Okeanis Eco Tankers Q2 2026 Earnings Report

Okeanis Eco Tankers EPS Results

• Actual EPS: $5.91
• Consensus EPS: $4.61
• Beat/Miss: Beat by +$1.30
• One Year Ago EPS: N/A

Okeanis Eco Tankers Revenue Results

• Actual Revenue: $268.14 million
• Expected Revenue: $220.28 million
• Beat/Miss: Beat by +$47.86 million
• YoY Revenue Growth: N/A

Okeanis Eco Tankers Announcement Details

• Quarter: Q2 2026
• Date: 8/5/2026
• Time: After Market Closes
• Conference Call Date: Wednesday, August 5, 2026
• Conference Call Time: 8:30AM ET

Okeanis Eco Tankers (NYSE:ECO) is a Marshall Islands–incorporated, publicly traded shipping company specializing in the ownership and operation of eco-design product tankers. The company made its debut on the New York Stock Exchange under the ticker “ECO” in May 2019 following an initial public offering. It focuses on the acquisition of newbuilding medium-range (MR) and long-range (LR) product tankers designed to deliver enhanced fuel efficiency and reduced emissions.

As of its public listing, Okeanis Eco Tankers’ fleet comprises twelve eco-efficient vessels built by Hyundai Samho Heavy Industries in South Korea. Each vessel features optimized hull designs, energy-saving devices and Tier III-compliant engines that meet stringent international environmental standards. The company’s tankers are outfitted with ballast water treatment systems and slow-steaming capabilities, enabling them to transport refined petroleum products—including gasoline, diesel, naphtha and jet fuel—while minimizing their carbon footprint.

Okeanis Eco Tankers serves a global customer base across major shipping lanes in Asia, Europe, the Americas and the Middle East. The company’s technical management is provided by industry-leading marine operators, while its in-house commercial team negotiates time charters and voyage contracts with refiners and energy trading firms. Okeanis Eco Tankers is governed by an experienced board of directors composed of maritime, finance and business veterans who oversee its commitment to operational excellence and environmental sustainability.

Okeanis Eco Tankers Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Record earnings and dividend: OET reported its strongest quarter and first half ever, with Q2 adjusted EPS of $5.91, adjusted EBITDA of $252 million, and a quarterly dividend of $5.25 per share—approximately 90% of adjusted net income.
• Positive Sentiment: Fleet expansion is complete: The delivery of the Nissos Tigani and Nissos Vous brings the fleet to 18 modern, scrubber-fitted vessels with an average age of 5.6 years, while market-adjusted net leverage remains below 25%.
• Positive Sentiment: Strong near-term earnings visibility: For Q3, 48% of VLCC spot days are fixed at approximately $207,000 per day and 42% of Suezmax spot days at about $133,000 per day; 52% of total fleet days remain open, preserving exposure to potentially stronger rates.
• Neutral Sentiment: Management remains heavily exposed to spot markets and does not plan to add time-charter coverage, citing further upside potential but acknowledging that the large portion of open days creates both opportunity and risk.
• Negative Sentiment: Geopolitical and supply risks remain significant: Attacks and disruptions around the Hormuz, Red Sea, Black Sea, and CPC terminal are creating operational and safety concerns, while VLCC and Suezmax order books near 30% of existing fleets pose a medium-term supply risk despite limited 2026 deliveries.

Presentation

[Operator]

Welcome to OET's second quarter 2026 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. Matters that are forward-looking in nature will be discussed. Actual results may differ from the expectations reflected in such forward-looking statements. Please read through the relevant disclaimer on slide four. I would like to advise you that this session is being recorded. Aristidis will begin the presentation now.

[Aristidis Alafouzos, CEO at Okeanis Eco Tankers]

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.

[Aristidis Alafouzos, CEO at Okeanis Eco Tankers]

I will now hand over to Iraklis.

[Iraklis Sbarounis, CFO at Okeanis Eco Tankers]

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.

[Iraklis Sbarounis, CFO at Okeanis Eco Tankers]

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.

[Iraklis Sbarounis, CFO at Okeanis Eco Tankers]

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.

[Iraklis Sbarounis, CFO at Okeanis Eco Tankers]

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.

[Iraklis Sbarounis, CFO at Okeanis Eco Tankers]

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.

