Okeanis Eco Tankers Corp. · NYSE:ECO
Okeanis Eco Tankers — Q2 2022 Earnings Presentation
27 slides from Okeanis Eco Tankers's earnings presentation, Aug 12, 2022
Slide 1: Okeanis Eco Tankers Corp. Q2 2022 Earnings Presentation
OKEANIS ECO TANKERS CORP. Q2 2022 EARNINGS PRESENTATION DATE 12 AUGUST 2022
Slide 2: Disclaimer
DISCLAIMER This presentation (the “Presentation”) has been prepared by Okeanis Eco Tankers Corp. (“OET or 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-lookin
Slide 3: Agenda
AGENDA AGENDA 1 Executive summary 2 Commercial and market update 3 Financial update 4 ESG 5 Investment thesis and outlook 6 Appendix
Slide 4: Executive Summary
EXECUTIVE SUMMARY
Slide 5: Executive Summary
EXECUTIVE SUMMARY After the worst year ever recorded in tankers, OET is returning to free cash flow generation in 2022, continues to commercially outperform its peers, and is uniquely positioned to take advantage of the upcycle 2Q22 2Q21 1H22 1H21 YoY (%) Highlights VLCC TCE(1) $22,200 $27,200 $23,1
Slide 6: The only publicly listed platform with pure eco, scrubber fitted tankers
THE ONLY PUBLICLY LISTED PLATFORM WITH PURE ECO, SCRUBBER FITTED TANKERS OET has delivered 119% total shareholder return(2)(4) since IPO in July 2018 At a glance Total shareholder return(4) at 119% since IPO ($ps) Ticker OET 61% +119% Stock Exchange Oslo Børs 18.6 NOK 72 - $100m / IPO / Follow-on (J
Slide 7: Corporate, Debt and Chartering Structure
CORPORATE, DEBT AND CHARTERING STRUCTURE Alafouzos Family Public (“Sponsor”) 57% 43% Okeanis Eco Tankers Corp. Suezmax Tankers, 6x VLCC Tankers, 8x Milos, 2016 Nissos Rhenia, 2019 Poliegos, 2017 Nissos Despotiko, 2019 Kimolos, 2018 Nissos Donoussa, 2019 Folegandros, 2018 Nissos Kythnos, 2019 Nissos
Slide 8: Commercial and Market Update
COMMERCIAL AND MARKET UPDATE
Slide 9: Commercial Performance – 2Q22
COMMERCIAL PERFORMANCE – 2Q22 Fleetwide TCE of $29,900 pd - $22,200 pd for VLCCs and $39,300 pd for Suezmaxes VLCC Suezmax Fleetwide Days % of Total TCE Days % of Total TCE Days % of Total TCE Timecharter 248 38% $28,200 363 67% $38,200 611 51% $34,100 Spot 410 62% $18,600 182 33% $41,500 592 49% $2
Slide 10: Commercial Performance – 3Q22 Guidance
COMMERCIAL PERFORMANCE – 3Q22 GUIDANCE VLCC: 60% of available 3Q22 spot days fixed at $31,900 pd Suezmax: 70% of available 3Q22 spot days fixed at $60,400 pd VLCC Suezmax Fleetwide Days % of Total TCE Days % of Total TCE Days % of Total TCE Timecharter 276 36% $29,800 276 46% $32,800 552 42% $31,000
Slide 11: Change in Trade Flows Enhances Tonne-Mile Demand
CHANGE IN TRADE FLOWS ENHANCES TONNE-MILE DEMAND The Russian invasion in Ukraine creates a structural change in crude trade flows 1 Russian oil exports shift from Europe to 2 … while Europe replaces short-haul Russian 3 … result is longer average export sailing longer distances, China and India … cr
Slide 12: Crude Trade Volumes Are Recovering
CRUDE TRADE VOLUMES ARE RECOVERING Seaborne crude trade volumes are expected to grow on the back of firmer liquids’ production - Incremental volumes in case of an easing sanctions scenario on Venezuelan barrels Seaborne crude oil trade volumes projected to grow +~2.5 mbpd from ME and +~1.6 mbpd from
Slide 13: Bottom of Chinese Demand Declines Likely Behind Us
