Okeanis Eco Tankers Corp. · NYSE:ECO
Okeanis Eco Tankers — Q1 2022 Earnings Presentation
25 slides from Okeanis Eco Tankers's earnings presentation, May 13, 2022
Slide 1: Okeanis Eco Tankers Corp. Q1 2022 Earnings Presentation
OKEANIS ECO TANKERS CORP. Q1 2022 EARNINGS PRESENTATION DATE 13 MAY 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 OET came in profitable at another volatile quarter for the market thanks to its fuel efficient vessels, active management and prudent vessel positioning 1Q22 1Q21 YoY (%) 1Q22 highlights VLCC TCE(1) $24,200 $32,000 (24%) Suezmax TCE (1) $25,300 $22,000 15% $24,700 pd fleetwide TCE
Slide 6: Commercial and Market Update
COMMERCIAL AND MARKET UPDATE
Slide 7: Commercial Performance – 1Q22
COMMERCIAL PERFORMANCE – 1Q22 VLCC Suezmax Fleetwide Days % of Total TCE Days % of Total TCE Days % of Total TCE Timecharter 181 33% $34,900 244 46% $29,100 425 40% $31,600 Spot 360 67% $18,800 284 54% $22,200 644 60% $20,300 Total 541 100% $24,200 528 100% $25,300 1,069 100% $24,700 Calendar 541 54
Slide 8: Commercial Performance – 2Q22 Guidance
COMMERCIAL PERFORMANCE – 2Q22 GUIDANCE VLCC: 47% of available 2Q22 spot days fixed at $25,400 pd Suezmax: 64% of available 2Q22 spot days fixed at $36,500 pd VLCC Suezmax Fleetwide Days % of Total TCE Days % of Total TCE Days % of Total TCE Timecharter 223 33% $28,200 273 46% $25,500 496 41% $26,700
Slide 9: Navigating Through the Current Market and Positioning for the Future
NAVIGATING THROUGH THE CURRENT MARKET AND POSITIONING FOR THE FUTURE OET is equipped to navigate through uncertainty during the short to medium term thanks to its young, eco fleet, balance sheet strength and active management Although rates spiked, we have seen crude tanker fleet Russian invasion of
Slide 10: Best Medium Term Supply Fundamentals on Record
BEST MEDIUM TERM SUPPLY FUNDAMENTALS ON RECORD An undemanding orderbook combined with ~zero contracting, elevated fleet age, tight yard capacity and soaring NB prices suggests that crude tanker fleet growth will remain manageable over the next few years (~2-3%) 1 2 Undemanding, all time low orderboo
Slide 11: Constructive Nominal Demand
CONSTRUCTIVE NOMINAL DEMAND Oil demand is projected above pre-pandemic levels as the world moves away from mobility restrictions while pent up demand expected to address historical reserve depletion Crude oil inventories (mbbls) vs World oil demand above pre-pandemic World mobility above pre-pandemi
Slide 12: Second Hand Value Curve Potential
SECOND HAND VALUE CURVE POTENTIAL Rerating on second hand values is justified both from historical and replacement cost perspective Every $5m vessel value appreciation VLCC value curves ($m) Suezmax value curves ($m) adds NOK 20 to intrinsic value per share Current curve Current curve 90 120 120 82
Slide 13: Russian Invasion in Ukraine
RUSSIAN INVASION IN UKRAINE Russian invasion in Ukraine and concurrent US and EU sanctions have resulted in new trade routes that would probably enhance tonne mile demand for crude tankers Crude tanker demand incorporating trade shifts scenarios YoY% Main trade routes evolution Tonne mile demand alm
Slide 14: Significant Eco Benefit on a Rising Bunker Price Environment
SIGNIFICANT ECO BENEFIT ON A RISING BUNKER PRICE ENVIRONMENT Vessels can be retrofitted to burn HSFO but they can’t turn into Eco; OET’s fleet is equipped with both Daily Eco savings sensitivities to VLSFO price ($pd) Assumptions VLCC Suezmax Spread between VLSFO-HSFO held at $125 pmt 22,000 Sailing
Slide 15: Financial Update
FINANCIAL UPDATE
Slide 16: Income Statement Summary
INCOME STATEMENT SUMMARY Income statement summary ($’000s unless per share data) 1Q22 1Q21 Notes: TCE Revenue $26,437 $39,573 Vessel operating expenses (7,667) (10,108) • 1Q22 Fleetwide TCE of $24,700 per operating Management fees (973) (1,377) day General and administrative expenses (1,568) (2,918)
Slide 17: Balance Sheet Summary
BALANCE SHEET SUMMARY Balance sheet summary ($’000s) 1Q22 1Q21 Notes: Assets Cash & cash equivalents $32,572 $38,183 • Total cash(1) of $40.4m Restricted cash 7,795 7,349 Vessels, net 955,083 865,208 • Total assets of $1,044.3m Newbuildings 9,233 18,193 • Total interest bearing debt of $656.4m Other
Slide 18: Cash Flow Summary
CASH FLOW SUMMARY Cash flow statement summary ($’000s) 1Q22 1Q21 Notes: Cash Flow from Operating Activities Net income $9,282 $7,342 • Total liquidity(1) of $40.4m Total reconciliation adjustments 6,161 17,294 Total changes in working capital (13,138) (5,832) • Remaining, fully funded, NB capex of $
Slide 19: ESG
ESG
Slide 20: 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 7 6 13 CO2 emissions generated from vessels (m
Slide 21: Investment Thesis and Outlook
INVESTMENT THESIS AND OUTLOOK 21 21
Slide 22: 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 Significant Oil demand Tight yard orderbook to ~Zero contracting reserve projecte
Slide 23: Appendix
APPENDIX 23 23
Slide 24: 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 157,525 2016 5 Sungdong 100% Yes Yes 2 Poliegos Suezmax 157,525 2017 5
Slide 25: Contact
CONTACT Konstantinos Oikonomopoulos, CFO +30 210 480 4099 kgo@okeanisecotankers.com