Revenue Performance - Revenue decreased by $9.2 million to $223.1 million in the six-month period ended June 30, 2024, from $232.4 million in the same period in 2023, primarily due to a decrease in fleetwide daily TCE to $64,254 from $71,416[25]. - Revenue for the six months ended June 30, 2024, was $223.1 million, a decrease of 3.4% from $232.4 million in the same period of 2023[31]. - Total revenue for the six months ended June 30, 2024, was $223,110,983, a decrease from $232,359,933 in the same period of 2023[119]. - Freight revenue for the six months ended June 30, 2024, was $183,616,930, compared to $185,530,482 in 2023, indicating a decrease of approximately 1%[120]. - Total revenue for the six months ended June 30, 2024, was $204,468,964, slightly down from $204,484,668 in the same period of 2023[120]. - Revenue generated in Europe increased to $109,045,145 in 2024 from $96,576,363 in 2023, representing an increase of approximately 13%[122]. - Revenue from North America rose to $30,690,207 in 2024, up from $20,609,204 in 2023, marking an increase of about 49%[122]. Operating Expenses - Voyage expenses increased by $10 million to $62.6 million in the six-month period ended June 30, 2024, compared to $52.7 million in the same period in 2023, attributed to higher spot exposure and bunker fuel costs[26]. - Vessel operating expenses increased by $1.1 million to $23.7 million in the six-month period ended June 30, 2024, compared to $22.6 million in the same period in 2023, mainly due to higher maintenance costs[26]. - General and administrative expenses increased by $2.4 million to $7.7 million in the six-month period ended June 30, 2024, compared to $5.3 million in the same period in 2023, reflecting increased costs associated with U.S. listing and shore-based employee costs[26]. - Total operating expenses increased to $114,336,518, up 13.7% from $100,575,696 in the prior year[75]. Profitability - Profit recorded was $81.1 million in the six-month period ended June 30, 2024, or $2.52 per basic and diluted share, compared to a profit of $104.5 million, or $3.25 per share in the same period in 2023[27]. - Operating profit increased by $23 million to $131.8 million in the six-month period ended June 30, 2024, compared to the same period in 2023[25]. - For the six months ended June 30, 2024, the profit for the period was $81,122,288, compared to $104,541,409 for the same period in 2023, representing a decrease of approximately 22.4%[79]. - Earnings per share decreased to $2.52, down from $3.25 in the previous year[75]. Cash Flow and Financial Position - Cash and cash equivalents at the end of the period increased to $92.8 million as of June 30, 2024, from $80.2 million as of June 30, 2023[42]. - Net cash provided by operating activities for the six months ended June 30, 2024, was $125.3 million, an increase from $114.2 million in the same period in 2023[42]. - Working capital surplus increased to $51.4 million as of June 30, 2024, compared to $32.3 million as of December 31, 2023[39]. - The total outstanding long-term borrowings as of June 30, 2024, amount to $675,490,622, with an average interest rate of 2.35%[94]. - The company’s cash and cash equivalents at the end of the period were $92,798,770, up from $80,173,189 at the end of the same period in 2023, indicating an increase of about 15.5%[79]. Debt and Financing - The company secured a $103.2 million term loan facility with KEXIM Bank to finance the acquisition of vessels Nissos Sikinos and Nissos Sifnos, with a final maturity date of September 20232[46]. - A $125.7 million term loan facility was entered into with the National Bank of Greece to refinance existing indebtedness on vessels Nissos Kythnos and Nissos Donoussa, maturing on May 25, 2029[48]. - The company entered into a $60 million senior secured credit facility for the VLCC vessel Nissos Kythnos, priced at 140 basis points over Term SOFR, maturing in six years[50]. - A $113.0 million senior secured credit facility was established with ABN AMRO Bank to refinance debts on vessels Kimolos, Folegandros, and Nissos Keros, with a final maturity date of June 30, 2028[53]. - The company entered into an $84.0 million senior secured credit facility with CACIB to refinance debts on vessels Nissos Sikinos and Nissos Sifnos, maturing in September 2029[54]. - A $34.7 million senior secured term loan facility was secured to refinance debts on vessel Milos, with a final maturity date in February 2030[55]. - The company established a $31.11 million senior secured credit facility to finance the option to repurchase the Suezmax vessel Poliegos, maturing in six years[56]. Vessel Operations and Acquisitions - The company has a fleet of 14 vessels with an average age of 5 years and an aggregate capacity of approximately 3.5 million deadweight tons[68]. - The company repurchased the vessel Milos in February 2024, ending the previous sale and leaseback agreement[57]. - The company repurchased the vessel Poliegos in July 2024, concluding the prior sale and leaseback arrangement[58]. - Approximately $150.52 million in sale and leaseback agreements were entered into for vessels Nissos Rhenia and Nissos Despotiko[59]. - The company entered into a $145.5 million sale and leaseback agreement for Nissos Kea and Nissos Nikouria, with a charter period of 84 months and a fixed quarterly payment of $909,375 plus a variable amount based on Term SOFR[61]. - A $73.5 million sale and leaseback agreement for Nissos Anafi was established, with a fixed quarterly payment of approximately $1.2 million plus a variable amount priced at 190 basis points over Term SOFR[62]. Dividend Policy - The company has no written dividend policy, and dividend payments will depend on earnings, financial condition, and other factors[69]. - The ability to pay dividends is subject to the discretion of the board of directors and is influenced by the cash flows generated by subsidiaries[71]. - The company distributed dividends of approximately $35.4 million or $1.1 per share in June 2024, classified as a return of paid-in capital[117]. - The company declared a dividend of $1.10 per common share, payable on September 5, 2024, to shareholders of record as of August 21, 2024[125].

ATHENS, Greece, Aug. 09, 2024 (GLOBE NEWSWIRE) -- Okeanis Eco Tankers Corp. ("OET" or the "Company") (NYSE: ECO / OSE: OET), announced today that the Company's board of directors (the "Board") has declared a dividend on its common shares, which is classified as a return of capital for accounting purposes (the "Dividend"). Due to implementation of the Central Securities Depository Regulation ("CSDR") in Norway, shareholders who hold shares registered in Euronext Securities Oslo, the central securities deposi ...

ATHENS, Greece, Aug. 09, 2024 (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 second quarter and six-month period of 2024, which are attached to this press release. Financial performance of the Second Quarter Ended June 30, 2024 Revenues of $112.0 million in Q2 2024, compared to $119.8 million in Q2 2023. Profit of $39.6 million in Q ...

Company Overview - Okeanis Eco Tankers Corp. (ECO) is expected to report a year-over-year decline in earnings, with a projected EPS of $0.90, reflecting a decrease of 45.5% compared to the previous year [3] - Revenues for the quarter are anticipated to be $100.71 million, down 15.9% from the same quarter last year [3] Earnings Expectations - The consensus EPS estimate has been revised 2.38% higher in the last 30 days, indicating a reassessment by analysts [4] - The Most Accurate Estimate for Okeanis Eco Tankers is the same as the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [10] Earnings Surprise History - In the last reported quarter, Okeanis Eco Tankers Corp. exceeded the expected EPS of $1.10 by delivering $1.23, resulting in a surprise of +11.82% [12] - Over the past four quarters, the company has only beaten consensus EPS estimates once [13] Industry Context - In the Zacks Transportation - Shipping industry, Euroseas Ltd. (ESEA) is expected to report earnings of $2.49 per share, indicating a year-over-year decline of 40.3% [17] - Euroseas' revenue is projected to be $49.33 million, showing no change from the previous year [17] - The consensus EPS estimate for Euroseas has been revised 7.3% higher in the last 30 days, but it also has an Earnings ESP of 0.00% and a Zacks Rank of 4 (Sell) [18]

PART I The first part of the report covers key company information, including director identities, offer statistics, capitalization, and a comprehensive analysis of various risk factors impacting the business and common shares [ITEM 1. Identity of Directors, Senior Management and Advisers](index=10&type=section&id=ITEM%201.IDENTITY%20OF%20DIRECTORS,%20SENIOR%20MANAGEMENT%20AND%20ADVISERS) Information on directors, senior management, and advisers is not applicable for this report - Information regarding the identity of directors, senior management, and advisers is **not applicable**[27](index=27&type=chunk) [ITEM 2. Offer Statistics and Expected Timetable](index=10&type=section&id=ITEM%202.%20OFFER%20STATISTICS%20AND%20EXPECTED%20TIMETABLE) Information on offer statistics and expected timetable is not applicable for this report - Information on offer statistics and expected timetable is **not applicable**[28](index=28&type=chunk) [ITEM 3. Key Information](index=10&type=section&id=ITEM%203.%20KEY%20INFORMATION) This section provides key company information, including capitalization, offer proceeds, and comprehensive risk factors impacting business and financial performance - The company's business, financial condition, operating results, cash flows, and common share trading price could be **materially and adversely impacted** by various risks[32](index=32&type=chunk) [A. [Reserved]](index=10&type=section&id=A.%20%5BReserved%5D) This sub-section is reserved and contains no specific information - This section is **reserved**[29](index=29&type=chunk) [B. Capitalization and Indebtedness](index=10&type=section&id=B.