Okeanis Eco Tankers Q3 Earnings Call Highlights

Key Points

• Okeanis posted a third consecutive record quarter, with adjusted net profit of $299 million ($7.67 per share) and adjusted EBITDA of $320 million. It declared a $7-per-share dividend, its 18th consecutive quarterly payout.
• Fourth-quarter bookings point to stronger revenue: 71% of fleet days were covered at an average $420,000 per day, representing about $480 million in revenue from those days—above the entire third quarter’s $338 million. Management cautioned that remaining open days will depend on market rates, which have eased from October’s peak.
• Management sees tanker-market inefficiencies and long-haul trade supporting rates, but warned that a more efficient market could weigh on freight and that vessel order books above 30% of existing fleets pose a longer-term supply risk, especially in 2028–29.

Okeanis Eco Tankers NYSE: ECO reported its third consecutive record quarter and declared a $7-per-share dividend after strong tanker rates lifted third-quarter earnings and positioned the company for a potentially larger fourth quarter.

The tanker owner reported adjusted net profit of $299 million, or $7.67 per share, on time charter equivalent revenue of $338 million. Adjusted EBITDA was $320 million. Fleet-wide time charter equivalent earnings averaged approximately $209,000 per vessel per day.

CEO Aristidis Alafouzos said the dividend, the company’s 18th consecutive quarterly distribution, brought total shareholder distributions since its 2018 listing to more than $1 billion. More than half of that amount was distributed in 2026, he said. The latest payout represents more than 91% of reported and adjusted net income, according to CFO Iraklis Sbarounis.

Fourth-Quarter Bookings Exceed Third-Quarter Revenue

Okeanis had covered 71% of its fleet days for the fourth quarter at an average rate of $420,000 per day, representing approximately $480 million in revenue from those days, Alafouzos said. That compares with $338 million in time charter equivalent revenue for the entire third quarter.

The company had fixed 48% of its available spot days for very large crude carriers, or VLCCs, at $688,000 per day. It also had 509 VLCC time charter days at an average of $388,000 per day. For Suezmax vessels, 60% of spot days had been fixed at $410,000 per day.

Alafouzos cautioned against extrapolating the fixed spot rates across the remaining open days, noting that rates had fallen from their October peak. Okeanis had 458 days still to fix and would do so at prevailing market rates, he said.

“That can work for us or against us, as we have seen more than once this year,” Alafouzos said. He nevertheless predicted a rebound later in the quarter, citing continued inefficiencies in the tanker market and cargo inquiries.

The CEO said several VLCC spot voyages were converted in August to short-term charters at a blended rate of $450,000 per day through mid-February 2027. The charters helped third-quarter results but slightly underperformed the spot market as rates climbed in the fourth quarter, he said. Another VLCC is on a time charter with Koch at $90,000 per day.

Fleet Incidents and Financing

Okeanis ended the third quarter with eight VLCCs and 10 Suezmaxes, following the July addition of Nissos Vous. The fleet’s average age was 5.8 years, Sbarounis said.

Alafouzos said Nissos Sifnos was struck by a drone on July 30 while loading Kazakh crude at the CPC terminal. No one aboard was injured. Repairs took more than a month, and the vessel had insurance covering both the damage and loss of hire, he said. Sbarounis said the company recognized loss-of-hire income in the third quarter.

Nissos Anafi suffered engine damage while carrying cargo near South Africa, Alafouzos said. Its cargo was transferred in Oman, where repairs were expected to be completed by the end of December. Okeanis guided fourth-quarter VLCC utilization at 93%, including 53 off-hire days, and Suezmax utilization at 99%.

The company ended the quarter with $233 million in cash and $754 million in balance sheet debt, reflecting financing for Nissos Vous, Sbarounis said. He and Alafouzos said Okeanis was comfortable with its leverage and had no plans to accelerate debt repayment.

Market Outlook and Vessel Values

Alafouzos attributed elevated freight rates in part to longer and less efficient voyages, including shuttle operations and ship-to-ship transfers around the Strait of Hormuz. He said crude tanker ton days were up 6% year to date, while VLCC ton days were down 2% after a major loading area was largely shut for much of the spring and summer.

A more complete reopening of the strait could make the fleet more efficient and reduce rates, he said, although he pointed to depleted inventories, continuing long-haul trade and an aging fleet as countervailing factors. In the question-and-answer session, he said shuttle exports appeared to have increased since summer, but he saw no significant overall improvement in efficiency.

Alafouzos also identified new vessel orders as a longer-term concern. He said the VLCC order book exceeded 32% of the existing fleet and the Suezmax order book was around 30%, with heavier delivery years in 2028 and 2029. A rapid return to a more efficient market during those deliveries could abruptly change the supply-demand balance, he warned.

Separately, Sbarounis said four Suezmax vessels acquired this year had generated approximately $160 million in aggregate free cash flow and appreciated substantially in estimated value. The vessels were purchased for $97 million to $99 million each and were valued at more than $170 million apiece, he said. The increase in asset value remains unrealized.

About Okeanis Eco Tankers (NYSE:ECO)

Okeanis Eco Tankers Corp. is a Greece-based shipping company that owns and operates crude oil tankers. Its fleet includes very large crude carriers (VLCCs) and Suezmax vessels, which transport crude oil between production regions and markets around the world. The company provides seaborne transportation services to energy companies and commodity traders, deploying its vessels through spot-market voyages and charter arrangements. Its ships are designed to meet modern efficiency and environmental standards.

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