[Iraklis Sbarounis, CFO at Okeanis Eco Tankers]

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.

[Iraklis Sbarounis, CFO at Okeanis Eco Tankers]

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.

[Iraklis Sbarounis, CFO at Okeanis Eco Tankers]

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.

[Aristidis Alafouzos, CEO at Okeanis Eco Tankers]

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.

[Aristidis Alafouzos, CEO at Okeanis Eco Tankers]

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.

[Aristidis Alafouzos, CEO at Okeanis Eco Tankers]

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.

[Aristidis Alafouzos, CEO at Okeanis Eco Tankers]

Across the fleet, the fixed spot portion stands at $166,500 per day on 681 days. We also have 92 time charter days at $90,000 per day, while approximately 52% of total fleet days remain open. For a quarter that is normally softer, these are remarkable levels. They also demonstrate that Q2 was not simply an isolated earnings event. The market has remained highly volatile, and the volatility has continued to create attractive commercial opportunities for our fleet. On the VLCCs, discharge positions developed in the East at a time when available AG capacity remained constrained. We were able to secure AG employment for two vessels at premium to prevailing market conditions. We continue to balance the attraction of locking in long-haul earnings against the value of retaining prompt exposure to a market that can move very quickly.

[Aristidis Alafouzos, CEO at Okeanis Eco Tankers]

On the Suezmaxes, we have maintained a broad Western presence across the Black Sea, Mediterranean, and West Africa. This gives us access to several trading markets and allows us to pursue triangulation opportunities while reducing ballast and waiting time. The Milos is also scheduled to undergo dry dock around the end of September, beginning of October, depending on the exact timing of her trading program and yard availability. Finally, we also took delivery of Nissos Vous on July 8th, the final vessel in our series of four Suezmax acquisitions. We therefore enter Q3 with the entire 18-vessel fleet on the water and contributing earning days. There is a meaningful portion of the quarter to fix which is both an opportunity and a risk for us. We cannot predict every market move.

[Aristidis Alafouzos, CEO at Okeanis Eco Tankers]

Our aim is to preserve optionality, remain disciplined, and position the fleet so we can quickly respond as cargo flows and vessel availability change. As said before, the tanker market was exceptionally strong in Q2 and was available to all owners. Based on the peers that have reported so far, our spot earnings were approximately 50% above the peer average on the VLCCs and approximately 60% above the peer average on the Suezmaxes. I look forward to seeing how this adjusts over the next reporting period. In a market at these levels, commercial outperformance becomes very meaningful in absolute dollar terms. A relatively modest daily difference multiplied across our spot days and the size of our fleet translates directly into substantial incremental cash flow and earnings per share. This quarter reinforces the point we've made consistently since 2019.

[Aristidis Alafouzos, CEO at Okeanis Eco Tankers]

The value of OET lies not only in our exposure to the crude cycle, but also in the combination of our fleet and a highly skilled operating platform positioned to capitalize on market opportunities. Slide 15 addresses the order book, which is clearly one of the principal questions facing the tanker market today. We should not ignore it. The VLCC order book has reached approximately 32% of the existing fleet, while the Suezmax order book is approximately 30%. Those are high headline numbers, and they represent a genuine medium-term supply consideration. However, the timing and composition of the order book matter. Only a small portion is scheduled to deliver in 2026. The largest delivery years are concentrated in 2028 and 2029. The immediate supply response is therefore much more limited than the headline order book percentages imply.

[Aristidis Alafouzos, CEO at Okeanis Eco Tankers]

At the same time, the existing fleet continues to age, as we mention every quarter. Age alone, though, does not force a vessel to leave the market, but it increasingly affects charter acceptance, maintenance requirements, financing, regulatory compliance, and vessel trading efficiency. A substantial portion of the older fleet is operating in sanctioned or less transparent trades and is not interchangeable with a compliant fleet competing for mainstream cargoes. Our conclusion is not that the order book is irrelevant. It is that its near-term effect is tempered by the delivery schedule and by the aging and fragmentation of the existing fleet. For OET, the key point is that our fleet is now fully delivered, has an average age of approximately five and a half years, and is designed to remain highly competitive across a range of market environments.

