Q2 2024 Okeanis Eco Tankers Corp Earnings Call Transcript
Key Points
- Okeanis Eco Tankers Corp (ECO) achieved a fleet-wide time charter equivalent of about $65,000 per vessel per day, with VLCCs at $73,000 and Suezmaxes at $55,000.
- The company reported an adjusted EBITDA of $63.9 million and an adjusted net profit of $39.7 million, reflecting strong financial performance.
- Okeanis Eco Tankers Corp (ECO) declared a ninth consecutive capital distribution of $1.10 per share, which is about 90% of their EPS, demonstrating a commitment to shareholder value.
- The company successfully completed the five-year drydock for two VLCCs and announced three new financing transactions to optimize their capital structure.
- Okeanis Eco Tankers Corp (ECO) outperformed its tanker peers with a 39% higher VLCC spot market rate and a 17.5% higher Suezmax spot market rate in Q2 2024.
- The company faces challenges in trading Suezmaxes East of Suez due to decreased cargo availability and increased competition.
- VLCC rates have been pressured by weaker Chinese crude exports, weak refining margins, and ongoing OPEC+ production cuts.
- The transition of VLCCs from dirty to clean trading involves significant time and cost, including a 20-day cleaning process and substantial sludge removal.
- Current Q3 rates have weakened significantly, with VLCC round voyages trading around $25,000 per day, indicating a challenging market environment.
- The company has no planned drydocks before 2028, which could limit flexibility in fleet management and maintenance.
rWelcome to OET's second-quarter 2024 financial results presentation. We will begin shortly. Aristidis Alafouzos, CEO; and Iraklis Sbarounis, CFO of Okeanis Eco Tankers will take you through the presentation. They will be pleased to address any questions raised at the end of the call. I would like to advise you that this session is being recorded.
Iraklis will begin the presentation now.
Thank you. Welcome to the presentation of Okeanis Eco Tankers' results for the second quarter of 2024. We will discuss matters of the forward-looking nature and actual results may differ from the expectations reflected in such forward-looking statements. Please read through the relevant disclaimer on slide 2.
So starting on slide 4 and the executive summary. I'm pleased to present the highlights of the second quarter of 2024. We continue on the track of strong commercial and financial results. Since the beginning of the year, we are effectively fully spot exposed. We achieved fleet-wide
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