Okeanis Eco Tankers Corp.

Welcome to OET's second quarter 2026 financial results presentation. We will begin shortly. Aristidis Alafouzos, CEO, and Iraklis Sbarounis, CFO of Okeanis Eco Tankers, 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. Aristidis will begin the presentation now.

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. Iraklis will take you through the financial results in detail shortly. I want to thank the whole OET team as well as Kiklades for amazing work this quarter, which allowed us to achieve these results. During the period, we also completed the delivery of the four Suezmax vessels acquired through our two equity raises. With Nisos Tigani delivered in May and Nisos Vus in July, our 18 vessel fleet is now fully delivered. The second half of this year has similarly fantastic prospects, and the team here is focused on continuing to deliver. I will now hand over to Iraklis.

Thank you, Aristidis. I'm pleased to go through our second quarter earnings, a quarter that has been a record in our history, starting with slide four. We achieved fleet-wide time-chartered equivalent of about $181,000 per vessel per day. That's $214,000 per day on our spot and $188,000 on operating DXCC days and $175,000 on our serious max operating days, all being spots. We report adjusted EBITDA of $252 million, adjusted net profit of $231 million, and adjusted EPS of $5.91. Our board declared the 17th consecutive quarterly dividend of $5.25 per share. This represents almost 90% of our reported and adjusted net income. This is by far the highest quarterly dividend amount since the company's inception and equals the total dividends paid over the previous five quarters together. Including this one, over the last four quarters, we have distributed $9.55 per share, or 90% of our reported net income for the period. Since our last update in May, we have taken delivery of our two remaining Suezmax resale acquisitions, the Nisus Degane and Nisus Wish. Moving on to slide five. Since our IPO in Oslo, we have distributed approximately three and a half times our initial market cap with over $780 million paid in dividends. Since we have had a fully delivered fleet in 2022, we have paid out 90% of our reported net income, clearly demonstrating our commitment to distributing value to our shareholders. On slide six, we show the detail of our income statement for the quarter and the first half of the year. TC revenue for the first six months stood at over $400 million, EBITDA was $362 million, and net income was about $320 million, or $8.28 per share. Moving on to slide seven and our balance sheet. At quarter end, we had $248 million of cash. That includes about $35 million earmarked for a portion of the equity for the acquisition of the initial foos, which was delivered to us a few days later in early July. Our restricted cash figures as of June 30th include an amount of approximately 17 million we have deposited on short-term under certain of our loan facilities which have the feature that reduce the interest paid providing a better return than what we would have achieved placing those funds under our time deposit rates for that amount at that time. We may roll forward such cash characterized as restricted or a different amount on a short-term basis depending on our cash flow means and applicable rates. Our balance sheet debt was $722 million, reflecting the drawdown for the acquisition of the Nisos Tigani in May. Our book leverage stands at 35%, while our market-adjusted net LTV, basis latest broker values and pro forma for the acquisitions and recent transactions, and end-of-quarter cash balance, is now below 25%. On slide eight, looking at our fleet, I'm pleased to now fully reflect the addition of our most recently acquired modern and high-spec tussles. who were delivered of the Nisos Tigani on May 29th and that of the Nisos Mfoulous on July 8th, who now have a total of 18 vessels on the water, eight modern Eco Scrabble-Fitted Suez Maxes, ten modern Eco Scrabble-Fitted Suez Maxes, and eight modern Eco Scrabble-Fitted VLCCs with an average age of only 5.6 years. As a reminder, from a CAVEX perspective, our only dry dock for 2026 is that of the NILOS 10-year survey, which is currently expected to take place in the next couple of months. Slide 9, moving on to our capital structure. With all the financings I updated you on and made now effective, the financing for the delivery of the Tigani and Vos and the refinancing of our legacy leases of the Nisos Rini and Nisos Despotikos, we have now reduced our weighted average margin to 1.47%. That's an improvement of over 200 basis points since we commenced our refinancing exercise in 2023. On slide 10, with a little over half a year passed since the delivery of the first two Suez Max resale vessels, the Nisos Piperi and Nisos Urfopoula, we wanted to take the opportunity and reflect on those transactions. We look at this from a value creation perspective, and we see three pillars that contradict it. The first, we have talked about before. We financed the acquisitions with competitive bank debt on one hand, and highly accretive equity on the other. Having done a negative placement at approximately 30% above our NAB at the time, that implied a benefit, or arbitrage in a way, against the acquisition cost of the vessels of approximately $12 million on each vessel, or $24 million on aggregate. The second pillar, and maybe the most important, the vessels, in approximately seven months, are estimated to have generated a combined free cash flow of about $43 million. This has realized, one for one, the risking of the investment. Out of approximately 104 million in equity invested in these two vessels, 52 million each, we have already got back 41% of that by trading them in this market. 25 million on the PIPERI and 18 million on the CERIFOPOL. The third, yes unrealized, but with a direct impact in our NAV and subsequently our stock price, and indicative of the opportune timing of these transactions. We bought those vessels at $97 million each, while latest asset value estimates mark them at over $120 million each. That's over 25% uplift on an enterprise value basis and over 50% uplift against our equity. All that in a little over half a year. Adding these three elements for both vessels gets to 121 million of value creation just from the Nisos Piperi and Nisos Serifopoulos. I'm very eager to update this slide in a couple of quarters when the Nisos Tigani and Nisos Pous will also have traded for a few months to reflect on the overall transaction across all four vessels. I will now turn it to Aristidis for the commercial market update.