[Aristidis Alafouzos, CEO at Okeanis Eco Tankers]

The final commercial slide brings together the geopolitical and fundamental forces currently shaping the market. We're seeing simultaneous pressures across the three of the world's most important energy arteries: the Hormuz, the Red Sea, and the Black Sea. The combination is unprecedented in the modern tanker market. The situation remains fluid and conditions can change very quickly. Hormuz transits were recovering under the June Memorandum of Understanding, but the recovery remains fragile and highly sensitive because of the renewed escalation and have reduced since June. In the Black Sea, attacks on tankers and export infrastructures continue to disrupt loadings and create inefficiencies. In the Red Sea, the threat of renewed attacks is pushing more traffic away from the Red Sea and around the Cape of Good Hope, adding distance and further inefficiency to global trade.

[Aristidis Alafouzos, CEO at Okeanis Eco Tankers]

For example, a VLCC voyage can be double the duration than it was if it was exiting from the Bab-el-Mandeb. The oil balance is also important. The IEA currently expects 2026 supply to decline by approximately 3.7 million barrels per day, compared with a demand decline of approximately 1 million barrels per day. In other words, supply has fallen almost four times faster than demand. Since the onset of the conflict, inventories have drawn by approximately 3.8 million barrels per day on average. For tankers, the key dynamic has been volumes down, but distances up. Atlantic to Asia trades now represent approximately 35% of VLCC liftings, compared with only around 22% before the conflict. A voyage from the U.S. Gulf to China is approximately 2.6 times the distance of the Arabian Gulf to China.

[Aristidis Alafouzos, CEO at Okeanis Eco Tankers]

With only around 7.4 million barrels per day of pipeline rerouting capacity available, a meaningful portion of the Middle East exports shortfall can only be replaced by long-haul barrels. Looking further ahead, the expected normalization of Gulf output and increase in OPEC+ production during the 2027 period should allow inventories to be rebuilt. The estimates reflected on this page are approximately 1.8 million barrels per day of crude supply would be required over roughly a year and a half to rebuild stocks. That inventory build translates directly into tanker demand. The shape of the opportunity may change, but the underlying message remains it is supportive. Current disruption creates inefficiencies and longer tonne-miles, while eventual normalization creates a substantial restocking need. Our focus at OET is to position our fleet to respond across a range of outcomes and to try to maximize shareholder returns.

[Aristidis Alafouzos, CEO at Okeanis Eco Tankers]

To conclude, as I said at the beginning, this was the strongest quarter and strongest first half of our history. We have returned a record amount to our shareholders, completed the delivery of our expanded fleet, and entered the second half with substantial earnings visibility and flexibility. I hope by the end of the year, we can have returned over $1 billion to shareholders since our inception in 2018. I will now hand it back to the moderator for Q&A.

[Operator]

We will now begin the question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Even Kolsgaard with Clarksons Securities AS. Your line is open, Even. Please go ahead.

[Even Kolsgaard, Analyst at Clarksons Securities AS]

Hi, and thank you. My first question is on the market in general. Last quarter, you had quite a good analysis on what would happen in different scenarios when it comes to the closure of Strait of Hormuz. Since it's basically closed again, I was just wondering how you think about how a reopening of the Strait of Hormuz could look like this time, and if you think there will be any differences compared to last time. With that in mind, how do you position your fleet today for a potential reopening?

[Aristidis Alafouzos, CEO at Okeanis Eco Tankers]

Thank you for your question. I think that we had a pretty good example of how the reopening would work from the previous time in June. I think one difference that we'll see is that in June, some of the more independent oil companies went to lift cargoes for this traditional AG to Far East type run, which is difficult because of the open-and-shut nature of the Hormuz and the dangers and risk for crossing it. I think what we'll likely see when it reopens, if it reopens again, is that we'll continue to see the more national oil companies and larger oil traders use shuttling services to shuttle crude from inside the AG to right outside in Fujairah. The normal mainstream fleet can go and lift cargoes from the ships, in Fujairah.

[Aristidis Alafouzos, CEO at Okeanis Eco Tankers]

I think the current market is a lot like the middle example we gave in our last quarter where the Hormuz has some oil coming out. There's definitely oil exiting. The Kuwaitis, the Iraqis, the Qataris, and the Emiratis principally are moving oil and shuttling it out. The Saudis also have found this export path through Yanbu, so it's definitely not as closed as it was at the beginning of the war. There is significant oil being exported, but it's inefficient because of the shuttling. The Saudis' crude being exported is even more inefficient than it was because instead of going to Yanbu and out of the Red Sea, it has to be shuttled up to Egypt and into the pipeline and through the Suez and then all the way around Africa.

