Okeanis Ecotankers reports $26.7 million net profit, announces strategic refinancing, and maintains commitment to shareholder value with a $0.70 dividend.

Heracles - (00:00:50)

Welcome to OET's second quarter 2025 financial results presentation. We will begin shortly. Aristides Alafouzos CEO and Heracles Barunis CFO of Okeanis Ecotankers will take you through the presentation. They were pleased to address any questions raised at the end of the call. I would like to advise you that this session is being recorded. Heracles will begin the presentation now.

Heracles Barunis - (00:01:16)

Thank you. Welcome everyone to the presentation of Okeanis Eco Tankers results for the second quarter of 2025. We will discuss matters that are forward looking in nature and actual results may differ from the expectations reflected in such forward looking statements. Please read through the relevant disclaimer on slide 2. Starting on slide 4 and the executive summary I'm pleased to present the highlights of the second quarter of 2025. We achieved fleet wide time charter equivalent of of about 50 and a half thousand dollars per vessel per day. Our VLCCs were almost at 50,000 and our Suezmax is at 51,500. We report adjusted EBITDA of 47.3 million, adjusted net profit of 26.7 million and adjusted EPS of 83 cents. Continuing to deliver on our commitment to distribute value to our shareholders, our board declared the 13th consecutive distribution in the form of a dividend of $0.70 per share. Total distributions over the last four quarters stand at $1.82 per share or approximately 9% of our earnings for the period. On slide 5 we show the detail of our income statement for the quarter and the first half of 2025. TCE revenue for the six month period stood at 113 million, EBITDA was almost 80 million and reported net income was over 39 million or $1.23 per share. Moving on to slide six and our balance sheets, we ended the quarter with 65 million of cash. Balance sheet debt was 631 million. Book leverage stands at 57% while our market adjusted net LTV basis the most recent broker values is around 40%. On slide 7 we go over our main driver behind our operational and commercial performance. That's our fleet. We have a total of 14 vessels, 6 Suezmaxs and 8 VLCCs with an average age of only 5.9 years. That's the youngest fleet amongst listed crewed tanker peers. All vessels are built in South Korea and Japan, are scrubber fitted and ECO designed. From a capital expenditure perspective we're in a very good spot with only our two 2020 Suezmax scheduled to undergo their five year drydock at the end of the third and beginning of the fourth quarter later this year in 2026 we only have one Susmax for the entire year. Slide 8 Moving on to our capital structure in May we announced as we declared the option to purchase back our three Chinese leased vessels, the Nisos Nikouria, Nisos Keo and Nisos Hanifi. The Nisos Nikouria and the Nisos Hanifi have been refinanced with a Greek bank at very attractive terms priced at 140 basis points over software, 7 years maturity and competitive amortization profile. The Nisoskea has been refinanced with a syndicate of Taiwanese banks led by ESUN at similarly attractive terms priced at 135 basis points over SOFR with 7 years maturity and also a competitive amortization profile. The Nisos Nikouria and the nisoskea transactions closed in June within the second quarter while the Nisos Hanifi closed last week at the beginning of August. With respect to the Nisos Nicuria and the Nisos Keo, we recorded in our second quarter P and L a non cash non recurring write off of the unamortized portion of the previously recorded modification gain of approximately 1.1 million. This relates to a non cash modification gain recorded in 2024 under our IFRS accounting policies. Due to the amendment of of the then applicable terms and reduction of margin negotiated with our financiers, no such modification gain was recorded of the Nisos Hanifi. As such, we do not expect a similar write off in the third quarter. These recent refinancing transactions underscore the strong confidence our financiers have in Okean Nice and the resilient, well balanced capital structure we have built. They have lowered financing margins by 55 to 60 basis points, extended average maturities by roughly a year and a half per vessel and further strengthened our cost efficiency. We expect to realize annual interest savings of around $1 million in the first year alone while reducing our daily cash breakeven by more than $1,000 per vessel per day. Our loan maturities are now staggered between 2028 and 2032 and we are set to soon turn our attention to declaring and refinancing the last of our legacy leases on the Nisos Vigla and Nisos Despotiko in the first half of next year. If our last transactions are indicative of what we can achieve, buying back these two vessels will present a compelling opportunity to deliver another meaningful improvement in our capital structure and drive breakeven costs even lower before passing it on to Aristide is taking the opportunity and as we have been going through the highlights of the quarter since our last call in May, I'm pleased with the further expansion of the universe of equity research coverage on our name. In the spring the DNB's merger with Carnegie closed, effectively getting us covered by the combined team. And recently we had our second US Analyst Jefferies initiating coverage as we continue our work to expand our investor base and sell the story of our vision of becoming the public platform of choice we within the crude oil tanker space. For investors and other stakeholders, these are important milestones within our still young journey in the public capital markets. So thank you to the teams of the new and older analysts and the work that they put. I will now pass the presentation to Aristides for the commercial and market updates.

Aristides Alafouzos - Chief Executive Officer - (00:07:08)

Thank you. Thank you, Heracles. Q2 was a clear improvement from Q1. We had a fleet by TC climbing over 12,000 per day quarter on quarter. We had a 100 utilization in both our in the segments we own on the VLCCs and the Suezmaxes. And I think what made the difference this quarter is how we use the fleet's flexibility to adapt to the market dynamics of that quarter. On the VLCC side we kept our balance of east and west positions while capitalizing on front haul voyages from the west to the east to lock in strong earnings. We fixed two vessels to go east on these long haul voyages which were profitable and then fix them after they discharged in the east on again profitable west-bound backhauls. We fixed another VLCC from Guyana to the Far east at attractive levels and importantly we cleaned up another VLCC that loaded diesel in the AG for discharge in Europe at attractive levels. That gave us a dual benefit of strong earnings on the voyage itself as well as optimizing back in the west ahead of returns. So we put a lot of focus on both fixing ships to come from the west to the east that we positioned to lock in these strong front-haul earnings. But we need to keep bringing ships from the east to the west when we find attractive opportunities to keep this fleet balanced.