrapping will remain elevated through 2023 80 VLCCs 70 68 65 4 Remaining 2 orderbook 59 60 is 81 VLCCs Company Introduction 52 49 50 50 47 Market Outlook 33 40 43 39 40 Financial Update 31 29 24 30 12 Emissions Reporting 30 21 62 27 30 24 32 1 8 20
Slide 14: OET has generated strong profits and returns since inception
OET has generated strong profits and returns since inception Cumulative EBITDA of $202m, profit of $87m and capital returns of $44m OET - EBITDA Since Inception ($MM) OET - Profit Since Inception ($MM) $75 $250 $45 $90 EBITDA (lhs) Profit/(Loss) (lhs) Cumulative EBITDA (rhs) Cumulative Profit/(Loss)
Slide 15: Capital Return Track Record
Capital Return Track Record OET has returned 21% of its market cap and 54% of YTD 2020 profits $250m $209.6 200 150 100 $24.3 $3.1 $43.6 50 $16.2 Cash Dividend Cash Dividend Buybacks Total Market Cap. 1Q20 2Q20 Since Inception Capital Return 11 Sep 2020 On slide 13 of our 1Q20 earnings presentation
Slide 16: Sensitivity of FY 2021 & 2022 Profit and P/E Ratio to Spot Rates
Sensitivity of FY 2021 & 2022 Profit and P/E Ratio to Spot Rates OET trades at ~8x 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
Slide 17: Investor Feedback and OET Response
Investor Feedback and OET Response We listen to our shareholders and we keep our promises Investor Feedback #1 Y Highest LtV ships are on cash generative time charters Y OET has the youngest fleet (less time to amortize debt), making leverage comparisons to peers with older ships misleading Leverage
Slide 18: 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 No. Type Vessel Yard Country Built Age DWT EmploymentEco-Design? Company Introduction Scrubber? BWTS? 1 Nis
Slide 19: 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 20: Contact
CO N TAC T John Papaioannou, CFO +30 210 480 4099 jvp@okeanisecotankers.com
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