Thank you Irakli. Slide 12 shows the commercial performance that drove the record financial results we have just discussed. Fleetwide TC for the quarter was $181,200 per day. Our spot VLCCs earned $213,600 per day, while our Suez Maxes earned $174,900 per day. including the Nisros Nikuriya time charter at $90,000 per day and the agreed compensation earned by Nisros Kedos while waiting to resume her voyage through the Hormuz, total VLCC earnings were $187,700 per day, with fleet utilization at 99%. This quarter was, to a large extent, the realization of commercial decisions made during the first quarter. On the VLCC side, we secured long-haul voyages into the East at premium levels during the strongest part of the market, in the frenzy right after the war began. Three vessels were employed on long-haul Eastern voyages, while repeating trading patterns and limited ballast legs allowed us to convert exceptional headline rates into exceptional realized earnings. We also were able to capitalize on the Saudi diversion of crude exports to Yambu and the ensuing market spike that caused. The Suezmax market was also extremely active. Oil traders were competing for cargoes in the Atlantic basin, which allowed us to maintain very limited waiting time and execute consecutive voyages across the Mediterranean and other preferred western trading areas. The shorter voyage duration of the Suezmax fleet gave us repeated exposure to a rapidly strengthening market and enabled us to compound the benefit of the rate environment. We also took delivery of Nisos Tagani during the quarter and repositioned her quickly to participate in the strong eastern market. Nisos Piperi and Nisos Servopula contributed for the full quarter, demonstrating, as Iraklis went over on the previous slide, how quickly the vessels acquired through our first equity raise were integrated into our operating platform. It is important to emphasize that this was not the result of one fortunate fixture. It was the cumulative effect of positioning, void selection, triangulation, minimizing ballast time, and maintaining vessel availability. The rates were extraordinary, but operational execution is what converted those rates into earnings. So as previously, we need to thank our technical manager, Kiklades, who have allowed us to operate so well in these challenging times. Turning to our Q3 guidance, the numbers remain exceptionally strong. We have fixed 48% of our VLCC spot days at approximately $207,000 per day and 42,000 of our Suezmax spot rates at $133,000 per day. Across the fleet, the fixed spot portion stands at $166,500 per day on 681 days. We also have 92 time charter days at $90,000 per day, while approximately 52% of total fleet days remain open. For a quarter that is normally softer, these are remarkable levels. They also demonstrate that Q2 was not simply an isolated earnings event. The market has remained highly volatile, and the volatility has continued to create attractive commercial opportunities for our fleet. On the VLCCs, discharge positions developed in the east at a time when available AG capacity remained constrained. We were able to secure AG employment for two vessels at premium to prevailing market conditions. We continue to balance the attraction of locking and long-haul earnings against the value of retaining prompt exposure to a market that can move very quickly. On the Suez Maxis, we have maintained a broad western presence across the Black Sea, Mediterranean and West Africa. This gives us access to several trading markets and allows us to pursue triangulation opportunities while reducing ballast and waiting time. The Milos is also scheduled to undergo dry dock around the end of September or beginning of October, depending on the exact timing of her trading program and yard availability. Finally, we also took delivery of Nisos Vuth on July 8th, the final vessel in our series of four Suezmax acquisitions. We therefore entered Q3 with the entire 18 vessel fleet on the water and contributing earning days. There is a meaningful portion of the quarter to fix, which is both an opportunity and a risk for us. We cannot predict every market move. Our aim is to preserve optionality, remain disciplined, and position the fleet so we can quickly respond as cargo flows and vessel availability change. As said before, the tanker market was exceptionally strong in Q2 and was available to all owners. Based on the peers that have reported so far, our spot earnings were approximately 50% above the peer average on the VLCCs and approximately 60% above the peer average on the Suez Maxis. I look forward to seeing how this adjusts over the next reporting period. In a market at these levels, commercial outperformance becomes very meaningful in absolute dollar terms. A relatively modest daily difference multiplied across our spot days and the size of our fleet