%20Capitalization%20and%20Indebtedness) Information on capitalization and indebtedness is not applicable for this report - Information on capitalization and indebtedness is **not applicable**[30](index=30&type=chunk) [C. Reasons for the Offer and Use of Proceeds](index=10&type=section&id=C.%20Reasons%20for%20the%20Offer%20and%20Use%20of%20Proceeds) Reasons for the offer and use of proceeds are not applicable for this report - Reasons for the offer and use of proceeds are **not applicable**[31](index=31&type=chunk) [D. Risk Factors](index=10&type=section&id=D.%20Risk%20Factors) This section details various risks, categorized by industry, business, common shares, and technical manager relationship, that could significantly impact the company's financial and operational performance [Summary of Risk Factors](index=10&type=section&id=Summary%20of%20Risk%20Factors) This summary outlines key speculative risks for common stock investment, covering market conditions, regulatory compliance, operational stability, and management capabilities - **Key risks** include general tanker market conditions (**charter rates, vessel values, supply/demand**), **economic/political disruptions** (sanctions, public health, piracy), **compliance liabilities** (governmental, tax, environmental, safety laws), changes in regulation, inherent **operational risks**, reliance on **information systems**, **borrowing availability** and **financial covenants**, **capital expenditures**, dependence on **limited customers**, ability to attract/retain **key personnel**, and delays in **newbuilding construction**[33](index=33&type=chunk)[36](index=36&type=chunk) [RISKS RELATING TO OUR INDUSTRY](index=14&type=section&id=RISKS%20RELATING%20TO%20OUR%20INDUSTRY) The highly cyclical tanker industry faces volatility from supply/demand, geopolitical events, environmental regulations, and energy shifts, impacting profitability and operating costs - The international tanker industry is cyclical and volatile, with charter hire rates and vessel values fluctuating widely. For example, the Baltic Dirty Tanker Index (BDTI) ranged from a high of **1,648** to a low of **713 in 2023**[38](index=38&type=chunk) - Geopolitical events like the war in Ukraine, sanctions on Russian exports, and conflicts in the Middle East (e.g., Israel-Hamas, Houthi attacks in the Red Sea) have increased **volatility** and pose **adverse consequences** for the tanker industry[38](index=38&type=chunk)[61](index=61&type=chunk)[97](index=97&type=chunk) - Factors influencing demand for tanker capacity include oil supply/demand, oil prices, OPEC/non-OPEC production restrictions, global economic conditions, and increased use of renewable energy and electric vehicles, which could **reduce crude oil and petroleum product movement**[41](index=41&type=chunk)[42](index=42&type=chunk)[45](index=45&type=chunk)[53](index=53&type=chunk)[55](index=55&type=chunk) - Factors influencing the supply of tanker capacity include newbuilding deliveries, scrapping rates, financing availability, and environmental regulations that may **limit vessel useful lives** or require **costly modifications**[45](index=45&type=chunk)[50](index=50&type=chunk) - An over-supply of tanker capacity, coupled with volatile market conditions, could lead to **declining charter rates and vessel values**, negatively impacting **profitability** and compliance with **loan covenants**[50](index=50&type=chunk)[52](index=52&type=chunk) - Operating results are subject to seasonal fluctuations, with stronger tanker markets typically in winter months due to increased oil consumption in the northern hemisphere[56](index=56&type=chunk) - Global public health threats (e.g., COVID-19) and macroeconomic factors (inflation, rising interest rates) can **disrupt global financial markets**, **increase operating costs**, and **reduce demand for shipping services**[57](index=57&type=chunk)[58](index=58&type=chunk)[59](index=59&type=chunk)[60](index=60&type=chunk) - The transition from LIBOR to SOFR as a benchmark interest rate, combined with rising interest rates, could **increase borrowing costs** and affect **profitability, earnings, and cash flow**[66](index=66&type=chunk)[67](index=67&type=chunk) - Compliance with complex international and national environmental laws and regulations (e.g., MARPOL, OPA, BWM Convention, EU ETS) requires **costly equipment, operational changes**, and may result in **significant liabilities, penalties, or operational restrictions**[69](index=69&type=chunk)[70](index=70&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk)[75](index=75&type=chunk)[76](index=76&type=chunk)[77](index=77&type=chunk) - Vessels are exposed to inherent operational risks such as marine disasters, mechanical failures, and human error, which can lead to **damage, loss of life, environmental pollution**, and **unexpected drydocking costs**[81](index=81&type=chunk)[82](index=82&type=chunk) - The market value of vessels fluctuates significantly due to general economic conditions, charter rates, competition, and regulations, potentially leading to **impairment losses** or **breaches of financial covenants**[83](index=83&type=chunk)[84](index=84&type=chunk)[85](index=85&type=chunk) - The company faces risks from economic sanctions (U.S., EU, etc.) against countries like Iran, Syria, North Korea, Cuba, and Russia, which could lead to **fines, penalties, reputational harm**, or **termination of contracts**[86](index=86&type=chunk)[89](index=89&type=chunk)[91](index=91&type=chunk)[93](index=93&type=chunk)[95](index=95&type=chunk)[100](index=100&type=chunk) - Political instability, terrorist attacks, war, international hostilities (e.g., Ukraine-Russia, Israel-Hamas, Red Sea attacks), and trade protectionism can **disrupt shipping routes, increase insurance premiums**, and negatively impact **global trade and economic conditions**[94](index=94&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk)[97](index=97&type=chunk)[98](index=98&type=chunk)[99](index=99&type=chunk)[101](index=101&type=chunk)[102](index=102&type=chunk) - An economic slowdown or changes in the economic and political environment in the Asia Pacific region, particularly China, could **adversely affect the company's business** due to reduced trade and potential policy shifts favoring domestic shipping[107](index=107&type=chunk)[108](index=108&type=chunk)[109](index=109&type=chunk)[110](index=110&type=chunk) - Increased inspection procedures and tighter import/export controls can lead to **delays, seizures, or penalties**, making certain cargo shipments uneconomical[111](index=111&type=chunk) - Information systems are vulnerable to security breaches and failures, which could **disrupt business operations, increase costs**, and lead to **adverse financial impacts**, especially with new SEC disclosure requirements for cybersecurity incidents[112](index=112&type=chunk)[113](index=113&type=chunk)[114](index=114&type=chunk) [RISKS RELATING TO OUR BUSINESS](index=43&type=section&id=RISKS%20RELATING%20TO%20OUR%20BUSINESS) Business risks include restrictive loan covenants, debt servicing, inflation, customer dependence, growth management, operational issues, and vulnerability to crude oil tanker market downturns - Loan agreements contain restrictive covenants (e.g., limits on dividends, indebtedness, asset sales, mergers) that can **limit liquidity and corporate activities**. Breaches could lead to **acceleration of debt and foreclosure on vessels**[115](index=115&type=chunk)[116](index=116&type=chunk)[117](index=117&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk) - Servicing current and future debt (totaling **$698.5 million as of December 31, 2023**) limits funds for other purposes and increases vulnerability to **economic downturns and competitive conditions**[120](index=120&type=chunk)[122](index=122&type=chunk) - Worldwide inflationary pressures can **increase operating costs** (crew, insurance, fuel) and interest rates on floating-rate debt, potentially **reducing profit margins** if charter rates do not offset these increases[124](index=124&type=chunk)[125](index=125&type=chunk) - A limited number of financial institutions hold the company's cash, with balances exceeding government-backed deposit insurance in some EU and Swiss banks, posing a **risk of loss** if these institutions fail[126](index=126&type=chunk)[127](index=127&type=chunk)[128](index=128&type=chunk) - Capital expenditures for vessel maintenance, upgrades, and compliance with new standards may **increase**, requiring vessels to be out of service and incurring **revenue losses**[129](index=129&type=chunk) - The company is dependent on a limited number of customers (**80% of 2023 revenues from 17 customers**) and charterers fulfilling their obligations. Defaults could lead to **significant losses** and difficulty re-deploying vessels profitably[131](index=131&type=chunk)[132](index=132&type=chunk)[133](index=133&type=chunk)[134](index=134&type=chunk)[135](index=135&type=chunk)[136](index=136&type=chunk) - Future growth plans, including fleet expansion, carry risks such as **undisclosed liabilities**, difficulty in hiring qualified personnel, and integrating new operations[137](index=137&type=chunk) - Delays or defaults by shipyards in newbuilding construction could **adversely affect financial position and results of operations**, potentially leading to **breaches of commitments**[138](index=138&type=chunk) - Inability to clear the 'Oil Majors' vetting process, a strict due diligence process for selecting commercial partners, could lead to **termination of charter agreements** and negatively impact **future vessel employment**[140](index=140&type=chunk)[143](index=143&type=chunk)[144](index=144&type=chunk) - The tanker industry is highly competitive, with competition from other vessel owners, including major oil companies and independent shipping companies with greater resources[145](index=145&type=chunk) - Dependence on key management personnel and the technical manager (KMC) means loss or unavailability of these individuals or KMC's inability to attract/retain staff could **adversely