Core Points - Okeanis Eco Tankers Corp. announced the resignation of directors Robert Knapp and Joshua Nemser, effective October 10, 2025, with no disagreements cited [1] - The board of directors maintains a majority of independent directors, and the composition of the committees remains unchanged, except for the remuneration committee [2] - Chairman Ioannis Alafouzos expressed gratitude for the contributions of the resigning directors, who had been with the company for over seven years [3] Company Overview - Okeanis Eco Tankers Corp. is a leading international tanker company focused on seaborne transportation of crude oil and refined products, incorporated on April 30, 2018 [4] - The company is listed on both the Oslo Stock Exchange under the symbol OET and the New York Stock Exchange under the symbol ECO, operating a fleet of six Suezmax tankers and eight VLCC tankers, all equipped with modern scrubbers [4]

Core Viewpoint - The article discusses the investment thesis for Okeanis (NYSE: ECO), highlighting its potential as an interesting buy despite recent softening in rates due to seasonal factors and OPEC+ decisions [1]. Group 1: Company Overview - Okeanis operates in a cyclical industry, which is expected to yield significant returns during economic recovery and growth phases [1]. - The company has been analyzed previously, indicating a consistent interest in its performance and market positioning [1]. Group 2: Market Dynamics - The recent softening of rates aligns with seasonal trends, suggesting a temporary fluctuation rather than a long-term decline [1]. - OPEC+ decisions are influencing market conditions, which could impact the operational environment for companies like Okeanis [1]. Group 3: Investment Strategy - The investment strategy focuses on cyclical industries while maintaining a diversified portfolio that includes bonds, commodities, and forex [1]. - The importance of balancing risk is emphasized, with fixed-income investments being a key component of the strategy [1].

Core Insights - Investors are increasingly turning to dividend-yielding stocks during market turbulence and uncertainty, as these companies typically have high free cash flows and offer substantial dividend payouts [1] Group 1: Analyst Ratings and Price Targets - Delek Logistics Partners, LP (DKL) has a dividend yield of 9.90%. Mizuho analyst Gabriel Moreen maintained a Neutral rating and increased the price target from $44 to $45 on August 29, 2025, with an accuracy rate of 68%. Raymond James analyst Justin Jenkins maintained an Outperform rating and raised the price target from $44 to $46 on January 28, 2025, with an accuracy rate of 77% [7] - Okeanis Eco Tankers Corp. (ECO) has a dividend yield of 9.57%. Jefferies analyst Omar Nokta initiated coverage with a Buy rating and a price target of $29 on July 23, 2025, with an accuracy rate of 72%. B. Riley Securities analyst Liam Burke maintained a Buy rating but lowered the price target from $44 to $40 on January 15, 2025, with an accuracy rate of 71% [7] - Western Midstream Partners, LP (WES) has a dividend yield of 9.49%. Mizuho analyst Gabriel Moreen maintained an Outperform rating and increased the price target from $44 to $46 on August 29, 2025, with an accuracy rate of 68%. Morgan Stanley analyst Robert Kad maintained an Underweight rating and lowered the price target from $41 to $39 on August 26, 2025, with an accuracy rate of 71% [7] Group 2: Recent Earnings Reports - Delek Logistics Partners posted weaker-than-expected quarterly results on August 6, 2025 [7] - Okeanis Eco Tankers reported better-than-expected quarterly earnings on August 12, 2025 [7] - Western Midstream posted upbeat quarterly earnings on August 6, 2025 [7]

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Group 1: Analyst Ratings and Price Targets - Delek Logistics Partners, LP (DKL) has a dividend yield of 9.90%. Mizuho analyst Gabriel Moreen maintained a Neutral rating and increased the price target from $44 to $45 on Aug. 29, 2025, with an accuracy rate of 68% [7]. Raymond James analyst Justin Jenkins maintained an Outperform rating and raised the price target from $44 to $46 on Jan. 28, 2025, with an accuracy rate of 77% [7]. Recent news indicated weaker-than-expected quarterly results on Aug. 6 [7] - Okeanis Eco Tankers Corp. (ECO) has a dividend yield of 9.57%. Jefferies analyst Omar Nokta initiated coverage with a Buy rating and a price target of $29 on July 23, 2025, with an accuracy rate of 72% [7]. B. Riley Securities analyst Liam Burke maintained a Buy rating but lowered the price target from $44 to $40 on Jan. 15, 2025, with an accuracy rate of 71% [7]. Recent news showed better-than-expected quarterly earnings on Aug. 12 [7] - Western Midstream Partners, LP (WES) has a dividend yield of 9.49%. Mizuho analyst Gabriel Moreen maintained an Outperform rating and increased the price target from $44 to $46 on Aug. 29, 2025, with an accuracy rate of 68% [7]. Morgan Stanley analyst Robert Kad maintained an Underweight rating and lowered the price target from $41 to $39 on Aug. 26, 2025, with an accuracy rate of 71% [7]. Recent news reported upbeat quarterly earnings on Aug. 6 [7]

Core Insights - The article discusses Okeanis Eco Tankers (NYSE: ECO) and highlights the company's aligned ownership, modern fleet equipped with scrubbers, and strong operational execution as key factors for future success [1]. Company Overview - Okeanis Eco Tankers has a young fleet that is fitted with scrubbers, which is expected to enhance operational efficiency and compliance with environmental regulations [1]. - The company is positioned to benefit from favorable market conditions due to its strategic advantages and effective management [1]. Investment Thesis - The initial investment thesis presented a year ago emphasized the combination of aligned ownership and exceptional execution as a foundation for potential growth and returns [1].

