Okeanis Eco Tankers Corp.

Hello, and welcome to the OAT's fourth quarter and fiscal year 2023 financial results presentation. We will begin shortly. Aristides Salafouzos, CEO, and Heracles Barounis, 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. I would like to advise you that this session is being recorded. Herakles will now begin the presentation. Thank you.

Hi, everyone. Welcome to the presentation of KMA Cycle Tankers results for the fourth quarter and fiscal year 2023. We will discuss models of the forward-looking nature and actual results may differ from the expectations reflected in such forward-looking statements. Please read the relevant disclaimer on slide two. We're going to start on slide four and the executive summary. I'm pleased to present the highlights of the fourth quarter of 2023, finishing off a record year for us. We achieved fleet-wide PCE of over $45,000 per vessel per day, and that includes, for most of the quarter, our last two legacy Suez Maxx time charters. Spot rates for VLCCs of $45,000 and spot Suez Maxxes of $52,000. We report adjusted EBITDA of $44.2 million, adjusted net profit of $20.4 million, and adjusted EPS of $0.63. Our board declared a seventh consecutive capital distribution of $0.66 per share, which is 100% of our reported EPS, continuing the promise to deliver value to our shareholders. Over the last four quarters, we have distributed $4.36 per share against earnings of $4.50 on both an adjusted and reported basis, approximately 97%. On a nominal basis, that's $140 million. Our fourth quarter was of particular importance to us, as in December, we affected the listing at the New York Stock Exchange. We're quite pleased with the early signs coming from New York. We have already seen an increase of approximately 50% in trading volume since we became dual listed. And what is interesting to observe is that within two and a half months, approximately 40% of total volume is traded out of New York. In February alone, this was already 45%. This gives us the confidence that expanding our investor reach in the U.S. is in the right direction as we take the platform forward. I will talk about our latest refinancing at a later slide. So, moving on to slide five. I've already went through the highlights of the fourth quarter, so let's spend a bit of time on 2023. We achieved record results in terms of revenue, EBITDA, and net income. PCE revenue for the year stood at almost $300 million. That's a 54% increase from a strong 2022. EBITDA of $242 million, that's 72% increase year-on-year, and net profit of $145 million, also 72% increase from 2022. Our results took advantage of the strong tailwinds coming from the tankers market, our particularly modern and fuel-efficient fleet, and as more of our vessels during the course of the year ended their time charters, our competitive commercial performance in the sport market. Moving on to slide six and our balance sheet, As of year-end, we have cash of approximately $55 million. That's complemented by a particularly larger-than-usual trade receivables balance of $57 million, attributed to timing of payment of freight by our clients. Most trade receivables have since been collected, of course. Our debt as of end December stood at $693 million. Book leverage came in at 61%, while market-adjusted LTV based on broker values stood at approximately 45% to 50%. On slide 7, we summarize our corporate and capital structure as well as our employment profile. On that front, since late December, our entire fleet is trading in the spot markets. In the last quarter, we talked about gaining momentum from our two refinancing transactions from the summer and October of last year, as we negotiated the upcoming purchase options of the Milos and the Polyegos from the legacy expensive leases. As promised, in February, we closed the transaction of purchasing back the Milos, executing a bank debt facility priced at 175 basis points over software, with maturity in 2030. We have formally declared the purchase option for the Polyagos, which is due to close in June of this year. We're optimistic that we can continue utilizing the positive momentum, the excellent relationships with our financiers, both existing and new ones, as well as the position of the company in achieving at least similarly significant improvement in our capital structure, as we did with the Milos. separately, but indicative of our ability to source accretive transactions within our capital structure. We also announced in January a set of transactions with our Chinese leasing financiers. We essentially negotiated the deal where on our two existing leases, on the Nisos-K and the Nisos-Nikuya, We reduced pricing by approximately 60 basis points, extended maturities by seven quarters to 2030 and 2031, respectively, and also increased flexibility for the future by dropping certain penalties in case of earlier financing. We also brought in a third vessel in the portfolio of our Asian lease vessels, the Nisos Anafe, financing it at 190 basis points over SOFR with maturity in 2031. The transactions for all four vessels, Nilos, Nisoskea, Nisos Nikuliai, Nisos Anafi, all closed earlier this month. Overall, the transactions executed in the last nine months have improved their cost of debt on average by approximately 1% on nine of our 14 vessels. We expect a polyagous milestone to further improve our interest costs, and we are continuously on the lookout for deals to opportunistically optimize our capital structure. I'm now passing over the presentation to Aristides for the fund part.

Thank you, Ekli. Looking at our commercial performance from Q4, Q4 rebounded with seasonal volatility after a week in relative terms Q3. Due to the extended OPEC Plus cuts, we didn't get the Q4 that we were all dreaming of. But the silver lining of this is that the OPEC Plus continues to focus on managing inventory levels, which we believe will continue to draw and eventually require more barrels to be brought back to the market. This will lead to the explosive market that we're all waiting for. And we'll expand on this a bit later in the presentation. We continue to employ our strategy of predominantly positioning our fleet in the West and taking the opportunity when the market firms to fix longer voyages to the East. Nisosipnos and Nisosekinos were re-delivered from their long-term time charters, and now the OET fleet is 100% exposed to the spot market. We also concluded our final dry dock of the first special survey of Kimo Losar 2018-built Japanese Suez Max. We upgraded the paint specification on this vessel, which is currently performing about 7% better than the previous paint. The vessel is actually more efficient today than she was when she was first delivered to us from the yard. We intend to use a similar specification of paint on our VLCCs that are going through their dry docks this year, the five 2019 build ships, the six, and one in 2025. During the quarter, we achieved a fleet YTC of $45,400 per day, including our time charges. Our VLCs generated $45,200 per day in the spot market, a 4% outperformance relative to our tanker peers who have reported Q4 earnings. Our Suez Maxes generated $51,800 per spot day, a 17% outperformance relative to our tanker peers who have reported Q4 earnings. These numbers reflect our actual book PC revenue within the quarter, as per our accounting standards, which includes several days, especially related to our SWIFT matches of ballot days, for which we did not record any revenue. Moving on to slide 10 for guidance on Q1. Q1 started with strength and volatility, which we're luckily able to capitalize on. The Red Sea deviations have so far benefited other segments of the shipping industry more than the crude fleet. Although, due to the additional cost of diverting crude around Africa, this situation created most opportunities for VLCCs within the crude fleet. We saw usual Suezmax stems from the AG West either being parceled up and moving on to VLCC, like we fixed on the Nisha Sanathi, or being sold east instead and again being parceled up on VLCCs. Another effect was med-based cargoes that are sold east and transported via Suez Canal and Suez Maxes are also being parceled up on VLCCs and sailing around Africa, like we fixed on Nisos Vespotiko. There's some random music playing. We diverted three Suez Maxes that were originally fixed in AG West via Suez to sail around Africa. One second while we try to turn off the music. Sorry, everyone. I mean, hopefully the service who provides us the conference will solve this in a couple of seconds, minutes. Just give us a moment.