affect business operations**[146](index=146&type=chunk)[149](index=149&type=chunk) - Executive officers not devoting all their time to the business and involvement in competing activities could create **conflicts of interest**[147](index=147&type=chunk) - Labor interruptions could **prevent or hinder operations**, impacting business, results, cash flows, and available cash[148](index=148&type=chunk) - Acquiring secondhand vessels carries risks of **undiscovered defects, expensive repairs**, and lack of builder warranties, potentially **increasing operating costs and off-hire time**[159](index=159&type=chunk)[160](index=160&type=chunk) - Inadequate insurance coverage for operational risks (mechanical failure, collision, oil spills, war, piracy) could lead to **significant uninsured or underinsured losses**, impacting **financial condition and ability to pay dividends**[161](index=161&type=chunk)[163](index=163&type=chunk)[164](index=164&type=chunk)[165](index=165&type=chunk)[166](index=166&type=chunk) - Increased scrutiny and changing expectations regarding Environmental, Social, and Governance (ESG) policies from investors and lenders may impose **additional costs, hinder access to capital**, and cause **reputational damage**[168](index=168&type=chunk)[169](index=169&type=chunk)[170](index=170&type=chunk)[171](index=171&type=chunk) - Technological innovation and evolving quality/efficiency requirements from customers could **reduce charter hire income and vessel values** if the company's fleet becomes less competitive[172](index=172&type=chunk) - Revenue is primarily in U.S. dollars, but a significant portion of expenses (especially crew and administrative staff) is in Euros, creating **foreign currency exchange rate risk** that could impact **net profit**[173](index=173&type=chunk)[174](index=174&type=chunk) - Trading and hedging activities in freight derivatives (e.g., Forward Freight Agreements) expose the company to **market risks and potential trading losses** if expectations are incorrect[175](index=175&type=chunk)[176](index=176&type=chunk)[177](index=177&type=chunk) - The inherent risk of fraud and fraudulent behavior in the shipping industry could have a **material adverse effect on future performance**[178](index=178&type=chunk) - Dependence on short-term or spot charters in volatile shipping markets makes the company vulnerable to **declining rates and off-hire periods**, impacting **profitability and cash flows**[179](index=179&type=chunk) [RISKS RELATING TO OUR COMMON SHARES](index=68&type=section&id=RISKS%20RELATING%20TO%20OUR%20COMMON%20SHARES) Common share risks include inactive trading, delisting, dual listing costs, major shareholder influence, anti-takeover provisions, and implications of 'emerging growth company' and Marshall Islands incorporation status - An active trading market for common shares listed on the NYSE and Oslo Børs may not develop or be sustained, potentially **reducing fair market value** and **increasing price volatility**[196](index=196&type=chunk) - Delisting from the NYSE could lead to **limited market quotations, reduced analyst coverage, decreased ability to raise capital, limited liquidity for shareholders**, and potential **breaches of financing arrangements**[197](index=197&type=chunk) - Maintaining a dual listing on the NYSE and Oslo Børs incurs **additional costs** (legal, accounting, investor relations) and requires substantial management time for compliance, potentially **diluting liquidity** and **affecting share value**[198](index=198&type=chunk)[199](index=199&type=chunk)[203](index=203&type=chunk) - Compliance with Section 404 of Sarbanes-Oxley (effective for the year ending **December 31, 2024**) requires documenting and evaluating internal controls, which is **costly and challenging**. Failure to maintain effective controls could **adversely affect investor confidence**[201](index=201&type=chunk)[204](index=204&type=chunk)[205](index=205&type=chunk) - The company may be subject to litigation (contract disputes, environmental claims, etc.) that, if not resolved favorably or sufficiently insured against, could have a **material adverse effect**[206](index=206&type=chunk)[207](index=207&type=chunk) - Fluctuations in the exchange rate between the U.S. dollar and the Norwegian krone may cause **differences in share value across exchanges** and lead to heavy trading by investors[208](index=208&type=chunk) - The market price of common shares may be **highly volatile** due to various factors, including operating results, market valuations, analyst reports, strategic actions, regulatory developments, and general economic conditions[209](index=209&type=chunk)[211](index=211&type=chunk) - The Chairman and his family collectively own a majority of outstanding common shares (**53.7% as of April 26, 2024**), giving them **significant influence** over shareholder votes and corporate actions, potentially **discouraging change of control**[213](index=213&type=chunk)[219](index=219&type=chunk) - Anti-takeover provisions in the company's articles of incorporation and bylaws, along with covenants in credit arrangements requiring the Alafouzos family to maintain minimum ownership, could **discourage or prevent mergers/acquisitions** and **affect share price**[220](index=220&type=chunk)[221](index=221&type=chunk)[222](index=222&type=chunk) - As an 'emerging growth company,' the company benefits from reduced disclosure requirements, which may make its common shares **less attractive to some investors** and **increase share price volatility**[223](index=223&type=chunk)[224](index=224&type=chunk) - Incorporation in the Republic of the Marshall Islands, which has a less developed body of corporate law compared to typical U.S. jurisdictions, may offer shareholders **fewer rights and protections**[225](index=225&type=chunk) - The ability to declare and pay dividends is discretionary and depends on earnings, financial condition, market prospects, capital expenditures, loan agreement restrictions, and Marshall Islands law, with **no assurance of future payments**[226](index=226&type=chunk)[227](index=227&type=chunk)[230](index=230&type=chunk)[231](index=231&type=chunk)[232](index=232&type=chunk) - As a holding company, dividend payments depend on subsidiaries' ability to distribute funds, which may be **limited by Marshall Islands and Liberian law**[233](index=233&type=chunk) - The international nature of operations and non-resident directors/officers may make it **difficult for investors to serve process or enforce U.S. judgments** against the company[234](index=234&type=chunk) - The company's Marshall Islands incorporation and principal executive offices in Greece may subject it to **economic substance requirements**, with potential **penalties for non-compliance**[238](index=238&type=chunk)[239](index=239&type=chunk)[240](index=240&type=chunk)[241](index=241&type=chunk) [RISKS RELATING TO OUR RELATIONSHIP WITH OUR TECHNICAL MANAGER AND ITS AFFILIATES](index=81&type=section&id=RISKS%20RELATING%20TO%20OUR%20RELATIONSHIP%20WITH%20OUR%20TECHNICAL%20MANAGER%20AND%20ITS%20AFFILIATES) Dependence on KMC for technical management poses risks from service disruption, conflicts of interest due to Chairman's ownership, and fixed management fees regardless of profitability - The company is dependent on Kyklades Maritime Corporation (KMC) for day-to-day technical management, including vessel operations, repairs, insurance, supplies, and crewing. KMC also handles EU Emissions Trading Scheme (ETS) compliance and provides corporate, accounting, and financial support[243](index=243&type=chunk) - Adverse impacts could arise if KMC becomes unable or unwilling to provide services at the same quality or cost, or if KMC's reputation is harmed, affecting the company's ability to operate, secure charters, and obtain financing/insurance[244](index=244&type=chunk) - KMC has termination rights in case of a change of control of a ship-owning subsidiary or for convenience (with **36-month notice**), requiring continued management fee payments for **36 months** unless KMC defaults[245](index=245&type=chunk)[247](index=247&type=chunk) - KMC is a privately held company, limiting public information about its financial strength, which could impact the company without prior warning[246](index=246&type=chunk) - Management fees are payable to KMC regardless of the company's profitability or vessel employment, potentially **increasing expenses during downturns**[247](index=247&type=chunk) - The Chairman's significant ownership in KMC (**50%**) and other shipping businesses creates potential **conflicts of interest**, as KMC may prioritize other clients or affiliated companies, or the Chairman's other interests may compete with the company's business opportunities[248](index=248&type=chunk)[249](index=249&type=chunk) [ITEM 4. Information on the Company](index=82&type=section&id=ITEM%204.%20INFORMATION%20ON%20THE%20COMPANY) This section details the company's history, business overview, fleet management, customer base, ESG practices, regulatory compliance, organizational structure, and property - The company owns and operates a modern, fuel-efficient Eco fleet of **14 tanker vessels** (**6 Suezmax, 8 VLCCs**) for crude oil transportation[265](index=265&type=chunk) - As of **December 31, 2023**, the fleet has a carrying capacity of approximately **3.5 million deadweight tons (DWT)** and an average age of **4.4 years**[265](index=265&type=chunk) - Vessels are equipped with exhaust gas cleaning systems (scrubbers) and comply with ballast water treatment regulations[265](index=265&type=chunk) Fleet Details as of April 30, 2024 | Vessel Name | Year Built | Dwt | Flag | Yard | Type of Employment | | :------------ | :--------- | :---- | :----- | :---- | :----------------- | | Milos | 2016 | 157,525 | Greece | Sungdong | Spot | | Poliegos | 2017 | 157,525 | Marshall Islands | Sungdong | Spot | | Kimolos | 2018 | 159,159 | Marshall Islands | JMU | Spot | | Folegandros | 2018 | 159,221 | Marshall Islands | JMU | Spot | | Nissos Sikinos| 2020 | 157,447 | Marshall Islands | HSHI | Spot | | Nissos Sifnos | 2020 | 157,447 | Marshall Islands | HSHI | Spot | | Nissos Rhenia | 2019 | 318,953 | Marshall Islands | HHI | Spot | | Nissos Despotiko| 2019 | 318,953 | Marshall Islands | HHI | Spot | | Nissos Donoussa| 2019 | 318,953 | Marshall Islands | HHI | Spot | | Nissos Kythnos| 2019 | 318,953 | Marshall Islands | HHI | Spot | | Nissos Keros | 2019 | 318,953 | Marshall Islands | HHI | Spot | | Nissos Anafi | 2020 | 318,953 | Marshall Islands | HHI | Spot | | Nissos Kea | 2022 | 300,323 | Marshall Islands | HHI | Spot | | Nissos Nikouria| 2022 | 300,323 | Marshall Islands | HHI | Spot | [A. History and Development of the Company](index=82&type=section&id=A.