Okeanis Eco Tankers (OET) Q2 2024 earnings summary

Executive summary

• Achieved strong Q2 2024 results with adjusted EBITDA of $63.9 million and adjusted net profit of $39.7 million, despite year-over-year declines in TCE rates and earnings.

• Declared ninth consecutive capital distribution of $1.10 per share, with total distributions over the last four quarters at $3.46 per share.

• Successfully executed dry docks for two VLCCs and completed three new financing transactions to optimize capital structure.

• Innovatively converted four VLCCs from dirty to clean trading, generating premium TCE rates and operational flexibility.

• Outperformed peers in both VLCC and Suezmax segments, with 100% spot exposure and strategic fleet positioning.

Financial highlights

• Q2 2024 fleet-wide TCE was $64,900 per day; VLCCs at $73,300, Suezmaxes at $54,600.

• Adjusted EBITDA was $63.9 million, adjusted net profit $39.7 million, and adjusted EPS $1.23 for Q2 2024.

• Total cash at quarter-end was $98.1 million, with total debt at $669 million and book leverage at 57%.

• On a rolling four-quarter basis, distributed $3.46 per share, or 93% of adjusted net income.

• Net cash from operating activities in Q2 2024 was $51.0 million.

Outlook and guidance

• Q3 2024 to date: 58% of VLCC spot days fixed at $46,100/day, 53% of Suezmax spot days at $58,000/day.

• Q3 rates have weakened, with VLCC round voyages at $25,000–$30,000/day and Suezmaxes in the low $20,000s.

• Focus remains on completing remaining VLCC dry docks and positioning for a strong Q4 winter market.

• Confident in capturing upside from seasonality and market strength, with 100% spot fleet and no planned dry docks for winter.

• Cash flow projections indicate sufficient liquidity for the next twelve months.