translates directly into substantial incremental cash flow and earnings per share. This quarter reinforces the point we've made consistently since 2019. The value of OIT lies not only in our exposure to the crude cycle, but also in the combination of our fleet and a highly skilled operating platform positioned to capitalize on market opportunities. Slide 15 addresses the order book, which is clearly one of the principal questions facing the tanker market today. We should not ignore it. The VLCC order book has reached approximately 32% of the existing fleet, while the Suezmax order book is approximately 30%. Those are high headline numbers, and they represent a genuine medium-term supply consideration. However, the timing and composition of the order book matter. Only a small portion is scheduled to deliver in 26. The largest delivery years are concentrated in 28 and 29. The immediate supply response is therefore much more limited than the headline order book percentages imply. At the same time, the existing fleet continues to age as we mention every quarter. Age alone, though, does not force a vessel to leave the market, but it increasingly affects charter acceptance, maintenance requirements, financing, regulatory compliance, and vessel trading efficiency. A substantial portion of the older fleet is operating in sanctioned or less transparent trades and is not interchangeable with a compliant fleet competing for mainstream cargoes. Our conclusion is not that the order book is irrelevant, it is that its near-term effect is tempered by the delivery schedule and by the aging and fragmentation of the existing fleet. For OIT, the key point is that our fleet is now fully delivered, has an average age of approximately five and a half years, and is designed to remain highly competitive across a range of market environments. The final commercial slide brings together the geopolitical and fundamental forces currently shaping the market. We are seeing simultaneous pressures across the three of the world's most important energy arteries, the Hormuz, the Red Sea and the Black Sea. The combination is unprecedented in the modern tanker market. The situation remains fluid and conditions can change very quickly. Hormuz transits were recovering under the June Memorandum of Understanding, but the recovery remains fragile and highly sensitive because of the renewed escalation and have reduced since June. In the Black Sea, attacks on tankers and export infrastructures continue to disrupt loadings and create inefficiencies. In the Red Sea, the threat of renewed attacks is pushing more traffic away from the Red Sea and around the Cape of Good Hope, adding distance and further inefficiency to global trade. For example, a VLCC voyage can be double the duration than it was if it was exiting from the BEM straits. The oil balance is also important. The IEA currently expects 2026 supply to decline by approximately 3.7 million barrels per day compared with the demand decline of approximately 1 million barrels per day. In other words, supply has fallen almost four times faster than demand. Since the onset of the conflict, inventories have drawn by approximately For tankers, the key dynamic has been volumes down but distances up. Atlantic to Asia trades now represent approximately 35% of VLCC liftings, compared with only around 22% before the conflict. A voyage from the US Gulf to China is approximately 2.6 times the distance of the Arabian Gulf to China. With only around 7.4 million barrels per day of pipeline rerouting capacity available, a meaningful portion of the Middle East exports shortfall can only be replaced by long-haul barrels. Looking further ahead, the expected normalization of Gulf output and increase in OPEC Plus production during the 2027 period should allow inventories to be rebuilt. The estimates reflected on this page are approximately 1.8 million barrels per day of crude supply would be required over roughly half a year, a year and a half to rebuild stocks. That inventory bill translates directly into tanker demand. So the shape of the opportunity may change, but the underlying message remains as supportive. Current disruption creates inefficiencies and longer term miles, while eventual normalization creates a substantial restocking need. Our focus at OET is to position our fleet to respond across a range of outcomes and to try to maximize shareholder returns. To conclude, and as said at the beginning, this was the strongest quarter and strongest first half of our history. We have returned a record amount to our shareholders, completed the delivery of our expanded fleet, and entered the second half with substantial earnings, visibility, and flexibility. I hope by the end of the year, we can have returned over $1 billion to shareholders since our inception in 2018. I will now hand it back to the moderator for Q&A.

