Company Presentation 29 October 2018 - okeanis eco tankers
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Company Presentation 29 October 2018
Disclaimer
This presentation (the “Presentation”) has been prepared by Okeanis Eco Tankers Corp. The Presentation reflects the conditions and views as of the date set out on the front page
(the “Company”) in connection with the invitation to participate in a potential investment of this Presentation. The information contained herein is subject to change, completion, or
in the shares in the Company. The invitation is not a public offer, and is not subject to amendment without notice. In furnishing this Presentation, no covered person undertakes
any prospectus requirements in any EEA member state. Thus, no prospectus has been any obligation to provide the Recipient with access to any additional information.
prepared in connection with the invitation in any EEA jurisdiction. This Presentation
has only been made and shall only be made available to a limited number of potential This Presentation has not been approved, reviewed by or registered with any public
investors (the “Recipients”). authority or stock exchange. The Company has not authorized any offer to the public
of securities, nor has it undertaken or plans to undertake, any action to make an offer of
The Recipients are reminded that the Presentation contains confidential and sensitive securities to the public requiring the publication of an offering prospectus in any member
information. By accepting this Presentation, each Recipient agrees to cause their directors, state of the European Economic area which has implemented the EU Prospective
officers employees, advisors, agents and other representatives to equally observe the Directive (Directive 2003/71/EC), as amended. No offer of any securities is directed to
commitments described in this notice and to use the Presentation only to evaluate the persons in any jurisdiction where such an offer would be in violation of applicable laws or
potential investment and not disclose any such information to any other party. whose acceptance of such an offer would require that (i) further documents are issued in
order for the offer to comply with local law or (ii) registration or other measures are taken
An investment in the shares in the Company will involve significant risks, including risk pursuant to local law.
of loss of the entire investment. Recipients should carefully review the Presentation and
related transaction documentation prior to making an investment decision. Investors This Presentation and the information contained herein do not constitute an offer of
should have the financial ability and willingness to accept the risk characteristics of the securities for sale in the United States and are not for publication or distribution to U.S.
Company and the risk associated with an investemtn in the securities of the Company. persons (within the meaning of Regulation S under the U.S. Securities Act of 1933, as
Recipients must conduct their own independent analysis and appraisal of the Company amended (the “Securities Act”)). The securities proposed to be offered in the Company
and of the data contained or referred to herein and in other disclosed information, and have not been and will not be registered under the Securities Act and may not be offered
risks related to an investment, and they must rely solely on their own judgement and that or sold in the United States or to U.S. persons except pursuant to an exemption from the
of their qualified advisors in evaluating the Company and its business strategy, and in registration requirements of the Securities Act. The shares of the Company have not and
determining the desirability of the investment. will not be registered under the Securities Act or any state securities law and may not
be offered or sold within the United States unless an exemption from the registration
The information contained in this Presentation has been obtained from the Company requirements of the Securities Act is available.
unless otherwise stated. While the information herein is believed to be correct, in all
material respects, the Company, including its affiliates and their respective members, This Presentation is subject to Norwegian law, and any dispute arising in respect of or
partners, employees, consultants and agents or any other person associated with any of in conncetion with this Presentation shall be subject to the exclusive jurisdiction of
the foregoing persons (each a “covered person”) makes no representation or warranty, Norwegian courts. The contents of this Presentation are not to be construed as financial
expressed or implied, as to the fairness, accuracy or completeness of the information legal, business, investment, tax or other professional advice. Each prospective investor
contained in this Presentation, or regarding any other additional information which has or should therefore consult with its own financial legal, business, tax or other adviser as to
will be made available to the Recipients in connection with the investment. Accordingly, financial legal, business and tax matters.
no covered person accepts any liability whatsoever for any loss of any nature arising from
use of this document or its contents or the additional information referred to above or
otherwise arising in connection therewith, except as may follow from mandatory law.
OKEANIS ECO TANKERS
I 2 I DISCLAIMERInvestment Highlights Company Overview Track Record & Performance Market Opportunity Risk Factors Appendix
Company Highlights
The only listed pure play eco and scrubber fitted tanker company with a trading fleet
Proven track
record through
55 years of successful
operations and
well-timed
asset plays Pure-play
First class company with
commercial 15 high-spec,
and technical scrubber fitted,
management eco-design
crude tankers
Access to Shareholder
competitive friendly structure
and diversified with top corporate
sources of capital governance
standards
Strong focus
on cost efficiency
in OPEX and G&A
OKEANIS ECO TANKERS
I 4 I INVESTMENT HIGHLIGHTSStars Aligned for a Crude Tanker Recovery
Asset Prices Close to All Time Lows Orderbook Well Below Historical Average
180 USDm VLCC, NB, Reported VLCC, NB, Inf. Adj 60 OB/fleet (%) VLCC orderbook
160 Long-term average
50
140
120 40
100
30
80
22%
60 VLCC Eco-Design vs. “Old Design” 20
Scrubber +$3m
40 Diff. in DWT +$2m 12%
BWTS +$2m 10
20 Total diff. +$7m
0 0
92 94 96 98 00 02 04 06 08 10 12 14 16 18 1996 1999 2002 2005 2008 2011 2014 2017
Increased Scrapping as Regulations Intensify Expected Oil Production Growth to Fuel Tanker Demand
Scrapping candidates (# of VLCC vessels)
40 4th Special Survey 10% Crude tanker dwt demand growth
5%
38 Scrapped or sold for scrapping Oil production growth
VLCC dwt demand growth, y/y %
35 36 37 8% 4%
Oil production growth, y/y %
30 6% 3%
25 27 4% 2%
20 2% 1%
20
15 0% 0%
10 11 -2% -1%
10
5 -4% 2014 deviation as U.S. was key driver, +2%
for production growth, but the export
2 ban was still in place.
0 -6% -3%
2016 2017 2018 YTD 2019 2020 2021 2022 2023 2011 2012 2013 2014 2015 2016 2017 2018
SOURCES: Fearnleys, IEA, EIA, OPEC.
NOTES: VLCC scrapping (est.) based on number of vessel to pass 4th SPS.
