Okeanis Eco Tankers Corp. · NYSE:ECO
Okeanis Eco Tankers — Q2 2024 Earnings Presentation
22 slides from Okeanis Eco Tankers's earnings presentation, Aug 9, 2024
Slide 1: Q2 2024 Earnings Presentation
Q2 2O24 EARNINGS PRESENTATION August 9, 2024
Slide 2: Disclaimer
Disclaimer This presentation (this “Presentation”) has been prepared by Okeanis This Presentation reflects the conditions and views of the Company operating expenses; changes to the Company’s financial condition Eco Tankers Corp. (“OET or the “Company”). This Presentation does as of the date set out
Slide 3: Executive and Financial Update
EXECUTIVE AND FINANCIAL UPDATE COMMERCIAL AND MARKET UPDATE APPENDIX I Q2 2O24 EARNINGS PRESENTATION AUGUST 9, 2024
Slide 4: Executive Summary
Executive Summary Okeanis Eco Tankers continues to deliver strong results Q2 2024 Q2 2023 6M 2024 6M 2023 YoY Change Highlights for the quarter VLCC Daily TCE 1 $73,300 $71,600 $71,000 $72,100 (2%) $64,900pd fleetwide TCE Suezmax Daily TCE 1 $54,600 $72,600 $55,600 $70,500 (21%) COMMERCIAL $63.9 adj
Slide 5: Income Statement Summary
Income Statement Summary Income Statement Summary (USDm exc. EPS) Q2 2024 Q2 2023 6M 2024 6M 2023 Notes TCE Revenue $79.4 $91.2 $160.5 $179.7 Vessel operating expenses (10.8) (10.2) (21.4) (20.3) Q2 continues the trend with strong Revenue, EBITDA, and Net Income Management fees (1.1) (1.1) (2.3) (2.
Slide 6: Balance Sheet Summary
Balance Sheet Summary Balance Sheet Summary (USDm) Q2 2024 Q2 2023 Notes Assets Cash & cash equivalents $92.8 $80.1 Total cash 1 of $98.1m Restricted cash 5.3 5.9 Vessels, net 971.3 1,004.6 Total assets of $1.14bn Other assets 65.8 89.6 Total debt of $669m Total Assets $1,135.2 $1,180.2 Shareholders
Slide 7: Corporate, Debt, and Employment Structure
Corporate, Debt, and Employment Structure Alafouzos Family Public (“Sponsor”) 58% 42% OKEANIS ECO TANKERS CORP. SUEZMAX TANKERS, 6x VLCC TANKERS, 8x Milos, 2016 ΙΙΙΙ ΙΙΙΙ Nissos Rhenia, 2019 Poliegos, 2017 ΙΙΙΙ ΙΙΙΙ Nissos Despotiko, 2019 Kimolos, 2018 ΙΙΙΙ ΙΙΙΙ Nissos Donoussa, 2019 Folegandros, 20
Slide 8: What a Difference a Year Makes…
What a Difference a Year Makes… Since June 2023, we refinanced 12 of our 14 vessels lowering the cost of debt and breakeven levels on all bank debt CAS SOFR Transition Refinancing Benefit Vessel Name LIBOR Era Current Introduction (SOFR+CAS) Margin Reduction CAS Elimination Milos L+5.62% +26 S+5.62%
Slide 9: Extended Maturities Provide for Significant Runway
Extended Maturities Provide for Significant Runway ~43% of our loans had maturities between 2024 and 2026. All maturities extended beyond 2028 (excluding the 2x lease purchase options in 20261) Pre - refinancing’s loan maturities Post - refinancing’s loan maturities 150 $m 150 $m 3 vessels 3 128 ves
Slide 10: Commercial and Market Update
EXECUTIVE AND FINANCIAL UPDATE COMMERCIAL AND MARKET UPDATE APPENDIX I Q2 2O24 EARNINGS PRESENTATION AUGUST 9, 2024
Slide 11: Commercial Performance – Q2 2024
Commercial Performance – Q2 2024 Fleetwide TCE of $64,900 pd – $73,300 pd for spot VLCCs and $54,600 pd for spot Suezmaxes VLCC SUEZMAX FLEETWIDE Days % of Total TCE Days % of Total TCE Days % of Total TCE Timecharter – – – – – – – – – Spot 1 677 100% $73,300 546 100% $54,600 1,223 100% $64,900 Tota