Core Viewpoint - Okeanis Eco Tankers Corp. (ECO) shows a significantly improving earnings outlook, making it a solid investment choice as analysts continue to raise earnings estimates for the company [1][3]. Earnings Estimate Revisions - The upward trend in earnings estimate revisions indicates growing analyst optimism regarding the company's earnings prospects, which is expected to positively impact its stock price [2]. - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has a strong track record, with Zacks 1 Ranked stocks averaging an annual return of +25% since 2008 [3]. - The consensus earnings estimate for the next quarter has increased by 84.21% over the last 30 days, with one estimate going higher and no negative revisions [6]. Current Earnings Estimates - For the current quarter, Okeanis Eco Tankers Corp. is expected to earn $0.35 per share, reflecting a -22.2% change from the previous year [6]. - The full-year earnings estimate is projected at $2.21 per share, representing a -33.6% change from the prior year, but the consensus estimate has increased by 55.28% due to positive revisions [7][8]. Zacks Rank and Investment Potential - Okeanis Eco Tankers Corp. currently holds a Zacks Rank 1 (Strong Buy) due to favorable estimate revisions, indicating strong potential for outperformance compared to the S&P 500 [9]. - The stock has risen 12.2% over the past four weeks due to strong estimate revisions, suggesting further upside potential [10].

Financial Data and Key Metrics Changes - The fleet-wide time charter equivalent (TCE) was approximately $50,500 per vessel per day, with VLCCs at nearly $50,000 and Suezmaxes at $51,500 [3] - Adjusted EBITDA for the quarter was $47.3 million, with an adjusted net profit of $26.7 million and adjusted EPS of $0.83 [3] - TCE revenue for the six-month period was $113 million, with EBITDA close to $80 million and reported net income exceeding $39 million or $1.23 per share [4] - The company ended the quarter with $65 million in cash and total debt of $631 million, resulting in a book leverage of 57% and a market-adjusted net loan-to-value (LTV) of around 40% [4] Business Line Data and Key Metrics Changes - The company operates a fleet of 14 vessels, including six Suezmaxes and eight VLCCs, with an average age of 5.9 years, making it the youngest fleet among listed crude tanker peers [5] - The company achieved 100% utilization in both VLCC and Suezmax segments, with a significant increase in TCE quarter-on-quarter [12] Market Data and Key Metrics Changes - The market has eased compared to Q2, but the outlook remains optimistic for Q4, with 77% of RVs fixed in the spot market at $44,200 per day [15] - The Suezmax market is currently firm, with expectations of fixing voyages at rates higher than Q3 guidance [15] - OPEC is expected to unwind production cuts, leading to increased tanker utilization [20] Company Strategy and Development Direction - The company aims to become the public platform of choice within the crude oil tanker space, focusing on expanding its investor base and enhancing its capital structure [10] - Recent refinancing transactions have lowered financing margins and extended average maturities, which is expected to result in annual interest savings of around $1 million [8] Management's Comments on Operating Environment and Future Outlook - Management expressed a constructive outlook for the remainder of the year, citing supportive market dynamics and the potential for increased demand due to OPEC's production adjustments [29] - The company noted that the supply side remains structurally tight, particularly for large vessels, which is expected to support tanker earnings in the coming years [22] Other Important Information - The company declared a dividend of $0.70 per share, marking the fifteenth consecutive distribution, with total distributions over the last four quarters amounting to $1.82 per share [3] - The company has been actively cleaning vessels for diesel trade, which has provided unique opportunities in the spot market [34] Q&A Session Summary Question: Overview of the VLCC that was cleaned for diesel trade - Management indicated that the vessel will likely return to loading crude cargo after the diesel voyage, emphasizing their unique ability to clean vessels themselves [34] Question: Impact of OPEC production increases on cargo availability - Management confirmed that cargoes are returning to the market, with VLCC rates experiencing a significant increase recently [40] Question: Economics of cleaning vessels and market conditions - Management explained that the profitability of cleaning vessels depends on the spread between clean and dirty rates, with specific conditions required for it to be economically viable [48] Question: Future of Russian crude imports and market dynamics - Management suggested that a shift in import preferences could lead to increased Russian crude sales to China, impacting ton miles and trade flows [75] Question: Operating costs and exchange rate impacts - Management noted that operating costs have increased due to euro-based expenses and exchange rate fluctuations, but overall costs are expected to remain relatively flat [68]

