Okeanis Eco Tankers Corp. released unaudited condensed interim results for the three-month period ended March 31, 2022.
Highlights of the first quarter of 2022:
Time charter equivalent revenue (“TCE”, a non-IFRS measure) and Adjusted EBITDA (a non-IFRS measure) of $26.4 million and $16.2 million, respectively. Adjusted earnings and adjusted earnings per share (non-IFRS measures) for the period of $1.9 million or $0.06 per share basic and diluted.
Daily fleet-wide TCE rate of $24,700 per day of operation; VLCC and Suezmax TCE rates of $24,200 and $25,300 per day of operation, 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 available VLCC spot days have been booked at an average TCE rate of $25,400 per day and 64% of available Suezmax spot days have been booked at an average TCE rate of $36,500 per day. 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 the Nissos Kea, one of two VLCCs under construction at Hyundai Heavy Industries.
In April 2022, the Company signed a term sheet with a reputable financial institution for a new credit facility for a gross financing amount of approximately $125.7 million. The net proceeds of the transaction will be used for a) refinancing the existing debt 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 20% of the initial contract price, in accordance with the press release published on June 29, 2021, for the acquisition of Gas Ready (MEc), ECO-design , Nissos Kea and Nissos Nikouria tankers equipped with 300,000 DWT VLCC open loop scrubber.
Revenues for the first quarter of 2022 of $41.6 million compared to $48.0 million in the first quarter of 2021. The 13% decline was due to a 30% decrease in vessel operating days following the divestiture three Aframax vessels and two VLCC vessels in previous quarters, as well as, a 5% decrease in fleet-wide daily TCE.
Travel expenses for Q1 2022 of $14.7 million, compared to $7.8 million in Q1 2021. The 88% increase was due to higher one-time exposure in the current period amplified by the increase in the cost of bunker fuel.
Vessel operating expenses for Q1 2022 of $7.7 million, down from $10.1 million in Q1 2021. The 24% decline was primarily the result of a 29% decrease in calendar days due to the reduction in the number of ships in the fleet during 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 with the disposal of vessels in prior quarters, resulting in a cumulative decrease of 19% 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 staff at earth.
Interest and finance charges for Q1 2022 of $5.9 million, down from $8.0 million in Q1 2021. The 26% decrease is attributable to the repayment of $209.9 million of related debt the sale of three Aframax vessels and two VLCC vessels. Total debt 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 is mainly due to the higher fair value of interest rate swap derivatives the Company’s interest rate due to rising interest rates.
The Company reported Q1 2022 earnings of $9.3 million, or $0.29 per basic and diluted share, compared to Q1 2021 earnings of $7.3 million, or $0.23 per share basic and diluted. The increase was primarily due to the gain recorded on interest rate swaps and lower interest expense, offset by lower revenue from operations during the current period.
Net cash provided by operating activities in Q1 2022 of $2.3 million comprising operating cash flow 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 primarily from $71.5 million related to vessel acquisitions and upgrade costs.
Net cash provided by financing activities in Q1 2022 of $63.6 million comprising mainly a drawdown on a loan 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) was $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 share of cash
Source: Okeanis Eco Tankers Corp.