We will now begin the question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Evan Kolsgaard with Clarkson Securities AS. Your line is open, Evan. Please go ahead.

Hi, and thank you. So my first question is on the market in general. So last quarter, you had quite a good analysis on what would happen in different scenarios when it comes to the closure of Strait of Hormuz. Basically closed again. I was just wondering how you think about how a reopening of the Strait of Hormuz could look like this time, and if you think there will be any differences compared to last time. And with that in mind, how do you position your fleet today for a potential reopening?

Thank you for your question. Well, I think that we had a pretty good example of I think one difference that we'll see is that in June, some of the more independent oil companies went to lift cargoes for this traditional, you know, AG to Far East type run. which is difficult because of the open and shut nature of the hormones and the dangers and risk for crossing it. So I think what we'll likely see when it reopens, if it reopens again, is that we'll continue to see the more national oil companies and larger oil traders use shuttling services to shuttle crude from inside the AG to right outside in Fujairah and then the normal mainstream fleet can go and lift cargoes from the ships in Fujairah and you know I think the current market is a lot like the middle There is a significant oil being exported. But it's inefficient because of the shuttling. The Saudis crude being exported is even more inefficient than it was because instead of going to Yambo and out of the Red Sea, it has to be shuttled up to Egypt and into the pipeline and through the Suez and then all the way around Africa. And that's why we see continued strong demand for Atlantic crudes on the VLCCs, which is why, you know, that portion of VLCC liftings is so much higher than it was before the war started. So all these together are creating excellent ton mile effects for the Vs.

Thanks. And then just more on this strategy. So we are seeing that other owners are taking on more time charter coverage. and some are also selling more modern tonnage. While you have been largely spot exposed until now and basically 100% spot and it's risk on still. So how do you think about the spot market going forward versus the current time chart rates and how you compare that towards the current asset values?

Look, I think we fixed the time charter rate at 90,000 in February. And it was a huge mistake. I mean, we probably, you know, we've earned just as much on that one ship in less than six months, on one of our spot ships in less than six months than we will have earned on her in a whole year. And, you know, I think that goes for every single other VLCC owner who's mistakenly fixed their ships on TCs. because the earnings are so high now that even if you do a one or two or three year time charter, when you're earning $200,000 a day or $150,000 a day for three quarters, what you need to earn for the balance period becomes zero or negative potentially. So I think that from our perspective for OET, there's no interest at the moment to fix any more time charters. We're very happy with the coverage we have We're very happy with the spot exposure we have on the VLCC fleet. In terms of asset sales, we're lucky because some of the companies that we have been seeing selling ships are also renewing their fleet. So they're selling some of the older ships and they have newer ships coming in. or other companies that have been selling VLCs, their core fleet composition isn't tankers or they might be funding other sectors that they have on the order book. So I think many owners are doing TCs and sales are case by case and depends on each company. But for us, we see a lot of continued upside to this market and we don't want to reduce our exposure in terms of the number of vessels or number of spot trading vessels.

