Okeanis Eco Tankers Corp. · NYSE:ECO
Okeanis Eco Tankers — Q2 2023 Earnings Presentation
23 slides from Okeanis Eco Tankers's earnings presentation, Aug 11, 2023
Slide 1: Q2 2023 Earnings Presentation
Q2 2O23 EARNINGS PRESENTATION August 11, 2023
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: Executive Summary
EXECUTIVE SUMMARY COMMERCIAL AND MARKET UPDATE FINANCIAL UPDATE APPENDIX I Q2 2O23 EARNINGS PRESENTATION AUGUST 11, 2023
Slide 4: Executive Summary
Executive Summary OET reports record commercial and financial results for third consecutive quarter Q2 2023 Q2 2022 H1 2023 H1 2022 YoY (%) Notes VLCC Daily TCE1 $71,600 $22,200 $72,100 $23,100 212% Suezmax Daily TCE1 $72,600 $39,300 $70,500 $32,400 118% $72,000pd fleetwide TCE COMMERCIAL PERFORMANC
Slide 5: Corporate, Debt and Employment Structure
Corporate, Debt and Employment Structure Alafouzos Family Public (“Sponsor”) 57% 43% 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, 201
Slide 6: Commercial and Market Update
EXECUTIVE SUMMARY COMMERCIAL AND MARKET UPDATE FINANCIAL UPDATE APPENDIX I Q2 2O23 EARNINGS PRESENTATION AUGUST 11, 2023
Slide 7: Commercial Performance – Q2 2023
Commercial Performance – Q2 2023 VLCC SUEZMAX FLEETWIDE Days % of Total TCE Days % of Total TCE Days % of Total TCE Timecharter 83 12% $47,400 241 44% $38,000 324 26% $40,400 Spot 637 88% $74,800 305 56% $99,900 942 74% $82,900 Total 720 100% $71,600 546 100% $72,600 1,266 100% $72,000 Calendar 728
Slide 8: Commercial Performance – Q3 2023 Guidance
Commercial Performance – Q3 2023 Guidance VLCC SUEZMAX FLEETWIDE Days % of Total TCE Days % of Total TCE Days % of Total TCE Timecharter – – – 184 38% $28,900 184 15% $28,900 Spot-fixed 559 76% $65,800 195 40% $55,600 754 62% $63,200 Spot-unfixed 177 24% – 110 22% – 287 23% – Total 736 100% 489 100%
Slide 9: Record Commercial Performance both on Absolute and Relative Terms
Record Commercial Performance both on Absolute and Relative Terms Suezmax spot market performance1 VLCC spot market performance 1 120,000 $pd ΟΕΤ Suezmax spot 180% 120,000 $pd ΟΕΤ VLCC spot 140% Average of peers Average of peers ΟΕΤ vs peers (RHS) ΟΕΤ vs peers (RHS) 160% 120% 100,000 100,000 140% 10
Slide 10: Firm Oil Demand Growth Mainly Driven by Asia…
Firm Oil Demand Growth Mainly Driven by Asia… Global oil demand Global cumulative oil demand growth by region, 2022-2028 108 mbd 6.0 mbd 106 5.0 104 4.0 102 3.0 100 2.0 98 1.0 96 0.0 94 -1.0 92 90 -2.0 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 North S&C Europe Africa Middle Asia America Amer
Slide 11: …While Crude Oil Supply Growth Expected from Non OPEC
…While Crude Oil Supply Growth Expected from Non OPEC Latin America Boosting Further Tonne Mile Demand to 2028 108.0 mbd 106.0 0.6 1.5 105.7 0.8 -0.3 0.9 -0.5 104.0 -0.7 1.0 2.6 102.0 Atlantic 100.0 99.9 Volumes 98.0 96.0 2022 Supply US Brazil Guyana Saudi Arabia Biofuels Angola Mexico Russia Others
Slide 12: Recent Production Cuts Leading to Stock Depletion
Recent Production Cuts Leading to Stock Depletion Oil on water (mb) OECD days of forward cover, infastructure adjusted 1.5 mb Five-year range 28 days 2005-2009 Five-year avg. 2010-2014 2022 2015-2019 2023 2022 27 2023 1.4 26 25 1.3 24 23 1.2 22 21 1.1 20 19 1.0 18 Jan Feb Mar Apr May Jun Jul Aug Sep
