ECO

Business Context and Reporting Period

Company: Okeanis Eco Tankers Corp. (NYSE: ECO)
Filing Type: Annual Report on Form 20-F
Reporting Period: Fiscal year ended December 31, 2025
Filing Date: March 20, 2026
Business Overview: Okeanis is an international owner and operator of a modern, fuel-efficient fleet of 16 crude oil tankers (8 Suezmax and 8 VLCC). The company operates primarily in the spot market, focusing on the transportation of crude oil. The fleet has an average age of 6.4 years and is equipped with scrubbers to comply with environmental regulations.

Key Financial Metrics

Material Changes vs. Prior Period

• Revenue: Decreased slightly by $1.7 million (0.4%) to $391.5 million, primarily due to lower employment rates and a marginal decrease in Daily TCE rates.
• Profitability: Net profit increased by $14.1 million (13%) to $123.0 million. This improvement was driven by a significant reduction in interest expense ($44.2 million in 2025 vs. $57.1 million in 2024) due to lower average indebtedness and reduced loan margins, as well as a gain on derivatives.
• Operating Expenses: Vessel operating expenses increased by 7% to $45.2 million due to inflation. Voyage expenses decreased by 4% to $121.9 million due to fewer miles traveled and lower fuel consumption.
• Liquidity: Cash and cash equivalents more than doubled to $122.5 million, bolstered by a registered direct equity offering in November 2025 raising $115 million and strong operating cash flows.
• Debt: Total indebtedness decreased by $41.8 million to $609.8 million following the refinancing and repayment of several sale and leaseback agreements.

Guidance, Outlook, and Risks

Outlook and Recent Developments:

• Fleet Expansion: The company exercised purchase options for two VLCCs (Nissos Rhenia and Nissos Despotiko) for $94.2 million, expected delivery Q2 2026. Additionally, two newbuilding Suezmax vessels were acquired in January 2026, and two more newbuildings were ordered in January 2026 for delivery in Q2 2026.
• Capital Raising: Completed a registered direct offering in January 2026 raising $130 million to fund new vessel acquisitions.
• Dividends: Paid a dividend of $1.55 per share ($60.5 million aggregate) in March 2026.

Key Risks and Contingencies:

• Geopolitical Instability: Significant escalation in the Middle East (conflict involving U.S., Israel, and Iran) poses risks to shipping routes (Strait of Hormuz, Red Sea), potentially disrupting operations and increasing insurance costs.
• Market Volatility: The tanker market remains cyclical. While the Baltic Dirty Tanker Index (BDTI) was high as of March 2026, future rates are uncertain.
• Regulatory Compliance: Increasing costs associated with EU Emissions Trading System (ETS) and FuelEU Maritime regulations.
• Financing Covenants: Debt agreements contain restrictive covenants, including requirements for the Alafouzos family to maintain a minimum 35% ownership interest and specific collateral coverage ratios.

Investor Verification Checklist

• Geopolitical Exposure: Verify the specific impact of the ongoing Middle East conflict on the company's current vessel routing and insurance premiums.
• Debt Refinancing: Confirm the terms and interest rate margins of the new facilities drawn in late 2025 and early 2026 for the new vessel acquisitions.
• Regulatory Costs: Assess the financial impact of the EU ETS and FuelEU regulations on future operating margins, particularly for vessels calling at EU ports.
• Customer Concentration: Review the concentration risk, noting that 74% of 2025 revenue was derived from 11 customers.
• Dividend Sustainability: Evaluate the company's ability to maintain its dividend policy given the capital expenditures required for the upcoming vessel deliveries in Q2 2026.