Okay, thank you. That's all for me.

Your next question comes from the line of Liam Burke with B. Reilly Securities. Your line is open, Liam. Please go ahead.

Thank you. Aristidis Arafoulis, how are you doing today?

Good, Liam. Good to hear from you. Thank you.

Thank you. Can we talk about the Atlantic Basin? And I know you touched on normalization, and I'm sure that's a – we're not sure when that's going to happen, but there are a couple of things. With increased production out of the Atlantic Basin and the lifting of sanctions in Venezuela, do you see longer-term lift for Suezmax rates?

Hi, Liam. Thank you for your question. Look, the Suez Max is a very versatile asset. So anything that will be traded in the shorter haul will be optimized onto Suez Max. So for sure, a lot of Venezuelan flows will move on Suez Maxes. The same as West Africa, Black Sea, Guyana and US Gulf when the cargoes are staying shorter haul. but if the cargoes are and the ARBs the fuel the crude oil arms make sense for the cargo to be transported long distance you'll see that these cargoes make much more economic sense on VLCCs so for sure that the lifting of sanctions has been very positive on the Suezmax market in Venezuela as well as the increased production from Guyana as well as the SPR as well as a number of other factors. But yeah, I think that definitely the SUSEMAX is buoyed by Venezuelan exports.

Great, thank you. Iraklis, 90% dividend payout. You've opportunistically reinvested in the fleet and that's seeing the benefit in terms of asset appreciation. Is it stay the course on the capital structure, or do you see opportunity to pay down debt faster, or are you just going to amortize it as it matures?

No, absolutely we stay the course. We will continue with our strategy to distribute as much as possible. No intention to accelerate paying down debt. We feel pretty comfortable with where we are. It has amortized naturally over quarter and quarter. and we think that our leveraged position is actually a competitive advantage that we have into such a positive market to be able to crystallize that value towards shareholders. So, yeah, we'll stay the course.

Great. Thank you very much.

Thank you, Liam.

Your next question comes from the line of Oliver Dunvold with ABG Sundell Collier. Your line is open, Oliver. Please go ahead.

Hey, guys. Thank you for taking my questions. On SUSE Max rates, there has been some pressure over the last couple of days. TD20 is now around $70,000 per day. Do you have any market insight explaining this move, and is this the level We should expect to see for the remainder of Q3. Thank you.

Hello. Look, I think... Thank you for your question, Oliver. And it's an interesting question as well, because TD20 is, let's say, it's one of the more global Suezmax routes that wherever a Suezmax is, can usually fix a TD20 cargo. And this creates... Thank you for watching! and when you're sailing back you know the West Africa TD20 run is a backhaul effectively and that will allow the owner to be quite competitive in order to find a cargo off his dates because he's just looking to to get that cargo loaded as efficiently as possible and quickly and then go discharge it so he can be back in position. So I think TD20 is negatively impacted by being a place that balusters are so exposed to. And this is very different than, you know, the U.S. Gulf or Mediterranean or Black Sea cargoes on Swiss maxils. So I would say that, you know, that's one reason that TD20 has been underperforming at the moment. I also think that with what happened in CPC in Novorossiysk Terminal and the attacks on some ships, a lot of ships, a lot of owners were a bit worried about fixing their vessels from there. And they decided to divert instead to other cargoes. And that made them go down to West Africa as an alternative. So there was like a, you know, quite a prompt oversupply of ships looking for a new business. and those are two reasons. I'm actually quite bullish on TD20. I think that we'll see, it's probably bottomed about now and we'll see it moving back upwards in the next couple of days.

All right, perfect. Thank you.

Your next question comes from the line of Frederic Desbois with Fernley's. Your line is open, Frederic. Please go ahead.

Thank you, and congratulations guys with an incredible quarter. You're doing a great job, so hats off for that. I just saw some reports today about two VLCCs of yours being fixed inside of the AG, the Spottico and Keros. Could you provide some details about that, if you're able?

Sure, I mean generally we don't comment on individual fixtures, but We haven't done any of that business at the moment.

