Hello and welcome to the OET’s Fourth Quarter and Fiscal Year 2023 Financial Results Presentation. We will begin shortly. Aristidis Alafouzos, CEO and Iraklis Sbarounis, CFO of Okeanis Eco Tankers will take you through the presentation. They will be pleased to address any questions raised at the end of the call. I would like to advise you that this session is being recorded. Iraklis will now begin the presentation. Thank you.

Hi, everyone. Welcome to the presentation of Okeanis Eco Tankers results for the fourth quarter and fiscal year 2023. We will discuss matters that are forward-looking in nature and the actual results may differ from the expectations reflected in such forward-looking statements. Please read the relevant disclaimer on Slide 2. We are going to start on Slide 4 and the Executive Summary. I am pleased to present the highlights of the fourth quarter of 2023, finishing off a record year for us. We achieved fleet-wide TCE of over $45,000 per vessel per day and that includes for most of the quarter, our last two legacy Suezmax time charters. Spot days for VLCCs of $45,000 and spot Suezmaxes of $52,000. We reported adjusted EBITDA of $44.2 million, adjusted net profit of $20.4 million and adjusted EPS of $0.63. Our Board declared the seventh consecutive capital distribution of $0.66 per share, which is 100% of our reported EPS, continuing the promise to deliver value to our shareholders. Over the last four quarters, we have distributed $4.36 per share against the earnings of $4.5 on both an adjusted and reported basis, i.e., approximately 97%. On a nominal basis, that’s $140 million. Our fourth quarter was of particular importance to us as in December, we affected the listing at the New York Stock Exchange. We are quite pleased with the early signs coming from New York. We have already seen an increase of approximately 50% in trading volumes since we became dual listed. And what is interesting to observe is that within 2.5 months, approximately 40% of total volume is traded out of New York. In February alone, this was already 45%. This gives us the confidence that expanding our investor reach in the U.S. is in the right direction as we take the…

Thank you, Iraklis. Looking at our commercial performance in Q4. Q4 rebounded with seasonal volatility after a week in relative terms Q3. Due to the extended OPEC+ cuts, we didn’t get the Q4 that we’re all dreaming of. But the silver lining of this is that the OPEC+ continues to focus on managing inventory levels, which we believe will continue to draw and eventually require more barrels to be brought back to the market. This would lead to the explosive market that we’re all waiting for, and we’ll expand on this a bit later in the presentation. We continue to employ our strategy of predominantly positioning our fleet in the West and taking the opportunity when the market turns to fix longer voyages to the East. Nissos Sikinos and Nissos Sifnos were redelivered from their long-term time charters and now the OET fleet is 100% exposed to the spot market. We also concluded our final dry dock of the first special survey of Kimolos, our 2018 built Japanese Suezmax. We upgraded the paint specification on this vessel, which is currently performing about 7% better than the previous paint. The vessel is actually more efficient today than she was when she was first delivered to us from the yard. We intend to use a similar sophistication of paint on our VLCCs that are going through their dry docks this year, the 5 2019 build ships and 1 in 2025. During the quarter, we achieved a fleet-wide TCE of $45,400 per day, including our time charters. Our VLCCs generated $45,200 per day in the spot market, a 4% outperformance relative to our tanker peers that have reported Q4 earnings. Our Suezmaxes generated $51,800 per spot day, a 17% outperformance relative to our tanker peers who have reported Q4 earnings. These numbers reflect…

Thank you. Once again, apologies for the interruptions during the presentation, we will now open the line for questions. [Operator Instructions] The first question comes from the line of Petter Haugen from ABG. Please go ahead.

Hi guys. I am curious to hear because as you alluded to, the IFRS 16 effect is potentially substantial. And if I understand you correctly, you are showing here your TCE equivalents on the low to discharge basis in which you have lost some ballast days. So, the question, is there a significant difference if you were to show your TCEs on a discharge-to-discharge basis?