[Aristidis Alafouzos, CEO at Okeanis Eco Tankers]

That's why we see continued strong demand for Atlantic crudes on the VLCCs, which is why that portion of VLCC liftings is so much higher than it was, before the war started. All these together are creating excellent tonne-mile effects for the Vs.

[Even Kolsgaard, Analyst at Clarksons Securities AS]

Thanks. Just more on the strategy. We are seeing that other owners are taking on more time charter coverage, and some are also settling more than tonnaged. While you have been largely spot exposed until now and basically 100% spot and it's risk on still. How do you think about the spot market going forward versus the current time charter rates? How do you compare that towards the current asset values?

[Aristidis Alafouzos, CEO at Okeanis Eco Tankers]

Look, I think we fixed the time charter rate at $90,000 in February, and it was a huge mistake. We've earned just as much on that one ship in less than six months, on one of our spot ships in less than six months than we will have earned on her in a whole year. I think that goes for every single other VLCC owner who's mistakenly fixed their ships on TCs. Because the earnings are so high now that even if you do a one- or a two- or a three-year time charter, when you're earning $200,000 a day or $150,000 a day for three quarters, what you need to earn for the balance period becomes zero or negative potentially. I think that from our perspective for OET, there's no interest at the moment to fix any more time charters.

[Aristidis Alafouzos, CEO at Okeanis Eco Tankers]

We're very happy with the coverage we have in the short term on the VLCC. Sorry, we're very happy with the spot exposure we have on the VLCC fleet. In terms of asset sales, we're lucky because some of the companies that we have been seeing selling ships are also renewing their fleet. They're selling some of the older ships and they have newer ships coming in. Other companies that have been selling VLCCs, their core fleet composition is in tankers, or they might be funding other sectors that they have on the order book. I think many owners are doing TCs and the sales are case by case and depends on each company. For us, we see a lot of continued upside to this market, and we don't want to reduce our exposure in terms of number of vessels or number of spot trading vessels.

[Even Kolsgaard, Analyst at Clarksons Securities AS]

Okay. Thank you. That's all from me.

[Operator]

Your next question comes from the line of Liam Burke with B. Riley Securities. Your line is open, Liam. Please go ahead.

[Liam Burke, Analyst at B. Riley Securities]

Thank you. Aristidis or Iraklis, how are you doing today?

[Iraklis Sbarounis, CFO at Okeanis Eco Tankers]

Good, Liam.

[Aristidis Alafouzos, CEO at Okeanis Eco Tankers]

Good to hear from you. Thank you.

[Liam Burke, Analyst at B. Riley Securities]

Thank you. Can we talk about the Atlantic Basin? I know you touched on normalization, we're not sure when that's going to happen. There are a couple of things. With increased production out of the Atlantic Basin and the lifting of sanctions in Venezuela, do you see longer-term lift for Suezmax rates?

[Aristidis Alafouzos, CEO at Okeanis Eco Tankers]

Hi, Liam. Thank you for your question. The Suezmax is a very versatile asset, anything that will be traded in the shorter haul will be optimized onto Suezmax. For sure, a lot of Venezuelan flows will move on Suezmaxes. The same as West Africa, Black Sea, Guyana, and U.S. Gulf when the cargoes are staying shorter haul. If the cargoes are, and the arbs, the crude oil arbs make sense for the cargo to be transported long distance, you'll see that these cargoes make much more economic sense on VLCCs. For sure that the lifting of sanctions has been very positive on the Suezmax market in Venezuela, as well as the increased production from Guyana, as well as the SPR, as well as a number of other factors. I think that definitely the Suezmax is buoyed by Venezuelan exports.

[Liam Burke, Analyst at B. Riley Securities]

Great. Thank you. Iraklis, 90% dividend payout. You've opportunistically reinvested in the fleet, and that's seeing the benefit in terms of asset appreciation. Is it stay the course on the capital structure, or do you see opportunity to pay down debt faster, or are you just going to amortize it as it matures?