%20History%20and%20Development%20of%20the%20Company) Okeanis Eco Tankers Corp., incorporated April 30, 2018, in Marshall Islands, has evolved through fleet changes, dual listings on Oslo Børs and NYSE, and recent financing activities - Okeanis Eco Tankers Corp. was incorporated on **April 30, 2018**, in the Republic of the Marshall Islands[250](index=250&type=chunk) - The company's common shares began trading on Euronext Growth (ex-Merkur Market) on **July 3, 2018**, then moved to Euronext Expand (ex-Oslo Axess) on **March 8, 2019**, and subsequently to the Oslo Børs on **January 29, 2021**. On **December 11, 2023**, shares began primary trading on the NYSE, with Oslo Børs becoming a secondary listing[252](index=252&type=chunk) - In **2021**, the company sold its Aframax/LR2 fleet (three vessels) for **$120.75 million** and two VLCC crude tankers for **$180 million**[253](index=253&type=chunk)[254](index=254&type=chunk) - In **June 2021**, the company agreed to acquire two Gas Ready (MEc), Eco-design, scrubber-fitted **300,000 DWT VLCC newbuildings** (Nissos Kea and Nissos Nikouria) for **$194 million**, funded by cash, senior secured debt, and an unsecured Sponsor Loan[255](index=255&type=chunk) - The company initiated a share buy-back plan in **November 2021**, repurchasing **181,809 shares** for **$1,515,670** as of the report date, with **no repurchases in 2023**[256](index=256&type=chunk) - Recent developments in early **2024** include a new **$34.7 million** secured credit facility for the Suezmax vessel Milos, amendments to existing sale and leaseback agreements for Nissos Kea and Nissos Nikouria, and a new **$73.5 million** sale and leaseback agreement for Nissos Anafi[260](index=260&type=chunk)[261](index=261&type=chunk)[262](index=262&type=chunk)[263](index=263&type=chunk) - In **March 2024**, the company paid a **$21.2 million dividend** (**$0.66 per share**) and repaid **$16.7 million** of the Sponsor's loan principal[264](index=264&type=chunk) [B. Business Overview](index=86&type=section&id=B.%20Business%20Overview) The company operates a modern, fuel-efficient fleet of 14 crude oil tankers, primarily using voyage charters to leverage Eco-design and scrubbers, while adhering to ESG practices and extensive environmental regulations [Management of Our Fleet](index=87&type=section&id=Management%20of%20Our%20Fleet) Fleet commercial management is by OET Chartering Inc., technical management by KMC for a **$900 daily fee per vessel**, with both agreements containing termination clauses and change of control provisions - OET Chartering Inc. (wholly owned subsidiary) provides commercial management, and Kyklades Maritime Corporation (KMC) provides technical management[269](index=269&type=chunk) - KMC charges a daily fee of **$900 per vessel** for technical support, crew management, maintenance, and insurance consulting. Total technical management fees were **$4,599,000 in 2023** and **$4,381,200 in 2022**[270](index=270&type=chunk) - Technical management agreements can be terminated for cause or convenience (**36-month notice**). KMC can terminate with **30-days' notice** upon a change of control of the ship-owning subsidiary without its consent[270](index=270&type=chunk) - OET Chartering Inc. also entered a shared services agreement with KMC for corporate, accounting, financial, and administrative services without additional fees[271](index=271&type=chunk) - ETS Services Agreements were entered with KMC, effective **January 1, 2024**, for obtaining, transferring, and surrendering EU Emissions Trading Scheme allowances, with no additional fee beyond the technical management fee[273](index=273&type=chunk) [Employment of Our Fleet](index=89&type=section&id=Employment%20of%20Our%20Fleet) The company primarily uses voyage charters to capitalize on its fuel-efficient fleet's lower fuel costs, while opportunistically employing time charters for stable cash flow and seasonal mitigation - The company primarily employs vessels under voyage charters to benefit from **lower fuel oil costs** due to Eco-design and scrubbers[274](index=274&type=chunk) - Voyage charters involve carrying specific cargo for an agreed freight, with the company paying voyage expenses (port, canal, bunker costs). Rates are **volatile** but can yield **higher profit margins** in improving markets[275](index=275&type=chunk) - Time charters provide **fixed and stable cash flow** over a set period, with charterers bearing voyage expenses. These are used opportunistically to mitigate spot market seasonality[276](index=276&type=chunk) Customers Accounting for >10% of Revenues | Customer | 2023 | 2022 | 2021 | | :------- | :--- | :--- | :--- | | A | — | 18 % | 13 % | | B | — | 14 % | 11 % | | C | — | 11 % | — | | **Total**| **—**| **43 %**| **24 %**| [Seasonality](index=89&type=section&id=Seasonality) Tanker markets are historically stronger in winter and weaker in summer, though new oil uses have evened consumption; long-term charters can mitigate seasonal impacts - Tanker markets are typically stronger in winter months due to increased oil consumption in the northern hemisphere and weaker in summer months due to lower consumption and refinery maintenance[278](index=278&type=chunk) - The tanker industry has become **less dependent on seasonal heating oil transport**, with new oil uses spreading consumption more evenly[278](index=278&type=chunk) - Long-term fixed-rate charters can **reduce the direct impact of seasonal factors** on operating results[278](index=278&type=chunk) [Our Environmental, Social, and Governance, or ESG, Practices](index=91&type=section&id=Our%20Environmental,%20Social,%20and%20Governance,%20or%20ESG,%20Practices) The company monitors ESG data, publishes an ESG Report aligned with GRI/SASB, adheres to UN SDGs, and utilizes KMC's VMPS and SEEMP for environmental performance and GHG compliance - The company monitors sustainability and ESG data according to internationally accepted standards (GRI 2021, SASB for Marine Transportation) and published its **2022 ESG Report in January 2024**[279](index=279&type=chunk) - The company aligns its operations with the United Nations Sustainable Development Goals (UN SDGs)[279](index=279&type=chunk) - KMC developed an in-house Vessel Monitoring & Performance System (VMPS) for real-time fuel capacity and emissions monitoring, and a Ship Energy Efficiency Management Plan (SEEMP) to manage and improve fleet energy efficiency[280](index=280&type=chunk) [Environmental and Other Regulations](index=91&type=section&id=Environmental%20and%20Other%20Regulations) Operations are subject to extensive international and national environmental and safety regulations, requiring significant compliance expenditures and ongoing monitoring, with the company believing its vessels are substantially compliant despite evolving rules - Operations are subject to numerous international conventions (MARPOL, SOLAS, STCW, LL Convention) and national laws/regulations related to safety, health, and environmental protection[281](index=281&type=chunk)[284](index=284&type=chunk) - Compliance with these regulations requires **costly equipment installation, operational changes**, and permits/licenses, affecting vessel resale value or useful lives[69](index=69&type=chunk)[281](index=281&type=chunk)[283](index=283&type=chunk) - Vessels are subject to scheduled and unscheduled inspections by port authorities, classification societies, flag states, terminal operators, and charterers[282](index=282&type=chunk) - The company believes its vessels are in substantial compliance with applicable environmental laws and regulations and hold necessary permits[283](index=283&type=chunk) [International Maritime Organization](index=92&type=section&id=International%20Maritime%20Organization) The IMO sets maritime safety and pollution standards via MARPOL and SOLAS, with recent amendments imposing stricter sulfur limits, NOx standards, fuel consumption data collection, and energy efficiency measures; company vessels use scrubbers and BWT systems for compliance - IMO's MARPOL Annex VI sets limits on sulfur oxide and nitrogen oxide emissions. A global cap of **0.5% m/m sulfur content** in fuel oil has been effective since **January 1, 2020**, with stricter **0.1% limits** in Emission Control Areas (ECAs)[286](index=286&type=chunk)[287](index=287&type=chunk)[288](index=288&type=chunk) - Compliance with sulfur limits can be achieved by using low-sulfur fuels, installing scrubbers (EGCS), or retrofitting for LNG. All company vessels currently have **scrubbers installed**[74](index=74&type=chunk)[287](index=287&type=chunk) - Amended Annex VI also establishes new tiers of nitrogen oxide (NOx) emission standards for marine diesel engines, with **Tier III** applying to new vessels operating in ECAs[289](index=289&type=chunk) - Mandatory data collection system (IMO DCS) requires vessels over **5,000 gross tons** to report annual fuel oil consumption data since **January 1, 2019**[290](index=290&type=chunk)[336](index=336&type=chunk) - MARPOL made energy efficiency measures mandatory for ships, including Ship Energy Efficiency Management Plans (SEEMPs) and Energy Efficiency Design Index (EEDI) for new ships[291](index=291&type=chunk) - Revised Annex VI (effective **November 2022**) includes new regulations to reduce greenhouse gas emissions, requiring Energy Efficiency Existing Ship