Financial Performance - Okeanis Eco Tankers reported a fleetwide TCE of $50,500 per day in Q2 2025, compared to $64,900 in 6M 2024 [16] - Adjusted EBITDA for Q2 2025 was $473 million, versus $639 million in Q2 2024 [16] - The company's adjusted profit was $267 million in Q2 2025, compared to $397 million in Q2 2024 [16] - Adjusted EPS was $083 in Q2 2025, compared to $123 in Q2 2024 [16] - TCE revenue reached $640 million in Q2 2025 and $1126 million for the first half of 2025 [16, 21] Balance Sheet and Capital Structure - Total debt stood at $6309 million in Q2 2025 [16] - Total cash was $653 million in Q2 2025 [16] - Total assets amounted to $10831 billion in Q2 2025 [16] - Total equity was $4283 million in Q2 2025 [16] - The company's book leverage was 57% in Q2 2025 [16] Fleet and Commercial Operations - VLCC TCE was $49,800 per day and Suezmax TCE was $51,400 per day in Q2 2025 [16] - For Q3 2025 guidance, 77% of available VLCC spot days are fixed at $44,200 per day, and 60% of available Suezmax spot days are fixed at $34,200 per day [37]

Company Performance - Okeanis Eco Tankers Corp. reported quarterly earnings of $0.83 per share, exceeding the Zacks Consensus Estimate of $0.46 per share, but down from $1.23 per share a year ago, indicating an earnings surprise of +80.43% [1] - The company achieved revenues of $93.95 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 81.09%, compared to $111.99 million in the same quarter last year [2] - Over the last four quarters, Okeanis Eco Tankers has consistently surpassed consensus EPS and revenue estimates [2] Stock Performance - Okeanis Eco Tankers shares have increased approximately 13.8% since the beginning of the year, outperforming the S&P 500's gain of 8.4% [3] - The current consensus EPS estimate for the upcoming quarter is $0.30 on revenues of $46.74 million, and for the current fiscal year, it is $1.94 on revenues of $210.79 million [7] Industry Outlook - The Transportation - Shipping industry, to which Okeanis Eco Tankers belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, which may impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry outlook can significantly affect stock performance [5][8]

[Cautionary Statement Regarding Forward-Looking Statements](index=1&type=section&id=CAUTIONARY%20STATEMENT%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This section warns that forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from expectations [Risks and Uncertainties](index=1&type=section&id=Risks%20and%20Uncertainties) This section highlights that forward-looking statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from expectations - Forward-looking statements are subject to significant uncertainties and contingencies that are difficult or impossible to predict, potentially causing actual results to differ materially[1](index=1&type=chunk)[2](index=2&type=chunk) - Key risk factors include ability to maintain customer relationships, future operating and financial results, vessel acquisitions/sales, financial condition and liquidity, oil tanker industry trends, dependence on technical manager, vessel aging, operational hazards, regulatory changes, geopolitical conditions (e.g., Russia-Ukraine, Israel-Hamas, Houthi crisis), and changes in oil demand[3](index=3&type=chunk)[5](index=5&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=5&type=section&id=MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section provides management's perspective on the company's financial performance, condition, and operational results, including key factors, accounting policies, and liquidity [Principal Factors Affecting Our Business](index=5&type=section&id=Principal%20Factors%20Affecting%20Our%20Business) The company's financial performance is primarily influenced by fleet size, charter rates, charter duration, operating costs, maintenance, vessel age, and financing decisions - Principal factors affecting the business include the number of vessels, various charter rates (voyage, time