OKEANIS ECO TANKERS
I 5 I INVESTMENT HIGHLIGHTSOptimal Fleet to Capture Market Catalysts
New Regulations Expected to Structurally Change Market Scrubber-Fitted Eco Vessel Economic Benefit
45,000 USD/day Cal. 2020
Challenge Compliant Solution Spread Scenario2
+$9,200
Implementation of the IMO 40,000 $41,375
Entire OET
sulphur cap in 2020 will create a
Yes fleet will be
favourable environment for future-
scrubber fitted 35,000 Cal. 2020
proof and compliant tonnage MGO Price2
+$10,500 44 t/day1
Increased price for compliant 30,000
fuels will exacerbate differences Entire OET fleet
Yes
in trading economics between is eco design 25,000
eco and non-eco tonnage TD3 Cal. 2020
FFA Rates 41t/day
20,000 $21,675
IMO BWTS requirement is coming
Entire OET fleet
into force, requiring investment Yes
is BWTS fitted
and off-hire for older tonnage 15,000
Increasingly stringent vetting 10,000
and operating environment will Average fleet
favor younger fleets with lower Yes
age of 1.7 years 5,000
maintenance and operating
expenses
63 t/day 44 t/day1
0
Non-eco VLCC Eco design effect Scrubber effect OET VLCC TCE/day
SOURCES: Fearnleys, Braemar, Company.
NOTE: 1) ~3 t/day electric consumption for scrubber.
2) Cal. 2020 MGO Price $670/ton and Cal. 2020 HFO Price $340/ton.
OKEANIS ECO TANKERS
I 6 I INVESTMENT HIGHLIGHTSInvestment Highlights Company Overview Track Record & Performance Market Opportunity Risk Factors Appendix
Okeanis Eco Tankers
Overview of Okeanis Eco Tankers Organizational Chart
Domicile
Okeanis Eco Tankers incorporated in 2018 in the Marshall Islands. Investors
Alafouzos Family
Listed on the Merkur Market in Oslo under ticker OET-ME.
Offices 63% 37%
Piraeus, Greece.
Fleet OKEANIS ECO TANKERS CORP.
Focused/dedicated on crude oil transportation.
7 vessels on the water. Management Agreements 100% 100% 100% subsidiary
8 VLCCs at competitive price (including scrubber) SPVs
delivering in 2019. Kyklades On the water Orderbook OET
All vessels owned through Liberian/Marshall Islands Maritime Corp. Chartering
single purpose companies.
Technical Corporate
Management Management Management
($600/vsl/day) +
Corporate and commercial management is provided + Commercial
by OET Chartering Inc., a fully owned subsidiary of Okeanis Eco Tankers. Newbuildings Management
Supervision
Kyklades Maritime Corporation, a management company ($250,000/NB)
fully owned by the Alafouzos Family (“Sponsor”), provides technical 3 x Aframax
management to the fleet. 4 x Suezmax 8 x VLCC
Management Team
CEO Ioannis A. Alafouzos began his career in shipping in 1981 and has over 40 years of experience in all facets of the industry. Founded Kyklades Maritime Corporation in 1994.
He holds an MA from Oxford University in History of Economics.
COO Aristidis Alafouzos has over 10 years of shipping experience in operations and chartering. Previously, he has worked on the ACM S&P desk. Mr. Alafouzos is VC of the
Hellenic Mediterranean Panel of Intertanko, a member of the DNV GL Greek committee, and holds MSc in Shipping, Trade and Finance from Cass Business School.
CFO John Papaioannou has over 12 years of shipping experience in finance, capital markets and research. He was previously the head of strategy, research and IR at BW LPG
in Singapore. He holds a Bachelor’s degree in Finance from Boston University, an M.S.c. in Investment Management from Cass Business School and is a CFA charterholder.
SOURCES: Company. OKEANIS ECO TANKERS
I 8 I COMPANY OVERVIEWCorporate Governance
Corporate Governance Principles
Corporate Governance reflects a transparent The Company has an opportunistic approach to OET is the Sponsor’s primary vehicle
and shareholder friendly structure realizing value, including asset sales, dividend for tanker shipping activities
One share, one vote payment and/or consolidation OET has Right of First Refusal on all future
No staggered board Shares trade on Merkur Market S&P, Chartering or other relevant transactions
No anti-takeover provisions under the ticker OET-ME sourced by the Sponsor at identical terms
Uplisting to Oslo Axess has been initiated
Board of Directors
Election Criteria
Board of Directors represent all of the company’s stakeholders through; i) investor representative(s), ii) Sponsor representative(s) and, iii) independent representative
Ioannis A. Alafouzos John Kittmer Charlotte Stratos Joshua Nemser Daniel Gold Robert Knapp
served as the CEO of the British Ambassador to is a Senior Advisor to Morgan is a research analyst at is the CEO, managing is the CIO of Ironsides
Kyklades Maritime. Mr. Greece for the period from Stanley’s Investment VR Capital Group. Prior to partner and founder of Partners, an investment
Alafouzos began his career 2013 to 2016 has served Banking Division-Global joining VR, Mr. Nemser was QVT Financial LP, an asset manager based in Boston
in shipping in 1981 and has various other positions in Transportation team since an investment banking management company which he founded in
over 40 years of experience the past such as Director May 2008. From 1987 to associate at Moelis & with offices including New 2007. Mr. Knapp serves
in all facets of the industry. of Overseas Territories 2007, Ms. Stratos served Company, where he York, London, Singapore, as a director for several
He holds an MA from Oxford as Commissioner of the as MD and head of Global advised on a range of M&A and New Delhi. QVT investment companies
University in History of British Indian and Antarctic Greek Shipping for Calyon and restructurings. Mr. Financial, through its including MVC Capital listed
Economics. Territories. He holds a BA in Corporate and Investment Nemser holds a J.D. from managed funds, is an on the NYSE and was a
Classics from the University Bank of Credit Agricole. the New York University experienced global investor director of MPC Container
of Cambridge and a MA in Currently serves as an School of Law, where he in the shipping and offshore Ships AS when it was
Modern Greek Studies from independent director, for graduated magna cum industries. Mr. Gold holds an founded. He is a graduate of
King’s College. Costamare Inc. laude, and a B.S. in business AB in Physics from Harvard Princeton University in the
administration from the College. Mr. Gold is an US and Oxford University in
University of Southern American citizen. the UK.
California.
