Okeanis Eco Tankers (NYSE:ECO) held its first-quarter earnings conference call on Thursday. Below is the complete transcript from the call.
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The full earnings call is available at https://events.q4inc.com/attendee/446194895
Summary
Okeanis Eco Tankers Corp reported a record-breaking Q1 2026 with high time charter equivalent rates and significant earnings, resulting in a $2 per share dividend, which is 88% of their net income.
The company highlighted strategic fleet growth with the addition of new vessels and successful refinancing efforts, reducing interest expenses significantly.
Management expressed optimism about future earnings, projecting Q2 to potentially surpass any previous annual earnings, driven by strong market conditions and strategic positioning.
Full Transcript
OPERATOR
Welcome to OET's first quarter 2026 financial results presentation. We will begin shortly. Aristides Alafouzos, CEO and Heracles Varvitsiotis, CFO of Okeanis Eco Tankers Corp will take you through the presentation. He will be pleased to address any questions raised at the end of the call. Matters that are forward looking in nature will be discussed and actual results may differ from the expectations reflected in such forward looking statements. Please read through the relevant disclaimer on slide 2. I would like to advise you that the session is being recorded. We will begin the presentation now.
Aristides Alafouzos
Thank you for taking the time to join our Q1 2026 call. Q1 was a record quarter for our company and Q1 plus Q2 combined will be stronger than any previous year in our company's history. In fact, the potential distributions tied to this half year are approaching our original listing price in 2018. It definitely was and is an exciting, stressful, challenging and demanding quarter. This cumulative pressure surely overshadowed the pleasure of earning so much for our shareholders, which is regrettable. Q1 began with a sell off in freight into mid January where the market turned by the continued exquisite fundamentals Venezuela reopening, India, diversifying imports and most importantly the extremely rapid consolidation of the VLCC market by CMACGM or Aponte Joint Venture. This strength continued until February 28th where the war in Iran began and set off a 2, 3, 4 week period of unprecedented strength in the tanker market overall. Following this explosive and unbelievable period, the market found a balance at extremely elevated rates where the loss of cargoes from Hormuz closure is offset by ton miles inefficiencies, vessels trapped inside and vessels outside waiting for the Hormuz to reopen. Earlier this week there were over 55 VLCCs and ballast waiting outside the high risk area for a potential reopening. This doesn't include vessels waiting around Sri Lanka, off India, Singapore and the Sinokor fleet. Values and time chart rates have also seen consistent and profound strengthening throughout the quarter. We're in a period of record income and the anchoring bias on values freight time chart rates from 20 years ago doesn't hold anymore. The market needs to recognize this. What is the natural ceiling where rates and values can go internally? At OET and looking at Q2, one of our greatest challenges going forward is keeping tonnage available for the immediate exposure to a Hormuz's reopening while optimizing our performance. I hand you over to go through the financials.