trip, period), nature and duration of charters, vessel repositioning, operating and voyage costs, maintenance, vessel age/condition, share issuance, debt obligations, and financing costs[9](index=9&type=chunk)[10](index=10&type=chunk) - Period time charters offer predictable cash flows but potentially lower profit margins, while spot charters are less predictable but can yield higher margins in favorable market conditions, though they expose owners to declining rates and rising fuel costs[9](index=9&type=chunk)[11](index=11&type=chunk) [Material Accounting Policies and Critical Accounting Estimates](index=7&type=section&id=Material%20Accounting%20Policies%20and%20Critical%20Accounting%20Estimates) The company refers to its 2024 Annual Report for detailed accounting policies and estimates, confirming no material changes for the six months ended June 30, 2025 - No material changes have occurred in critical accounting judgments and key sources of estimation uncertainty since the 2024 Annual Report[12](index=12&type=chunk) [Important Financial and Operational Terms and Concepts](index=7&type=section&id=Important%20Financial%20and%20Operational%20Terms%20and%20Concepts) This section defines key financial and operational terms like revenue components, expense categories, and performance metrics such as Daily Time Charter Equivalent (TCE) Rate and Daily Vessel Operating Expenses (Opex) - Revenues are primarily from time and voyage charters, affected by hire rates, operating days, and the mix of business, with voyage charters being more volatile due to market rates[13](index=13&type=chunk) - Key expense categories include commissions (up to **3.75%** of charter hire), voyage expenses (port, canal, bunker costs for voyage charters), vessel operating expenses (crewing, insurance, repairs), drydocking costs, general and administrative expenses, and management fees (**$900 per vessel/day**)[15](index=15&type=chunk)[16](index=16&type=chunk)[17](index=17&type=chunk)[18](index=18&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk) - Inflation impacts vessel operating expenses and corporate overheads, with insurance and crew costs expected to rise, and interest on SOFR-based loans can increase with central bank rate hikes[22](index=22&type=chunk) - Key performance indicators include Calendar days (total days in possession), Operating days (revenue-generating days), Off-hire (non-chartered/non-performing days), Fleet utilization (operating days / calendar days), Daily TCE Rate (TCE revenue / operating days), and Daily Opex (vessel operating expenses + technical management fees / calendar days)[25](index=25&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk) [Main Components of Business Management and Profitability Drivers](index=11&type=section&id=Main%20components%20of%20managing%20our%20business%20and%20main%20drivers%20of%20profitability) Business management encompasses financial administration, reporting, compliance, and relationship management, while profitability is driven by charter rates, utilization, costs, depreciation, and financing - Business management components include financial resource administration, accounting and reporting, legal and regulatory compliance, and managing relationships with service providers and customers[31](index=31&type=chunk) - Profitability drivers are charter rates and periods, vessel utilization, operating and drydocking costs, depreciation and amortization, financing costs, and foreign exchange rate fluctuations[31](index=31&type=chunk) [Results of Operations](index=13&type=section&id=Results%20of%20Operations) For the six months ended June 30, 2025, the company experienced a significant decrease in revenue and operating profit compared to the prior year, primarily due to a lower fleetwide Daily TCE Rate [Condensed Statement of Profit or Loss (Six months ended June 30)](index=13&type=section&id=Condensed%20Statement%20of%20profit%20or%20loss%20and%20other%20comprehensive%20income) | USD | 2025 | 2024 | Change Amount | | :--- | :--- | :--- | :--- | | Revenue | $174,094,786 | $223,110,983 | $(49,016,197) | | Voyage expenses (incl. commissions) | $(61,525,511) | $(62,643,977) | $1,118,466 | | Vessel operating expenses (incl. Mgmt. fees) | $(24,326,471) | $(23,692,085) | $(634,386) | | Depreciation and amortization | $(20,565,522) | $(20,331,446) | $(234,076) | | General and administrative expenses | $(8,463,067) | $(7,669,010) | $(794,057) | | Operating profit | $59,214,215 | $108,774,465 | $(49,560,250) | | Interest income | $815,603 | $1,974,382 | $(1,158,779) | | Interest expense and other finance