Bruton (BRUT) Pareto Securities' 32nd Annual Energy Conference Presentation summary

Strategic positioning and fleet development

• Two dual-fuel VLCC newbuildings under construction, with deliveries targeted for July 2026 and January 2027.

• No funding commitments required in 2025; next major installment due in early 2026.

• $100 million equity fully funds both vessels and allows for future growth flexibility.

• Legal structure includes full ownership of Andes Tankers I Ltd and Andes Tankers I Inc.

• Potential for expansion to four vessels, with financing and IPO options outlined.

Market outlook and industry trends

• VLCC orderbook remains low while the global fleet ages, with 37% of vessels projected to be over 20 years old by 2030.

• Over 20% of the crude tanker fleet is sanctioned, increasing demand for compliant and modern vessels.

• OPEC's reversal of production cuts expected to add significant oil supply, driving demand for VLCCs.

Regulatory and environmental landscape

• EU ETS and Fuel EU regulations require progressive GHG reductions, with full compliance by 2026.

• IMO Net Zero initiative targets global shipping emissions, with a potential global CO2 tax from 2028.

• Dual-fuel LNG VLCCs expected to benefit from lower daily taxation and superior economics under new regulations.