Okeanis Eco Tankers Corp. · NYSE:ECO
Okeanis Eco Tankers — Investor Presentation (March 2020)
14 slides from Okeanis Eco Tankers's investor presentation, March 2020
Slide 1: Company Presentation March 2020
Company Presentation March 2020
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements made by Okeanis Eco Tankers Corp. (“OET”) within the meaning of Norwegian securities laws. These statements discuss future expectations, contain projections of results of operations or of financial condition or state other forward-look
Slide 3: OET Overview & Structure
OET Overview & Structure Overview Corporate Structure Domicile Investors OET incorporated in 2018 in the Marshall Islands. Alafouzos Family Listed on Oslo Axess under ticker OET-OAX. 57% 43% Fleet OKEANIS ECO TANKERS CORP. Three Aframax/LR2 vessels with an average age of 5 years. Management Agreemen
Slide 4: 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 Fleet Status / Employment Type Name Yard
Slide 5: OET has underperformed tanker peers by 10-22% in 2020
OET has underperformed tanker peers by 10-22% in 2020… Relative illiquidity and lack of dividends contribute to underperformance but gap still too wide YTD 2020 Crude Tanker Peer Group Relative Performance (Jan. 1 = 100) 110.0 100.0 90.0 EURN -18.2% 80.0 FRO -20.4% INSW -21.4% DHT -21.4% 70.0 HUNT -
Slide 6: Despite consistent and substantial commercial outperformance
…despite consistent and substantial commercial outperformance OET is the best performer in the spot market across all vessel sizes $120,000/day OETv Peers 21% 18% 1 100,000 VLCC Spot Rates 80,000 — 1 Tanker Peer Group 60,000 OET Peer A 40,000 Peer B Peer C Peer D 20,000 Peer E Peer F
Slide 7: And industry-leading cost control
…and industry-leading cost control OET cost structure is completely aligned with our shareholders FY 2019 Crude Tanker Peer Operating Costs Per Ship Day (Opex + Management Fees + G&A) $12,000/ship day $10,655 10,000 $8,233 8,000 6,000 4,000 2,000 - OET Peer A Peer B Peer C Peer D Peer E Peer F Peer
Slide 8: OET ticks all the boxes for a meaningful NAV-based valuation
OET ticks all the boxes for a meaningful NAV-based valuation… EET & PU LI FL RC Q AS E UI E M H TIV D S ARKET • Young, Eco tonnage • ATTRAC Tankers are second- ALE • Built in Japan or Korea most liquid asset market, • Manageable size trailing only dry bulk • Scrubber-fitted • Recent data points to s
Slide 9: Yet OET trades at a ~46% discount to NAV
…yet OET trades at a ~46% discount to NAV Crude Tanker Peer Group Price to NAV Ratios 1.3x P/NAV 1.20x 1.1x 0.90x 0.9x Median P/NAV = 0.80x 0.82x 0.75x 0.7x 0.65x 0.54x 0.5x 0.3x NOK 127.3 NOK 5.8 NOK 68.2 $6.8 $12.5 $29.6 0.1x OET HUNT FRO DHT EURN INSW OKEANIS ECO TANKERS 9 PRESENTATION SOURCES: F
Slide 10: OET Can Generate 130% of its Market Cap in Free Cash Flow Through 2022
OET Can Generate 130% of its Market Cap in Free Cash Flow Through 2022 Illustrative 3Y FCF Unit FY FY FY Illustrative 3Y FCF Yield 2020 2021 2022 Fearnleys spot rate assumptions (exc. Eco + Scrubber savings) VLCC $/day $67,000 $45,600 $20,000 Suezmax ““ $45,300 $32,900 $17,500 56% Aframax ““ $32,500
Slide 11: Tanker orderbook is at historical lows and with massive scrapping potential
Tanker orderbook is at historical lows and with massive scrapping potential VLCC Historical & Anticipated Deliveries VLCC Orderbook v Scrap Candidate Pool Orderbook % of Existing Fleet 80 VLCCs 120 VLCCs Deliveries Total Fleet FY 2020 FY 2021 FY 2022 Total Orderbook >20Y >15Y Orderbook 815 31 27 3 6
Slide 12: Tanker ton-mile demand will grow as volume growth in West meets demand in East
Tanker ton-mile demand will grow as volume growth in West meets demand in East U.S. Gulf Coast North Sea Brazil & Guyana Permian-to-Gulf Coast crude pipeline First phase of Johan Sverdrup adding Buzios & FPSOs adding projects adding ~5mmbpd of capacity ~0.4mmbpd of capacity ~0.6mmbpd of capacity Cac
Slide 13: Tankers the Big Winner of OPEC Oil Price War
Tankers the Big Winner of OPEC Oil Price War Twofold market support: [1] return of OPEC barrels & [2] contango leading to floating storage Forward curve in contango, creating floating storage opportunities… …older, thirsty VLCCs will be used as storage, supporting spot market Brent Futures Curve as
Slide 14: Contact
CO N TAC T John Papaioannou, CFO +30 210 480 4099 jvp@okeanisecotankers.com
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