Heracles Varvitsiotis
Thanks. Let's have a look at this record quarter we achieved 50-foot wide time charter equivalent of about $93,000 per vessel per day. That's 106,000 per day on our spot and 104,000 on all operating VLCC days and 82,000 on our Suezmax operating days, all being spot. We report adjusted EBITDA of 110 million, adjusted net profit of 89 million and adjusted EPS of $2.33. This is basis our average share count for the quarter. Our board declared the 16th consecutive quarterly dividend of $2 per share. This represents 88% of our reported net income. On our current fully diluted share count post our January equity transaction. This is the highest quarterly dividend amount since the company's inception, although I assume everyone is already modeling our second quarter. Over the last four quarters we have distributed per share or 96% of our reported net income. For the period in January we executed another successful and accretive equity raise of $130 million in gross proceeds against. Slide 5. Since our IPO in Oslo, we have distributed approximately two and a half times our initial market cap with over 550 million paid in dividends. Since we have had a fully delivered fleet in 2022, we have paid out 91% of our reported debt income, demonstrating clearly demonstrating our commitment to distributing value to our shareholders. Slide 6 We show the detail of our income statement for the quarter. TCE revenue stood at $132.2 million. At quarter end we had 176.5 million of cash that included a portion of the equity earmarked for the acquisition of the Nisos Campos boost. We also had almost $80 million in trade receivables. Our restricted cash figure as of March 31 includes an amount of 45 million we have deposited on short term against one of our loan facilities which has the feature that it reduces the interest pay just half a percent in on a net basis providing a better return than what we can achieve under time deposit rates. We may roll forward such cash characterized as restricted or a different amount on a short term basis depending on our cash flow needs and applicable rates. Our balance sheet debt was 683 million. Our book leverage stands at 41% while our market adjusted net MVP basis, latest broker values and pro forma for the acquisitions in recent transactions is now just over 30% on slide 8 looking at our fleets, I'm pleased to show the addition of our most recently acquired modern and high spec vessels. We have a total of 16 vessels on the water, eight Suez Maxs and Navy SSDs with an average age of only six years which will further improve once we get delivery shortly of the Nigami and N Boos currently under construction pending. As a reminder from a maintenance capex perspective, our only driver for 2026 is that of the middles 10 years earlier. Slide 9 Moving on to our capital structure, this is a quarterly update that have been personally looking forward to for a while. We recently announced new financings for four vessels as follows. We purchased back from insane leaseback and refinanced the Misovra with a new 50 million dollar bank loan maturing in 7 years priced at SOFR plus 125 basis points. This transaction closed last week. We will purchase back from its sale and lease back and refinance the Nisos Despotic co with another 50 million bank loan maturing in nine years priced at SOFR plus 130 basis points. This transaction is expected to close in early June. We have also signed a 90 million backlog for the Nisos Tigani and Nisos vous maturing in 8 years priced at SOFR plus 120 basis points. The Tigani will close in a couple of weeks and the VUS in early July we have taken advantage of the very competitive financing market and our financiers appetite to transacted us. Our most recent transactions have demonstrated the relationships and track record we have developed in two key banking markets for us in Greece and in Thailand. We now have staggered maturities all the way through 2035. Extremely attractive pricing and we have finally put behind us all our legacy saving lease plans. On slide 10 we look at our pricing on a vessel by vessel. All our loans are not priced below 2% with an with a weighted average margin of 1.47%. That's an improvement of more than 200 basis points compared to where we were prior to the Libor to software transition in mid 2023 on a consolidated debt of over 750 million that's performed for the upcoming drawdowns. That's an impact of more than 15 million a year straight into the bottom line, quarter on quarter. For a while we have been seeing the material improvement into our interest expense and starting in Q3 of this year when all this will have concluded, we expect to see the full effect. We're extremely happy with where we are today, but of course by nature we continuously monitor the market for opportunities that may further optimize our structure, trying to improve one or all aspects of our debt structure whether it's pricing, tenure, amortization profile or other terms that might add flexibility and agility. I will now turn it back to our statements for the commercial market update.
