Okeanis Eco Tankers Corp. Reports Financial Results for the First Quarter of 2025

Rhea-AI Summary

Okeanis Eco Tankers Corp. (NYSE: ECO) reported its Q1 2025 financial results, showing a revenue of $80.1 million, down from $111.1 million in Q1 2024. The company's profit decreased to $12.6 million ($0.39 per share) from $41.6 million ($1.29 per share) year-over-year. The company maintained stable vessel operating expenses at $10.5 million. The fleetwide daily TCE rate was $38,500 per operating day, with VLCC and Suezmax TCE rates at $38,000 and $39,200 respectively. For Q2 2025, current bookings show improved rates with VLCC spot days at $46,700 per day (72% booked) and Suezmax spot days at $50,600 per day (64% booked). The board declared a quarterly dividend of $0.32 per share, payable on June 12, 2025, to shareholders of record as of June 3, 2025.

Positive

• Q2 2025 booking rates show significant improvement with VLCC at $46,700/day and Suezmax at $50,600/day
• Maintained stable vessel operating expenses at $10.5 million
• Continued dividend payment of $0.32 per share despite lower earnings
• Strong cash position of $43.0 million as of March 31, 2025

Negative

• Revenue declined 27.9% to $80.1 million from $111.1 million in Q1 2024
• Net profit dropped 69.7% to $12.6 million from $41.6 million year-over-year
• Earnings per share decreased to $0.39 from $1.29 in Q1 2024
• Cash position reduced to $43.0 million from $54.3 million in December 2024

Insights

Financial Analyst

Okeanis reports substantial Q1 decline with revenues down 28% and profits falling 70% YoY, yet maintains healthy dividend.

Okeanis Eco Tankers has reported a significant year-over-year decline in its Q1 2025 performance. Revenue dropped 27.9% to $80.1 million compared to $111.1 million in Q1 2024. More concerning is the 69.7% plunge in profit to $12.6 million from $41.6 million a year earlier, with earnings per share correspondingly falling to $0.39 from $1.29.

The substantial decline in profitability despite relatively stable vessel operating expenses ($10.5 million vs $10.6 million in Q1 2024) suggests significant pressure on charter rates. This is confirmed by the TCE (Time Charter Equivalent) rate of $38,500 per operating day, which appears insufficient to maintain previous profit levels despite controlled operating expenses of $9,233 per calendar day.

Looking at the balance sheet, cash position (including restricted cash) has deteriorated to $43.0 million as of March 31, 2025, down from $54.3 million at year-end 2024. This 20.8% reduction in cash reserves over just one quarter could become concerning if the trend continues.

Despite these challenges, management remains committed to shareholder returns, declaring a quarterly dividend of $0.32 per share. This represents a substantial portion of the $0.39 EPS, indicating confidence in future cash generation. The near-term outlook appears somewhat improved, with Q2 2025 bookings showing higher TCE rates of $46,700 for VLCCs and $50,600 for Suezmax vessels, representing increases of approximately 23% and 29% respectively from Q1 rates.

The market appears to be recovering, but Okeanis' year-over-year performance decline highlights the volatility in the tanker sector. While the dividend maintains shareholder returns in the short term, the rapid cash depletion and significantly reduced profits require monitoring in subsequent quarters.

ATHENS, May 14, 2025 (GLOBE NEWSWIRE) -- Okeanis Eco Tankers Corp. (together with its subsidiaries, unless context otherwise dictates, “OET” or the “Company”) (NYSE: ECO, OSE: OET) today reported its unaudited condensed financial results for the first quarter of 2025, which are attached to this press release.

Financial performance of the First Quarter Ended March 31, 2025

	•	Revenues of $80.1 million in Q1 2025, compared to $111.1 million in Q1 2024.
	•	Profit of $12.6 million in Q1 2025, compared to $41.6 million in Q1 2024.
	•	Vessel operating expenses of $10.5 million in Q1 2025, compared to $10.6 in Q1 2024.
	•	Earnings per share of $0.39 in Q1 2025, compared to $1.29 in Q1 2024.
	•	Cash (including restricted cash) of $43.0 million as of March 31, 2025, compared to $54.3 million as of December 31, 2024.

Alternative performance metrics and market development*

	•	Time charter equivalent (“TCE”, a non-IFRS measure*) revenue of $48.6 million in Q1 2025.
	•	EBITDA* and Adjusted EBITDA* (non-IFRS measures*) of $33.8 million and $32.5 million, respectively, in Q1 2025.
	•	Adjusted profit* and Adjusted earnings per share* (non-IFRS measures*) of $11.4 million or $0.36 per basic and diluted share in Q1 2025.
	•	Fleetwide daily TCE rate* of $38,500 per operating day in Q1 2025; VLCC and Suezmax TCE rates of $38,000 and $39,200 per operating day, respectively, in Q1 2025.
	•	Daily vessel operating expenses (“Daily Opex”, a non-IFRS measure*) of $9,233 per calendar day, including management fees, in Q1 2025.
	•	In Q2 2025 to date, 72% of the available VLCC spot days have been booked at an average TCE rate of $46,700 per day and 64% of the available Suezmax spot days have been booked at an average TCE rate of $50,600 per day.