OKEANIS ECO TANKERS
I 9 I COMPANY OVERVIEWFuture-Proof, High-Spec Fleet
Fleet Attributes
Attractive mix of crude tanker vessels Future-proof specifications All vessels with eco design
All vessels built at first class S. Korean and Japanese yards
Entire fleet to be scrubber fitted All vessels have BWTS installed
Type Name Yard Country Built DWT Eco-Design? Scrubber? BWTS? 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 Charterer Expiry
Nissos Heraclea HHI Korea 2015-07 114,322 Yes Upon redely Yes $19,450 $25,0001 Total Mar-20
Aframax/LR2 Nissos Therassia HHI Korea 2015-01 114,322 Yes Yes Yes
Nissos Schinoussa HHI Korea 2015-09 114,322 Yes Yes Yes
Milos SSME Korea 2016-10 157,537 Yes Yes Yes $15,850 + 50% P/S2 $19,000 + 50% P/S2 Vitol Apr-19
Poliegos SSME Korea 2017-01 157,537 Yes Yes Yes $18,500 Vitol Jan-19
Suezmax
Kimolos JMU Japan 2018-05 159,159 Yes Yes Yes $18,500 Trafigura Apr-19
Folegandros JMU Japan 2018-09 159,159 Yes Yes Yes
HHI 3012 HHI Korea 2019-04 318,953 Yes Yes Yes $35,2283 Koch Apr-24
HHI 3013 HHI Korea 2019-05 318,953 Yes Yes Yes $35,2283 Koch May-24
HHI 3014 HHI Korea 2019-06 318,953 Yes Yes Yes $35,2283 Koch Jun-24
HHI 3015 HHI Korea 2019-07 318,953 Yes Yes Yes $35,2283 Koch Jul-24
VLCC TC Fixed Period with Profit Split
HHI 3050 HHI Korea 2019-08 318,953 Yes Yes Yes TC Optional Period with Profit Split
HHI 3051 HHI Korea 2019-09 318,953 Yes Yes Yes Time Charter Fixed Period
HHI 3089 HHI Korea 2019-10 318,953 Yes Yes Yes Time Charter Optional Period
Spot
HHI 3090 HHI Korea 2019-12 318,953 Yes Yes Yes
Charter Coverage (% of Fleet)
Charter Coverage
61%
Charter Coverage inclusive options The fleet will have an average age of 1.7 years
49%
(global crude tanker fleet average 9.4 years)
6%
7%
29%
27% on a fully delivered basis, making it one of the
youngest and most advanced fleets in the world
2H 2018 2019 2020 2021
NOTE: 1) First optional year expiry Mar’ 2021, second optional year expiry Mar’ 2022, declarable March 2019.
2) For the firm period 100% Profit Share up to $18,000 and then 50%. For the optional period 100% Profit Share up to $21,000 and then 50%.
3) • Average T/C rate for 5 year duration.
• The Time Charter rate will be adjusted upwards to USD 37,030 (vs USD 32,525) per vessel for years three, four and five.
• The Charterer will have an option, declarable November 2018, to convert the TCPs into
six year period instead of five year period, with rate being adjusted to USD 38,000/day in year six.
• OET will have the option to cancel the TCP at their own discretion from the end of year three
until the expiry of the charter without any penalty or premium payable to Koch. I
OKEANIS ECO TANKERS
I
10 COMPANY OVERVIEWEco Fuel Savings and Scrubber Benefit
Bunker Prices — MGO vs. HFO Aggregate Fuel1 Savings Benefit
USD/ton USD/day
1,400 Spread in USD/ton 20,000 Scrubber Effect
Current 263 Forward Prices 9,200
Average 226 Eco Effect
Spread Max 636
1,200 MGO Min 124
HFO Calendar 2020 330
15,000
1,000 5,850
800
10,000 10,500
600 8,800 4,450
400
5,000
4,200
200
0 0
2004 2005 2007 2008 2010 2011 2013 2014 2016 2017 2019 2020 2022 VLCC SUEZ AFRA
Highly attractive outlook for fuel savings and scrubber economics basis calendar 2020 bunker prices
SOURCES: Fearnleys, Company.
NOTE: 1) Cal. 2020 MGO Price $670/ton and Cal. 2020 HFO Price $340/ton.
OKEANIS ECO TANKERS
I 11 I COMPANY OVERVIEWEco & Scrubber Market Share
Total VLCC Fleet (755 Vessels) as at Jan 20201 VLCC Fuel Consumption Comparison
Non-Eco
+ Scrubber
5%
Laden (155 days) Ballast (105 days) 2020 Bunker Fuel
Eco
+ No Scrubber Non-Eco VLCC 70 tons/day 53 tons/day MGO
22%
Eco VLCC w/o scrubber 48 tons/day 31 tons/day MGO
Eco VLCC w/ scrubber 51 tons/day 34 tons/day HFO
Eco Remaining Fleet
+ Scrubber 90%
12%
~30%
Non-Eco
+ No Scrubber
61%
lower
consumption
OET Fleet10%
SOURCES: Braemar, Company.
Scrubber Fitted Tankers
140 17%
(128 of 755 vessels)
In Service + Fitted Percentages of projected
120 In Service + Retrofit
On Order fleet size as at Jan 2020
100
74 Based on existing reported
80 scrubber installations,
17%
(61 of 366 vessels) planned retrofits & orders only
60
12
7%
(38 of 575 vessels) Does not include any projections
40
43 3% of further scrubber ordering
22 (20 of 653 vessels) 45
20
11 11 Channel checks with bunker suppliers
11 6
0 5 3 4 confirmed HFO availability
VLCC Suezmax Aframax LR2
SOURCES: Fearnleys, Company.
NOTE: 1) Non-Eco fleet is estimated to include deliveries up to 31/12/2014.
OKEANIS ECO TANKERS
I 12 I COMPANY OVERVIEWFinancial Overview
Lender Facility Amount Outstanding LTV Margin AARP
USDm USDm % % Years
BNP Paribas (Nissos Heraclea) $40 $33 81% 2.25 17
HSH (Nissos Therassia & Nissos Schinoussa) 73 58 71% 2.60 17
ABN Amro (Milos) 37 32 61% 2.50 15
Alpha Bank (Kimolos, Folegandros) 89 89 79% 3.10 20
OCY lease (Poliegos) 47 45 80% 4.84 18
OCY lease (4 x VLCC NBs) 297 33 83% 4.82 17
Credit Suisse (1 x VLCC NB Hull 3051) 58 — 65% 2.25 17
BNP Paribas (1 x VLCC NB Hull 3089) 58 — 65% 2.25 18
Indicated bank debt (2 x VLCC NBs) 115 — 65% 2.25 17
Indicated Scrubber debt 14 — 100% 3.50 5
Total $828 $290 74% 3.47 17
Diverse Group of Financiers Main Debt Covenants
Minimum asset coverage ratio of 120%
Minimum cash and cash equivalents of $10MM
Maximum total LTV of 75%
We have received financing commitments from Credit Suisse and BNP Paribas for two VLCC newbuildings
NOTE: As of 30 September 2018.
