Okeanis Eco Tankers Corp.

to the OET's First Quarter 2024 Financial Results presentation. We will begin shortly. Aristidis Alaphoussos, CEO, and Iraklis Varounas, CFO of Okeanos Echo Tankers, will take you through the presentation. We 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. Iraklis, Please begin the presentation now.

Welcome to the presentation of Okeanese Ecotankers results for the first quarter of 2024. We will discuss matters of the forward-looking nature and actual results may differ from the expectations reflected in such forward-looking statements. Please read through the relevant disclaimer on slide two. So starting the presentation on slide four and the executive summary, I'm pleased to present the highlights of the first quarter of 2024. It has been a very positive one. This marks the first quarter that we have been fully spot-exposed across both our VFCC and Suez Max fleets. We achieved fleet-wide time-chartered equivalent of over $63,000 per vessel per day, spot rates for VFCCs of $69,000 and spot Suez Maxes of $57,000. We report adjusted EBITDA of $65.2 million, adjusted net profit of $39.6 million, and adjusted EPS of $1.23. Our board declared an eighth consecutive capital distribution of $1.10 per share. That is about 90% of our adjusted EPS as we continue delivering on our promise to distribute value to our shareholders. We remain very positive on the market outlook in parallel to our commitment to distribute as much as possible, always taking into account our capital structure and overall cash position. On a four-quarters rolling basis, we have distributed $3.86 per share. That's 92% and 93%, respectively, of our reported and adjusted EBS over the same period. On a nominal basis, that's approximately $125 million. Slide 5, diving a little further into our P&L for the first three months of the year, TCE revenues stood at $81 million, EBITDA of $65 million, reported net income of $42 million. This quarter, we recognized an extraordinary non-cash gain of $2.3 million related to the amendments to our two leases on the VXCC's NISOS-KEA and NISOS-NICURGIA, which resulted in the recognition of a modification gain, as per IFRS, We expect to amortize that gain through the duration of the leases. Including such gain and other minor cash adjustments, our reported ETS came out at $1.29. Moving on to slide six and our balance sheet, we ended the quarter with $109 million of cash. You may remember the year-end cash balance was affected by a higher than usual amount of receivables, which were collected at the beginning of the year. Our debt, as of March 31, stood at $694 million, book leverage of 58%, while market-adjusted net LPV, based on our most recent broker values, has now been reduced to approximately 40%, continuing to stand at more than comfortable levels for us. On slide 7, we summarize our corporate and capital structure, as well as our employment profile. As we talked about earlier, since late December, our entire fleet is trading in the spot market, In the last quarter, we talked about four transactions that would materially improve our capital structure, including commencing with the Milos, the execution of the series of refinancings of our legacy expensive leases. We closed all four of these transactions within the quarter as expected. Overall, since the summer of 2023, we have improved the cost of debt on nine out of our 14 vessels by approximately 100 basis funds. while in parallel improving on other terms and extending maturities. The company is in a great and opportune position to take advantage of a competitive financing market landscape and the momentum achieved with all our last dam transactions as we're negotiating the refinancing of the polyamory, a significant milestone in improving our interest costs and capital structure. And we also continue to be on the lookout for creative opportunistic deals on other vessels. I'm now passing over the presentation to Aristidis for the commercial lab.