costs | $(24,164,014) | $(28,683,315) | $4,519,301 | | Gain/ (loss), net on derivatives | $2,863,108 | $(481,924) | $3,345,032 | | Foreign exchange gain/ (loss) | $713,930 | $(461,320) | $1,175,250 | | Total comprehensive income for the period | $39,442,842 | $81,122,288 | $(41,679,446) | [Performance Indicators](index=13&type=section&id=Performance%20Indicators) Key performance indicators reveal a **21.97%** revenue decrease and a **30.7%** drop in Daily TCE Rate for H1 2025, leading to a **51.4%** decline in net profit - Revenue decreased by **$49.0 million** (**21.97%**) to **$174.1 million** in H1 2025 from **$223.1 million** in H1 2024, primarily due to a decrease in fleetwide Daily TCE Rate[34](index=34&type=chunk) - Daily TCE Rate decreased by **30.7%** to **$44,529** in H1 2025 from **$64,254** in H1 2024[34](index=34&type=chunk)[39](index=39&type=chunk) - Net profit for H1 2025 was **$39.4 million** (**$1.23 EPS**), a **51.4%** decrease from **$81.1 million** (**$2.52 EPS**) in H1 2024, mainly due to lower revenues[34](index=34&type=chunk) [Key Performance Indicators (Six months ended June 30)](index=13&type=section&id=Performance%20Indicators) | Indicator | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $174,094,786 | $223,110,983 | $(49,016,197) | | Daily TCE Rate | $44,529 | $64,254 | $(19,725) | | Voyage expenses | $(59,517,139) | $(60,238,825) | $721,686 | | Commissions | $(2,008,372) | $(2,405,152) | $396,780 | | Vessel operating expenses | $22,045,871 | $21,398,885 | $646,986 | | Management fees | $2,280,600 | $2,293,200 | $(12,600) | | General and administrative expenses | $8,463,067 | $7,669,010 | $794,057 | | Interest and finance costs | $24,164,014 | $28,683,315 | $(4,519,301) | | Net Profit | $39,442,842 | $81,122,288 | $(41,679,446) | | Basic & Diluted EPS | $1.23 | $2.52 | $(1.29) | | Operating days | 2,528 | 2,497 | 31 | | Daily Opex | $9,600 | $9,298 | $302 | [Liquidity and Capital Resources](index=16&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity, funded by equity, debt, and operating cash flow, supports capital expenditures and debt servicing, with total indebtedness decreasing and working capital improving [Cash Flows (Six months ended June 30)](index=18&type=section&id=Cash%20Flows) | USD | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $49,287,325 | $125,339,642 | $(76,052,317) | | Net cash used in investing activities | $(1,892,675) | $(1,299,918) | $(592,757) | | Net cash used in financing activities | $(38,073,473) | $(80,712,029) | $42,638,556 | | Net change in cash and cash equivalents | $9,321,177 | $43,327,695 | $(34,006,518) | | Cash and cash equivalents at end of period | $59,753,419 | $92,798,770 | $(33,045,351) | - Decrease in net cash from operating activities was mainly due to a **$49.0 million** decrease in revenues and movements in working capital[52](index=52&type=chunk) - Net cash used in financing activities decreased due to lower distributions paid to shareholders (**$21.6 million** in 2025 vs. **$56.7 million** in 2024) and lower net debt outflows[52](index=52&type=chunk)[53](index=53&type=chunk) [Total Debt Obligations (as of June 30, 2025)](index=20&type=section&id=Credit%20Facilities%20and%20Other%20Financing%20Arrangements) | Metric | Amount (USD) | | :--- | :--- | | Outstanding Balance | $636,009,067 | | Unamortized Deferred Financing Fees | $5,182,480 | | Net of Loan Financing Fees | $630,826,587 | | Other Finance-lease liabilities | $70,959 | | Total Net Debt | $630,897,546 | | Interest Rate (SOFR+Margin) | S+2.27% | - Repurchased Milos in February 2024 and Poliegos in July 2024, ending their respective sale and leaseback agreements[64](index=64&type=chunk)[65](index=65&type=chunk) - Repurchased Nissos Nikouria and Nissos Kea in June 2025, ending their sale and leaseback arrangement[68](index=68&type=chunk) - Entered into new secured credit facilities in 2025 to finance the repurchase of Nissos Kea (**$65.0 million**) and Nissos Nikouria and Nissos Anafi (**$130.0 million**)[72](index=72&type=chunk)[73](index=73&type=chunk) - The company prepaid the **$58.0 million** secured term loan facility for Nissos Anafi in February 2024 and repaid the **$35.1 million** unsecured sponsor loan in March and May 2024[58](index=58&type=chunk)[70](index=70&type=chunk) - The **$125.7 million** secured term loan facility for Nissos Kythnos was repaid on May 24, 2024, and the margin for Nissos Donoussa was reduced to **165 basis points** over Term SOFR[54](index=54&type=chunk)[55](index=55&type=chunk) - The company was in compliance with all financial covenants as of June 