Could 16%-Yielding Okeanis Eco Tankers Corp Have 114% Upside?
April 22, 2025
Wall Street Bullish on ECO Stock
Like the broader—and by that I mean global—markets, Okeanis Eco Tankers Corp (NYSE:ECO) stock took a big hit in the days after President Donald Trump unveiled his international tariffs plans on April 2. The broader markets have been rebounding since the president said that he was pausing tariffs for 90 days on April 9. How long that investor enthusiasm will last is anyone’s guess.
Still, between April 2 and the time of this writing (April 9), ECO stock has tumbled 13%. That’s pretty much in line with what has happened with the S&P 500. Further out, ECO stock is also down 10% year to date and 32% on an annual basis. Again, this is in line with the S&P 500.
Unlike the S&P 500 though, ECO is trading at an important support level. The stock is currently trading hands at $18.75 per share, which also just so happens to be its tested support level. That doesn’t mean that ECO can’t fall further, but it has tested that level twice before, most recently in December 2024.
While the outlook for the global economy remains muted right now. No one knows how President Trump’s tariffs will truly impact the global economy, crude oil, or the marine shipping industry, so it’s important to keep that in mind.
For now though, Wall Street is bullish on ECO, with analysts providing a 12-month share price target of $40.00. This points to potential upside of approximately 114%.
Chart courtesy of StockCharts.com
About Okeanis Eco Tankers Corp
Okeanis is an international shipping company that operates in the crude oil industry. Its fleet currently consists of 14 tanker vessels, including six modern Suezmax and eight modern Very Large Crude Carrier (VLCC) tankers. (Source: “Our Business,” Okeanis Eco Tankers Corp, last accessed April 9, 2025.)
The 14 vessels have an average age of six years and aggregate capacity of approximately 3.5 million deadweight tons. Okeanis is home to one of the youngest fleets in a potentially shrinking global fleet and also has one of the highest scrubber penetration rates. A scrubber is an exhaust cleaning system that removes harmful substances, including sulfur oxide and nitrogen oxide, from the exhaust emitted by vessels.
Because of marine regulations, companies must either use expensive fuel with low sulfur content or install a clean exhaust scrubbing system. Okeanis Eco Tankers’ very name suggests that it went with the eco scrubbing system.
Q4 Earnings Beat
For the fourth quarter ended December 31, 2024, Okeanis reported revenue of $85.2 million, down from $91.7 million in the same prior year period. (Source: “Okeanis Eco Tankers Corp. Reports Financial Results for the Fourth Quarter and Twelve-Month Period of 2024,” Okeanis Eco Tankers Corp, February 19, 2025.)
The company reported a fourth-quarter profit of $13.2 million, or $0.41 per share, compared to $21.3 million, or $0.66 per share, in the fourth quarter of 2023. Wall Street was looking for earnings of just $0.22 per share.
The shipper’s daily fleetwide time charter equivalent rate (TCE) was $39,000 per operating day, with TCE revenue of $49.4 million.
Okeanis Eco Tankers ended the quarter with $54.3 million in cash, compared to $54.9 million on December 31, 2023.
The company’s full-year revenue slipped to $393.2 million from $413.1 million in 2023. Its profit was $108.9 million, or $3.38 per share, which was down from $145.2 million, or $4.51 per share, in 2023.
Okeanis’ full-year vessel operating expenses inched up to $42.4 million from $41.7 million in 2023.
At the time of the press release (February 19), 81% of the company’s first-quarter VLCC spots had been booked at an average TCE rate of $39,100 per day and 77% of its available Suezmax spot days had been booked at an average TCE rate of $33,400 per day.
Quarterly Dividend of $0.35/Share Declared
Okeanis Eco Tankers’ quarterly distribution varies because the payout is based on its free cash flow (FCF). And it distributes around 100% of its FCF. The company reported FCF of $174.0 million in 2023 and $162.8 million in 2024.
In August 2024, Okeanis’ board declared a second-quarter dividend of $1.10 per share. In the third quarter, it declared a dividend of $0.45 per share, or $3.31 per share on an annual basis. In the fourth quarter, it declared a dividend of $0.35 per share, or $3.00 on an annual basis, for a forward yield of 16.18%.
The Lowdown on Okeanis Eco Tankers Corp
Okeanis Eco Tankers Corp is a great marine shipping stock. It has an excellent balance sheet and is reporting solid financial results, including strong TCE rates.
While the near-term outlook for the marine shipping industry is murky, the outlook for the crude tanker market and rates beyond 2030 is expected to remain quite healthy and profitable.
This is good news for insiders who collectively own 83.11% of all outstanding ECO shares. Institutions hold 18.18% of all outstanding shares. Some of the top holders include Arrowstreet Capital, Morgan Stanley, and Goldman Sachs Group. (Source: “Holders,” Yahoo! Finance, last accessed April 9, 2025.)
