Okeanis Eco Tankers (NYSE:ECO) reported a strong fourth quarter of 2025 as management pointed to what it described as a long-awaited upcycle in the large crude tanker market and highlighted a series of equity-funded vessel acquisitions, rising net asset value (NAV), and another dividend payment.
Fourth-quarter results and dividend
CFO Iraklis Sbarounis said the company achieved a fleet-wide time charter equivalent (TCE) of about $77,000 per vessel per day in the fourth quarter, with VLCCs at $92,000 and Suezmaxes at $53,000. Okeanis reported adjusted EBITDA of $79 million, adjusted net profit of $60 million, and adjusted EPS of $1.78, based on the quarter’s average share count.
For the full year 2025, the company reported time charter revenue of $265.4 million, EBITDA of nearly $204 million, and reported net income of about $130 million, or $3.77 per share.
Fleet expansion and capital markets activity
CEO Aristidis Alafouzos said that since August of the prior year, the large crude tanker market entered the freight cycle “we’ve been waiting for,” emphasizing the importance of having a fleet “on the water” to capitalize on current conditions. He said the company executed two “opportunistic transactions” to acquire four resale Suezmax newbuildings from Korea. Two have already delivered, with one having loaded its first cargo and the other expected to load soon, while the remaining two are expected to deliver in the next “two, three months,” according to Alafouzos.
Sbarounis detailed two equity raises tied to vessel acquisitions:
- November equity raise: $115 million in gross proceeds, which the company said was executed against the acquisition of Nissos Piperi and Nissos Serifopoula, delivered in early January.
- January equity raise: a similar transaction bringing total gross proceeds raised to $245 million, alongside the acquisition of two additional recent Suezmaxes expected to deliver in the second quarter.
Management said the November raise was priced at $35.50 per share and the January raise at $36 per share, describing both as heavily oversubscribed and priced at premiums to NAV at the time. Sbarounis also presented “imputed” vessel pricing after what he described as NAV arbitrage, and said the transactions increased free float and liquidity, diversified the shareholder base, strengthened capital markets credibility, and lowered fleet-wide break-even levels. He added that since the two raises, shareholders had generated more than 20% return, plus dividends.
Balance sheet, leverage, and financing terms
Okeanis ended 2025 with $122.5 million of cash, which management said included equity earmarked for the Piperi and Serifopoula acquisitions. The company also reported approximately $85 million in trade receivables at year-end. Balance sheet debt was $605 million, and Sbarounis noted that the company subsequently drew $90 million for the two Suezmaxes.
Sbarounis said book leverage stood at 46%, while market-adjusted net loan-to-value (LTV), based on latest broker values and pro forma for acquisitions and recent transactions, was around 35%.
On financing, the CFO said recent refinancings and new financings improved margins by about 140 basis points, with additional reductions expected once the company decides how to refinance Nissos Rhenia and Nissos Schinoussa. He added that Piperi and Serifopoula were financed in the Greek market at 130 basis points over SOFR for 7- and 8-year terms, respectively, and said debt markets remained “open and extremely competitive” as the company evaluated options for vessels expected to deliver in the second quarter.
Commercial performance and early 2026 market positioning
Alafouzos said the company achieved 100% fleet utilization in the quarter, noting the fleet was positioned to take advantage of seasonality and had limited exposure to a sharp post-Christmas dip in VLCC rates. He described trading tactics in both segments, including fixing shorter Suezmax voyages in a rising market and triangulating voyages where possible. He said two 2020-built Suezmax dry docks in China penalized performance due to positioning and backhaul economics, and the company was “strongly considering” a dry dock in Turkey for an upcoming docking to avoid costly repositioning back to preferred trading areas in the West.
For the first quarter, Alafouzos said “Q1 started with a bang,” citing strong fixtures rolling from Q4 into Q1 and additional fixtures concluded in Q1. He said Okeanis fixed a 12-month charter on Nissos Nikouria at $91,000 and $140 per day, while noting the company still expects spot ships to outperform and that the fleet remains largely spot-exposed.
As of the call date, management said it had fixed:
- 67% of VLCC spot days at $104,200 per day
- 64% of Suezmax days at $84,600 per day
That equated to a fleet-wide average of about $94,800 per day on the fixed portion, representing roughly two-thirds of the quarter, according to Alafouzos. He added that Q1 guidance also includes repositioning two newbuild vessels from South Korea to the West, with crude cargoes secured from West Africa.
Management’s market drivers: sanctions, trade flows, and consolidation
Alafouzos outlined several market factors he believes are supporting rates and asset values, including Venezuelan barrels returning “exclusively to the compliant fleet,” India materially reducing purchases of Russian crude, and what he called an “unprecedented” consolidation in VLCC ownership by Sinokor. He said Sinokor controls more than 90 ships and is operating a footprint of roughly 150 vessels, which he characterized as a “seismic shift” because the operator is focused on maximizing freight rather than protecting a trading business.
He also argued that a substantial portion of the large tanker fleet is sanctioned or “tainted” by non-compliant trading, which he said restricts supply available to the compliant market. He described this dynamic as “structurally bullish.”
In Q&A, Alafouzos said that even though market attention is on VLCCs, the Suezmax segment still looked attractive on a relative earnings-versus-price basis, adding that tighter VLCC conditions could create additional opportunities for Suezmaxes in certain routes. He also said Okeanis had not seriously considered selling ships to Sinokor, citing expectations of continued upside in rates. Management reiterated that its capital allocation priorities remained focused on distributing value to shareholders and keeping most vessels in the spot market for optionality, despite market volatility.
The company said it expects to provide its first-quarter update in May.
About Okeanis Eco Tankers (NYSE:ECO)
Okeanis Eco Tankers Corp. is a Marshall Islands–incorporated, publicly traded shipping company specializing in the ownership and operation of eco-design product tankers. The company made its debut on the New York Stock Exchange under the ticker “ECO” in May 2019 following an initial public offering. It focuses on the acquisition of newbuilding medium-range (MR) and long-range (LR) product tankers designed to deliver enhanced fuel efficiency and reduced emissions.
As of its public listing, Okeanis Eco Tankers’ fleet comprises twelve eco-efficient vessels built by Hyundai Samho Heavy Industries in South Korea.