Aristides Alafouzos
Thank you Rakli and great job on the refis. Now as I said during the intro, Q1 was a record quarter for the company. Amazing fundamentals. Venezuela reopening, the consolidation of the VLCC market and likely the biggest shock to oil trading in the past 50 years all converged in the same three months we concluded fixtures in Q1, mostly realizing Q2 that we could never have previously fathomed. Absolutely remarkable. Fleetwide, TCE came in at $93,100 per day with 106,400 on our spot VLCCs and 81,600 on the Suezmaxes and we achieved perfect utilization across the field. One commercial mistake I want to flag was fixing the nisos Nicoria for one year at a net rate of $90,000 per day. With hindsight, the market gave us much more spot market that is Separately Denise's Queiros is currently stuck inside the AG and we haven't added an additional line for her on the table. She is being compensated on a commercially agreed rate while she waits to get out. We took delivery of the Nisos Piperi, Nisus, Serico, Hula also in this quarter the market was so firm that we were able to fix a car. We were able to fix cargoes from West Africa on our first voyages and get them into our trading patterns. But the ballast voyage from Korea to West Africa was far longer than the lay in, which did negatively impact our Suez Max earnings. On the Suez Maxes we focused on trading the ships in the Atlantic Basin. We did not fix any vessels into the east and kept the voyages shorter while focusing on optimization and our preferred trades on the BLCCs. Early in the quarter we committed to longer voyages to lock in higher ends, balancing with some shorter voice in the east to keep our fixing exposure intact within the quarter. The strategy is what ultimately led to porkidos being trapped inside the Hormuz, but the same strategy is what set up the Q2 numbers. Comparing our Q1 against the peers who have already reported we are at 28 and a half percent higher on our BLCCs and 20% higher on our suit. Looking at our guidance for Q2, I believe it is likely that our Q2 earnings will be larger than any previous year's annual earnings. And whether that holds up on Q2 alone or not, Q1 and Q2 certainly combined will be as of today, 56% of our available BLCC spot days are fixed at $223,900 per day and 60% of our students max day is at $187,300 day, giving us a fleet wide average of about 200 and 2,900 per day on the fixed portion, roughly half of the quarter. Comparing Q2 against our peers with reported earnings, we are about 45% higher on our VLCCs and 24% higher on our Sewell. We were in the lucky position of having significant exposure right around the spike in mid March. For voyages that were affected in Q to, we're able to fix two ships to load in Yambo at huge rates and we fixed the Nistico on a long haul voyage right at the top of the market. On the Suzmax side, the shorter trading pattern allowed us to do multiple runs into a rapidly appreciating market. Some of the fixtures concluded those weeks were frankly unbelievable. One additional sewage backs new building Venicio Stigani is scheduled for delivery during the quarter which will further reinforce our exposure and give us exposure to a potential Hormuz reopening later this quarter. Moving on to slide 14. We reuse this slide every quarter and I'm very proud of it. Almost as proud as it at least is of his refinancing slide. We had a gain quarter on quarter of over $25 million just in our commercial outperformance. I hope an analyst or trademan picks this up, but if our fleet earned the average of our peers who have reported in Q1, our EPS would be over $0.65 less. Since Q4 2019 we have generated approximately $256 million of cumulative outperformance versus our peers on slide 15. I take two things away from this chart. Firstly, we have had consistently elevated earnings going back to September of last year. That underpins the fundamental strength of the current market, a strength that predates the geopolitical shock and has only amplified by it and secondly the consistent strength of the market following the loss of the Arabian Gulf barrels. The message of this chart is that the disruption created the spike, but the underlying market has held the level to frame the scale of this roughly 14.9 million barrels per day of crude exports and around 35% of global crude time miles normally transit the Hormuz. This is the largest single choke point shock the tanker market has ever absorbed. The well known effects are visible on this page. Extended ton miles, vessels trapped inside the AG and the redirection of Saudi and UAE volumes from Yanbu and the Sioux Oman which has been the signal biggest MITIGATING factor since the closure. But I want to highlight one factor that I think is underappreciated by the market. The number of VLCCs waiting outside the AG for a potential reopening. Earlier this week we counted 55 blccs in ballast sitting outside the high risk area hoping for the reopening. And the figure does not include, as I mentioned earlier, vessels positioned further afield like Sri Lanka, off India, Singapore or the Sandborg fleet. When you put it all together, 63 laden VLCC is trapped inside the AG, over 55 waiting outside of the AG and roughly 36 holding at Yahoo. This is 155 VLCC is effectively removed from spot supply on a global VLCC fleet of 920 vessels. That is approximately 17% of the worldwide fleet either trapped or waiting. If we assume the compliant fleet is around 700 vessels and this is what affects us, that jumps to 22%. That is a massive restriction on compliance supply and is very supportive of freight. One more dynamic to note. In recent weeks previously we have seen reduced