Index (EEXI) and operational Carbon Intensity Indicator (CII) certification for ships[292](index=292&type=chunk)[338](index=338&type=chunk) - The **2023 IMO Strategy on Reduction of GHG Emissions from Ships** aims for at least **40% reduction** in carbon dioxide emissions per transport work by **2030** and **net-zero GHG emissions by or around 2050**[73](index=73&type=chunk)[290](index=290&type=chunk)[334](index=334&type=chunk) - The SOLAS Convention and ISM Code impose safety management system requirements, with vessels needing a Safety Management Certificate and managers a Document of Compliance. The company's vessels are **ISM Code certified**[296](index=296&type=chunk)[297](index=297&type=chunk)[299](index=299&type=chunk) [Pollution Control and Liability Requirements](index=97&type=section&id=Pollution%20Control%20and%20Liability%20Requirements) The BWM Convention mandates ballast water management, with all ships meeting D-2 standard by **September 8, 2024**; CLC and Bunker Convention impose strict liability for oil pollution, requiring insurance; company vessels have BWT systems and P&I insurance - The BWM Convention (effective **September 9, 2017**) requires ships to manage ballast water to prevent invasive aquatic organisms, with all ships needing to meet the **D-2 standard by September 8, 2024**[305](index=305&type=chunk)[306](index=306&type=chunk) - All company vessels have **Ballast Water Treatment Systems** to ensure compliance with new environmental regulations[306](index=306&type=chunk) - The CLC and Bunker Convention impose **strict liability** on vessel owners for oil pollution damage in territorial waters, requiring insurance coverage. The company maintains **protection and indemnity insurance** for environmental incidents[307](index=307&type=chunk)[308](index=308&type=chunk) - The Anti-fouling Convention prohibits organotin compound coatings; the company's vessels use **cybutryne-free products**[310](index=310&type=chunk) [United States Regulations](index=99&type=section&id=United%20States%20Regulations) U.S. regulations (OPA, CERCLA, CAA, CWA) impose strict liability for oil/hazardous substance discharges and regulate emissions/ballast water, requiring permits and costly equipment; the company maintains **$1 billion** in pollution liability coverage - The U.S. Oil Pollution Act of 1990 (OPA) and Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) establish **strict, joint, and several liability** for oil and hazardous substance discharges in U.S. waters[312](index=312&type=chunk)[313](index=313&type=chunk) - OPA liability caps (e.g., **$2,500 per gross ton** or **$21,521,000** for tank vessels over **3,000 gross tons**) do not apply if the incident is caused by regulatory violation, gross negligence, or willful misconduct[316](index=316&type=chunk) - OPA and CERCLA require vessel owners/operators to maintain evidence of financial responsibility. The company complies by providing applicable certificates[318](index=318&type=chunk) - The U.S. Clean Air Act (CAA) and Clean Water Act (CWA) regulate emissions and ballast water discharge, requiring permits and potentially costly equipment for compliance[322](index=322&type=chunk)[323](index=323&type=chunk)[324](index=324&type=chunk) - The company maintains pollution liability coverage insurance of **$1 billion per incident** for each vessel[321](index=321&type=chunk) [European Union Regulations](index=104&type=section&id=European%20Union%20Regulations) EU regulations impose criminal sanctions for discharges, mandate CO2 MRV, and introduced the ETS for ships on **January 1, 2024**, with FuelEU Maritime (2025) and CSRD adding new reporting, all increasing compliance costs - EU directives impose criminal sanctions for illicit ship-source discharges and require monitoring, reporting, and verification (MRV) of CO2 emissions for ships over **5,000 gross tonnage**[325](index=325&type=chunk) - The EU Emissions Trading Scheme (ETS) for ships became effective **January 1, 2024**, applying gradually from **2024-2026**. It requires surrendering allowances for emissions, with **100% of allowances** to be auctioned[76](index=76&type=chunk)[326](index=326&type=chunk) - The FuelEU Maritime Regulation is expected to take effect **January 1, 2025**, requiring a 'FuelEU certificate of compliance' for ships over **5,000 gross tonnage**[76](index=76&type=chunk)[326](index=326&type=chunk) - The Corporate Sustainability Reporting Directive (CSRD), adopted **November 10, 2022**, will create new, detailed sustainability reporting requirements for EU and non-EU companies, phased in from **2024-2028**[331](index=331&type=chunk) - The Hong Kong Ship Recycling Convention, setting standards for ship recycling, is expected to enter into force on **June 26, 2025**. The EU Ship Recycling Regulation (SRR) already requires an Inventory of Hazardous Materials (IHM) for ships calling at EU ports[327](index=327&type=chunk)[328](index=328&type=chunk) [International Labor Organization](index=106&type=section&id=International%20Labor%20Organization) The ILO's MLC 2006 mandates Maritime Labor Certificates and insurance for seafarer liabilities for ships over **500 gross tons** in international trade; the company's vessels are **MLC 2006 certified** - The ILO's Maritime Labor Convention 2006 (MLC 2006) requires ships over **500 gross tons** in international trade to have a Maritime Labor Certificate and Declaration of Maritime Labor Compliance[332](index=332&type=chunk) - Ships must also display a certificate confirming insurance or financial security for seafarer wages, repatriation, and compensation for death/disability[332](index=332&type=chunk) - The company believes its vessels are in substantial compliance with and **certified to meet MLC 2006**[332](index=332&type=chunk) [Greenhouse Gas Regulation](index=106&type=section&id=Greenhouse%20Gas%20Regulation) International shipping GHG emissions are not under Kyoto/Paris, but the IMO's 2023 Strategy targets net-zero by **2050**, with IMO DCS and MARPOL Annex VI (EEXI, CII) mandating data and intensity measures; EU and U.S. EPA also regulate, potentially incurring significant company expenditures - International shipping GHG emissions are not subject to the Kyoto Protocol or Paris Agreement, but the IMO adopted the **2023 IMO Strategy on Reduction of GHG Emissions from Ships**, targeting **net-zero by or around 2050**[333](index=333&type=chunk)[334](index=334&type=chunk) - The IMO Data Collection System (DCS) requires ships over **5,000 gross tons** to report annual fuel consumption data to an IMO database[336](index=336&type=chunk) - Revised MARPOL Annex VI (effective **November 1, 2022**) includes carbon intensity measures like the Energy Efficiency Existing Ship Index (EEXI) and operational Carbon Intensity Indicator (CII)[338](index=338&type=chunk) - The EU adopted a European Climate Law (2021/1119) aiming for **net-zero GHG emissions by 2050** and a **55% reduction by 2030**, supported by the 'Fit for 55' package[339](index=339&type=chunk) - The U.S. EPA also regulates greenhouse gas emissions, with recent final rules to reduce methane from the oil and natural gas industry[340](index=340&type=chunk) - Passage of climate control legislation or regulatory initiatives could require **significant, unpredictable expenditures**[341](index=341&type=chunk) [Vessel Security Regulations](index=108&type=section&id=Vessel%20Security%20Regulations) Post-9/11, MTSA and SOLAS Chapter XI-2 (ISPS Code) enhanced vessel security, requiring ISSC for international trade; the company's fleet complies, but piracy in regions like the Gulf of Guinea and Red Sea continues to impact security costs and risks - Vessel security regulations, including the U.S. Maritime Transportation Security Act (MTSA) and SOLAS Chapter XI-2 (ISPS Code), enhance security against terrorism[342](index=342&type=chunk)[343](index=343&type=chunk)[344](index=344&type=chunk) - International trading requires vessels to attain an International Ship Security Certificate (ISSC). The company's fleet complies with MTSA, SOLAS, and ISPS Code[344](index=344&type=chunk)[345](index=345&type=chunk) - Escalating piracy acts in regions like the Gulf of Guinea and Red Sea **increase vessel security costs and risks**, potentially leading to **uninsured losses**[346](index=346&type=chunk) [Surveys by Classification Societies](index=109&type=section&id=Surveys%20by%20Classification%20Societies) Commercial vessels require classification by societies for safety and seaworthiness, undergoing various surveys; failure to maintain class renders vessels unemployable and uninsurable, potentially breaching loan covenants; the company's vessels are **'in class' by American Bureau of Shipping** - Commercial vessels must be classed by a classification society to certify safety and seaworthiness, which is a condition for insurance coverage and lending[347](index=347&type=chunk) - Vessels undergo annual, intermediate, drydocking, and special surveys. Failure to maintain class or pass surveys makes a vessel **unemployable and uninsurable**, potentially **breaching loan covenants**[348](index=348&type=chunk) - The company's vessels are **certified 'in class' by the American Bureau of Shipping**[347](index=347&type=chunk) [Risk of Loss and Liability Insurance](index=109&type=section&id=Risk%20of%20Loss%20and%20Liability%20Insurance) Cargo vessel operations entail risks like mechanical failure and environmental mishaps; the company holds hull, war, and P&I insurance (up to **$1 billion** for oil pollution), but lacks strike or off-hire coverage, meaning extended off-hire could significantly impact earnings - Operating cargo vessels involves inherent risks such as mechanical failure, collision, and environmental mishaps, leading to potential **loss of revenues, increased costs**, and **decreased cash flows**[349](index=349&type=chunk) - The company carries hull and machinery, war risks, and protection and indemnity (P&I) insurance. P&I coverage includes third-party liabilities, with standard sub-limits for oil pollution at **$1 