Okeanis Eco Tankers Corp. — FY2023 Form 20-F
Reporting period: Fiscal year ended December 31, 2023; filed April 30, 2024. This is an annual report, not a standalone Q4 filing. The company owns and operates 14 crude-oil tankers—six Suezmax and eight VLCC vessels—and reports under IFRS as issued by the IASB. Its shares trade on the NYSE as ECO and Oslo Børs as OET.
Financial and operating performance
| Metric | FY2023 | FY2022 | Change |
|---|---|---|---|
| Revenue | $413.1 million | $271.0 million | +52% |
| Operating profit | $201.1 million | $110.1 million | +83% |
| Profit for the year | $145.3 million | $84.6 million | +72% |
| Operating margin | 48.7% | 40.6% | +8.1 percentage points |
| Net margin | 35.2% | 31.2% | +4.0 percentage points |
| Net cash from operating activities | $174.0 million | $82.5 million | +$91.5 million |
| Cash and cash equivalents | $50.0 million | $81.3 million | -$31.4 million |
| Gross borrowings | $698.5 million | $744.8 million | -$46.4 million |
| Working capital | $32.3 million | $61.6 million | -$29.3 million |
Cash and cash equivalents exclude restricted cash of $4.9 million at year-end 2023 ($6.9 million in 2022). Borrowings net of unamortized financing fees were $693.2 million. The company reported a 63% gearing ratio, calculated as gross borrowings divided by borrowings plus equity, and compliance with financing covenants at year-end.
- Revenue drivers: Management attributed growth to a 48% increase in average daily TCE rates, stronger tanker markets, and the contribution of VLCCs Nissos Kea and Nissos Nikouria, delivered in 2022. Daily TCE was $59,283, versus $40,040 in 2022.
- Charter mix and utilization: Voyage-charter revenue was $373.7 million, versus $204.6 million; time-charter revenue was $39.4 million, versus $66.4 million. Voyage-charter employment increased to 80% from 60%. Fleet utilization was 98%, compared with 99%.
- Costs and financing: Voyage expenses rose 48% to $109.6 million, reflecting more voyage employment and higher fuel and port costs. General and administrative expenses rose 87% to $9.9 million, including NYSE-listing costs. Interest expense and other finance costs rose to $61.2 million from $38.1 million; higher SOFR-related interest was a key factor.
- Cash flows: Investing activities provided $1.0 million, compared with $178.7 million used in 2022, when vessel acquisitions accounted for most of the outflow. Financing activities used $207.1 million, including $159.4 million of capital distributions and scheduled and refinancing-related debt repayments.
Material changes, outlook, and risks
- Management reported a profitable 2023 tanker market but emphasized that charter rates and vessel values are cyclical and volatile. The Baltic Dirty Tanker Index ranged from 713 to 1,648 during 2023; it was 1,096 on April 25, 2024. The filing gives no specific earnings or dividend guidance.
- Management said cash on hand and expected operating cash flows should meet liquidity needs for the twelve months following December 31, 2023, assuming current conditions. It also warned that a significant market deterioration could weaken cash available to meet obligations. All vessels are pledged as collateral; debt agreements include liquidity, collateral-coverage, leverage, dividend, and change-of-control restrictions.
- All financing arrangements with a reference rate transitioned from LIBOR to SOFR in 2023. Management estimated that a 100-basis-point increase in interest rates would raise 2023 interest expense by approximately $6.9 million, all else equal.
- The fleet is exposed to spot-market rates, oil trade patterns, geopolitical events—including the Ukraine war and Red Sea disruption—customer credit, fuel and operating costs, and environmental regulation. EU maritime emissions trading began in 2024, creating uncertain compliance and allowance costs.
- Customer concentration remains a risk: 80% of 2023 revenue came from 17 customers, although no individual customer exceeded 10% of annual revenue. A related risk is dependence on technical manager Kyklades Maritime Corporation (KMC), an affiliate of the Chairman; management fees are payable regardless of profitability.
- The Alafouzos family held approximately 58.2% of the company, giving the family significant voting influence. The company also had $34.2 million outstanding on an unsecured sponsor loan at year-end; it repaid $16.7 million of principal in March 2024.
- Subsequent events include the February 2024 repurchase of Suezmax Milos, financed with a new $34.7 million secured facility; a new sale-and-leaseback for Nissos Anafi of approximately $73.5 million; amendments that reduced variable pricing on the Nissos Kea and Nissos Nikouria leases; and a March 2024 distribution of $0.66 per share, approximately $21.2 million.
- The company reported no material litigation and no contractual commitments to acquire vessels as of the report date. Its disclosure controls were assessed as effective, but the filing contains no management assessment or auditor attestation on internal control over financial reporting. Deloitte gave an unqualified opinion on the IFRS financial statements.
Most important facts for investors to verify
- Whether spot tanker rates and the 2023 TCE improvement persist, and how vessel employment and utilization develop.
- Debt maturities, floating-rate exposure, covenant headroom, collateral values, and the effect of the 2024 refinancing and lease transactions.
- Available unrestricted liquidity: year-end cash and cash equivalents were $50.0 million, with an additional $4.9 million classified as restricted cash.
- Customer and counterparty exposures, including receivables concentration and KMC’s related-party role and contract terms.
- Cash available for future distributions after debt service, vessel maintenance, regulatory compliance, and capital needs; dividends remain discretionary and may be restricted by financing agreements.
- The cost and allocation of EU emissions-trading obligations and other environmental requirements, and whether future filings clarify their financial impact.