interest from Asian buyers for Atlantic barrels which in my view reflects an expectation of the Hormuz reopening. The longer that reopening is delayed, the more those Asian buyers we forced back into the market from the Atlantic, which we are seeing this week, which would tighten supply further and push rates higher again. Now looking Forward on slide 17 we lay out three scenarios we see for how this resolves. I want to be clear up front. We do not take a view on the macro conditions deteriorating. Our scenarios are about the shape of the Hormuz outcome and not about the all three paths are supported tankers. What changes between them is the timing, the shape and duration of this strength. Before I walk through them, the key number to anchor is that the pre destruction Hormuz Exports are around 14.9 million barrels per day. The total pipeline reroutement capacity is only around 7.4 million barrels per day. That leaves a structural shortfall of about 7 and a half million barrels per day which we can only clear via long haul ton miles by sea. That gap is what underwrites the demand backdrop in every scenario. Scenario 1 continued closure, pipeline rerouting stay maxed out, Asian inventories continue to drain western barrels reroute to Asia and the trap tonnage inside the AG persists. The result is long haul ton miles maximized and the compliant fleet supplies structurally constrained. The only meaningful risk in this path is demand destruction if it drags along for too long. Scenario 2 Partial reopening Iraqi exports ramp up and others as well. There's roughly 3.1 million barrels per day of capacity that could come back relatively quickly. Floating storage gradually releases the market and the Yanbu and Fujairah reroutings continue at capacity. There are less western barrels flowing east, but vessels repositioning will affect supply. Due to vessel repositioning. The whole scenario demands on transit normalization holding. Scenario 3 Full reopening Middle east exports normalize over let's say about three months. And importantly that is the same dynamic we saw with Venezuela. Any national oil company linked sanctioned might find its way back, but the broadest fleet stays isolated. On top of that you would see Asian and SPR restocking demand coming through. There is initial spike as oil storage drains and restocking provides a ton mile tail in support of demand and returning supply moderates rates over the medium term supported, we assume that cargoes will only be lifted on conventional vessels. On slide 18 beyond the Hormuz dynamic and directly linked to the current situation is another structural tailwind sitting in plain sight. Invincibles OECD commercial inventories have been drawing and are sitting well below the five year range as you see on the right hand side of the graph. And to this the US Strategic Petroleum Reserve inventory builds translate directly into tanker demand which we read as positive. Slide 19 the order book A topic that is starting to become relevant and it wasn't a few quarters ago. Yes, the order book is up. VLCCs stand at 27.5% of the fleet. Suezmax is at 28.5%, although about 3.3 percentage points of the Suez max number is shuttle takers. On the face of it that is a large number and I understand the reflex. There is an old saying in shipping that given enough time in a good market, owners will find a way to shoot themselves in the foot by over order. And I will be the first to admit historically the saying has not been wrong. But I would argue this cycle is slightly different. And the reason is on the right hand side of the page and is supported by the next page as well where we dive a little bit deeper into the actual numbers. Even today in 26, 48% of the global VLCC feed is over the age of 15, 22% is over 20. By 2030 those numbers grow to 61% over 15 and 41% over 20. The Suzmac picture is essentially the same. Now if you also add the Shadow or Dark fleet which sits within the higher age bracket of the above, we know for certainty that Most of the vessels will never come back. When you take those vessels out of the supply equation altogether, and we should, because they're not competing for the same cargoes as we are, the compliance supply picture gets meaningfully tighter. So yes, the order book is up, but the aging fleet plus the dark fleet isolation gives you, in my view, a structurally tight and client market for the next couple of years. The numbers on the next slide make this clear. Slide 20 takes the point I just made and puts it into absolute numbers, which I think is the cleanest way to see it. On the VLCC's fleet of 919 vessels today, order book of 250. By 2028, cumulative deliveries, including what has already arrived year to date gets you to 184 vessels. But over the same period, 265 vessels will be over 15 years old, while 124 will be over 20 and 90 will be over 25. By 2030 you have 250 cumulative deliveries against 375 vessels over 15 and 18020 plus. Put simply, 250 deliveries chasing a retirement queue of 375 ships. The order book doesn't catch the aging fleet on the Suez max the same story by 2030. 204 deliveries against 274 vessels over the age of 20. That is the structurally tightness I was describing about in the previous flag in absolute numbers. So to tie the above all together on the demand side we have the foremost 10 mile reset inventory restocking ahead, plus all the fundamentals that existed prior to the ag, the demand to the Hormu situation. On the supply side we have a record order book that still does not catch a wave of vessels reaching the end of their useful life. Both sides of the equation point towards the right now. I'll pass it to the moderator for the Q and A.
