Okeanis Eco Tankers Corp. · NYSE:ECO
Okeanis Eco Tankers — Q2 2021 Earnings Presentation
17 slides from Okeanis Eco Tankers's earnings presentation, Aug 12, 2021
Slide 1: Q2 2021 Earnings Presentation
Q2 2O21 EARNINGS PRESENTATION August 12, 2021
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: Highlights
Highlights Q2 2021 Q2 2020 H1 2021 H1 2020 OET remains profitable even in very weak market VLCC Daily TCE $27,200 $59,700 $29,700 $59,500 Adjusted EBITDA of $22.2m Suezmax Daily TCE $22,300 $52,900 $22,200 $58,300 Adjusted Profit of $3.5m Commercial Aframax/LR2 Daily TCE $16,900 $28,000 $17,800 $31,
Slide 4: Commercial Performance – Q2 2021 Actuals
Commercial Performance – Q2 2021 Actuals Q2 2021 Actuals VLCC SUEZMAX AFRAMAX/LR2 FLEETWIDE Days % of Total TCE Rate 1 Days % of Total TCE Rate1 Days % of Total TCE Rate1 Days % of Total TCE Rate1 Timecharter 421 63% $34,700 182 34% $29,100 91 36% $18,500 694 48% $31,100 Spot 244 37% $14,300 358 66%
Slide 5: Commercial Performance – Q3 2021 Guidance
Commercial Performance – Q3 2021 Guidance Q3 2021 Guidance VLCC SUEZMAX AFRAMAX/LR2 FLEETWIDE Days % of Total TCE Rate 1 Days % of Total TCE Rate1 Days % of Total TCE Rate1 Days % of Total TCE Rate1 Timecharter 276 38% $30,800 184 33% $28,800 - - - 460 35% $30,000 Spot - Fixed 335 46% $15,600 210 38
Slide 6: OET Fleet Overview
OET Fleet Overview Fleet Attributes Attractive mix of crude tanker vessels All vessels with ECO-design All vessels built at first class S. Korean and Japanese yards All vessels scrubber-fitted All vessels have BWTS installed No. Type Vessel Yard Country Built Age DWT Employment ECO-design? Scrubber?
Slide 7: Financial Review – Income Statement
Financial Review – Income Statement Income Statement USD Thousands, except per share amounts Q2 2021 Q2 2020 Η1 2021 Η1 2020 Comments TCE Revenue $34,478 $69,293 $74,052 $142,726 Vessel operating expenses (10,077) (9,237) (20,185) (17,987) Q2 2021 Fleetwide TCE Management fees (1,541) (819) (2,918)
Slide 8: Financial Review – Balance Sheet
Financial Review – Balance Sheet Balance Sheet USD Thousands June 30, 2021 June 30, 2020 Comments Assets Cash & cash equivalents $25,357 $27,740 Total cash of $32.7m Restricted cash 7,357 5,376 Vessels, net 1,086,596 1,084,026 Total assets of $1,157.5m Newbuildings – 65,951 Other assets 38,156 43,87
Slide 9: Financial Review – Cash Flow Statement
Financial Review – Cash Flow Statement Cash Flow Statement USD Thousands Q2 2021 Q2 2020 H1 2021 H1 2020 As of June 30, 2021 Cash Flow from Operating Activities Net income ($8,079) $37,101 ($737) $78,202 Total capex of $196m Total reconciliation adjustments 30,114 19,424 47,408 40,165 2x VLCC acquis
Slide 10: Debt Snapshot
Debt Snapshot Debt Fixed Rate / FY 2022 Vessel Type Outstanding1 Rate Type Margin over LIBOR Amortization USDm % USDm Nissos Heraclea Aframax/LR2 $25.8 Floating L+2.25% n/a Milos Suezmax 42.1 Floating L+4.22% 2.9 Poliegos Suezmax 37.8 Floating L+4.67% 2.1 Kimolos Suezmax 39.8 Fixed 2.80% 2.8 Folegan
Slide 11: Additional ~4mb/d of crude production needed in 2H21
Additional ~4mb/d of crude production needed in 2H21 Inventory overhang has been cleared and seaborne volumes now required Global Crude Oil Supply / Demand Waterfall 101mb/d 1.2 100.6 100 0.8 99 1.0 98 0.8 97 96.8 96 95 94 93 92 Global Oil Supply, OPEC+ Planned Production Iran Production Non-OPEC Pr
Slide 12: Unprecedented crude production growth expected 2Q21-4Q22
Unprecedented crude production growth expected 2Q21-4Q22 Periods of consecutive growth lead to tanker market strength QoQ Change in Global Crude Oil Production 2Q13 - 4Q15 3Q17 - 4Q18 2Q21 - 4Q22 +4.5mb/d crude production +3.8mb/d crude production +7.5mb/d crude production 10 of 11 quarters of growt
Slide 13: 2H21 will follow similar trajectory to 2013 & 2018
2H21 will follow similar trajectory to 2013 & 2018 Rise in seaborne volumes will drive VLCC rates higher VLCC Spot Rates $60,000/day 50,000 40,000 30,000 2013 2018 2021 20,000 10,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec SOURCE: Clarksons. OKEANIS ECO TANKERS 13 Q2 2021 PRESENTATION
Slide 14: Sensitivity of FY 2022 & 2023 Profit and FCFE to Spot Rates
Sensitivity of FY 2022 & 2023 Profit and FCFE to Spot Rates OET can generate ~20-130% of its market cap in earnings over next two years Illustrative FY 2022 Profit & Free Cash Flow to Equity Illustrative FY 2023 Profit & Free Cash Flow to Equity $200m FY22 Cash Breakeven: $23.4kpd $176 FY23 Cash Bre
Slide 15: OET has generated a 35% total return since inception
OET has generated a 35% total return since inception 35% or NOK 25 per share total return NOK 100/share 6% +35% 95 4.6 95.7 1% 9% +29% +28% 90 6.3 1.0 19% 85 +19% 13.2 80 75 70 70.6 65 Wtd. Avg. IPO Price1 Dividends Capital returns Buybacks Share appreciation Total Return NOTE: 1) Weighted average I
Slide 16: Summary & Outlook
Summary & Outlook OET continues returning capital to shareholders while also taking steps to optimize its fleet and charter portfolio in anticipation of a strengthening market. The tanker market currently remains depressed primarily due to a lack of cargoes; however, global oil inventories have norm
Slide 17: Contact
CONTACT John Papaioannou, CFO +30 210 480 4099 jvp@okeanisecotankers.com