Slide 12: Commercial Performance – Q3 2024 Guidance
Commercial Performance – Q3 2024 Guidance VLCC: 58% of available 3Q24 spot days fixed at $46,100 pd Suezmax: 53% of available 3Q24 spot days fixed at $58,000 pd VLCC SUEZMAX FLEETWIDE Days % of Total TCE Days % of Total TCE Days % of Total TCE Timecharter – – – – – – – – – Spot - fixed 1 376 58% $46
Slide 13: Consistently Superior Commercial Performance
Consistently Superior Commercial Performance Being the only listed pure ECO and fully scrubber fitted crude tanker platform, we continuously outperform the market VLCC spot TCE against peers Suezmax spot TCE against peers 100,000 $/day Peers Min-Max range 100,000 $/day Peers Min-Max range Peers Aver
Slide 14: Seasonality Provides Meaningful Upside
Seasonality Provides Meaningful Upside Winter seasonality expected to boost rates despite current softness, while overall performance remains solid VLCC spot MEG-China VLCC rate history & seasonality 140,000 $/day High/Low 160,000 $/day VLCC TCE 2023 Price war Yearly average 120,000 Avg. ’19-’23 140
Slide 15: VLCCs Clean-up to Capture Product Rates
VLCCs Clean-up to Capture Product Rates Crude tankers clean-up capitalize on clean/dirty freight rates spread Voyage count of Middle East diesel loandings Middle East Gulf to UK-Cont clean freight rates for LR1 and LR2 (LHS) vs VLCC (RHS) and Middle East Gulf to US Gulf dirty freight rates 100 # of
Slide 16: Supply Fundamentals Remain Astonishing
Supply Fundamentals Remain Astonishing Aging fleet and “scrapping candidates” can easily absorb current and future orderbook Fleet development - VLCC Fleet development - Suezmaxes 150 # of vessels 100 # of vessels 80 100 60 50 40 62 68 57 41 27 38 37 29 31 29 41 53 54 49 30 24 47 50 39 37 34 42 20 2
Slide 17: Appendix
EXECUTIVE AND FINANCIAL UPDATE COMMERCIAL AND MARKET UPDATE APPENDIX I Q2 2O24 EARNINGS PRESENTATION AUGUST 9, 2024
Slide 18: Cash Flow Summary
Cash Flow Summary CF Statement Summary (USDm) Q2 2024 Q2 2023 H1 2024 H1 2023 Cash Flow from Operating Activities Net income $39.6 $52.9 $81.1 $104.5 Total reconciliation adjustments 24.0 25.0 47.5 47.4 Total changes in working capital (12.6) (45.0) (3.3) (37.8) Net cash provided by operating activi
Slide 19: Emissions Reporting
Emissions Reporting Committed to transparent reporting and reduction of carbon emissions The Group adheres to the ABS Monitoring Reporting and Verification Regulation (MRV) framework Reporting VLCC Suezmax Number of vessels reporting emissions data 8 6 CO2 emissions generated from vessels (metric to
Slide 20: Indicative Eco Benefit Calculation
Indicative Eco Benefit Calculation Assumptions VLCC Suezmax Sailing Days A 325 295 Fuel Consumption (tons/day@12.5 knots) Non-Eco B 61.5 43.0 Eco C 45.0 30.0 Incremental for Scrubber D 2.0 1.0 Daily Eco fuel savings E=(B – C) 16.5 13.0 Singapore Bunker Prices ($/ton) VLSFO F $620 $620 HSFO (380cst)
Slide 21: Current Fleet List
Current Fleet List Very attractive mix of crude tanker vessels built at first class yards with super eco design & scrubber fitted No. Vessel Name Asset Type Asset Size Built Age1 Yard Ownership Scrubber Eco Design 1 Milos Suezmax 157,539 2016 7 Sungdong 100% Yes Yes 2 Poliegos Suezmax 157,539 2017 7
Slide 22: Contact
CONTACT Iraklis Sbarounis, CFO +30 210 480 4200 ir@ okeanisecotankers.com