OPERATOR
We will now if you like to ask a question, please press Start one to raise your hand. Start one on a telephone keypad to raise your hands please. And by while we compile the Q and A roster, Your first question comes to the line of even of Christopher Ski with Arctic. The lines are open. Please go ahead.
Christopher Ski (Equity Analyst)
Hello guys. Thank you for taking my question and congrats on a record Q2 bookings. Really impressive. It has been quite right to keep the fleet open, but what we see now is that time charter rates are sort of creeping back up again now and you see one year TCE on the Suezmax around 120. So my question now is more on commercial strategy. Would you be keen to Add more coverage. Given that your target Quite right in 2020 would be interesting to get get your take on it.
Aristides Alafouzos
Hi Christopher, thank you for your question. Look, I mean we mentioned, we even mentioned on the call the mistake of fixing the Nicolas on the 90 year. 90,000 per year. So I think at this point the time charter market isn't that interesting for us and especially given the reopening of the Hormuz and considering how aggressively the rates can go up in that case it will probably just one voyage at those rates. You know it will outperform even in the moderated spot environment afterwards any one year time charter. But just to add some more color to your question, we're also seeing significant increase in longer term charter rates on all sizes and I think the BLCC market for three years should be closer to the 70,000 mark.
Christopher Ski (Equity Analyst)
Great. Okay, thanks.
OPERATOR
I'm back. Your next question comes to the line of Liam Burke with B. Riley Securities. Your line is now open. Please go ahead.
Liam Burke (Equity Analyst)
Yes, thank you. Can we go back to your scenario three of a post straight of Hermos opening? Would you anticipate whenever more normal times occur that there'll be more demand out of the Atlantic because buyers of crude would like to diversify away from the Mideast and what would that mean for the demand on the Suezmax side? Sorry Liam, can you repeat your question? It came in a bit muffled. Okay, sure. Post scenario three you discussed where the Strait of Hormuz is completely reopened. What I was asking was is there a situation where buyers of crude would want to diversify away from the Mideast even with an open strait and buy more out of the Atlantic and what that would mean for the Suez Macs understanding the low order book relative to the age of the fleet.
Aristides Alafouzos
Thank you Liam. I got the question now. It's a good question. And I think we've also speaking to some refiners and charters and reading news in the media. It's obvious that some of the Asian countries that have a very high reliance on ag crude will need to diversify going forwards. And like for example The Japanese have 90% of their crude imports from the AG that will have to meaningfully come down and it may come from imports from West Africa or Brazil or the US Gulf. So I think at the beginning at least of the Hormuz reopening, everyone will buy whatever crude they can get their hands on. But then as we move into more the medium term where there's like more strategic and medium term approach towards buying crude, they're going to Start diversifying their purchases. Now in terms of the Suezmaxes, all this reopening and this diversification of crude purchases for strategic geopolitical reasons create inefficiencies. And the Suezmax is often a very versatile vessel that does well when the market is inefficient and there's trading patterns that, you know, are less accustomed to and people need options and there's different ports. So I think that generally on a relative basis, over the past five years we've been able to outperform the BLCCs and our Suezmaxes. And I do think that the Swiss Maxis will still be very strong assets going forward compared to both the larger and smaller group takers.