Declaration of Q1 2025 dividend

The Company’s board of directors declared a dividend of $0.32 per common share to shareholders. Dividends payable to common shares registered in the Euronext VPS will be distributed in NOK. The cash payment will be paid on June 12, 2025, to shareholders of record as of June 3, 2025. The common shares will be traded ex-dividend on the NYSE as from and including June 3, 2025, and the common shares will be traded ex-dividend on the Oslo Stock Exchange as from and including June 2, 2025. Due to the implementation of the Central Securities Depository Regulation (CSDR) in Norway, dividends payable on common shares registered with Euronext VPS are expected to be distributed to Euronext VPS shareholders on or about June 17, 2025.

*The Company uses certain financial information calculated on a basis other than in accordance with IFRS, including Daily TCE, EBITDA, Adjusted EBITDA, Adjusted profit, Adjusted earnings per share, and Daily Opex. For a reconciliation of these non-IFRS measures, please refer to the end of this report.

Presentation

OET will be hosting a conference call and webcast at 14:30 CET on Thursday May 15, 2025 to discuss the Q1 2025 results. Participants may access the conference call using the below dial-in details:

Standard International Access: +44 20 3936 2999
USA: +1 646 664 1960
Norway: +47 815 03 308
Password: 435257

The webcast will include a slide presentation and will be available on the following link:

https://events.q4inc.com/attendee/905340409

An audio replay of the conference call will be available on our website:

https://www.okeanisecotankers.com/reports/

Contacts

Company:
Iraklis Sbarounis, CFO
Tel: +30 210 480 4200
ir@okeanisecotankers.com

Investor Relations / Media Contact:
Nicolas Bornozis, President
Capital Link, Inc.
230 Park Avenue, Suite 1540, New York, N.Y. 10169
Tel: +1 (212) 661-7566
okeanisecotankers@capitallink.com

About OET

OET is a leading international tanker company providing seaborne transportation of crude oil and refined products. The Company was incorporated on April 30, 2018 under the laws of the Republic of the Marshall Islands and is listed on Oslo Stock Exchange under the symbol OET and the New York Stock Exchange under the symbol ECO. The sailing fleet consists of six modern scrubber-fitted Suezmax tankers and eight modern scrubber-fitted VLCC tankers.

Forward Looking Statements

This communication contains “forward-looking statements”, including as defined under U.S. federal securities laws. Forward-looking statements provide the Company’s current expectations or forecasts of future events. Forward-looking statements include statements about the Company’s expectations, beliefs, plans, objectives, intentions, assumptions and other statements that are not historical facts or that are not present facts or conditions. Words or phrases such as “anticipate,” “believe,” “continue,” “estimate,” “expect,” “hope,” “intend,” “may,” “ongoing,” “plan,” “potential,” “predict,” “project,” “should,” “will” or similar words or phrases, or the negatives of those words or phrases, may identify forward-looking statements, but the absence of these words does not necessarily mean that a statement is not forward-looking. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. The Company’s actual results could differ materially from those anticipated in forward-looking statements for many reasons, including as described in the Company’s filings with the U.S. Securities and Exchange Commission (the “SEC”). Accordingly, you should not unduly rely on these forward-looking statements, which speak only as of the date of this communication. Factors that could cause actual results to differ materially include, but are not limited to, the Company’s operating or financial results; the Company’s liquidity, including its ability to service its indebtedness; competitive factors in the market in which the Company operates; shipping industry trends, including charter rates, vessel values and factors affecting vessel supply and demand; future, pending or recent acquisitions and dispositions, business strategy, areas of possible expansion or contraction, and expected capital spending or operating expenses; risks associated with operations; broader market impacts arising from war (or threatened war) or international hostilities; risks associated with pandemics, including effects on demand for oil and other products transported by tankers and the transportation thereof; and other factors listed from time to time in the Company’s filings with the SEC. Except to the extent required by law, the Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions, or circumstances on which any statement is based. You should, however, review the factors and risks the Company describes in the reports it files and furnishes from time to time with the SEC, which can be obtained free of charge on the SEC’s website at www.sec.gov.

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.

A PDF associated with this press release can be found here: http://ml.globenewswire.com/Resource/Download/45712405-6dfc-40db-bf5d-d59aba6961ce

FAQ

What were ECO's Q1 2025 earnings per share?

Okeanis Eco Tankers reported earnings per share of $0.39 in Q1 2025, down from $1.29 in Q1 2024.

What is the dividend amount and payment date for ECO's Q1 2025?

ECO declared a dividend of $0.32 per share, payable on June 12, 2025, to shareholders of record as of June 3, 2025.

How much revenue did Okeanis Eco Tankers generate in Q1 2025?

Okeanis Eco Tankers generated revenues of $80.1 million in Q1 2025, compared to $111.1 million in Q1 2024.

What are ECO's current booking rates for Q2 2025?

For Q2 2025, ECO has booked 72% of VLCC spot days at $46,700 per day and 64% of Suezmax spot days at $50,600 per day.

What was Okeanis Eco Tankers' cash position as of March 31, 2025?

ECO reported a cash position (including restricted cash) of $43.0 million as of March 31, 2025.