Presentation

Okeanis Eco Tankers is a tanker company that was established in 2018 in order to play the anticipated improvement in crude tanker markets. The company differentiates itself by having a fleet solely consisting of modern eco tankers, all but two of which are now scrubber-fitted (last two will be fitted in H2’20e). Okeanis was founded by the Greek Alafouzos family (56.5% stake) and a series of renowned financial (shipping) investors. The company trades at Oslo Axess, with a market capitalization of USD 220m and net debt of USD 770m as of Q2’20.

Okeanis’ fleet consists of eight VLCCs, six suezmax vessels (including two newbuilds scheduled for delivery in September) and three aframaxes. All the VLCCs and aframaxes were built at HHI in Korean, and delivered in 2019 and 2015, respectively. The suezmax vessels have been built at reputable yards in Japan and Korea with deliveries ranging from 2016 to 2020. The fleet has primarily operated in the spot market, but Okeanis has increasingly started focusing on time charters for the VLCCs (six are currently on TCs), as well as the two suezmax newbuildings.

Okeanis has shown through 2020 that it intends to pay out the majority of earnings, being perfectly comfortable with little cash on the balance sheet. We estimate a NAV of NOK 93 (which drops to NOK 84 at YE’20 using a conservative NB-parity approach) and believe the strong ROE since inception will only grow more impressive on a relative basis as we head into 2021, when the timecharters really start to make a difference.