[Iraklis Sbarounis, CFO at Okeanis Eco Tankers]

Absolutely we stay the course. We will continue with our strategy to distribute as much as possible. No intention to accelerate paying down debt. We feel pretty comfortable with where we are. It has amortized naturally quarter-on-quarter. We think that our leverage position is actually a competitive advantage that we have into such a positive market to be able to crystallize that value to our shareholders. We stay the course.

[Liam Burke, Analyst at B. Riley Securities]

Great. Thank you very much.

[Aristidis Alafouzos, CEO at Okeanis Eco Tankers]

Thank you, Liam.

[Operator]

Your next question comes from the line of Oliver Dunvold with ABG Sundal Collier. Your line is open, Oliver. Please go ahead.

[Oliver Dunvold, Analyst at ABG Sundal Collier]

Hey, guys. Thank you for taking my questions. On Suezmax rates, there has been some pressure over the last couple of days. TD20 is now around $70,000 today. Do you have any market insight explaining this move? Is this the level we should expect to see for the remainder of Q3? Thank you.

[Aristidis Alafouzos, CEO at Okeanis Eco Tankers]

Hello. Thank you for your question, Oliver. It's an interesting question as well because TD20 is one of the more global Suezmax routes that wherever a Suezmax is can usually fix a TD20 cargo. This creates a problem when the Hormuz is closed and when there's fewer cargoes in the east, because as the Suezmaxes do go east, on their way back, they don't have any cargoes to take from the Arabian Gulf or from Fujairah. This forces them to look to West Africa. When you're sailing back, the West Africa TD20 run is a backhaul, effectively, and that will allow the owner to be quite competitive in order to find a cargo off his dates, because he's just looking to get that cargo loaded as efficiently as possible and quickly, and then go discharge it so he can be back in position.

[Aristidis Alafouzos, CEO at Okeanis Eco Tankers]

I think TD20 is negatively impacted by being a place that ballasters are so exposed to. This is very different than the U.S. Gulf or Mediterranean or Black Sea cargoes on Suezmaxes. I would say that's one reason that TD20 has been underperforming at the moment. I also think that with what happened in CPC in overseas terminal and the attacks on some ships, a lot of owners were a bit worried about fixing their vessels from there, and they decided to divert instead to other cargoes, and that made them go down to West Africa as an alternative. There was quite a prompt oversupply of ships looking for a new business. Those are two reasons. I'm actually quite bullish on TD20. I think that we'll see it's probably bottomed about now, and we'll see it moving back upwards in the next couple of days.

[Oliver Dunvold, Analyst at ABG Sundal Collier]

All right. Perfect. Thank you.

[Operator]

Your next question comes from the line of Fredrik Dybwad with Fearnleys. Your line is open, Fredrik. Please go ahead.

[Fredrik Dybwad, Analyst at Fearnleys]

Thank you. Congratulations, guys, with an incredible quarter. You're doing a great job. Hats off for that. I just saw some reports today about two VLCCs of yours being fixed inside of the AG, the Despotiko and Keros. Could you provide some details about that if you're able?

[Aristidis Alafouzos, CEO at Okeanis Eco Tankers]

Sure. Generally, we don't comment on individual fixtures, but we haven't done any of that business at the moment.

[Fredrik Dybwad, Analyst at Fearnleys]

Okay. Thanks. That was it from my end.

[Aristidis Alafouzos, CEO at Okeanis Eco Tankers]

You're a spot broker today, I guess, looking to make a position list?

[Operator]

Your next question comes from the line of Climent Molins with Value Investor's Edge. Your line is open. Climent, please go ahead.

[Climent Molins, Analyst at Value Investor's Edge]

Hi. Good afternoon, team. Thank you for taking my questions. I wanted to follow up on the question on Suezmaxes. A week ago, you disclosed that the Nissos Sifnos was targeted while loading crude at the CPC terminal. I'm not sure the amount of color you can provide on this, but any updates on the state of the vessel? Secondly, any color you can provide on how this may have affected your willingness to continue calling the CPC terminal?

[Aristidis Alafouzos, CEO at Okeanis Eco Tankers]

Sure. Thank you for the question, Climent. The vessel sailed from CPC after she completed loading. She's in Turkey now for some inspections. She will go and complete her voyages after some quick temporary repairs. Following the discharge, she might have to come back for some further repairs in Turkey, which we don't expect to take very long. Look, I think the issue with CPC is very complex and political. CPC is a terminal that is a joint venture. Chevron and Exxon are big equity holders in that terminal. The crude from CPC is a critical part of the European oil refining and process. In the medium term, even in the short term, CPC cannot be a market that's not available to Europe.