Hey Petter, it’s Iraklis. Look, it varies quarter-on-quarter. And as you have seen, whenever there is a higher effect coming in from the ballast space and the IFRS adjustments at the end of one quarter, you usually see that effect in the figures of the next quarter. As we anticipated and I think we alluded to it back in the previous quarter, and you have seen it since our commercial update in January and the results now, there was a bit of an effect in Q4, not as substantial as the previous quarter, which is then translated into Q1. So, there is a bit of a balancing between the transition from one quarter to the next. I cannot quantify it right now, happy to take the comment and look at it a bit more. And then it really depends – so for example, for this particular quarter in Q1, it really depends on the positioning of the vessels. At the moment, we are – we do not expect that the impact may be too large as in some of the previous quarters, but it really will depend on whether some of the next oil [ph] just actually get loaded within the quarter. So, it’s a bit of an unknown at the moment.

Okay. I understood. Thank you. And just in terms of sort of fleet composition here, so many of us have expected a better sort of at least relative VLCC markets compared to at least the Aframaxes and in particular, if you compare it to the product tankers, which has been just stellar. So, in terms of – well, the examples you just gave, is it possible to give some sort of quantification of how much we should now expect and then, in particular, the Red Sea situation, to be a relative improvement for the VLCC and potentially then at the expense of suezmaxes and/or Aframaxes. And so in plain English, how many sort of ship-to-ship operations filling up the VLs from the smaller sizes, could we potentially see going forward if the Red Sea situation continues to be this?

Hi Peter. Thank you for the question. I mean it’s a quite complicated question to quantify, but there is a lot of changing dynamics because of this. And it also depends how long these tensions in the Red Sea lasts. I think that we probably will continue to see some parceling up of VLCC cargoes, especially from Kazakhstan, exports from the Black Sea, because a lot of this is sold and some – there are cargoes being sold into China and Korea, and I think this will continue, so that – we can see that continuing. CP2 is a huge export terminal. So, the – whether it’s two VLCCs or three VLCCs a month, and I am not exactly sure, but I wouldn’t expect much more than that from CP2 specifically. We could also see similar parceling up from Libya or Algeria to go around Africa. In the inverse to come AG West, I think we won’t see as much because the Mediterranean ports are not really built and designed for VLCCs. So, we may see it occasionally if VLCCs are relatively cheaper to suezmax in terms of freight and – but I don’t think it will be as common. Because once you account for STS and chartering two ships to lighter from the VLCC in Europe, I don’t know if the efficiency of the VLCC is that great. So, I think initially, it was quite beneficial for the VLCCs. I think over time, as these tensions normalize, it will benefit also the Suezmaxes and Aframaxes as well.

Okay. Understood. Thank you. And then a final question, in terms of – well, in the prolongment of this, in terms of adding new ships, so I am not going to ask you if you will do that. But if you were forced to do so now, would you prefer to expand on your Suezmax fleet or your VLCC fleet?

Look, I think if we were to be able to receive ships today in the water and ready to operate, I think the preference would be towards VLCCs at the moment. I think that Suezmaxes have had a very strong 2 years and the VLCCs have lagged behind them. And I really do believe that in the next 2 years, 3 years, that again, we will go back to the more traditional historical markets where the leader in terms of earnings and strength will be the VLCC segment.

And we agree. Okay. Thank you. That was all for me.

Thank you, Petter. Have a nice afternoon.

The next question comes from the line of Bendik Nyttingnes from Clarksons Securities. Please go ahead.

Thank you. Yes, I will just have a follow-up on the Red Sea situation. We did see a slight drop in activity of crude tankers to product tankers caught fire earlier this year. But since then, activity is more or less recovered to 2023 level. What do you think is sort of needed before operators will start going around the Cape in the crude space?

Hi Bendik. Thanks for the question. Well, I think that if we look at what types of crudes are transiting the Suez as a percentage you will see that by far the biggest is the Russian crude. And I don’t expect that to stop. I mean only in extreme circumstances, so I think that… [Abrupt End]