billion**[351](index=351&type=chunk)[352](index=352&type=chunk) - The company does not maintain strike or off-hire insurance, meaning **loss of revenue during extended off-hire periods** (e.g., unscheduled drydocking) could **materially adversely affect business and operating cash flow**[163](index=163&type=chunk)[351](index=351&type=chunk) - Not all risks can be insured, specific claims may be rejected, and adequate insurance coverage at reasonable rates may not always be obtainable[350](index=350&type=chunk) [Permits and Authorizations](index=111&type=section&id=Permits%20and%20Authorizations) The company must obtain various permits, licenses, and certificates from governmental and quasi-governmental agencies for its vessels, and believes it has secured all currently required authorizations for planned operations - The company must obtain permits, licenses, and certificates from governmental and quasi-governmental agencies for its vessels[353](index=353&type=chunk) - The company believes it has obtained all currently required permits, licenses, and certificates to operate its vessels as planned[353](index=353&type=chunk) [The Tanker Shipping Industry](index=111&type=section&id=The%20Tanker%20Shipping%20Industry) The tanker shipping industry, vital for global energy, is cyclical and volatile, with charter rates influenced by supply/demand, newbuilding/secondhand prices, and vessel characteristics; employment options include bareboat, time, pool, and spot/voyage charters - The oil tanker shipping industry is a vital link in the global energy supply chain, with tanker vessels offering the **lowest cost per oil barrel** for intercontinental crude oil transportation[354](index=354&type=chunk) - Revenues are earned from freight rates for transportation capacity, with costs for repositioning vessels between ports borne by owners unless on time charter[355](index=355&type=chunk) [Main categories of crude tanker vessels](index=111&type=section&id=Main%20categories%20of%20crude%20tanker%20vessels) Crude tankers are categorized by DWT and routes: VLCCs (**200,000-320,000 DWT**) for long-haul, Suezmax (**120,000-200,000 DWT**) for various trades, and Aframax (**80,000-120,000 DWT**) for regional trades - VLCCs (Very Large Crude Carriers) have a capacity exceeding **200,000 DWT** (typically **300,000-320,000 DWT**) and primarily operate on long-haul routes from the Middle East and West Africa to Asia, Europe, and the U.S. Gulf/Caribbean[356](index=356&type=chunk) - Suezmax tankers have a capacity of approximately **120,000 to 200,000 DWT** (typically **150,000-160,000 DWT**) and are engaged in various crude oil trades across major loading zones[362](index=362&type=chunk) - Aframax tankers have a capacity of approximately **80,000 to 120,000 DWT** and are employed in shorter regional trades, mainly in North West Europe, the Caribbean, the Mediterranean, and Asia[362](index=362&type=chunk) [Tanker Newbuilding Prices](index=113&type=section&id=Tanker%20Newbuilding%20Prices) Newbuilding prices are affected by ship type, shipyard capacity, demand, order book, buyer-yard relationships, design specifications (e.g., fuel efficiency), and material costs like steel and machinery - Newbuilding prices are influenced by ship type, shipyard capacity, demand, 'berth cover' (forward book of business), buyer relationships, design specifications (fuel efficiency, environmental features), and the price of ship materials (steel, engine/machinery equipment)[358](index=358&type=chunk) [Tanker Secondhand Prices](index=113&type=section&id=Tanker%20Secondhand%20Prices) Secondhand tanker prices are primarily driven by vessel capacity supply/demand, appreciating with high charter rates and declining with low demand, also influenced by age, specifications, and replacement cost, with younger vessels showing less fluctuation - Secondhand prices are primarily driven by supply and demand for vessel capacity, appreciating with **high charter rates** and declining with **low rates**[359](index=359&type=chunk) - Vessel values are also influenced by age, specification, and replacement cost (for vessels up to **five years old**)[359](index=359&type=chunk) - Younger vessels tend to have **less percentage fluctuation in value** than older vessels due to their longer remaining economic life[361](index=361&type=chunk) [The Crude Oil Tanker Market](index=113&type=section&id=The%20Crude%20Oil%20Tanker%20Market) Crude oil tankers are employed via Bareboat (charterer pays all costs), Time (owner pays operating, charterer pays voyage), Pool (owner earns revenue share), and Spot/Voyage (owner covers all expenses for single trip) charters - Bareboat Charter: Vessels employed for several years; charterer pays all voyage-related and daily operating expenses; owner receives monthly charter hire and covers capital costs[363](index=363&type=chunk) - Time Charter: Vessel used for months/years or specific trip; charterer covers voyage costs; owner receives monthly charter hire and pays operating/capital costs[363](index=363&type=chunk) - Pool Charter: Owner earns a portion of total pool revenues, net of expenses, allocated based on vessel characteristics[363](index=363&type=chunk) - Spot or Voyage Charter: Single voyage for specific cargo; owner covers repositioning, voyage, operating, and capital costs[363](index=363&type=chunk) [Tanker Vessels Charter Rates](index=114&type=section&id=Tanker%20Vessels%20Charter%20Rates) Tanker charter rates are primarily driven by supply/demand; shorter periods are market-sensitive, longer periods offer stability; other factors include vessel age, characteristics, newbuilding/secondhand prices, and overall market conditions - Main factors affecting vessel charter rates are supply and demand for tanker shipping[364](index=364&type=chunk) - Shorter charter periods are more affected by current supply-demand balance and market cycle phase, while longer periods tend to be more stable[364](index=364&type=chunk) - Other influencing factors include vessel age, characteristics (fuel consumption, speed), new-built and secondhand ship prices, and market conditions[364](index=364&type=chunk) [C. Organizational Structure](index=114&type=section&id=C.%20Organizational%20Structure) This section refers to Exhibit 8.1 for a list of significant subsidiaries, detailing the company's holding company structure with various vessel-owning entities - The organizational structure, including a list of significant subsidiaries, is detailed in **Exhibit 8.1** of the Annual Report[365](index=365&type=chunk) [D. Property, Plants and Equipment](index=114&type=section&id=D.%20Property,%20Plants%20and%20Equipment) The company owns no real estate property; its principal executive offices are in Greece, and its material property consists solely of its vessels - The company does not own any real estate property[366](index=366&type=chunk) - Principal executive offices are located at c/o OET Chartering Inc., Ethnarchou Makariou Ave.,&2 D. Falireos St., 185 47 N. Faliro, Greece[366](index=366&type=chunk) - Other than its vessels, the company does not have any material property[366](index=366&type=chunk) [ITEM 4A. Unresolved Staff Comments](index=114&type=section&id=ITEM%204A.%20UNRESOLVED%20STAFF%20COMMENTS) There are no unresolved staff comments applicable to the company - This section is **not applicable**[366](index=366&type=chunk) [ITEM 5. Operating and Financial Review and Prospects](index=114&type=section&id=ITEM%205.%20OPERATING%20AND%20FINANCIAL%20REVIEW%20AND%20PROSPECTS) This section reviews operating results, financial condition, and future prospects, covering key business factors, critical accounting policies, financial/operational terms, liquidity, capital resources, and market trends [A. Operating Results](index=114&type=section&id=A.%20Operating%20Results) Operating results are driven by vessel count, charter rates, and charter mix; **2023 revenue increased significantly** due to higher Daily TCE Rates and fleet expansion, while expenses rose from increased voyage charters, fleet size, and NYSE listing costs [Principal Factors Affecting Our Business](index=114&type=section&id=Principal%20Factors%20Affecting%20Our%20Business) Business performance is primarily influenced by vessel count, charter rates, charter duration, repositioning, operating/voyage costs, maintenance, vessel age, financing, and the mix of spot versus period charters affecting cash flow and profit margins - Principal factors affecting the business include the number of vessels, various charter rates (voyage, time charter trip, period time charter), charter duration, vessel repositioning, operating expenses, maintenance, vessel age/condition, equity/debt issuances, and financing costs[368](index=368&type=chunk)[369](index=369&type=chunk) - Period time charters offer **predictable cash flows** but potentially **lower profit margins**, while spot market charters are less predictable but can yield **higher profit margins** during favorable market conditions[371](index=371&type=chunk)[372](index=372&type=chunk) [Critical Accounting Policies](index=116&type=section&id=Critical%20Accounting%20Policies) Critical accounting policies are vital for financial reporting, requiring significant management judgment and estimates due to inherent uncertainties; full details are in **Note 4** of the annual audited financial statements - Critical accounting policies involve **significant management judgment and estimates** due to inherent uncertainties[373](index=373&type=chunk) - For a description of all significant accounting policies, refer to **Note 4** in the annual audited financial statements[373](index=373&type=chunk) [Important Financial and Operational Terms and Concepts](index=116&type=section&id=Important%20Financial%20and%20Operational%20Terms%20and%20Concepts) This section defines key financial and operational terms for performance analysis, including revenues, commissions, voyage expenses, vessel operating expenses, drydocking, depreciation, G&A, management fees (**$900/vessel/day**), inflation impacts, finance costs, and derivative