[Aristidis Alafouzos, CEO at Okeanis Eco Tankers]

With partners who are involved in the CPC trades, like Exxon and Chevron, and their interest to keep this cargo flowing, as well as the government of Kazakhstan, who are the producers of the oil, the Europeans, even more importantly, the Americans, I'm almost positive that a solution will be found to protect the exports of the CPC Blend from that terminal. I think that over time, owners will find comfort that this crude is safe to load. For sure, it's a difficult time for vessels to go there, for the crews to go there. It's dangerous. Luckily, we didn't have any injuries on our ships. I think most of the ships that have been attacked over the past few weeks have also avoided injuries, and that's something to be thankful for. It's a critical export. The flow will have to go on.

[Aristidis Alafouzos, CEO at Okeanis Eco Tankers]

Hopefully there will be owners who are willing to go there because CPC is a very strict terminal that you need to fix with Exxon, Chevron, a bunch of other oil majors who have very strict policies. This is not in no way a shadow fleet. This is one of the most demanding quality trades in the business. I hope security can be found so these flows can continue because they're critical for Europe.

[Climent Molins, Analyst at Value Investor's Edge]

That's very helpful. Thank you. I also wanted to follow up on Liam's question on capital allocation. Working capital has increased meaningfully quarter-over-quarter on the back of their higher rates. Did this have an impact on the board's decision on the dividend? Should we expect you to revert to, let's say, the $50 million cash raised on the road as working capital balances normalize?

[Iraklis Sbarounis, CFO at Okeanis Eco Tankers]

Climent. It's Iraklis here. Thanks for the question. You're spot on in the sense that working capital movements and receivables balances quarter-on-quarter have had a significant fluctuation in the past period. This is mostly reflective of significantly increased rates. So long as the market continues to be like that, I expect that we will have similar types of working capital movements every quarter. Now, in terms of how that impacts our liquidity position, et cetera, obviously, to a very significant extent, such receivables are typically collected. Our balance sheet is reflective of that particular date. Typically, we are usually able to collect such receivables relatively shortly after each quarter ends. We've even seen elevated figures towards year-end, everything is collected in the first 10 days of January.

[Iraklis Sbarounis, CFO at Okeanis Eco Tankers]

From a liquidity perspective, this isn't something that concerns me, of course, we are monitoring it. In terms of cash balance, I think that the $60 million cash balances that we have had in the past were also impacted by working capital movements. I would be expecting that for a fleet of even back then of 14 vessels, but certainly now of 18 vessels, a more steady cash balance at slightly higher levels would be prudent to address such working capital movements. Of course, we continue to monitor. Having said all of that, I think we have been quite consistent, as I have explained to Liam earlier in his earlier question, our policy is maintained to distribute value to shareholders as much as possible. We take all of this into account every quarter.

[Iraklis Sbarounis, CFO at Okeanis Eco Tankers]

We continue to pay out as much as possible, I think that our track record has been supportive of all this.

[Climent Molins, Analyst at Value Investor's Edge]

Makes sense. Thank you. I'll turn it over. Congratulations for the quarter.

[Aristidis Alafouzos, CEO at Okeanis Eco Tankers]

Thank you, Climent.

[Operator]

We have reached the end of the Q&A session. I will now turn the call back to Iraklis Sbarounis, CFO, for closing remarks.

[Iraklis Sbarounis, CFO at Okeanis Eco Tankers]

Thank you. Yeah, thanks everyone for joining. We look forward to touching base again in November for the Q3 results. Thank you very much.

[Operator]

This concludes today's call. Thank you for attending. You may now disconnect.

Participants

Executives

• Aristidis Alafouzos, CEO
• Iraklis Sbarounis, CFO

Analysts

• Even Kolsgaard, Analyst at Clarksons Securities AS
• Liam Burke, Analyst at B. Riley Securities
• Oliver Dunvold, Analyst at ABG Sundal Collier
• Fredrik Dybwad, Analyst at Fearnleys
• Climent Molins, Analyst at Value Investor's Edge