Okeanis Eco Tankers Corp. · NYSE:ECO
Okeanis Eco Tankers — Q4 2020 Earnings Presentation
21 slides from Okeanis Eco Tankers's earnings presentation, Feb 12, 2021
Slide 1: Q4 2020 Earnings Presentation
Q4 2020 Earnings Presentation February 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 Q4 2020 Q4 2019 FY 2020 FY 2019 The Board has declared a cash dividend VLCC Daily TCE $39,900 $38,400 $50,800 $35,700 of $0.10 per share, amounting to $3.2 million Suezmax Daily TCE $20,500 $49,500 $39,500 $27,300 Aframax/LR2 Daily TCE $9,500 $41,200 $22,800 $25,300 Adjusted EBITDA of $27
Slide 4: Commercial Performance – Q4 2020 Actuals
Commercial Performance – Q4 2020 Actuals Q4 2020 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 565 81% $42,900 226 41% $27,400 24 13% $8,900 815 57% $37,600 Spot 131 19% $27,100 322 59%
Slide 5: Commercial Performance – Q1 2021 Guidance
Commercial Performance – Q1 2021 Guidance Q1 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 630 88% $34,000 238 44% $26,300 90 34% $18,500 958 63% $30,600 Spot - Fixed 82 12% $18,00
Slide 6: OET commercial outperformance equates to ~$38m of additional profit for our shareholders
OET commercial outperformance equates to ~$38m of additional profit for our shareholders Historical OET commercial performance relative to peer group 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 Total OET Daily VLCC Spot Rate $63,800 $87,800 $97,800 $48,000 $27,100 Peer Group Avg. Daily VLCC Spot Ra
Slide 7: Financial Review – Income Statement
Financial Review – Income Statement Income Statement USD Thousands, except per share amounts Q4 2020 Q4 2019 FY 2020 FY 2019 Comments TCE Revenue $40,733 $49,477 $230,997 $100,330 Vessel operating expenses (11,656) (8,827) (40,179) (24,452) Q4 2020 Fleetwide TCE Management fees (938) (764) (3,416) (
Slide 8: Financial Review – Balance Sheet
Financial Review – Balance Sheet Balance Sheet USD Thousands December 31, 2020 December 31, 2019 Comments Assets Cash & cash equivalents $23,338 $13,396 Total cash of $31.7m Restricted cash 8,401 3,410 Vessels, net 1,199,365 1,007,993 Total assets of $1,259.7m Newbuildings – 56,267 Other assets 28,6
Slide 9: Financial Review – Cash Flow Statement
Financial Review – Cash Flow Statement Cash Flow Statement USD Thousands Q4 2020 Q4 2019 FY 2020 FY 2019 As of December 31, 2020 Cash Flow from Operating Activities Net income $7,505 $17,703 $101,319 $11,384 Total liquidity of $31.7m Total reconciliation adjustments 19,873 20,254 79,587 54,671 Suezm
Slide 10: Debt Snapshot
Debt Snapshot Debt Fixed Rate / FY 2021 Vessel Type Outstanding1 Rate Type Margin over LIBOR Amortization USDm % USDm Nissos Heraclea Aframax/LR2 $27.0 Floating L+2.25% $2.4 Nissos Therassia Aframax/LR2 23.5 Floating L+2.60% 2.23 Nissos Schinoussa Aframax/LR2 25.1 Floating L+2.60% 2.2 Milos Suezmax
Slide 11: Non-OECD crude runs have recovered to pre-covid levels while OECD still 4mb/d below
Non-OECD crude runs have recovered to pre-covid levels while OECD still 4mb/d below Vaccine-driven recovery in aviation demand will close gap Estimated Global Refinery Runs: OECD vs Non-OECD (mb/d) 45mb/d 40 35 30 2012 2014 2016 2018 2020 Non-OECD I OEC D SOURCES: IEA, IRR, Morgan Stanley Research.
Slide 12: Forward refining margins back to early 2020 levels
Forward refining margins back to early 2020 levels Higher refining margins will drive substantially stronger seaborne crude oil trade Forward Refining Margins ($/bbl) $12.5/bbl 10.0 Dec 2023 - $9.2/bbl Dec 2022 - $8.1/bbl 7.5 Dec 2021 - $7.3/bbl 5.0 Jul-2019 Jan-2020 Jul-2020 Jan-2021 SOURCES: Bloom
Slide 13: Crude oil inventories are drawing with floating storage down to normal levels
Crude oil inventories are drawing with floating storage down to normal levels Crude oil inventories on land, floating and in-transit (mbbl) Total crude oil inventories Onshore crude oil inventories 5750 4600 4400 5500 5322 4207 4200 5250 4000 5000 Jan Apr Jul Oct Jan Jan Apr Jul Oct Jan 2018 I 2019
Slide 14: OPEC production expected to grow by ~3mb/d through the rest of 2021
OPEC production expected to grow by ~3mb/d through the rest of 2021 Production to be restored by the equivalent of 64 VLCCs through year end OPEC Quarterly Production Forecast (mb/d) 29mb/d +9 +25 27.9 28 # VLCC 27.5 demand equivalents (assuming 100% +31 27 VLCC seaborne export share to Asia) 26.4 2
Slide 15: VLCC fleet is aging against a backdrop of rising bunker costs and stricter regulations
VLCC fleet is aging against a backdrop of rising bunker costs and more stringent environmental regulations 24% and 7% of the VLCC fleet is 15 years and 20 years or older, respectively Share of VLCC fleet 15+ years and 20+ years 60% 20+ years I 15+ years 50 40 30 20 10 1996 1997 1998 1999 2000 2001 2
Slide 16: VLCC rates will rise non-linearly as utilization improves; eco, scrubber ships will outperform
VLCC rates will rise non-linearly as utilization improves; eco, scrubber ships will outperform Utilization to rise from low 80s currently to high 80s by year end and further to low 90s in 2022 VLCC Utilization vs. Spot rates ($kpd) $450kpd 400 350 300 250 200 Current YE 2021 FY 2022 150 ❱ ❱❱ ❱❱ ❱ ❱❱
Slide 17: Summary & Outlook
Summary & Outlook VLCC market temporarily stung by unilateral Saudi production cut while Suezmax and Aframax segments are improving. Global oil market rebalancing is well underway, evidenced by visibly lower inventories, rallying prompt price and backwardated forward curve. OECD crude oil demand is
Slide 18: Appendix
Appendix
Slide 19: 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 scrubber fitted All vessels have BWTS installed No. Type Vessel Yard Country Built Age DWT Emp
Slide 20: OET Emissions Reporting
OET Emissions Reporting OET committed to transparent reporting and reduction of carbon emissions OET adheres to the ABS Monitoring Reporting and Verification Regulation (MRV) framework Reporting Measure Calculation VLCC Suezmax Aframax/LR2 OET Fleet Number of vessels for which we have emissions data
Slide 21: Contact
CO N TAC T John Papaioannou, CFO +30 210 480 4099 jvp@okeanisecotankers.com