Okeanis Eco Tankers Corp. ((ECO)) has held its Q3 earnings call. Read on for the main highlights of the call.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Okeanis Eco Tankers Corp. recently held its earnings call, revealing a strong performance with notable financial achievements and strategic improvements. The company demonstrated market outperformance and expressed a positive outlook for the upcoming quarter, despite facing challenges related to sanctions and dry docking impacts.
Strong Fleet-Wide Performance
Okeanis Eco Tankers reported impressive fleet-wide performance, achieving a time charter equivalent of $47,000 per vessel per day. The company’s VLCCs and Suezmaxes performed exceptionally well, with rates of $46,000 and $48,000, respectively. The financial results were robust, with an adjusted EBITDA of $45.2 million and an adjusted net profit of $24.7 million.
Significant Dividend Distribution
The Board of Okeanis Eco Tankers declared a 14th consecutive dividend distribution, amounting to $0.75 per share. This distribution represents 100% of the reported EPS for the quarter, highlighting the company’s commitment to returning value to shareholders.
Capital Structure Optimization
The company successfully completed refinancing transactions for its fleet, which improved pricing and breakevens, extended maturities, and added flexibility. These efforts potentially reduced the fleet-wide average margin to 160 basis points, showcasing strategic capital structure optimization.
Market Outperformance
Okeanis Eco Tankers outperformed its peers significantly, with a 30% outperformance for VLCCs and 45% for Suezmaxes. The company achieved near-perfect utilization across its fleet, further solidifying its competitive edge in the market.
Positive Outlook for Q4
The outlook for the fourth quarter is promising, with 80% of VLCC spot days fixed at $88,100 per day and 48% of Suezmax days at $60,800 per day. This results in a fleet-wide average of $80,700 per day on the fixed portion, indicating strong future performance.
Challenges with Sanctions
The company faces challenges due to sanctions imposed by the U.K., U.S., and EU, which have affected market dynamics for Indian, Chinese, and Turkish receivers. These geopolitical factors present hurdles that the company must navigate.
Dry Docking Impact
Earnings for Suezmaxes were impacted by repositioning to and from dry dock, highlighting operational challenges that affected performance.
Forward-Looking Guidance
Looking ahead, Okeanis Eco Tankers has secured significant bookings for the fourth quarter, with favorable rates already locked in for a substantial portion of their fleet. The company continues to outperform peers, maintaining a high distribution rate of about 90% of adjusted EPS over the last four quarters. This forward-looking guidance underscores the company’s strategic positioning and robust financial health.
In summary, the earnings call for Okeanis Eco Tankers Corp. highlighted a strong performance with strategic capital improvements and market outperformance. Despite challenges from sanctions and dry docking, the company remains optimistic about its future prospects, with a positive outlook for the fourth quarter. Investors can look forward to continued strong performance and shareholder value returns.