Okeanis Eco Tankers bottom line jumped more than 500% in the second quarter on the back of a massive shift in tanker rates.
The Oslo-listed, Alafouzos family-backed shipowner posted a $53m profit for the three months ending 30 June, up from just $7.9m for the same period last year.
The improvement came as its fleet of eight VLCCs earned a daily time charter equivalent rate of $71,600 per day and its six suezmaxes TCEs of $72,600 per day.
For the second quarter of 2022, its VLCCs earned just $22,200 per day and its suezmaxes $39,300 per day.
The improved rates pushed the top line to $120m from $40m year over year.
So far in the third quarter, rates have moderated, with the company reporting 76% of VLCC spot days booked at $65,800 per day and 64% of suezmax spot days booked at $55,600 per day.
Okeanis also reported new financing arrangements hashed out during the summer.
In June, it took out a five-year, $113m credit facility with ABN Amro to refinance the 318,953-dwt VLCC Nissos Keros (built 2019) and a pair of suezmaxes: the 159,159-dwt Kimolos and 159,221-dwt Folegandros (both built 2018).
In July, it exercised a repurchase option on the 157,525-dwt suezmax Milos (built 2016).
Stellar performance
The company will take repossession of the ship in February 2024 and will begin looking for a new debt facility for the vessel.
Fearnley Securities analyst Oystein Vaagen called the company’s performance “stellar” with it comfortably besting estimates.
He said the dividend, this quarter at $1.50 per share, representing a 92% payout ratio, shows confidence in its third quarter.
“Overall, an impressive report from OET, earnings beat, and solid bookings should see estimates trending up for [Q3 2023],” Vaagen said and suggested the payout ratio could hit 100% of earnings in a strong winter tanker market.