30, 2025[116](index=116&type=chunk) [Fleet](index=26&type=section&id=Fleet) As of June 30, 2025, the company operated a fleet of **14 vessels**, with an average age of **5.9 years** and a total capacity of approximately **3.5 million deadweight tons** - As of June 30, 2025, the fleet comprised **14 vessels** with an average age of **5.9 years** and **3.5 million deadweight tons** capacity[74](index=74&type=chunk) - The fleet consists of **six Suezmax vessels** (average age **6.8 years**) and **eight VLCC vessels** (average age **5.2 years**)[77](index=77&type=chunk) [Dividend Policy](index=26&type=section&id=Dividend%20Policy) Dividend declaration is discretionary, based on financial performance, market conditions, capital needs, and loan restrictions, with no assurance of future payments - Dividend declaration is discretionary, based on earnings, financial condition, market prospects, capital expenditures, loan restrictions, and Marshall Islands law[74](index=74&type=chunk) - The company intends to pay dividends based on net profits, adjusted for non-recurring items, working capital needs, and capital structure[74](index=74&type=chunk) - No assurance that dividends will be paid in the future, and amounts may vary significantly[75](index=75&type=chunk) [Interim Condensed Consolidated Financial Statements (Unaudited)](index=28&type=section&id=INDEX%20TO%20INTERIM%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS%20(UNAUDITED)) This section presents the unaudited interim consolidated financial statements, including statements of profit or loss, financial position, changes in equity, and cash flows, along with explanatory notes [Unaudited Condensed Consolidated Statements of Profit or Loss (Six months ended June 30)](index=29&type=section&id=Unaudited%20condensed%20consolidated%20statements%20of%20profit%20or%20loss%20and%20other%20comprehensive%20income%20for%20the%20six%20months%20ended%20June%2030%2C%202025%20and%202024) | USD | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | $174,094,786 | $223,110,983 | | Total operating expenses | $(114,880,571) | $(114,336,518) | | Operating profit | $59,214,215 | $108,774,465 | | Total other expenses, net | $(19,771,373) | $(27,652,177) | | Profit for the period | $39,442,842 | $81,122,288 | | Earnings per share - basic & diluted | $1.23 | $2.52 | [Unaudited Condensed Consolidated Statements of Financial Position (as of)](index=30&type=section&id=Unaudited%20condensed%20consolidated%20statements%20of%20financial%20position%20as%20of%20June%2030%2C%202025%20and%20December%2031%2C%202024) | USD | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total non-current assets | $946,286,937 | $963,187,726 | | Total current assets | $136,833,282 | $118,911,883 | | TOTAL ASSETS | $1,083,120,219 | $1,082,099,609 | | Total shareholders' equity | $428,299,706 | $410,426,916 | | Total non-current liabilities | $585,029,821 | $599,002,128 | | Total current liabilities | $69,790,692 | $72,670,565 | | TOTAL LIABILITIES | $654,820,513 | $671,672,693 | - Vessels, net decreased from **$958.6 million** (Dec 31, 2024) to **$938.7 million** (June 30, 2025)[80](index=80&type=chunk) - Cash & cash equivalents increased from **$49.3 million** (Dec 31, 2024) to **$59.8 million** (June 30, 2025)[80](index=80&type=chunk) - Long-term borrowings, net of current portion, decreased from **$599.0 million** (Dec 31, 2024) to **$583.9 million** (June 30, 2025)[80](index=80&type=chunk) [Unaudited Condensed Consolidated Statements of Changes in Shareholders' Equity (Six months ended June 30)](index=31&type=section&id=Unaudited%20condensed%20consolidated%20statements%20of%20changes%20in%20shareholders%27%20equity%20for%20the%20six%20months%20ended%20June%2030%2C%202025%20and%202024) | USD | Balance - Jan 1, 2025 | Profit for the period | Dividends paid | Balance - June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | | Total shareholders' equity | $410,426,916 | $39,442,842 | $(21,570,052) | $428,299,706 | | | | | | | | USD | Balance - Jan 1, 2024 | Profit for the period | Capital distribution | Balance - June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total shareholders' equity | $408,132,148 | $81,122,288 | $(56,661,629) | $432,592,807 | [Unaudited Condensed Consolidated Statements of Cash Flows (Six months ended June 30)](index=32&type=section&id=Unaudited%20condensed%20consolidated%20statements%20of%20cash%20flows%20for%20the%20six%20months%20ended%20June%2030%2C%202025%20and%202024) | USD | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $49,287,325 | $125,339,642 | | Net cash used in investing