Okeanis Eco Tankers NYSE: ECO reported its strongest quarter and first half since inception, supported by exceptionally high tanker rates, fleet expansion and commercial execution, management said during its second-quarter 2026 earnings call.
Chief Executive Officer Aristidis Alafouzos said adjusted earnings per share reached $5.91 in the second quarter and $8.28 for the first six months of 2026. The company completed delivery of the final two vessels in its four-vessel Suezmax acquisition program, bringing its operating fleet to 18 vessels.
“Q2 was the strongest quarter in our history,” Alafouzos said. “The first half of 2026 was also the strongest six months period since our inception.”
Record earnings and dividend
Chief Financial Officer Iraklis Sbarounis said the company generated fleetwide time-charter-equivalent, or TCE, earnings of about $181,000 per vessel per day during the quarter. Spot VLCC earnings were approximately $214,000 per day, while Suezmax spot earnings were about $175,000 per day.
Okeanis reported adjusted EBITDA of $252 million and adjusted net profit of $231 million for the quarter. For the first half, TCE revenue exceeded $400 million, EBITDA totaled $362 million and net income was about $320 million, or $8.28 per share.
The board declared a quarterly dividend of $5.25 per share, its 17th consecutive quarterly dividend. Sbarounis said the payout represented nearly 90% of reported and adjusted net income and was the largest quarterly dividend in the company’s history. The dividend amount equaled the total dividends paid during the preceding five quarters, he said.
Since its Oslo initial public offering, the company has distributed more than $780 million in dividends, or roughly 3.5 times its initial market capitalization, according to Sbarounis. Since its fleet was fully delivered in 2022, the company has paid out 90% of reported net income, he added.
Fleet expansion, balance sheet and capital allocation
The company took delivery of the Nissos Tigani on May 29 and the Nissos Vous on July 8, completing the delivery of its acquired Suezmax vessels. Management said the 18-vessel fleet has an average age of about 5.6 years and consists of modern eco, scrubber-fitted tankers.
At June 30, Okeanis had $248 million of cash, including roughly $35 million earmarked for part of the equity contribution for the Nissos Vous acquisition. Balance-sheet debt totaled $722 million, reflecting the debt drawdown for the Nissos Tigani acquisition. Book leverage was 35%, while market-adjusted net loan-to-value was below 25%, pro forma for acquisitions, recent transactions and quarter-end cash, management said.
The company said its weighted-average debt margin has declined to 1.47%, more than 200 basis points below the level when its refinancing effort began in 2023. Its only scheduled 2026 dry dock is the Milos’ 10-year survey, which management expects around late September or early October, depending on trading activity and yard availability.
In response to analyst questions, Sbarounis said management intends to maintain its approach of distributing as much value as possible to shareholders rather than accelerate debt repayment. He said the company considers its leverage position an advantage in the current market.
Management also noted that working-capital requirements have risen alongside freight rates, increasing receivables balances. Sbarounis said a somewhat higher ongoing cash balance would be prudent for an 18-vessel fleet, while reiterating the company’s commitment to its dividend policy.
Commercial performance and third-quarter visibility
Alafouzos attributed the quarter’s results to vessel positioning, voyage selection, triangulation, limited ballast time and fleet availability, rather than a single favorable fixture. Fleet utilization was 99% during the period.
He said the company secured long-haul Eastern voyages for VLCCs during a strong market period and benefited from Saudi crude-export diversion to Yanbu. On the Suezmax side, active Atlantic Basin trading enabled the company to reduce waiting time and complete consecutive voyages in the Mediterranean and other Western markets.
For the third quarter, Okeanis had fixed 48% of VLCC spot days at approximately $207,000 per day. It also cited Suezmax spot-rate coverage at approximately $133,000 per day. Across the fleet, the fixed spot portion stood at $166,500 per day on 681 days, while the company had 92 time-charter days at $90,000 per day. Approximately 52% of total fleet days remained open.
Alafouzos said management does not currently intend to add time-charter coverage or reduce its spot exposure through vessel sales, arguing that current spot-market earnings remain attractive. He described a time charter fixed at $90,000 per day in February as a mistake in light of the subsequent strength in spot rates.
Market conditions and supply outlook
Management said tanker markets have been shaped by disruptions around the Strait of Hormuz, the Red Sea and the Black Sea. Alafouzos said oil continues to leave the Arabian Gulf through shuttling arrangements and alternative export routes, but those methods are less efficient and support tonne-mile demand.
He said Atlantic-to-Asia trades represented about 35% of VLCC liftings, compared with roughly 22% before the conflict. A U.S. Gulf-to-China voyage is approximately 2.6 times the distance of an Arabian Gulf-to-China voyage, he said.
On fleet supply, management acknowledged that the VLCC order book is about 32% of the existing fleet and the Suezmax order book is about 30%. However, Alafouzos said only a limited portion of new vessels is scheduled for delivery in 2026, with larger delivery volumes concentrated in 2028 and 2029.
The company also cited the aging and fragmentation of the existing fleet, noting that older vessels face increasing challenges related to charter acceptance, maintenance, financing, regulation and trading efficiency. Management said its younger, fully delivered fleet is positioned to remain competitive across varying market conditions.
About Okeanis Eco Tankers (NYSE:ECO)
Okeanis Eco Tankers Corp. 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.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
Before you consider Okeanis Eco Tankers, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Okeanis Eco Tankers wasn't on the list.
While Okeanis Eco Tankers currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
The AI wave will soon hit public markets with Anthropic and OpenAI set to go public later this year. However, you don't have to wait to invest. This report shows seven AI stocks that you can buy today while the big model providers get ready to go public.
Get This Free Report