gains/losses - Revenues include time and voyage charters, affected by hire rates, operating days, and charter mix[374](index=374&type=chunk) - Voyage charters involve specific cargo movement, with the company paying voyage expenses (port, canal, bunker costs). Time charters lease vessels for a set period, with charterers paying voyage expenses[375](index=375&type=chunk) - Commissions (up to **6.25% of charter hire**) are paid to ship brokers[376](index=376&type=chunk) - Vessel operating expenses cover crewing, insurance, repairs, maintenance, stores, and lubricants, fluctuating due to factors like unplanned repairs and insurance premiums[378](index=378&type=chunk) - Drydocking costs are capitalized and depreciated over the estimated period to the next scheduled survey (typically **5 years**, then **2.5 years** after **10 years of age**)[379](index=379&type=chunk) - Vessels are depreciated on a straight-line basis over an estimated useful life of **25 years**, considering a residual value based on lightweight tonnage and an estimated scrap rate of **$400 per ton**[380](index=380&type=chunk) - General and administrative expenses include employee costs, directors' fees, executive compensation, and professional fees[381](index=381&type=chunk) - Management fees of **$900 per vessel per day** are paid to the technical manager (KMC)[382](index=382&type=chunk) - Inflation has a moderate impact on operating expenses and overheads, with insurance and crew costs anticipated to rise. Interest on SOFR-based loans increases with interest rate hikes[383](index=383&type=chunk) - Interest and other finance costs include interest on outstanding indebtedness and fees for debt facilities[384](index=384&type=chunk) - Unrealized/realized gain/loss from derivatives reflects fair value fluctuations and actual amounts from derivative instrument terminations[385](index=385&type=chunk) [Implications of Being an Emerging Growth Company and a Foreign Private Issuer](index=119&type=section&id=Implications%20of%20Being%20an%20Emerging%20Growth%20Company%20and%20a%20Foreign%20Private%20Issuer) As an 'emerging growth company' and 'foreign private issuer,' the company benefits from reduced reporting obligations but opted out of extended accounting standard transition; these statuses may deter some investors and risk higher compliance costs if foreign private issuer status is lost - As an 'emerging growth company' (revenue less than **$1.235 billion**), the company benefits from reduced reporting burdens, including exemption from auditor attestation on internal controls under **Section 404(b) of Sarbanes-Oxley**[386](index=386&type=chunk)[387](index=387&type=chunk) - The company has opted out of the extended transition period for complying with new or revised financial accounting standards, making this decision irrevocable[388](index=388&type=chunk) - As a 'foreign private issuer,' the company is exempt from certain Exchange Act provisions applicable to U.S. domestic companies, such as proxy solicitation rules, insider trading reporting, and quarterly reports on Form 10-Q[389](index=389&type=chunk) - These exemptions and scaled disclosure requirements may make common shares **less attractive to some investors** or **harm the stock price**[192](index=192&type=chunk) - Losing foreign private issuer status would **significantly increase regulatory and compliance costs** and require adherence to more stringent U.S. domestic issuer requirements[193](index=193&type=chunk) [Results of Operations](index=120&type=section&id=Results%20of%20Operations) In **2023**, revenue grew **52% to $413.1 million** from higher Daily TCE Rates and fleet expansion; commissions, voyage, vessel operating, and depreciation expenses rose with increased activity and fleet size, while G&A surged **87%** due to NYSE listing costs and other expenses increased **118%** from lower derivative gains and higher interest Revenue (in millions of U.S. dollars) | (In millions of U.S. dollars) | 2023 | 2022 | Increase | | :---------------------------- | :---- | :---- | :------- | | Revenue | 413.1 | 271.0 | 52 % | - Revenue increased by **$142.1 million (52%) in 2023**, primarily due to a **48% average increase in Daily Time Charter Equivalent Rates** and the addition of Nissos Kea and Nissos Nikouria[390](index=390&type=chunk) Commissions (in millions of U.S. dollars) | (In millions of U.S. dollars) | 2023 | 2022 | Increase | | :---------------------------- | :--- | :--- | :------- | | Commissions | (5.8)| (3.4)| 71 % | - Commissions increased by **$2.4 million (71%) in 2023**, reflecting a strong voyage charter market, increased cargos, and longer ton-miles[391](index=391&type=chunk) Voyage Expenses (in millions of U.S. dollars) | (In millions of U.S. dollars) | 2023 | 2022 | Increase | | :---------------------------- | :----- | :----- | :------- | | Voyage expenses | (109.6)| (74.1) | 48 % | - Voyage expenses increased by **$35.5 million (48%) in 2023**, mainly due to higher utilization of vessels in voyage charters (**80% in 2023 vs. 60% in 2022**), leading to higher bunker fuel and port expenses[394](index=394&type=chunk)[395](index=395&type=chunk) - Fuel cost increased from **$55.7 million in 2022 to $76.2 million in 2023**, driven by longer ton-mile voyages despite a **19% decrease in fuel prices**[396](index=396&type=chunk) - Port expenses increased from **$18.0 million in 2022 to $30.4 million in 2023** due to substantially more port calls in the strong spot market[397](index=397&type=chunk) Vessel Operating Expenses (in millions of U.S. dollars) | (In millions of U.S. dollars) | 2023 | 2022 | Increase | | :---------------------------- | :--- | :--- | :------- | | Vessel operating expenses | (41.7)| (35.7)| 17 % | - Vessel operating expenses increased by **$6.0 million (17%) in 2023**, mainly due to a **5% increase in vessels' calendar days** from fleet additions and pre-operating expenses for drydocking[398](index=398&type=chunk) Management Fees (in millions of U.S. dollars) | (In millions of U.S. dollars) | 2023 | 2022 | Increase | | :---------------------------- | :--- | :--- | :------- | | Management fees | (4.6)| (4.4)| 5.0 % | - Management fees increased by **$0.2 million (5.0%) in 2023**, primarily due to the addition of Nissos Kea and Nissos Nikouria to the fleet[399](index=399&type=chunk) Depreciation (in millions of U.S. dollars) | (In millions of U.S. dollars) | 2023 | 2022 | Increase | | :---------------------------- | :--- | :--- | :------- | | Depreciation | (40.4)| (38.0)| 6.0 % | - Depreciation increased by **$2.4 million (6.0%) in 2023**, mainly due to the addition of Nissos Kea and Nissos Nikouria[400](index=400&type=chunk) General and Administrative Expenses (in millions of U.S. dollars) | (In millions of U.S. dollars) | 2023 | 2022 | Increase | | :---------------------------- | :--- | :--- | :------- | | General and administrative expenses| (9.9)| (5.3)| 87 % | - General and administrative expenses increased by **$4.6 million (87%) in 2023**, driven by higher shore-based employee costs and **$1.7 million** in professional fees related to the NYSE listing[402](index=402&type=chunk) Other Income/(Expenses) (in millions of U.S. dollars) | (In millions of U.S. dollars) | 2023 | 2022 | Increase | | :---------------------------- | :--- | :--- | :------- | | Other income/(expenses) | (55.9)| (25.6)| 118 % | - Other expenses, net, increased by **$30.3 million (118%) in 2023**, primarily due to lower net gains from derivatives (**$0.5 million in 2023 vs. $11.5 million in 2022**) and higher interest expense (**$61.2 million in 2023 vs. $38.1 million in 2022**) due to rising SOFR, partially offset by a **$3.4 million increase in interest income**[403](index=403&type=chunk)[404](index=404&type=chunk) [B. Liquidity and Capital Resources](index=124&type=section&id=B.%20Liquidity%20and%20Capital%20Resources) Liquidity is primarily from operating cash flow and long-term borrowings, funding acquisitions, maintenance, and distributions; as of **December 31, 2023**, total indebtedness was **$698.5 million**, with **$54.9 million** cash, and the company expects to meet liquidity needs and comply with all loan covenants - Principal sources of funds are operating cash flow and long-term borrowing; principal uses are capital expenditures for vessels, maintenance, working capital, debt service, and shareholder distributions[405](index=405&type=chunk) - Future success depends on maintaining a high-quality fleet through acquisitions and selective sales, funded by cash from operations, new debt, equity offerings, or asset sales[406](index=406&type=chunk)[407](index=407&type=chunk) Total Indebtedness (in millions of U.S. dollars) | Indicator | 2023 (millions) | 2022 (millions) | | :-------- | :-------------- | :-------------- | | Indebtedness | $698.5 | $744.8 | Cash and Cash Equivalents (in millions of U.S. dollars) | Indicator | 2023 (millions) | 2022 (millions) | | :-------- | :-------------- | :-------------- | | Cash & Cash Equivalents | $54.9 | $88.3 | | Restricted Cash | $4.9 | $6.9 | - The company has no contractual commitments for vessel acquisition as of the report date and expects cash on hand and operating cash flows to cover liquidity needs for the next twelve months[414](index=414&type=chunk)[426](index=426&type=chunk) [Working Capital Requirements and Sources of Capital](index=126&type=section&id=Working%20Capital%20Requirements%20and%20Sources%20of%20Capital) Working capital decreased from **$61.6 million in 2022 to $32.3 million in 2023**; capital expenditures for vessels are funded by operations, new credit, or equity/debt, while drydocking is funded by cash on hand Working Capital (in millions of U.S. dollars) | Indicator | 2023 (millions) | 2022 (millions) | | :-------- | :-------------- | :-------------- | | Working Capital | $32.3 | $61.6 | - Capital expenditures for vessel acquisitions or improvements are expected to be funded by cash from operations, new credit facilities, or equity/debt issuances[416](index=416&type=chunk) - Expenditures for vessel surveys and drydocking, which