BOTTOM OF CHINESE DEMAND DECLINES LIKELY BEHIND US Recent trading data suggest Chinese crude demand is recovering Govt infrastructure spending surges to 100 cities’ 7-day avg congestion China total liquids’ demand offset weak domestic consumption as % of 2019 YoY % (20) (15) (10) (5) 0 5 10 15 2015-
Slide 14: Supply Side
SUPPLY SIDE Regulatory pressures amplify the already constructive crude tanker supply side … combined with declining shipyard capacity suggests, Current historically low orderbook as % of fleet … fleet growth will remain manageable for the next few years Shipyard capacity (CGTm) Active shipyards (No
Slide 15: Asset Values and Rates
ASSET VALUES AND RATES The combination of 1) growth in absolute seaborne crude trade volumes, 2) longer voyage distances, 3) constructive supply side, and 4) elevated demand for crude assets in the SnP market, is expected to improve vessel utilization -> charter rates -> asset values VLCC value curv
Slide 16: Financial Update
FINANCIAL UPDATE
Slide 17: Income Statement Summary
INCOME STATEMENT SUMMARY Income statement summary ($’000s) 2Q22 2Q21 1H22 1H21 Notes: TCE Revenue $36,037 $34,478 $62,474 $74,052 Vessel operating expenses (9,385) (10,077) (17,052) (20,185) • Q2 Fleetwide TCE of $29,900 per operating Management fees (1,090) (1,541) (2,063) (2,918) day General and a
Slide 18: Balance Sheet Summary
BALANCE SHEET SUMMARY Balance sheet summary ($’000s) 2Q22 4Q21 Notes: Assets Cash & cash equivalents $65,373 $38,183 • Total cash(1) of $72.4m Restricted cash 6,984 7,349 • Total assets of $1,167.5m Vessels, net 1,043,740 865,208 Newbuildings - 18,193 • Total interest bearing debt of $763.1m Other a
Slide 19: Cash Flow Summary
CASH FLOW SUMMARY CF statement summary ($’000s) 2Q22 2Q21 1H22 1H21 Notes: Cash Flow from Operating Activities Net income $7,942 ($8,079) $17,224 ($737) • Total liquidity(1) of $72.4m Total reconciliation adjustments 20,056 30,114 26,217 47,408 Total changes in working capital (9,609) (19,074) (22,7
Slide 20: Debt and Capex Overview
DEBT AND CAPEX OVERVIEW Scheduled debt maturity profile ($m) Drydocking schedule Balloon payment No. Cost ($m) Ocean Yield 1st PO (refinancing opportunity) Principal repayment (1) 6.0 5 50 3.3 3 3.0 3 108 175 66 2 94 1.8 - 1 0.9 - 66 - 48 29 33 38 - - - - 24 18 15 5- 2022 2023 2024 2025 2026 2027 20
Slide 21: ESG
ESG
Slide 22: 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 OET Number of vessels reporting emissions data 8 6 14 CO2 emissions generated from vessels (m
Slide 23: Investment Thesis and Outlook
INVESTMENT THESIS AND OUTLOOK 23 23
Slide 24: Investment Thesis and Medium Term Outlook
INVESTMENT THESIS AND MEDIUM TERM OUTLOOK Young, eco & Strong TCE Consistent Active Industry leader scrubber-fitted performance vs capital return management / in ESG fleet market policy sponsor support Historically low Trade rerouting Crude volumes Tight yard orderbook to ~Zero contracting benefits
Slide 25: Appendix
APPENDIX 25 25
Slide 26: 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 Age Yard Ownership Scrubber Eco Design 1 Milos Suezmax 157,539 2016 6 Sungdong 100% Yes Yes 2 Poliegos Suezmax 157,539 2017 5
Slide 27: Contact
CONTACT Konstantinos Oikonomopoulos, CFO +30 210 480 4099 kgo@okeanisecotankers.com