OKEANIS ECO TANKERS
I 13 I COMPANY OVERVIEWFunding Gap
USDm
600 $10 $5 $580 $264
$14
$551
500
400
$116
300
$115
200
100 $14
$24
$2 $45
0
VLCC NB Scrubber NB Working Total Uses 4 x VLCC NB 2 x VLCC NB 2 x VLCC Scrubber Free Cash FCF Funding Gap
Yard Payments Retrofit Predelivery Capital OCY Lease Credit Suisse NB Bank Debt Financing 30 Sep 2018 4Q2018-FY2191
Capex Expenses (firm) & BNP Paribas (indicated) (indicated)
& Fees (firm)
OET successfully concluded financing commitments for two VLCC newbuildings
with Credit Suisse AG and BNP Paribas at industry leading terms:
• Amount: ≥65% of SBCs
• Margin: Libor + 2.25%
• Profile: ≥17 Years
• Predelivery financing permitted
The Company expects to finance the remaining two VLCC NBs at similar terms, leaving a funding gap of only ~$45MM.
NOTE: 1) Basis Fearn Research rate forecast.
OKEANIS ECO TANKERS
I 14 I COMPANY OVERVIEW2020 Free Cash Flow Sensitivity
Current 1Y TC 5y average 15y average Peak Historical peak1
last 5 years1
TCE rate assumptions:
VLCC USD/day 29,000 33,910 46,041 66,137 108,324
Suezmax » 19,000 26,050 36,580 46,771 77,327
Aframax » 15,500 22,319 27,312 38,026 50,419
TCE earnings incl. eco & scrubber effect USDm 175 215 251 307 419
Opex » -40 -40 -40 -40 -40
G&A (USD 1,200/day per vessel) » -7 -7 -7 -7 -7
EBITDA USDm 128 168 204 260 372
Depreciation -40 -40 -40 -40 -40
Interest expense (spread +3.0% libor) » -50 -50 -50 -50 -50
Net Profit 38 78 114 170 282
Add back depreciation 40 40 40 40 40
Debt & Finance lease amortization » -44 -44 -44 -44 -44
Net Cash Flow USDm 34 74 110 166 278
Dividend Yield (full payout) 11% 25% 37% 55% 93%
Pro-Forma Equity 2 300 300 300 300 300
Dividend Yield (full payout) Assumptions
100% 93%
Vessels OPEX Eco Scrubber
Savings Savings
80%
VLCC 8 $7,000 $10,500 $9,500
60% 55% Suezmax 4 $6,500 $8,800 $6,050
Aframax 3 $7,000 $4,200 $4,600
40% 37%
25%
20% 11% Fleet on a fully delivered basis.
0% Time chartered vessels are assumed to earn their fixed rate.
Current 1Y TC 5Y Average 15Y Average Peak Historical peak
last 5 years
NOTE: 1) Annual averages.
2) Market Cap. of $250m plus $50m of additional equity requirements.
OKEANIS ECO TANKERS
I 15 I COMPANY OVERVIEWNAV Sensitivity
Capital structure geard for recovery in asset values and enhanced equity uplift
USDm
900
+191%
800
+153%
700
+115%
600
+77%
500
+38%
400
300
200
100
0
NAV Values Values Values Values Values
+10% +20% +30% +40% +50%
SOURCES: Company estimates.
OKEANIS ECO TANKERS
I 16 I COMPANY OVERVIEWSuezmax Resale Opportunity
The company holds an option to acquire a high-spec, 158k dwt scrubber-fitted, Eco Suezmax resale at $65MM
The vessel is under construction at top-tier Korean yard with an ideal delivery position in Q2 2020
Tail-heavy payment terms provide an inherent leverage effect, unlocking equity uplift potential from an asset play
Cumulative Instalment Schedule ($MM) Asset Play Economics - Equity IRR on Sale
$70
$43.90 $65.00 Sale Date
$60 All-in price inc. scrubber: $65MM
Signing 15-Oct-19 15-Jan-20 15-Apr-20 15-Jun-20
$50 Only ~13% of total price due in next 12 months $70 - 100% 67% 44% 34%
$75 - 203% 131% 86% 65%
Sale Price
$40
$80 - 307% 192% 125% 95%
$30
$85 - 412% 250% 162% 124%
$6.33
$20 $90 - 518% 307% 198% 151%
$6.33
$10 $3.17
$5.28 $8.45 $14.78 $21.11 $65.00
$5.28
_ Cumulative Instalments ($MM)
Signing 15-Oct-19 15-Jan-20 15-Apr-20 15-Jun-20 Fully
Delivered
Instalment schedule provides leveraged economics for an ideal asset play
OKEANIS ECO TANKERS
I 17 I INVESTOR PRESENTATIONUnique Investment Opportunity
An unparalleled value proposition through a unique combination of attributes
All Eco and scrubber fitted fleet of 15 high-spec crude tankers.
Future Proof Entire fleet exclusively built at Tier 1 shipyards.
Youngest average age of any listed peers with ships on water.
Substantial TC coverage for 2018 and 2019.
Solid Liquidity Runway
Increasing spot exposure 2020 onwards.
3 x Aframaxes plus 4 x Suezmaxes on the water and 8 x VLCCs delivering in 2019.
Ability to Instantly Capture Recovery Spot exposure of >50% for 2019 and >65% for 2020.
Strong NAV uplift potential on firming asset values through >70% LTV.
Diversified source of debt funding.
Proven Access to Lenders Long and well established relationships with key industry lenders.
