ECO — Okeanis Eco Tankers Corp.

Summary of Okeanis Eco Tankers (ECO) Q4 2025 Earnings Call

1. Key Financial Results and Metrics:

• Time Charter Equivalent (TCE): Fleet-wide TCE of approximately $77,000 per vessel per day, with VLCCs at $92,000 and Suezmaxes at $53,000.
• Adjusted EBITDA: $79 million.
• Adjusted Net Profit: $60 million, with an adjusted EPS of $1.78.
• Dividends: Declared a dividend of $1.55 per share, representing 102% of net income for the quarter. Total distributions over the last four quarters amounted to $3.32 per share, approximately 95% of reported net income.
• Cash Position: Ended the year with $122.5 million in cash and $85 million in trade receivables.
• Debt: Total debt of $605 million, with a book leverage of 46% and a market-adjusted net loan-to-value ratio of around 35%.

2. Strategic Updates and Business Highlights:

• Acquired four resale Suezmax newbuildings from Korea, with two delivered and the remaining two expected in the next few months.
• Successfully raised $245 million in equity to fund vessel acquisitions, with both transactions being oversubscribed and executed at a premium to NAV.
• Fleet consists of 16 vessels (8 VLCCs and 8 Suezmaxes) with an average age of 6 years, enhancing operational efficiency.
• Focus on maximizing shareholder returns through dividends and share price appreciation, maintaining a disciplined approach to capital allocation.

3. Forward Guidance and Outlook:

• Strong visibility for Q1 2026 with favorable fixtures, including a 12-month charter fixed at $91,140.
• 67% of VLCC spot days fixed at $104,200 and 64% of Suezmax days at $84,600, indicating robust earnings potential.
• Anticipation of continued strength in the freight market due to returning Venezuelan barrels and consolidation in the VLCC market by Synacor.

4. Bad News, Challenges, or Points of Concern:

• The VLCC market experienced a brief dip in rates post-Christmas, although the company managed limited exposure during this period.
• Dry docking of vessels has presented challenges, with potential higher costs and operational disruptions.
• Market dynamics remain volatile, with ongoing geopolitical factors influencing oil flows and shipping rates.

5. Notable Q&A Insights:

• The CEO expressed confidence in the Suezmax market, indicating it remains an attractive asset despite VLCCs currently outperforming.
• There is no intention to shift vessels to term charters at present, as the company prefers to maintain spot market exposure to capitalize on potential upside.
• Discussion on Synacor's market influence highlighted its aggressive consolidation strategy, with the CEO acknowledging its potential impact on freight rates but reaffirming ECO's commitment to its current strategy and fleet exposure.

Overall, Okeanis Eco Tankers reported strong financial results in Q4 2025, with a positive outlook driven by strategic acquisitions and favorable market conditions, despite some challenges related to vessel operations and market volatility.