Liam Burke (Equity Analyst)
Great, thank you. And then just quickly, your operating cash flow was, should, should probably be stronger in the second quarter and I know you're taking two deliveries of two Suez maxes later in the, later in the year, but post delivery, your capital allocation, I presume, is going to remain the same with the priority on returning cash to shareholders or is there any thought about accelerating debt reduction?
Achilles
Hi, Liam. Mr. Achilles. Absolutely. Hey. Our capital allocation policy remain the same. We have been committed to distributing out as much as possible within the constraints of our capital structure. Of course, as we have explained in the past, it's, it's not possible for us to maintain 100% of our EPS distribution given our capital structure and cash flow, but we aspire to increase that as much as possible. And we have been averaging out around 9% for a while. Obviously, you know, we have added already two series Maxis at the beginning of the year. We're going to be adding a couple more over the, the next few weeks or through the middle of the summer. So our fleet has expanded a bit and that should be reflected in how we approach our capital structure and balance sheet. But having said that, we will of course continue to, you know, distribute as much as possible. Yeah, and just add to that, I mean, as a company we're very comfortable with our loan-to-value and if anything is probably on the lower side, but we're very comfortable with that and we prefer, given our comfort, to return our profits to shareholders directly rather than paying down debt in advance of the normal repayment schedule.
Liam Burke (Equity Analyst)
Great. Well, thank you very much.
Achilles
No, thank you.
OPERATOR
The next question comes to the line of even Coast Guard for Clarkson Securities. Your lines are open. Please go ahead.
Evan Coast Guard
Thank you. So my first question is about your second quarter bookings. Obviously it's super strong, but if you look at, if I look at their suite today, you can See that most of them are actually or almost all of them if you look at the indices are now ballast and stain. So could you give some color on bowel day for the remaining open days just to give a. Get a sense of how good the second quarter could become?
Rakli
Yeah, even. Hi, it's Iraqis. Sorry, part of your question was a bit muffled. I think you in part about our Q2 guidance and the impact, I guess, of how our bookings are recorded into
Evan Coast Guard
our books and the impact of palace days. Is that right?
Rakli
Yeah, that's right. Okay, perfect. Sure. So yes, as we have explained in the past, given our accounting policies, revenue recognition has an impact. When we look at cut-off days between quarters, rest assured that obviously when, when something is not booked in the previous quarter, we obviously pass it on and recognize it in the following quarter. And we have seen in the past certain instances where this came into play. And that was also the case a little bit with our Suezmaxes in Q1, with, with certain fixtures that came
Evan Coast Guard
in late in the quarter for Q2. It's a little bit early to be able to, to have visibility on, on, on the balance days of the quarter. We are, we still have a month and a half ahead of us. So depending on how the vessel straight, there may be some impact. But obviously if you look at it from a TCE perspective, you know, this gets averaged out. Yeah, that makes sense. And another one which you touched upon briefly. So where do you want to position your fleet at the moment? And if you do see a reopening of, or when you see a reopening of the Strait of Hormuz, do you then want to or do you want to take a risk and wait and see for when that opens, or do you rather want to trade in the Atlantic until you are certain that the trade for is open? Sorry, it's again, it's a bit muffled. Your question is whether we want to trade in the Hormuz if it reopens. As more of, do you want to take the risk and wait outside the Hormuz at the moment, or do you prefer to just stay away until it actually is open?
