CEO Speak: Okeanis Eco Tankers CEO Aristides Alafouzos Discusses Company and Tanker Sector Outlook for 2025

In an exclusive interview as part of Capital Link's Trending News Webinar Series, Okeanis Eco Tankers ECO CEO Aristides Alafouzos discussed the company and tanker sector outlook for 2025. Please find below highlights from the discussion and his comments.

As the CEO stated, Okeanis Eco Tankers ECO is positioned to benefit from favorable market dynamics heading into 2025, supported by a modern fleet, disciplined capital management, and strong industry fundamentals.

The expansion of U.S. sanctions on Russian and Iranian oil exports has reshaped global crude flows, creating opportunities for compliant operators. CEO Aristidis Alafouzos highlighted that stricter enforcement on Iran could remove up to 1.5 million barrels per day of exports, creating demand for approximately 45 additional VLCCs and significantly tightening the market.

While market uncertainty remains, potential diplomatic developments could alter these flows again. A U.S.-brokered resolution to the Ukraine-Russia conflict could also shift volumes back to regulated Western fleets, further supporting rates.

Okeanis employs a focused fleet deployment strategy rather than dispersing assets across markets. The company's Suezmaxes prioritize Mediterranean and Western trades through strong chartering relationships and optimized cargo swaps, while its VLCCs leverage a triangulation strategy between the Arabian Gulf, West Africa, and Europe. In-house technical management ensures higher vessel reliability compared to peers that outsource.

Aging fleet dynamics add further support to the market outlook. By 2027, 35% of the global Suezmax fleet and 30% of VLCCs will be over 20 years old, with these figures rising to 50% and 42% by 2028, making much of the fleet commercially unviable. Okeanis' fleet, with an average age of around five years and all vessels eco-designed and scrubber-fitted, is well positioned to capitalize on tightening supply.

Financially, the company has strengthened its balance sheet by refinancing most of its fleet at lower margins, expanding its lender base to include Taiwanese institutions, and planning to exit legacy lease obligations. Okeanis remains committed to shareholder returns, maintaining a disciplined capital allocation strategy without pursuing aggressive expansion or equity dilution.

Additional catalysts for 2025, include potential U.S. Strategic Petroleum Reserve (SPR) refilling and further shifts in geopolitical policy, are expected to drive continued demand. Mr. Trump has expressed intentions to rebuild the SPR, which would require a steady flow of heavy crude imports, primarily from the Arabian Gulf. This would add one additional VLCC every 1.6 days, further tightening the market.

The full discussion can be accessed through the link below:

Disclosure: Capital Link is the investor relations advisor to Okeanis Eco Tankers. This content is for informational purposes only and not intended to be investing advice.