Indications for 65% LTV facilities atInvestment Highlights Company Overview Track Record & Performance Market Opportunity Risk Factors Appendix
Tanker Asset Play Track Record
Proven ability to execute successful tanker asset plays since entering the market in the 1980’s
Vessels' Price Index
300
Vessel Purchase
Vessel Sale
Vessels’ Price Index
250
1993-1999 2002-2007 2016-2018
Sale of S/H Sale of D/H Sale of
Non-Eco
200
150
100
1984-1992 2013-2018
50 Entry to 1995-2004 Fleet Replacement
Tanker Segment Fleet Replacement Purchase of
Purchase of S/H Purchase of D/H Future-Proof Tankers
0
1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
SOURCES: SIN, Company. OKEANIS ECO TANKERS
I 20 I TRACK RECORD & PERFORMANCECommercial Management Performance
OET Consistently Outperforms Peers Commercially Core Clients
Peer Comparison - Aframax
40,000 USDm Peers (avg.)
Average 36,581
outperformance OET
35,000 32,368
of ~ USD 2,700 / day
30,000
25,000
24,615
20,450 21,245 22,594
20,000
17,217
15,000 14,471 13,808 14,870
11,950 11,922 12,341
11,567
10,000
5,000
0
2013 2014 2015 2016 2017 Q1 2018 Q2 2018
Peer Comparison - Suezmax
50,000 USDm Peers (avg.) Commercial Approach
Average 41,937 OET
40,000 outperformance 39,12340,767 Client focus
of ~ USD 4,500 / day
30,000 27,838 Vast network
21,354 23,174 22,393 21,128 19,507
Flexible chartering strategy
20,000 16,589 17,865
13,660 12,727 12,958 Experienced chartering staff
10,000
Preferred service provider
0 Contrarian fixing strategy
2013 2014 2015 2016 2017 Q1 2018 Q2 2018
SOURCES: Company.
NOTE: Aframax Peers include Gener8, OSG, Teekay, Frontline, Pool Peer 1 and Pool Peer 2.
Suezmax Peers include Euronav, Frontline, Genmar, Teekay, Pool Peer 1 and Pool Peer 2.
OKEANIS ECO TANKERS
I 21 I TRACK RECORD & PERFORMANCETechnical and Corporate Management ~ 17%
Highest Quality at a Competitive Cost lower opex
on average
USD/day VLCC1 Suezmax Aframax
12,000
10,250
10,000 9,000 9,000
8,200 8,500 8,560 8,200
8,000 7,600 7,500 7,500
7,000 7,100 6,748
6,524 6,600
6,000
4,000
2,000
0
OET Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 OET Peer 1 Peer 2 Peer 3 OET Peer 1 Peer 2 Peer 3 Peer 4
Competitive G&A ($ per Ship Day) Key Performance Factors
$3,500 Strict cost control
Experienced and dynamic fleet to shore culture
$3,000
Economic, Effective and Efficient OPEX below market averages
$2,500
Excellence in vetting inspections
$2,000 Avg. G&A $1,975
In-House Live Vessels’ Performance Monitoring System
$1,500 Zero Cargo Claims
$1,000
Minimum Off-Hire Days
$1,2002
$1,945
$3,325
$1,390
$2,248
$1,943
$2,142
$1,738
$1,846
$500
Kyklades’ reputation for stringent quality control and maintenance has resulted
$0 inInvestment Highlights Company Overview Track Record & Performance Market Opportunity Risk Factors Appendix
VLCC Market Update
VLCC spot rates have improved in Q4 Driving 1Y timecharter rates higher
Non-Eco VLCC Daily TCE Rate on Middle East - Asia Benchmark Route Non-Eco VLCC One Year Timecharter Rate
$40,000
$40,000 $28,000
$28,000
$35,000 $27,000
$27,000
$35,000
$26,000
$26,000
$30,000
$30,000 $25,000
$25,000
$25,000
$25,000 $24,000
$24,000
$20,000
$20,000 $23,000
$23,000
$15,000 $22,000
$22,000
$15,000
$21,000
$21,000
$22,000
$22,000 $20,000
$20,000
$10,000
$10,000 $19,000
$19,000
$5,000
$5,000 $18,000
$18,000
Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18
Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18
Resale values (exc. Scrubber) have also bottomed Newbuilding orders have come to a standstill
VLCC Resale Values ($ MM) VLCC Contracting
$100
$100 15
15
$95
$95
10
10
$90
$90
55
$85
$85
$80
$80Jan-16 --
May-16 Sep-16 Jan-17 May-17 Sep-17 Jan-18 May-18 Sep-18
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-17
Oct-17
Nov-17
Dec-17
Jan-18
Feb-18
Mar-18
Apr-18
May-18
Jun-18
Jul-18
Aug-18
Sep-18
Jan-16 May-16 Sep-16 Jan-17 May-17 Sep-17 Jan-18 May-18 Sep-18
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-17
Oct-17
Nov-17
Dec-17
Jan-18
Feb-18
Mar-18
Apr-18
May-18
Jun-18
Jul-18
Aug-18
Sep-18
SOURCES: Clarksons. OKEANIS ECO TANKERS
I 24 I MARKET OPPORTUNITYCrude Tanker Fleet Growth
Crude Tanker Orderbook Crude Tanker Ordering
60% 80
Orderbook to fleet ratio (dwt)
50% 70
40% 60
Contracting of +42k dwt tankers
Average
30% 50
Million dwt
40
20%
30
10%
20
0%
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
10
Crude OB/Fleet Afra OB/Fleet Suez OB/Fleet 0
VLCC OB/Fleet Average Crude Fleet 1991 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
VLCC/Suezmax/Aframax Fleet Growth (# of ships)
1834 1835 1849
1821
1760 1750
72 Projection basis no future orders
1654 1663 1675
1652
1600
7
151 1502
60 44 86 120 92 99 75 93 88 1449 4
132 149 115 53 34 32 95 132 54 101 48 12 Fleet size* (end year)
-58 -83 -64 -76 -45 -31 -34 -69 -86 -56 -79 -51 -61 -44 -45 -9 -10 -58 -54 -69 -82 -87
Delivered
1352 1354 Scheduled deliveries
1328 Removed
1287 -50
-19 Future removal
1219 Net NB slippage
1145 1172 -21
1106 1128
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
SOURCES: Braemar ACM, Fearnleys.
NOTE: Projected fleet growth excludes unverified orders and options.