activities | $(1,892,675) | $(1,299,918) | | Net cash used in financing activities | $(38,073,473) | $(80,712,029) | | Net change in cash and cash equivalents | $9,321,177 | $43,327,695 | | Cash and cash equivalents at end of period | $59,753,419 | $92,798,770 | [Notes to Unaudited Interim Condensed Consolidated Financial Statements](index=33&type=section&id=Notes%20to%20unaudited%20interim%20condensed%20consolidated%20financial%20statements) These notes provide detailed information on the company's incorporation, accounting policies, financial risk factors, vessel assets, long-term borrowings, derivative instruments, related party transactions, share capital, earnings per share, revenue breakdown, commitments, contingencies, and significant subsequent events [1. Incorporation and General Information](index=33&type=section&id=1.%20Incorporation%20and%20General%20Information) OET was incorporated in the Marshall Islands in 2018, with controlling interests held by Glafki Marine Corp. and Hospitality Assets Corp., and its shares trade on the NYSE and Oslo Stock Exchange - OET was incorporated on April 30, 2018, in the Republic of the Marshall Islands[83](index=83&type=chunk) - Glafki Marine Corp. and Hospitality Assets Corp. (controlled by Ioannis and Themistoklis Alafouzos) collectively hold a controlling interest in OET, owning **34.2%** and **20.6%** of outstanding common shares, respectively[83](index=83&type=chunk)[84](index=84&type=chunk) - The company's common shares began primarily trading on the NYSE on December 11, 2023, with a secondary listing on the Oslo Stock Exchange[86](index=86&type=chunk) [2. General Accounting Principles](index=34&type=section&id=2.%20General%20accounting%20principles) Financial statements are prepared under IAS 34 in USD, with no material changes to accounting policies since the 2024 Annual Report, though new IFRS standards are pending adoption - Financial statements prepared in accordance with IAS 34 Interim Financial Reporting and expressed in USD[88](index=88&type=chunk)[89](index=89&type=chunk) - No material changes to accounting policies since the 2024 Annual Report[91](index=91&type=chunk) - New IFRS standards (IFRS 18, amendments to IFRS 9 and IFRS 7, Annual Improvements to IFRS Accounting Standards — Volume 11) are in issue but not yet adopted, with IFRS 18 expected to have a disclosure impact[93](index=93&type=chunk)[94](index=94&type=chunk)[95](index=95&type=chunk) [Financial Risk Factors](index=36&type=section&id=Financial%20risk%20factors) The Group is exposed to various financial risks including credit, market, currency, interest, and liquidity risks, with no significant changes in risk management policies since December 31, 2024 - The Group is exposed to credit risk, market risk, currency risk, interest risk, and liquidity risk[97](index=97&type=chunk) - No significant changes in risk management policies since December 31, 2024[98](index=98&type=chunk) [Vessels, Net (Cost and Accumulated Depreciation)](index=36&type=section&id=3.%20Vessels%2C%20net) | USD | Jan 1, 2024 | Dec 31, 2024 | June 30, 2025 | | :--- | :--- | :--- | :--- | | Vessels' cost | $1,138,221,805 | $1,138,221,805 | $1,138,221,805 | | Dry-docking and special survey costs (Cost) | $16,215,323 | $21,843,553 | $22,468,662 | | Total Cost | $1,154,437,128 | $1,160,065,358 | $1,160,690,467 | | Accumulated Depreciation (Vessels) | $(158,183,343) | $(195,677,625) | $(214,073,693) | | Accumulated Depreciation (Dry-docking) | $(8,185,605) | $(5,790,213) | $(7,948,730) | | Total Accumulated Depreciation | $(166,368,948) | $(201,467,838) | $(222,022,423) | | Net Book Value | $988,068,180 | $958,597,520 | $938,668,044 | - The charter-free market value of all vessels exceeded their carrying value as of June 30, 2025, negating the need for a recoverable amount test[100](index=100&type=chunk) [Long-Term Borrowings Summary](index=37&type=section&id=4.%20Long-Term%20borrowings) | USD | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Outstanding loan balance | $636,009,067 | $651,628,487 | | Loan financing fees | $(5,182,480) | $(6,062,278) | | Total (Net of financing fees) | $630,826,587 | $645,566,209 | | Current portion of long-term borrowings | $48,102,448 | $47,942,084 | | Long-term borrowings, net of current portion | $587,906,619 | $603,686,403 | - New **$65.0 million** secured credit facility for Nissos Kea (SOFR + **1.35%**) and **$130.0 million** facility for Nissos Nikouria and Nissos Anafi (SOFR + **1.40%**) were drawn in May/June 2025 to finance repurchases[110](index=110&type=chunk)[111](index=111&type=chunk) - The company recognized a **$1.8 million** modification gain in H1 2024 from amendments to bareboat charter agreements and a **$1.1 million** loss on debt extinguishment in H1 2025 due to refinancing[113](index=113&type=chunk) [Derivative Financial Instruments Fair Values (as of June 30, 2025)](index=41&type=section&id=5.