Oslo-listed Okeanis Eco Tankers' VLCCs have been fixed at a "staggering" $121,000 per day on average in the first quarter as it revealed the benefits of its scrubber retrofits.
Its figures for the year to date provide the first concrete evidence from a shipowner of how the exhaust-cleaner gamble is paying off thanks to booming tanker rates.
Okeanis said the $121,000 figure applies to 49% of its vessel spot days in the first three months.
This is up from about $64,000 per day on average in the fourth quarter.
Fearnley Securities called the rates "staggering".
"Obviously, with the market trending lower in recent weeks we expect actual numbers to come down," the investment bank added.
"But assuming our first quarter rate estimates for remainder of quarter, we are looking at an Ebitda of $74m."
Okeanis has also fixed 72% of its suezmaxes at $79,700 per day, up from $62,000 in the fourth quarter, and 29% of aframaxes and LR2s at $70,700 per day, against $52,000 in 2019.
It has eight new VLCCs, plus four suezmaxes and three aframaxes and LR2s.
Scrubber payback time
The company has also revealed it has already made back 44% of its VLCC scrubber retrofitting costs, saving $4.7m on bunkers since December, against a yard bill of $10.8m.
For suezmaxes, the figure is 38% of the $7.4m cost.
Cleaves Securities said earlier this year that a typical 10-year-old scrubber-fitted VLCC could pay back its scrubber costs in five months.
Okeanis is expecting fourth quarter Ebitda of up to $38m and net income of up to $17m.
It has interest bearing debt of $733m and cash of $17m. The remaining shipyard costs for its two suezmaxes still on order, plus scrubber-related capital expenses, stands at $182m.
The owner expects to announce its full results on 28 February.
Market rising again
The VLCC market is continuing to rise from its recent trough, with brokers reporting a firm upward bias on the back of improving fundamentals.
Fearnley Securities said scrubber-fitted tankers heading from the Middle East Gulf to South Korea and from West Africa to China are earning $70,000 per day.
Standard VLCCs are logging rates $20,000 below this, however.
"A number of charterers have entered the market willing to entertain at those levels," it added.
"However, a crowded party in the tanker market normally means rates are heading north. A big driver is likely that only 29 Middle East Gulf cargoes have been done for February; thus we expect decent activity in the coming days ahead of Chinese New Year."