Thank you, Irakli. Q1 2024 was our first quarter of having a full quarter of 100% spot exposure. This is where we want to be in this point of the cycle, and we're very confident here. The market was very well balanced in Q1, and the floor was established with strong resistance levels. During Q1, there were three or four tight moments where we saw the market firm and position lists really tighten. And it genuinely felt as if it could really run upwards more, but it stalled out. The major charters, especially loading out of the AG on VLCCs, are very concentrated and effective at taking the steam out of the market when things get a bit tighter. Owners will break this control and take over the reins and control of the market. when we have a bit more power and there's a further driver. The market is currently balanced, as I said earlier, so we need a small impetus like some additional OPEC supply or seasonality to give us the strength. The effect of the closure of the Red Sea is now fully established in Q1 and it continues into Q2, and we've seen how crude trading patterns have changed on the crude market. Arab AG barrels, especially Iraqi, flowing to Europe on Suez Maxes via the Suez Canal. They're not either sold east or they're parceled up on VLCCs and sent to Europe via the Cape of Good Hope. Likewise, again, MED Suez Max cargo is either loading in Libya or Algeria or from the Black Sea, which would go east on Suez Maxes. They're now being parceled up again on VLCCs and getting sent around the Cape also. And we've capitalized on these types of voyages on our VLCCs and they worked out really well for us because we've been able to triangulate and minimize ballast to effectively nothing on some of our ships. Given we have to dry dock our 2019 built VLCCs this year, we took advantage of having our VLCC in the west to timely fix against these spikes we saw in Q1, our vessels to the east to position for the dry dock. These were highly profitable runs that outperformed the round voyage alternative of staying in the west by margin that offsets the value of being in the west. So we were happy to do these fixtures and I think we would have probably done these fixtures even if we didn't have the dry docks just because of the premium of the front haul versus the round voyage time chart equivalent. We planned the dry docks to occur during Q2 and Q3 in order to have the ships back and ready for a strong Q4. The dry docks are expected to take 15 to 20 days, and the vessels will undergo thorough maintenance, as well as sailing out with new high spec painting schemes that will actually make these ships more efficient than when they were delivered to us as new buildings. During the quarter, we have achieved a fleet YPC of 63,600 per operating day. Our VLCCs generated $68,800 per day in the spot market, and this is a 47% outperformance relative to all our tanker peers that have reported Q1 earnings. Our SWIS Max has generated $56,700 per spot day, and that's a 10% outperformance relative to our tanker peers who have also reported Q1 earnings. These numbers reflect our actual book TCEs within the quarter as per our account expense. And we move on to slide 10 for guidance on Q2. Q2 was another balanced and strong quarter where OET avoided some of the seasonal weakness in rates. For the past two weeks, we're experiencing this tightness in the market that I mentioned in the previous slide. If the owners had slightly more drive and confidence, we could really see rates push on. This being said, I would not be surprised if we have a summer surprise and we see a decent spike going into the summer. Overall, in Q2 and Q1, our trading strategy has changed a bit on the Vs and the Suez Maxes. The Suez Max fleet, since we don't go through the Red Sea, we've lost the natural backhaul from the AG to the Europe. So the front hauls, either you have to price them on a round-trip voyage or ballast back. This has made us adjust to trading the vessels more exclusively in the West. and avoiding getting stuck out in the east without a backhaul. We always prefer trading in the west on Suez Maxis. While on the VLCCs, we're positioning, as I mentioned earlier, for the dry docks, and we have a strong presence in the east at the moment, which we haven't had since 2022. Once we complete the dry docks, though, on the VLCCs, we will likely return to a strategy where we minimize ballast, and we trade our VLCCs with a focus on getting back to the west, using backhauls and then fixing front hauls east or staying local when we think that the premium is not big enough to take the front haul east. So far in Q2, we fixed 71% of our fleet spot days at $70,600 per day. We've done 82% of our VLCC spot days at $75,900 per day. That's a 50% outperformance relative to our tanker peers who have reported Q2 earnings. and 57% of our Suezmax spot days at $60,800 per day, and that's a 48% outperformance relative to our thinker peers that have reported Q2 earnings. On slide 11, we have reformatted our outperformance slide. I think what we try to show here that this is a proven and consistent outperformance that grows when the market is strong, and those extra earnings in a firm market are very material. So at OET, we're really focused on maintaining this consistency going forward and keeping the outperformance strong in the following quarters. On slide 12, we think that OPEC Plus has given stability to market prices and kept inventory levels in a steadily decreasing trajectory overall. We had expected OPEC Plus to return some barrels in June or July, but this potentially made delay until later in the year due to the relative softening of oil prices. The side effect of OPEC Plus stabilizing the market are the abnormalities that occur when you effectively regulate a market. The floor in pricing has encouraged non-OPEC supply non-OPEC supply growth to effectively match global oil demand growth. This is occurring when OPEC's spare capacity has been slowly growing due to the cuts and new production coming online. One question we have is how long will OPEC be able to manage their partners? With oil prices this high and an energy transition in progress, we expect a weakening control of OPEC over its members. And we expect more cheating and even a decent chance of countries breaking out and producing outside of their quotas. This is obviously very bullish for the market. On slide 13, we look at the supply setup that seems too good to be true. A staggering amount of tonnage reaches the commercially restrictive age of 15 and 20 years over the next six years. While shipyard capacity is steadily reduced and the quality yards that build tankers are focused on higher profit margin assets, like containers, LNGCs, VLGCs, car carriers, etc. The Red Sea situation has also caused a large tailwind to the container sector freight, which without would have had serious headwinds due to the delivery order book. This will bring a further new-built contracting wave on containers, which we will see materialize over the coming months. These future container orders will further restrict berth availability for tankers, and will reduce the potential supply for 27, 28, and onwards. Finally, although asset prices are high due to the strength in freight currently, the expected strength in future freight, and the high new building costs, we still believe there's material upside to values when we enter the phase where we see very strong freight strength in 25 and 26. So it's a unique and exciting time to be in tankers, and I'm handing it back to the operator. Thank you.