Okeanis Eco Tankers Books Third Record Quarter, $7 Dividend

By Marcus Bennett

Okeanis Eco Tankers (NYSE:ECO) delivered adjusted net profit of $299 million, or $7.67 per share, for the third quarter, and declared a $7-per-share dividend — its third consecutive record quarter, with a potentially larger fourth quarter ahead.

Time charter equivalent revenue (TCE, the standard shipping revenue measure that smooths charter vs. spot accounting) reached $338 million, with adjusted EBITDA of $320 million. Fleet-wide TCE earnings averaged roughly $209,000 per vessel per day.

CEO Aristidis Alafouzos said the payout marked the company's 18th consecutive quarterly distribution and pushed total shareholder distributions since the 2018 listing past $1 billion. More than half of that total was distributed in 2026, he said. CFO Iraklis Sbarounis noted the latest dividend represents more than 91% of reported and adjusted net income.

What do fourth-quarter bookings signal?

Okeanis has covered 71% of its fleet days for the fourth quarter at an average rate of $420,000 per day, representing roughly $480 million in revenue from those days alone, according to Alafouzos. That compares with $338 million in TCE revenue for the entire third quarter — booked days already out-earning a full record quarter.

The breakdown:

• 48% of available VLCC (very large crude carrier) spot days fixed at $688,000 per day
• 509 VLCC time charter days at an average of $388,000 per day
• 60% of Suezmax spot days fixed at $410,000 per day

Alafouzos cautioned against extrapolating those rates across the remaining 458 open days, noting rates have fallen from their October peak and will be fixed at prevailing market levels. "That can work for us or against us, as we have seen more than once this year," he said. He still expects a rebound later in the quarter, citing continued tanker market inefficiencies and cargo inquiries.

Several VLCC spot voyages were converted in August into short-term charters at a blended $450,000 per day through mid-February 2027. Those charters helped third-quarter results but slightly lagged the spot market as fourth-quarter rates climbed. Another VLCC sits on a time charter with Koch at $90,000 per day.

How did fleet incidents affect operations?

The quarter ended with eight VLCCs and 10 Suezmaxes, averaging 5.8 years old, after the July addition of Nissos Vous. Nissos Sifnos was struck by a drone on July 30 while loading Kazakh crude at the CPC terminal; no crew was injured, repairs took more than a month, and insurance covered both damage and loss of hire — with loss-of-hire income recognized in Q3.

Nissos Anafi suffered engine damage near South Africa; its cargo was transferred in Oman, with repairs expected by end of December. Okeanis guided fourth-quarter VLCC utilization at 93% (including 53 off-hire days) and Suezmax utilization at 99%.

The company ended the quarter with $233 million in cash and $754 million in balance-sheet debt, reflecting Nissos Vous financing. Management said it is comfortable with leverage and has no plans to accelerate repayment.

What could change the rate picture?

Alafouzos attributed elevated freight rates partly to longer, less efficient voyages, including shuttle operations and ship-to-ship transfers around the Strait of Hormuz. Crude tanker ton days rose 6% year to date, while VLCC ton days fell 2% after a major loading area stood largely shut through spring and summer. A fuller reopening of the strait could improve fleet efficiency and pressure rates, though he pointed to depleted inventories, long-haul trade and an aging fleet as offsets.

Orderbooks are the longer-term risk: the VLCC order book exceeds 32% of the existing fleet and the Suezmax order book sits near 30%, with heavy delivery years in 2028 and 2029. A rapid return to efficiency during those deliveries could abruptly shift the supply-demand balance, he warned.

On asset values, Sbarounis said four Suezmaxes bought this year for $97 million to $99 million each are now valued above $170 million apiece and have generated about $160 million in aggregate free cash flow — gains that remain unrealized.