Rakli
No, like, look, that's a good question. And if you take: I mean, one thing just to give you some numerical examples, like if you open. If one of our VLCCs opens in Singapore today and we ballast to the AG and we And we wait a whole month and we fix TV3 voyage so ag to China and where the futures are pricing, I guess those would be July days. The vessel would earn 300,000 a day, I assume if you wait an extra 60 days, you learn, you know, $200,000 a day a bit less. So clearly, at least where the futures, the FFA market is pricing the AG reopening, the market's going to be extremely firm. Just, I mean the way that we kind of thought about it is that if you usually fix cargoes from the AG three weeks ahead and there's around 160 cargoes a month recently, you know, that's about 110 cargoes in the over three weeks. So usually a cargo will fix three weeks ahead, like I said. But today is day zero and three weeks is day 21. You need to cover for 110 cargoes. So I think all these ships that are sitting outside will be absorbed very, very quickly. And that doesn't even include whatever production or not production, but whatever exports can be increased because of crude sitting in storage. So I think the immediate reopening will see a huge like sucking of whatever prompt tonnage is available in the area. So I mean you need to be a bit careful because okay, the future market might be wrong. It could be a bit lower or it could stay closed for a lot longer. But you know, the 30 days waiting for it to do a TD3 and earning 300,000 while the market today on a cargos that we're looking at are between 120 and 150,000 is a big difference. I think. You know, we've seen companies like Sinocor who are willing to just take the risk and look for the maximum upside and just wait on some shift or as a general charting strategy. As a business, as a company we've been a bit more pragmatic and looking to find the optimal cargoes that we like and not have too much waiting. So we, we need to do a bit of a combination. I mean we made a bit of a matrix internally and we want to make sure that we have ships. There are at least a ship, you know, you know, every week that could be in the area to do an AG cargo. But I think it would be quite risky just to park everything outside of the AG and wait. And then the at least would start yelling at me because we wouldn't, we wouldn't recognize any income for the rest of Q2. So we have like a huge Q3, but the Q2 actuals would come off of it. Evan would be asking me questions about it, but that's okay otherwise, so we're balanced. I mean we're going to try to make sure we don't lose all our exposure to, you know, reopening on any given date. But we can't just sit everything off there and be completely risk on. The other good thing is that we have, we have a Suzmax that was fixed east, so she'll be open in the east in, you know, in the next month. And we also have the two new buildings which will be delivering end of May. End of May. So that's like mid, late June dates for the AG and the other one is July. So we have three sewage max in our whole BLCC fleet that will have exposure to the reopening at some point in the next three months. So I think we're in a relatively good position on the bigger ships.
Evan Coast Guard
That's very good caller. Thank you. That's all for me.
OPERATOR
Your next question comes to the line of Clement Mulan with value. Your line is now open. Please go ahead.
Clement Mulan
Hi, good afternoon and thank you for taking my questions. Most has already been covered. But I wanted to ask you about the GNA for the quarter. I'm guessing there was an impact due to the offering to acquire the last two Suezmaxes as well as for bonuses. But where do you see the run rate for Q2 and thereafter on a, let's say, normal basis?
Rakli
Yeah, you're right. This is, this is more a timing issue. We, we expect, we currently expect to finish the year maybe slightly higher than last year. 15, 10, 15 higher, something like that. But obviously from a timing perspective, Q1 has been much more heavy than the rest of the quarters. The rest of the quarters. I expect we will go back to the usual run rates and spread relatively evenly at the moment. Just keep in mind we also face, you know, because quite a lot of our expenses, including G&A are in Euros, so exchange rates.
Clement Mulan
There's volatility on exchange rates also. favor makes sense. Thanks for the color. And this one is just to confirm regarding the vessel trapped inside the AG with usual 39 days fixed in Q2. Will the 74 day per day be payable until it gets out? Yeah. I mean under our commercial agreements, yes. We obviously have to show the number as of the latest information and so long as remains in, that's the number for show for now. Okay, thank you. I'll turn it over. Thank you for taking my questions. Thank you, Tom.
Iraklis
There are no further questions at this time. I will now turn the call back to Iraklis for closing remarks. Thanks everyone for dialing in. We're also looking forward to an update in early August. Thank you very much.
Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice.
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