reduce operating days and increase cash flow needs, are expected to be funded with cash on hand[417](index=417&type=chunk) - The company believes cash flows from operations, available borrowing under financing agreements, and cash balance will meet liquidity requirements for at least the next twelve months[418](index=418&type=chunk) [Cash Flows](index=126&type=section&id=Cash%20Flows) Net cash from operating activities significantly increased by **$91.5 million to $174.0 million in 2023** due to improved spot rates and fleet expansion; investing activities provided **$1.0 million** (vs. used **$178.7 million in 2022**), while financing activities used **$207.1 million** for loan refinancings, repayments, and capital distributions Cash and Cash Equivalents Balances (in millions of U.S. dollars) | Indicator | 2023 (millions) | 2022 (millions) | | :-------- | :-------------- | :-------------- | | Cash & Cash Equivalents | $54.9 | $88.3 | | Restricted Cash | $4.9 | $6.9 | - Net cash from operating activities increased by **$91.5 million to $174.0 million in 2023** (from **$82.5 million in 2022**), attributed to improved spot rates and fleet expansion[420](index=420&type=chunk) - Net cash provided by investing activities was **$1.0 million in 2023** (compared to **$178.7 million used in 2022**), driven by increased interest income (**$2.2 million**) and reduced restricted cash (**$2.0 million**), partially offset by drydock expenses (**$3.3 million**)[422](index=422&type=chunk)[423](index=423&type=chunk) - Net cash used in financing activities was **$207.1 million in 2023**, primarily due to loan refinancings (**$197.0 million**), repayments (**$197.5 million**), prepayment of scrubber loan (**$1.4 million**), and capital distributions (**$159.4 million**)[424](index=424&type=chunk) [Credit Facilities and Financing Obligations](index=129&type=section&id=Credit%20Facilities%20and%20Financing%20Obligations) As of **December 31, 2023**, outstanding borrowings totaled **$698.5 million** (down from **$744.8 million in 2022**), with all loans transitioned to SOFR; the company maintains various secured facilities and leaseback agreements, subject to financial and restrictive covenants, and was in compliance with

Financial Data and Key Metrics Changes - The company achieved a fleet-wide TCE of over $45,000 per vessel per day, with adjusted EBITDA of $44.2 million, adjusted net profit of $20.4 million, and adjusted EPS of $0.63 for Q4 2023 [3][4] - For the fiscal year 2023, TCE revenue reached almost $300 million, a 54% increase from 2022, with EBITDA of $242 million and net profit of $145 million, both reflecting a 72% year-on-year increase [6][4] Business Line Data and Key Metrics Changes - In Q4, VLCCs generated $45,200 per day in the spot market, outperforming peers by 4%, while Suezmaxes generated $51,800 per spot day, outperforming peers by 17% [16][4] - The entire fleet is now positioned in the spot market, with significant improvements in operational efficiency noted, particularly with the upgraded paint specification on vessels [14][15] Market Data and Key Metrics Changes - The company reported a 50% increase in trading volumes since dual listing on the New York Stock Exchange, with 40% of total volume traded out of New York within 2.5 months [5] - The Red Sea tensions have created opportunities for VLCCs, with changes in crude movement patterns benefiting the fleet [20][25] Company Strategy and Development Direction - The company continues to focus on positioning its fleet predominantly in the West and taking advantage of market conditions to fix longer voyages to the East [14] - The management is optimistic about improving capital structure through refinancing and is actively seeking opportunities to optimize debt costs [12][11] Management Comments on Operating Environment and Future Outlook - Management expressed confidence that OPEC+ will eventually need to bring more barrels back to the market, which could lead to a significant increase in tanker demand [24][21] - The company anticipates a bullish market environment due to limited new vessel deliveries expected until 2027, with a significant portion of the fleet aging [29][30] Other Important Information - The company declared a capital distribution of $0.66 per share, representing 100% of reported EPS, continuing its commitment to shareholder value [4] - The company has successfully executed transactions to improve its capital structure, reducing debt costs and increasing flexibility [11][12] Q&A Session Summary Question: Impact of IFRS 16 on TCE equivalents - Management acknowledged that the impact varies quarter-on-quarter and depends on vessel positioning, with no significant impact expected for Q1 [31] Question: Relative VLCC market performance - Management indicated that VLCCs may see continued parceling of cargoes due to Red Sea tensions, but the extent of this is uncertain [33] Question: Preference for fleet expansion - If forced to expand, management would prefer VLCCs over Suezmaxes, anticipating a stronger market for VLCCs in the coming years [34] Question: Crude tanker activity and Red Sea situation - Management noted that Russian crude remains a significant portion of Suez transits, and they do not expect this to change unless extreme circumstances arise [36]

Exhibit 99.1 Okeanis Eco Tankers Corp. – Unaudited Condensed Financial Statements for the Fourth Quarter and Twelve Month Period of 2023 ATHENS, GREECE, February 29, 2024 – Okeanis Eco Tankers Corp. ("OET" or "Company") (NYSE:ECO / OSE:OET) today reported unaudited condensed financial statements for the fourth quarter and twelve month period of 2023, which are attached to this press release. Selected Q4 2023 and Recent Highlights: *The Company uses certain financial information calculated on a basis other t ...

Okeanis Eco Tankers Corp. (OKENF) Q3 2022 Results Conference Call November 10, 2022 7:30 AM ET Company Participants Aristidis Alafouzos - Chief Operating Officer Konstantinos Oikonomopoulos - Chief Financial Officer Conference Call Participants Petter Haugen - ABG Operator Welcome to OET's Third Quarter and 9 Months 2022 Financial Results Presentation. We will begin shortly. Aristidis Alafouzos, COO; and Konstantinos Oikonomopoulos, CFO of Okeanis Eco Tankers, will take you through the presentation. They wi ...

OKEANIS ECO TANKERS CORP. Q2 2022 EARNINGS PRESENTATION DATE 12 AUGUST 2022 DISCLAIMER This presentation (the "Presentation") has been prepared by Okeanis Eco Tankers Corp. ("OET or the "Company"). The Presentation reflects the conditions and views of the Company as of the date set out on the front page of this Presentation. This Presentation contains certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates, someti ...

Financial Data and Key Metrics Changes - The company generated net revenue of $36 million, which is a 36% increase quarter-on-quarter [4] - Adjusted EBITDA reached $25 million, reflecting a 52% increase quarter-on-quarter [4] - Adjusted profit was reported at $8.5 million, or $0.26 per share [4] - Fleet-wide Time Charter Equivalent (TCE) for the quarter was $29,900, a 21% increase compared to the first quarter [5] - Total liquidity at the end of the second quarter was $72.4 million, which is 121% higher year-over-year [5][33] - The company reported a debt level of $763 million, with a leverage ratio of 65% [33] Business Line Data and Key Metrics Changes - VLCCs generated $18,600 per day in the spot market, outperforming peers by 2% [11] - Suezmaxes achieved $41,500 per spot day, outperforming peers by 80% [14] - In Q3, 60% of VLCC spot days were fixed at $31,900 per day, a 72% outperformance relative to peers [15] - 70% of Suezmax spot days were fixed at $60,400, a 109% outperformance relative to peers [15] Market Data and Key Metrics Changes - The company noted a shift in trade patterns due to the Russian invasion of Ukraine, with new trade routes emerging for VLCCs [12][20] - European crude imports are increasingly sourced from farther regions, replacing Russian crude [21] - The average crude tanker sailing distance has increased, positively impacting the company's trade [22] Company Strategy and Development Direction - The company aims to capture the current tanker cycle with a focus on maintaining a highly efficient fleet [39] - The strategy includes optimizing TCE and reducing ballast days while increasing spot exposure to capitalize on market spikes [19][39] - The company is considering a potential US listing in the medium term [55] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the tanker market, anticipating increased US Gulf exports and higher rates in Q4 [47] - The company expects to benefit from the ongoing need to replace Russian crude in Europe [19] - Management highlighted the importance of maintaining liquidity due to market volatility and rising interest rates [54] Other Important Information - The company announced a cash dividend of $0.30 per share, totaling $10 million [5] - The fleet is now fully delivered, with a mix of long-term charters and spot trading [8] Q&A Session Summary Question: What levels would be acceptable for longer-dated charters? - Management indicated they would consider longer-term deals in the high 40s for VLCCs and comparable rates for Suezmaxes, noting current rates are undervalued [42][44] Question: Is there an appetite for further investment or selling ships? - Management stated it is more challenging to invest now due to high prices, but selling ships for profit to renew the fleet could make sense [44] Question: What is the outlook for US exports? - Management expects a busy period for US Gulf exports at the end of Q3 and early Q4, with potential for increased rates [47][48] Question: What are the expectations for cash balances going forward? - Management aims to increase liquidity to at least €70 million due to market volatility and rising interest rates [54] Question: Is there interest in pursuing a US listing? - Management has begun exploring the process for a potential US listing and will update investors accordingly [55]