Okeanis Eco Tankers Corp. reported unaudited interim condensed results for the three-month period ended March 31, 2022.
Q1 2022 Highlights:
Time charter equivalent (“TCE”, a non-IFRS measure) revenue and Adjusted EBITDA (a non-IFRS measure) of $26.4 million and $16.2 million, respectively. Adjusted profit and Adjusted earnings per share (non-IFRS measures) for the period of $1.9 million or $0.06 per basic & diluted share.
Fleetwide daily TCE rate of $24,700 per operating day; VLCC and Suezmax TCE rates of $24,200 and $25,300 per operating day, respectively.
Daily vessel operating expenses (“opex”, a non-IFRS measure) of $7,992 per calendar day, including management fees.
In Q2 2022 to date, 47% of the available VLCC spot days have been booked at an average TCE rate of $25,400 per day and 64% of the available Suezmax spot days have been booked at an average TCE rate of $36,500 per day.
In January 2022, the Company purchased 122,573 of its own shares at an average price of NOK 71.0 per share.
In March 2022, the Company took delivery of Nissos Kea, one of the two VLCCs under construction at Hyundai Heavy Industries.
In April 2022, the Company signed a termsheet with a reputable financial institution for a new debt facility with a gross finance amount of approximately $125.7m. The net proceeds from the transaction will be used to a) refinance existing indebtedness of the VLCC vessels Nissos Kythnos and Nissos Donoussa, and b) general corporate purposes.
On April 18 2022, the Company signed the documentation of the loan agreement relating to the 20% of the original contract price, pursuant to the press release disclosed on 29 June 2021, for the acquisition of Gas Ready (MEc), ECO-design, open loop scrubber-fitted 300,000 DWT VLCC crude tanker vessels Nissos Kea and Nissos Nikouria.
Revenues for Q1 2022 of $41.6 million, down from $48.0 million in Q1 2021. The 13% decrease was due to a 30% decrease in vessel operating days following the disposal of three Aframax and two VLCC vessels in the previous quarters, as well as, a 5% decrease in fleetwide daily TCE .
Voyage expenses for Q1 2022 of $14.7 million, up from $7.8 million in Q1 2021. The 88% increase is attributable to higher spot exposure in the current period amplified by augmented bunker fuel cost.
Vessel operating expenses for Q1 2022 of $7.7 million, down from $10.1 million in Q1 2021. The 24% decrease was mainly the result of a 29% decrease in calendar days due to the reduced number of vessels of the fleet over the period.
Depreciation and amortization for Q1 2022 of $8.2 million, down from $11.2 million in Q1 2021. The 27% decrease is directly associated to the disposal of vessels in the previous quarters leading to a cumulative 19% decrease in the depreciable asset base.
General and administrative expenses for Q1 2022 of $1.6 million, down from $2.9 million in Q1 2021. The 45% decrease is due to lower annual cash bonuses distributed to shore-based staff.
Interest and finance costs for Q1 2022 of $5.9 million, down from $8.0 million in Q1 2021. The 26% decrease is attributable to the retirement of $209.9 million of debt in connection with the disposal of three Aframax and two VLCC vessels. Total indebtedness as of March 31, 2022 of $656.4 million, down from $821.1 million as of March 31, 2021.
Unrealized gain on derivatives for Q1 2022 of $7.4 million, up from $1.5 million in Q1 2021. The increase derives mainly from the higher fair value of the Company’s interest rate swap derivatives, as a result of rising interest rates.
The Company recorded a profit in Q1 2022 of $9.3million, or $0.29 per basic and diluted share, compared to a profit in Q1 2021 of $7.3 million, or $0.23 per basic and diluted share. The increase derives mainly from the recorded gain on interest rate swaps and lower interest expense cost, counterbalanced by lower revenues generated from operations in the current period.
Net cash provided by operating activities in Q1 2022 of $2.3 million comprising operating cash flows of $15.4 million and negative changes in operating assets and liabilities of $13.1 million.
Net cash used in investing activities in Q1 2022 of $71.5 million deriving mainly from $71.5 million connected to vessel acquisitions and upgrade costs.
Net cash provided by financing activities in Q1 2022 of $63.6 million comprising mainly loan drawdown of $72.8 million, payments of $1.0 million for the acquisition of treasury shares and scheduled debt repayments of $10.8 million.
As of March 31, 2022, the Company’s cash balance (including restricted cash) came in at $40.4 million, compared to $45.5 million as of December 31, 2021. As of March 31, 2022, the Company had 32,194,108 shares outstanding (net of 695,892 treasury share.