Slide 13: Refining Margins Remain Healthy While Capacity is Expected to Grow
Refining Margins Remain Healthy While Capacity is Expected to Grow Mainly Driven by East Global refining margins Firm and proposed refinary capacity additions Refining capacity growth China vs US Forecast 35 2023 3.0 mbd 20 mbd 2022 2021 2015-2019 18 30 2.5 16 25 14 2.0 12 20 1.5 10 15 8 1.0 6 10 4
Slide 14: Strong Supply Side Fundamentals
Strong Supply Side Fundamentals Orderbook and fleet renewal Elevated average fleet age for the VLCC and Suezmax segments 3.0x •• VLCC Suezmax 12 age, years VLCC Suezmax 2.5x 11 Fleet renewal: OB / Fleet > 15 yrs 2.0x December 2008 10 1.5x 9 1.0x 8 0.5x August 2023 Size of bubble indicates % of fleet
Slide 15: Financial Update
EXECUTIVE SUMMARY COMMERCIAL AND MARKET UPDATE FINANCIAL UPDATE APPENDIX I Q2 2O23 EARNINGS PRESENTATION AUGUST 11, 2023
Slide 16: Income Statement Summary
Income Statement Summary Income Statement Summary ($’000s) Q2 2023 Q2 2022 H1 2023 H1 2022 Notes TCE Revenue $91,225 $36,037 $179,674 $62,474 Vessel operating expenses (10,229) (9,385) (20,290) (17,052) Q2 2023 Fleetwide TCE of $72,000 Management fees (1,147) (1,090) (2,281) (2,063) per operating da
Slide 17: Balance Sheet Summary
Balance Sheet Summary Balance Sheet Summary ($’000s) Q2 2023 Q2 2022 Notes Assets Total cash of $86.1m Cash & cash equivalents $80,173 $81,346 Restricted cash 5,919 6,928 Total assets of $1,180.2m Vessels, net 1,004,565 1,024,296 Other assets 89,546 70,786 Total interest bearing debt of $714.1m Tota
Slide 18: OET Continues to Deliver on Promises and Distributes ~100% of Free Cash Flow
OET Continues to Deliver on Promises and Distributes ~100% of Free Cash Flow Upon Market Rebound Cash flow bridge since 2Q22 400 $m 350 43 300 113 51 163 250 1 200 259 150 111 100 $114m free cash flow to equity 11 50 86 72 - 2Q22 Cash Adj. EBITDA WC Interest paid Capex Debt raised Debt repaid Capita
Slide 19: Appendix
EXECUTIVE SUMMARY COMMERCIAL AND MARKET UPDATE FINANCIAL UPDATE APPENDIX I Q2 2O23 EARNINGS PRESENTATION AUGUST 11, 2023
Slide 20: Emissions Reporting
Emissions Reporting Committed to transparent reporting and reduction of carbon emissions The Group adheres to the ABS Monitoring Reporting and Verification Regulation (MRV) framework Reporting VLCC Suezmax Number of vessels reporting emissions data 8 6 CO2 emissions generated from vessels (metric to
Slide 21: Current Fleet List
Current Fleet List Very attractive mix of crude tanker vessels built at first class yards with super eco design & scrubber fitted No. Vessel Name Asset Type Asset Size Built Age Yard Ownership Scrubber Eco Design 1 Milos Suezmax 157,539 2016 7 Sungdong 100% Yes Yes 2 Poliegos Suezmax 157,539 2017 6
Slide 22: Cash Flow Summary
Cash Flow Summary CF Statement Summary ($’000s) Q2 2023 Q2 2022 H1 2023 H1 2022 Cash Flow from Operating Activities Net income $52,938 $7,942 $104,541 $17,224 Total reconciliation adjustments 25,004 20,056 47,433 26,217 Total changes in working capital (44,975) (9,609) (37,788) (22,747) Net cash pro
Slide 23: Contact
CONTACT Iraklis Sbarounis, CFO +30 210 480 4200 ir@ okeanisecotankers.com