OKEANIS ECO TANKERS
I 25 I MARKET OPPORTUNITYScrapping Potential
Scrapping vs Market Conditions New Regulations Will Lead to Increased Scrapping
Sulphur Cap:
# of vessels / avg. age USD/day
USD/day
From 1/1/2020, the global 0.5% Sulphur cap will be in effect,
35
40 Spot market TCE avg. 100,000
110,000
# of VLCC scrapped 90,000 forcing the total merchant fleet (approx. 70,000 vessels)
35
30 Spot market
Avg. scrap TCE avg.
age 100,000
# of VLCC scrapped
to comply with new fuel emission standards .
80,000
90,000
30 Avg. scrap age
25 70,000
80,000 Vessels will be required to either run on MGO or install scrubbers
25 70,000
60,000 to be able to continue using HFO.
20
20 60,000
50,000 Current MGO / HFO spread is approx. USD 242/mt.
15 50,000
40,000
15 40,000
10 30,000
10 30,000 Ballast Water Treatment System (BWTS):
20,000
20,000
5
5 All new vessels have to be built with BWTS.
10,000
10,000
0
0 0
0
Existing vessels will be required to fit BWTS
on their first statutory dry docking survey after 8 September 2019.
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Scrapping Candidates (basis 4th SPS) Other Key Observations for Scrapping
Current weak market conditions has led to higher scrapping
# of vessels for 4th SS 75 VLCC freight rates are close to all-time-low levels.
40 37
36 Year-to-date, 38 VLCCs have been scrapped or confirmed sold for demolition.
35
35 This follows 10 vessels in 2017.
31
30
30 Aging fleet and high number of upcoming special surveys
27 27
25 24 In 2020, over 30% of the VLCC fleet will be over 15 years old.
20 21 158 VLCCs will go through 3rd or 4th SS in the next 3 years.
20 18 Regulations will drive scrapping even in an improving market
17
14
15 This has been seen before, when the pre-marpol single-hull phase out
11 11
10 from April 2005 caused 28 VLCCs to be scrapped in 2003,
7 despite rates averaging $55,000/day.
5
Attractive scrap prices
0 On 5/2016 scrap price was less than $250 per ton
2018
2019 2019
2020 2020
2021 2021
2022 2022
2023 2018
2019 2019
2020 2020
2021 2021
2022 2022
2023 2018
2019 2019
2020 2020
2021 2021
2022 2022
2023
VLCC Suezmax Aframax / LR2 while in 2018 it surpassed $450 per ton.
SOURCES: Fearnleys , Company. OKEANIS ECO TANKERS
I 26 I MARKET OPPORTUNITYCrude Oil Demand
Crude Oil Demand Expected to Continue Growing OECD Stocks Vs 5-Year Average are Shrinking
115 400
IEA WEO NP in 2011 Asia Pacific
IEA WEO NP in 2013 Europe
110 IEA WEO NP in 2015 Americas
IEA OMR Apr’18 300
IEA M TO MR 2018
Million barrels per day
105
200
Million barrels
100
100
95
0
90
85 -100
80 -200
2014 2015 2016 2017 2018
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
OPEC Output: Cuts Expected to be Reversed Expected Oil Production Growth to Fuel Tanker Demand
35 OPEC actual output 10% 5%
Call-on-Opec Crude tanker dwt demand growth
Oil production growth
VLCC dwt demand growth, y/y %
34 8% 4%
Oil production growth, y/y %
Million barrels per day
33 6% 3%
32 4% 2%
31 2% 1%
30 0% 0%
29 -2% -1%
2014 deviation as U.S. was key driver,
28 -4% for production growth, but the export -2%
ban was still in place.
27 -6% -3%
2014 2015 2016 1q17 2q17 3q17 4q17 1q18 2q18 3q18 4q18 2011 2012 2013 2014 2015 2016 2017 2018
SOURCES: Fearnleys, IEA, EIA, OPEC. OKEANIS ECO TANKERS
I 27 I MARKET OPPORTUNITYUS Oil Exports
Growing portion going the long haul to Asia
US Shale Oil Production US Crude Oil Production
Thousand barrels per day Million barrels per day
7,000 11.9
Monthly revised
6,000 11.4 EIA forecast
Appalchia Weekly estimated
Permian
5,000 Niobrara 10.9
Anadarko
4,000 Haynesvill 10.4
Eagle Ford
Bakken
3,000 9.9
2,000 9.4
1,000 8.9
0 8.4
Jan-15
Apr-15
Jun-15
Oct-15
Jan-16
Apr-16
Jun-16
Oct-16
Jan-17
Apr-17
Jun-17
Oct-17
Jan-18
Apr-18
Jun-18
Oct-18
Jan-19
Apr-19
Jun-19
Oct-19
Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Increase in Shale Oil Production US Crude Exports by Destination, 2017
Million barrels per day Million barrels per day
2,550 1.2
5-year range
Canada
2013-2017 avg. 1.0
2,050 2017 Asia
2018 Europe
0.8 Americas
1,550
0.6
1,050
0.4
550 0.2
50 0
1 5 9 13 17 21 25 29 33 37 41 45 49 2012 2013 2014 2015 2016 2017
SOURCES: Fearnleys, EIA. OKEANIS ECO TANKERS
I 28 I MARKET OPPORTUNITYSubstantial Increase in Ton Miles
New oil production versus New oil consumption, by area – 2023 versus 2017.
The Atlantic-East trade flow that has been key for ton-miles since 2009 is likely to continue, perhaps even accelerate over the medium-term.
West of Suez will provide 81% of the East of Suez will provide 81% of the new oil consumption
new oil production through 2023. and 74% of the refinery capacity through 2023.
Europe: FSU:
0.6 mbpd surplus 0.2 mbpd deficit
China:
2.2 mbpd deficit
Middle East:
1.5 mbpd surplus
Americas:
5.1 mbpd surplus
Other Asia:
2.6 mbpd deficit
Africa:
0.3 mbpd deficit 20 days carriage
31-49 days carriage
SOURCES: Fearnleys. OKEANIS ECO TANKERS
I 29 I MARKET OPPORTUNITYInvestment Highlights
Company Overview
Track Record & Performance
Market Opportunity
Risk Factors
Appendix
OKEANIS ECO TANKERS
I 30 I INVESTOR PRESENTATIONOET Risk Factors [1/3]
Introduction alia, harsh environment, nautical and maritime operational risks, acts of piracy
Investing in the shares in the Company involves inherent risks. Prospective investors and terrorism. While the Company has taken out customary insurance to cover
should carefully consider, among other things, the risk factors set out in this Company exposure, insurance may not be availableor provide sufficient coverage.
