Q2 2026 Okeanis Eco Tankers Corp Earnings Call Transcript
Key Points
- Record Q2 2026 results with adjusted EPS of $5.91, the strongest quarter in company history.
- Fleet-wide time charter equivalent reached approximately $181,000 per vessel per day, with spot VLCCs earning $213,600 per day.
- Declared 17th consecutive quarterly dividend of $5.25 per share, representing nearly 90% of net income and totaling $9.55 per share over the last four quarters.
- Successfully completed delivery of all four Suezmax vessels, expanding the fleet to 18 modern, scrubber-fitted vessels with an average age of only 5.6 years.
- Demonstrated significant value creation from recent vessel acquisitions, with an estimated $121 million in combined value from the first two Suezmax resales.
- Strong Q3 2026 guidance with 48% of VLCC spot days fixed at approximately $207,000 per day and 42% of Suezmax spot days at $133,000 per day.
- Reduced weighted average loan margin to 1.47%, an improvement of over 200 basis points since 2023.
- Maintained high fleet utilization at 99% during the quarter, reflecting strong operational execution.
- Positioned to benefit from ongoing geopolitical disruptions and long-haul trade patterns, with Atlantic-to-Asia VLCC liftings up to 35% of total.
- Expects to return over $1 billion to shareholders since inception by the end of 2026.
- VLCC and Suezmax order books are high at approximately 32% and 30% of existing fleet, respectively, posing a medium-term supply risk.
- Geopolitical tensions in the Strait of Hormuz, Red Sea, and Black Sea create significant market volatility and operational risks, including potential attacks on vessels.
- The company's 100% spot exposure is risk-on, and the CEO admitted that fixing a time charter at $90,000 per day in February was a 'huge mistake' given the strong spot market.
- Working capital has increased meaningfully due to higher rates, requiring a higher cash balance to manage receivables, which could impact liquidity.
- The Milos is scheduled for dry dock in Q3 2026, which will temporarily reduce fleet availability and incur costs.
- TD20 Suezmax rates have recently come under pressure, partly due to an oversupply of vessels in West Africa, though the CEO expects a rebound.
- The company faces uncertainty from potential normalization of Gulf output and OPEC+ production increases, which could alter the current favorable tanker market dynamics.
- The CEO noted that the time charter market is unattractive at current levels, limiting options for securing long-term revenue visibility.
- The company's fleet is fully delivered, and with no newbuilds on order, it may miss out on potential upside from future asset appreciation.
- The market remains highly volatile, and the company cannot predict every market move, posing a risk to future earnings.
Welcome to OET's second quarter 2026 financial results presentation. We will begin shortly.
Erasidis Alephouzos, CEO, and Erakles Sthulonis, CFO of Okeanis Ecotankers will take you through the presentation. They will be pleased to address any questions raised at the end of the call. Matters that are forward-looking in nature will be discussed and actual results may differ from the expectations reflected in such forward-looking statements.
Please read through the relevant disclaimer on slide 2. I would like to advise you that this session is being recorded. Aracides will begin the presentation now.
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Thank you for taking the time to join our Q2 2026 call.
Q2 was the strongest quarter in our history, and the first half of 2026 was also the strongest six months period since our inception.
Adjusted EPS was $5.91 for the quarter.
And $8.28 for the first half of the year.
Hirakli will take you through the financial
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