Okay, thanks. That was it from my end.

You're a spot broker today, I guess, looking to make a position list?

Your next question comes from the line of Clément Molin with Value Investors Edge. Your line is open. Clément, please go ahead.

Hi, good afternoon, team. Thank you for taking my questions. I wanted to follow up on the question on sweat maxes. A week ago, you disclosed that the Nyssa Cypnos was targeted when loading at the CPC terminal. I'm not sure the amount of color you can provide on this. Any updates on the state of the vessel? And secondly, any color you can provide on how this may have affected your willingness to continue calling the CPC terminal?

Sure. Thank you for the question, Clement. The vessel sailed from CPC after she completed loading, and she's in Turkey now for some inspections. and she will go and complete her voyages after some quick temporary repairs. And then following the discharge, she might have to come back for some further repairs in Turkey, which we don't expect to take very long. Look, I think the issue with CPC is very complex and political. CPC is a terminal that is It's a joint venture, but Chevron and Exxon are big equity holders in that terminal. And the crude from CPC is a critical part of the European oil refining and So, you know, in the medium term, and even in the short term, CPC cannot be a market that's not available to Europe. And with partners who are involved in CPC trades like Exxon and Chevron, and their interest to keep this cargo flowing, as well as, you know, the government of Kazakhstan, who are the The producers of the oil, the Europeans, even more importantly, the Americans. I'm almost positive that a solution will be found to protect the exports of the CPC blend from that terminal. And I think that over time, owners will find comfort that, you know, This crew is safe to load, but for sure it's a difficult time for vessels to go there, for the crews to go there, it's dangerous. Luckily we didn't have any injuries on our ships and I think most of the ships that have been attacked over the past few weeks have also avoided injuries and that's something we're really thankful for. but it's a critical export and the flow will have to go on and I mean hopefully there will be owners who are willing to go there because CPC is a very strict and terminal that you need to fix with Exxon and Chevron and a bunch of other oil majors who have very strict policies you know this is not in no way a shadow fleet this is one of the most demanding quality trades in the in the business so I hope Security can be found so these flows can continue because they're critical for Europe.

That's very helpful. Thank you. I also wanted to follow up on Liam's question on capital allocation. Working capital has increased meaningfully quarter over quarter on the back of their higher rates. Did this have an impact on the board's decision on the dividend? And should we expect you to revert to, let's say, the 50 million cash rates on the road? as working capital balances normally.

Yeah, come in. It's Iraklis here. Thanks for the question. You're spot on in the sense that working capital movements and receivables balances quarter on quarter have had a significant fluctuation in the past period. This is mostly reflective of significantly increased rates. So long as the market continues to be like that, I expect that we will have similar types of working capital movements every quarter. Now, in terms of how that impacts our liquidity position, etc., obviously, to a very significant extent, such receivables are typically collected. Our balance sheet is reflective of that particular date. Typically, we are usually able to collect such receivables relatively shortly after each quarter end. We've even seen elevated figures towards the year end, and then everything is collected in the first 10 days of January. So from a liquidity perspective, this isn't something that concerns me, but of course we are monitoring it. In terms of cash balance, I think that the 60 million cash balances that we have had in the past were also impacted by working capital movements. I would be expecting that for a fleet of even back then of 14 vessels, but certainly now of 18 vessels, A more steady cash balance at slightly higher levels would be prudent to address such working capital movements. But of course, we continue to monitor. Having said all of that, I think we have been quite consistent. And as I have explained to Liam in his earlier question, our policy is maintained to be to distribute value to shareholders as much as possible. So we take all of this into account every quarter, but then we continue to pay out as much as possible. And I think that our track record has been supportive of all this.

Makes sense. Thank you. I'll turn it over. Congratulations for the quarter.

Thank you, Carmen.

We have reached the end of the Q&A session. I will now turn the call back to Iraklis Sbarounis, CFO, for closing remarks.

Thank you. Yeah, thanks everyone for joining. We look forward to attaching base again in November for the Q3 results. Thank you very much.

This concludes today's call. Thank you for attending. You may now disconnect.