Presentation before making an investment decision. The below risk factors constitute
a non-exhaustive summary of risks applicable to the Company. A prospective investor Construction Risk
should carefully consider all the risks related to the Company, and should consult his The Company has an ambitious newbuilding programme. All construction projects
or her own expert advisors as to the suitability of an investment in securities of the involve a degree of technical risk. Unforeseen delays, technical issues, modifications
Company. An investment in securities of the Company is suitable only for investors or variations to the Vessels, requests from clients or similar may involve risks of cost
who understand the risk factors associated with this type of investment and who can overruns and/or delays compared to the contemplated budget and/or delivery plan.
afford a loss of all or part of the investment. Against this background, an investor should The Company’s fleet (the newbuidlings as well as the vessels recently acquired)
make a careful assessment of the Company and its prospects before deciding to invest. incorporate many technological and design features, such as new hull and
propulsion designs, energy saving devices, de-rated electronic engines and other
General equipment not previously tested. While the Company expects that vessels with
The Company is engaged in the crude tanker segment, which is a sector subject such features will generate operational advantages and cost savings which, in turn,
to significant risks and volatility. In addition to operational exposure inherent in will increase charter demand for our vessels, there is no assurance that they will
international shipping, uncertainties in the financial markets, and adverse effects from do so. If they do not generate the anticipated benefits, competition from vessels
potential trade wars and/or restrictions, in particular, global economic slowdown and without these features, but with lower charter rates, could adversely affect the
disruptions in the credit markets may influence demand for oil and, in turn, demand amount of charter hire payments the Company receives for the vessels and, in
for crude tanker capacity. This may have an adverse effect on the Company’s results of turn, the return on investment on such vessels. As a result, the business, financial
operations and financial condition. If the current crude tanker overcapacity persists, condition and results of operations of the Company could be adversely affected.
or if crude freight rates remain at historically low levels, this could negatively affect the The construction contracts may be terminated in various circumstances. The yard’s
financial performance of the Company. By subscribing for an interest in the Company, obligation to repay the instalments under the construction contracts in case of
investors shall be deemed to have acknowledged that any investment in the crude justified termination by the Company is secured by the refund guarantees. Such
sector shall carry a high risk and that, accordingly, the investor may suffer a loss on such refund guarantees may not adequately compensate the Company in the event of
investment. default by the yard. Also, there is the risk that a refund guarantor could refuse or
delay to refund part or whole of instalments paid. If the construction or delivery of
Risks related to the Company’s operations and market the Vessels are delayed or not completed at all, there is a risk that the Company
The Company operates in a highly competitive and fragmented market, which will not be able to implement its business plan which will materially and adversely
includes several large owners and operators, as well as numerous smaller impact the Company’s business and financial condition.
competitors. The supply and demand fundamentals are volatile and often difficult
to predict, the developments of which will have a significant impact on the Risks related to the employment of the Vessels
Company’s financial condition and the value of its shares. Also, the Company’s The Company’s ability to obtain charter contracts for the Vessels will depend on the
vessels are trading the high seas world wide, with inherent risks as to accidents prevailing market conditions. No assurance can be given that employment contracts
and adverse incidents resulting from exposure to diverse sources, such as, inter can be secured for all Vessels on commercially satisfactory terms. An inability or ^
a
OKEANIS ECO TANKERS
I 31 I RISK FACTORSOET Risk Factors [2/3]
delay by the Company to generate charter hire from for the Vessel will materially and Risks relating to regulatory and environmental requirements
adversely impact the Company’s business and financial condition. Also, while fixing The international shipping industry is subject to increasingly stringent and demanding
of vessels on charter contracts will secure earnings for the relevant period (subject to regulatory, environmental and operational requirements. While the Company’s fleet
customary operational and counterparty risks), it will typically prevent the Company is modern and designed to comply with all applicable conditions, the investments
and the relevant vessel from taking part in and benefitting from any increase in charter necessary and the expenses to be incurred in order to satisfy relevant rules going
rates during the relevant period. The market for crude tankers has historically seen forward could be significant and potentially affect the profitability and financial results
very volatile charter rates and has over the last few years been depressed, mainly due of the Company.
to over-supply of oil tankers. No guarantee can be made that rates will increase to the
level projected by the Company or that the future rates available to the Company will Risks related to matters of conflicts of interest
be sufficient to cover its costs. If the charter market remains weak, the Company may Some of the Company’s directors, officers sand principal stockholders have affiliations
enter into contracts on less favorable terms than projected. This may have a material with entities that have similar business activities to those planned conducted by the
adverse impact on the financial condition of the Company and the second-hand value Company. Certain of the Company’s directors are also directors of other shipping
of the Vessels. The Company’s financial performance may be subject to greater risk of companies and they may enter similar businesses in the future. These other affiliations
loss than if its assets were more widely diversified, and the Company’s vessels are on and business activities may give rise to certain conflicts of interest in the course of such
charter to a limited number of customers with resulting counterparty risk. individuals’ affiliation with the Company. Such directors will, however, be expected to
disclose any such conflicts as appropriate. Certain services to the Company are being
Lack of operating history and/or will be performed under contract by entities related to some of the Company’s
Although the Sponsor and its management have extensive experience in the shipping directors.
industry, the Company is an entity established in 2018 with no operating history upon
which to evaluate the Company’s likely performance. The past performance of the Risks resulting from reliance on third party managers
Sponsor and its affiliates is not necessarily indicative of future results for the Company, The Company depends upon third party managers and their ability to provide
and there can be no assurance that the Company will achieve comparable results, construction management services and maritime management for the Vessels. Any
or that the returns generated by previous managed companies may equal or exceed failure by any manager to perform its duties and obligations may adversely affect the
those of the Company. Moreover, the principal terms governing the Company may construction, operations, performance and profitability of the Vessels.