%20Derivative%20financial%20instruments) | Instrument | Financial Position | Fair Value (USD) | | :--- | :--- | :--- | | FXSs | Current asset portion | $1,744,055 | | FXSs | Non-Current asset portion | $868,052 | | FFAs | Current Liability Portion | $(208,667) | | Total | | $2,403,440 | [Effect of Derivatives on Profit or Loss (Six months ended June 30)](index=41&type=section&id=5.%20Derivative%20financial%20instruments) | Type | 2025 (USD) | 2024 (USD) | | :--- | :--- | :--- | | Total unrealized gain/ (loss), net on derivatives | $2,465,940 | $(443,334) | | Total realized gain/ (loss), net on derivatives | $397,168 | $(38,590) | [Related Party Balances (Kyklades Maritime Corporation)](index=41&type=section&id=6.%20Transactions%20and%20balances%20with%20related%20parties) | USD | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Balance due from/ (to) KMC | $623,462 | $(530,030) | - KMC provides technical management services for a daily fee of **$900 per vessel**[122](index=122&type=chunk) [Related Party Transactions (Six months ended June 30)](index=41&type=section&id=6.%20Transactions%20and%20balances%20with%20related%20parties) | Transaction | 2025 (USD) | 2024 (USD) | | :--- | :--- | :--- | | Management fees to KMC | $2,280,600 | $2,293,200 | | Directors' fees | $262,007 | $225,000 | | Key management personnel remuneration | $4,129,718 | $3,973,613 | - A revised compensation policy for directors became effective June 1, 2025, adjusting the annual base fee to **$45,000** and introducing committee fees[127](index=127&type=chunk) [7. Share Capital and Additional Paid-in Capital and Dividends](index=44&type=section&id=7.%20Share%20Capital%20and%20additional%20paid-in%20capital%20and%20dividends) The company distributed **$21.6 million** in dividends during H1 2025, with **32,194,108 shares** outstanding as of August 12, 2025 - Distributed **$11.3 million** (**$0.35 per share**) in dividends in March 2025[132](index=132&type=chunk) - Distributed **$10.3 million** (**$0.32 per share**) in dividends in June 2025[132](index=132&type=chunk) - As of August 12, 2025, **32,194,108 shares** were outstanding[132](index=132&type=chunk) [Earnings Per Share (Six months ended June 30)](index=44&type=section&id=8.%20Earnings%20per%20share) | USD per Share | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the period attributable to Owners | $39,442,842 | $81,122,288 | | Weighted average number of shares outstanding | 32,194,108 | 32,194,108 | | Earnings per share, basic and diluted | $1.23 | $2.52 | [Revenue Analysis by Charter Type (Six months ended June 30)](index=44&type=section&id=9.%20Revenue) | USD | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Voyage charter | $172,125,286 | $204,468,964 | $(32,343,678) | | Time charter | $1,969,500 | $18,642,019 | $(16,672,519) | | Total Revenue | $174,094,786 | $223,110,983 | $(49,016,197) | [Revenue by Continent (Six months ended June 30)](index=44&type=section&id=9.%20Revenue) | USD | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Europe | $92,258,864 | $109,045,145 | $(16,786,281) | | Asia | $64,445,219 | $71,397,326 | $(6,952,107) | | North America | $13,625,121 | $30,690,207 | $(17,065,086) | | South America | $3,765,582 | $11,978,305 | $(8,212,723) | | Total | $174,094,786 | $223,110,983 | $(49,016,197) | [10. Commitments and Contingencies](index=46&type=section&id=10.%20Commitments%20and%20contingencies) The company faces various claims and suits in the ordinary course of business but is not aware of any material contingent liabilities requiring disclosure - Various claims and suits arise in the ordinary course of shipping business, including those involving government regulations, charterer disputes, environmental claims, and supplier issues[139](index=139&type=chunk) - Management is not aware of any material claims or contingent liabilities requiring disclosure as of the reporting date[139](index=139&type=chunk) [11. Subsequent Events](index=46&type=section&id=11.%20Subsequent%20events) A dividend of **$0.70 per common share** was declared, payable on September 5, 2025, to shareholders of record as of August 22, 2025 - A dividend of **$0.70 per common share** was declared, payable on September 5, 2025, to shareholders of record as of August 22, 2025[140](index=140&type=chunk)