Okeanis Eco Tankers (OET) Q3 2024 earnings summary

Executive summary

• Achieved Q3 2024 fleetwide TCE of $43,900 per day, with VLCCs at $43,100 and Suezmaxes at $44,800, outperforming peers.

• Reported Q3 2024 adjusted EBITDA of $37.9 million, adjusted net profit of $14.5 million, and adjusted EPS of $0.45.

• Q3 2024 revenue was $84.9 million, down from $89.1 million in Q3 2023; profit was $14.6 million, down from $19.4 million year-over-year.

• Declared 10th consecutive quarterly dividend of $0.45 per share, with total distributions over the last four quarters at $3.31 per share.

• Completed five of six planned VLCC dry docks for the year, with performance upgrades expected to yield a 10% consumption benefit over five years.

Financial highlights

• Q3 2024 TCE revenue was $52.2 million, down 13% year-over-year; 9M 2024 TCE revenue at $212.7 million, down 11%.

• Adjusted EBITDA for 9M 2024 was $167.0 million; adjusted net income was $94.3 million ($2.93/share).

• Ended Q3 2024 with $56.0 million in cash and $44 million in trade receivables.

• Total interest-bearing debt at Q3 2024 was $657.3 million, down 7% year-over-year.

• Book leverage at 59%; total equity at $411.7 million; net market LTV at 40%.

Outlook and guidance

• Q4 2024 to date: 63% of VLCC spot days fixed at $46,900/day, 70% of Suezmax spot days at $40,200/day.

• Q4 has materially underperformed expectations so far due to weak refining margins, low Chinese demand, and weather factors.

• Management expects winter volatility to provide opportunities for higher rates later in Q4.

• Strategy focuses on maintaining a strong presence in the West and positioning for premium rates in the East.

• Medium-term fundamentals remain favorable due to supply constraints and aging fleet.