be different than those related to previous companies. The Company’s strategy and
risk tolerance may be impacted by such differences. Investors should therefore not Limited liability and indemnification Risk
place undue reliance on prior investment information and should take the foregoing Subject to certain exclusions, the Company’s service providers and the members of
additional risks into account in reviewing such information. the board will have no liability for any loss to the Company or the investors arising in
connection with the operation of the Company. Further, the Company will indemnify
Pollution Risk the foregoing persons against claims, liabilities, costs and expenses incurred by them
All Vessels carry pollutants and the cargo of crude tankers is highly pollutant. by reason of their activities on behalf of the Company or the investors. Such limited
Accordingly, there will always be certain environmental risks and potential liabilities liability and indemnification if invoked, may affect the performance of the Company
involved in the ownership and operation of commercial shipping vessels. While and the investor’s returns. Because the Company is incorporated under the laws of the
insurance coverage is sought, relevant exposures and liabilities may not be fully covered republic of the Marshall Islands, it may be difficult to serve the Company with legal
and this may have an adverse effect on the Company’s financial results. process or enforce judgments against the Company, its directors or management. ^
b
OKEANIS ECO TANKERS
I 32 I RISK FACTORSOET Risk Factors [3/3]
Risk related to Tax Risks related to the Shares (price volatility)
Changes in taxation law or the interpretation of taxation law may impact the business, The market price of the Shares could be subject to significant fluctuations in response
results of operations and financial condition of the Company. To the extent tax to actual or anticipated variations in the Company’s operating results and/or those of its
rules change, this could have both a prospective and retrospective impact on the competitors, adverse business developments, changes to the regulatory environment
Company both of which could be material. If any tax authority were to successfully in which the Company operates, macro-economic developments, changes in financial
challenge the Company’s corporate or operational structure, taxable pretense or similar estimates by securities analysts, and the actual or expected sale of a large number of
circumstances, the Company‘s effective tax rate could increase substantially and the Shares, as well as other factors.
Company’s earnings and cash flows from operations could be materially adversely
affected. Risks related to the Shares (limited dividend distributions)
Dividend distributions from the Company to its shareholders may be limited due to
Financing Risk restrictions of the ability of the vessel-owning subsidiaries to upstream funds to the
Shipping finance markets, including debt and equity markets, have been challenging Company. In any event, distributions will depend, inter alia, on the cash flows and
over the last few years. There is only a limited number of financial institutions active operating results from the Vessels. Investors should not expect distributions
in the ship lending business and as a result we might only be able to secure debt for 12-24 months after the closing of the Private Placement.
financing at more adverse terms than described in this presentation or not secure
any debt financing at all. Moreover, we might not have access to equity and/or credit The Shareholders may be subject to restriction on transfers of the Shares
markets, which could further restrict the availability of financing available to the The Shares are freely transferable and may be pledged, Provited that shareholders may
Company. The resultant lack of available financing and/or higher financing costs and be subject to purchase or transfer restrictions with regard to the Shares as applicable
more onerous terms may materially impact on the performance of the Company, from time to time under local laws to which a shareholder and/or investor may be
including its ability to expand its fleet as contemplated. subject (due e.g. to its nationality, its residency, its registered address, its place(s)
Several of the financing agreements entered into by the Company (or relevant for doing business). Each shareholder must ensure compliance with local laws and
subsidiaries) contain change of control provisions which will trigger an event of default regulations applicable at own cost and expense.
if Glafki Marine Corp. (and/or other entities or persons controlled by the Alafouzos
family) reduce their aggregate shareholding in the Company below 51 per cent. The Shares may not be a suitable investment for all investors
Each potential investor in the Shares must determine the suitability of that investment
Risk related to the Shares (lack of liquidity) in light of its own circumstances.
Although the Shares in the Company are freely transferable and registered on the
Merkur Market list in Oslo, Norway, there is currently a limited market and liquidity in
the shares. The Company intends to apply for a listing on the Oslo Axess, a regulated
market under the auspices of the Oslo Stock Exchange, but no assurance can be given
that the listing conditions can be satisfied or that an active and liquid market will
develop. Investors must expect that it may be difficult to sell shares in the Company
when, or at the price desired, in the secondary market.
c
OKEANIS ECO TANKERS
I 33 I RISK FACTORSInvestment Highlights Company Overview Track Record & Performance Market Opportunity Risk Factors Appendix
Current NB & Scrubber Instalments and Debt Draw Schedule
USD m
170
Yard Instalments + Scrubber Capex
160
Anticipated Debt Drawdown
150
140
130
120
110
100
90
80
70
60
50
40
30
20
10
0
4Q18 1Q19 2Q19 3Q19 4Q19
Scrubber Considerations
Signed agreement with leading European manufacturer, EcoSpray Technologies
Under discussions to receive $14MM financing for both installation and equipment costs
Secured yard slots for scrubber retrofitting close to trading routes
OKEANIS ECO TANKERS
I 35 I APPENDIXScrubber & Fuel Economics
Scrubber Economics Fuel Economics
Key Assumptions VLCC Suez Afra VLCC Suezmax Aframax
155 days laden 145 days laden 105 days laden
Daily consumption average tons/day 41 29 28 & 105 days ballast & 95 days ballast & 85 days ballast
Scrubber consumption tons/day 3 3 3 Non-eco Eco Non-eco Eco Non-eco Eco
Scrubber investment USDm 2.7 2.2 2.0 Fuel cons. laden (t/day) 70 48 53 33 43 31
Steaming days # days 260 240 190 Fuel cons. ballast (t/day) 53 31 44 24 36 24
Fuel savings (t/day) 22 20 12
Bunker price ($/t) (MGO Cal.’20) 670
Fuel savings ($/day) 10,500 8,800 4,200
Fuel savings ($/annum) 3,832,500 3,212,000 1,533,000
Scrubber Economics Type Payback TCE Savings
MGO/HFO spread (USD/ton) # years USD/day
VLCC 0.8 9,200
330 (Cal. 2020) Suez 1.0 5,850
Afra 1.2 4,450 Fuel Price Sensitivity Analysis (Excluding Scrubber Effect)
VLCC 0.5 13,600
MGO Bunker Fuel Price 2020 ($/ton)
Savings ($/day)
480 Suez 0.7 8,750
670 700 800 900 1,000 1,100
Afra 0.8 6,650
VLCC 0.4 18,000 Aframax/LR2 4,200 4,350 5,000 5,600 6,250 6,850
630 Suez 0.5 11,650 Suezmax 8,800 9,200 10,500 11,850 13,150 14,500
Afra 0.6 8,900 VLCC 10,500 10,950 12,500 14,100 15,650 17,250
SOURCES: Company. OKEANIS ECO TANKERS
I 36 I APPENDIXYou can also read
