Okeanis Eco Tankers Corp. 2026 Q2 Earnings Call

Thank you for taking the time to join our Q2 2026 call. Q2 was the strongest quarter in our history. The first half of 2026 was also the strongest six months period since our inception. Adjusted EPS was $5.91 for the quarter. $8.28 for the first half of the year. Iraklis will take you through the financial results in detail shortly. I want to thank the whole OET team, as well as Kyklades for amazing work this quarter, which allowed us to achieve these results. During the period, we also completed the delivery of the four Suezmax vessels acquired through our two equity raises. With Nissos Tigani delivered in May and Nissos Vous in July, our 18-vessel fleet is now fully delivered. The second half of this year has similarly fantastic prospects. The team here is focused on continuing to deliver.

I will now hand over to Iraklis.

Thank you, Aristidis. I'm pleased to go through our second quarter earnings, a quarter that has been a record in our history, starting with slide four. We achieved fleet-wide Time Charter Equivalent of about $181,000 per vessel per day. That's $214,000 per day on our spot. $188,000 on operating VLCC days. $175,000 on our Suezmax operating days, all being spot. We report Adjusted EBITDA of $252 million, Adjusted Net Profit of $231 million, and Adjusted DPS of $5.91. Our board declared the 17th consecutive quarterly dividend of $5.25 per share. This represents almost 90% of our reported and adjusted net income. This is by far the highest quarterly dividend amount since the company's inception. It equals the total dividends paid over the previous five quarters together.

Including this one, over the last four quarters, we have distributed $9.55 per share or 90% of our reported net income for the period. Since our last update in May, we have taken delivery of our two remaining Suezmax resale acquisitions, the Nissos Tigani and Nissos Vous. Moving on to slide five. Since our IPO in Oslo, we have distributed approximately three and a half times our initial market cap, with over $780 million paid in dividends. Since we have had a fully delivered fleet in 2022, we have paid out 90% of our reported net income, clearly demonstrating our commitment to distributing value to our shareholders. On slide six, we show the detail of our income statement for the quarter and the first six months of the year. TCE revenue for the first six months stood at over $400 million.

EBITDA was $362 million. Net income was about $320 million or $8.28 per share. Moving on to slide seven and our balance sheet. At quarter end, we had $248 million of cash. That includes about $35 million earmarked for a portion of the equity for the acquisition of the Nissos Vous, which was delivered to us a few days later in early July. Our restricted cash figures as of June 30th include an amount of approximately $17 million we have deposited on short-term under certain of our loan facilities, which have the feature that reduce the interest paid, providing a better return than what we would have achieved placing those funds under our time deposit rates for that amount at that time. We may roll forward such cash characterized as restricted or a different amount on a short-term basis, depending on our cash flow needs and applicable rates.

Our balance sheet debt was $722 million, reflecting the drawdown for the acquisition of the Nissos Tigani in May. Our book leverage stands at 35%, while our market-adjusted net LTV bases latest broker values and pro forma for the acquisitions and recent transactions and end-of-quarter cash balance is now below 25%. On slide eight, looking at our fleet, I'm pleased to now fully reflect the addition of our most recently acquired modern and high-spec vessels. With the delivery of the Nissos Tigani on May 29th and that of the Nissos Vous on July 8th, we now have a total of 18 vessels on the water, eight modern eco scrubber-fitted Suezmaxes, 10 modern eco scrubber-fitted Suezmaxes, and eight modern eco scrubber-fitted VLCCs with an average age of only 5.6 years.

As a reminder, from a CapEx perspective, our only dry dock for 2026 is that of the Milos 10-year survey, which is currently expected to take place in the next couple of months. Slide nine, moving on to our capital structure. With all the financings I updated you on in May now effective, the financing for the delivery of the Tigani and Vous and the refinancing of our legacy leases of the Nissos Rhenia and Nissos Despotiko, we have now reduced our weighted average margin to 1.47%. That's an improvement of over 200 basis points since we commenced our refinancing exercise in 2023. On slide 10, with a little over half a year passed since the delivery of the first two Suezmax resale vessels, the Nissos Piperi and Nissos Serifopoula, we wanted to take the opportunity and reflect on those transactions.

We look at this from a value creation perspective. We see three pillars that contribute. The first, we have talked about before. We financed the acquisitions with competitive bank debt on one hand and highly accretive equity on the other. Having done an equity placement at approximately 30% above our NAV at the time. That implied a benefit or arbitrage in a way against the acquisition cost of the vessels of approximately $12 million on each vessel or $24 million on aggregate. The second pillar, and maybe the most important, the vessels in approximately seven months are estimated to have generated a combined free cash flow of about $43 million. This has realized one for one, the de-risking of the investment.

Out of approximately $104 million in equity invested in these two vessels, $52 million each, we have already got back 41% of that by trading them in this market, $25 million on the Piperi and $18 million on the Serifopoula. The third, yes, realized, but with a direct impact in our NAV and subsequently our stock price and indicative of the opportune timing of these transactions. We bought those vessels at $97 million each, while latest asset value estimates mark them at over $120 million each. That's over 25% uplift on an enterprise value basis and over 50% uplift against our equity. All that in a little over half a year. Adding these three elements for both vessels gets to $121 million of value creation just from the Nissos Piperi and Nissos Serifopoula.

I'm very eager to update this slide in a couple of quarters when the Nissos Tigani and Nissos Vous will also have traded for a few months to reflect on the overall transaction across all four vessels. I will now turn it to Aristidis for the commercial and market update.

Thank you, Iraklis. Slide 12 shows the commercial performance that drove the record financial results we have just discussed. Fleet wide TC for the quarter was $181,200 per day. Our spot VLCCs earned $213,600 per day, while our Suezmaxes earned $174,900 per day. Including the Nissos Nikouria time charter at $90,000 per day and the agreed compensation earned by Nissos Keros while waiting to resume her voyage through the Hormuz, total VLCC earnings were $187,700 per day, with Fleet Utilization at 99%. This quarter was, to a large extent, the realization of commercial decisions made during the first quarter. On the VLCC side, we secured long-haul voyages into the East at premium levels during the strongest part of the market and the frenzy right after the war began.

Three vessels were employed on long-haul Eastern voyages, while repeating trading patterns and limited ballast legs allowed us to convert exceptional headline rates into exceptional realized earnings. We also were able to capitalize on the Saudi diversion of crude exports to Yanbu and the ensuing market spike that caused. The Suezmax market was also extremely active. Oil traders were competing for cargoes in the Atlantic Basin, which allowed us to maintain very limited waiting time and execute consecutive voyages across the Mediterranean and other preferred Western trading areas. The shorter voyage duration of the Suezmax fleet gave us repeated exposure to a rapidly strengthening market and enabled us to compound the benefit of the rate environment. We also took delivery of Nissos Tigani during the quarter and repositioned her quickly to participate in the strong Eastern market.

Nissos Piperi and Nissos Serifopoula contributed for the full quarter, demonstrating, as Iraklis went over on the previous slide, how quickly the vessels acquired through our first equity raise were integrated into our operating platform. It is important to emphasize that this was not the result of one fortunate fixture. It was the cumulative effect of positioning, voyage selection, triangulation, minimizing ballast time, and maintaining vessel availability. The rates were extraordinary, but operational execution is what converted those rates into earnings. As previously, we need to thank our technical manager, Kyklades, who have allowed us to operate so well in these challenging times. Turning to our Q3 guidance, the numbers remain exceptionally strong. We have fixed 48% of our VLCC spot days at approximately $207,000 per day and 42,000 of our Suezmax spot rates at $133,000 per day.