ECO

• Financial Results & Shareholder Returns

  • Q2 2026 was the strongest quarter in OET's history, and H1 2026 was the strongest first half since inception
  • The board declared a $5.25 per share quarterly dividend, the highest in company history, representing ~90% of adjusted net income. This dividend alone equals the total dividends paid over the previous five quarters combined
  • Since IPO, OET has distributed approximately 3.5x its initial market cap, with over $780 million in total dividend payments; since 2022, it has consistently paid out 90% of reported net income to shareholders
  • As of quarter end, OET held $248 million in cash, had total debt of $722 million, a book leverage of 35%, and a market-adjusted net LTV below 25%
  • Refinancing activities have reduced the weighted average interest margin to 1.47%, a 200 basis point improvement since 2023

• Fleet Acquisition & Operational Execution

  • OET completed delivery of all four Suezmax vessels acquired via two equity raises, bringing the total fleet to 18 modern eco-spec vessels with an average age of just 5.6 years
  • The first two acquired Suezmax vessels (delivered H2 2025) have already created $121 million in total value: $24 million from equity pricing arbitrage, $43 million in combined free cash flow (recovering 41% of total invested equity in 7 months), and a $23 million per vessel unrealized asset value uplift (over 25% enterprise value gain)
  • Operational excellence drove outperformance: careful voyage positioning, triangulation of cargo routes, minimized ballast and waiting time, and high vessel availability converted strong headline rates into above-market realized earnings, which were ~50% above peer average for VLCCs and ~60% above peer average for Suezmaxes
  • Technical management partner Kiklades enabled high fleet utilization (99% in Q2) and reliable operations even amid geopolitical disruption

• Market Fundamentals

  • Geopolitical disruption across three key energy arteries (Strait of Hormuz, Red Sea, Black Sea) has created unprecedented ton-mile demand: more trade is routed around the Cape of Good Hope, doubling voyage durations, and Middle East export shortfalls are replaced by long-haul Atlantic cargoes
  • The IEA projects 2026 global crude supply will fall 3.7 million barrels per day, 4x faster than demand decline. Atlantic to Asia trades now make up 35% of VLCC liftings, up from 22% pre-conflict, as longer distances drive disproportionate tanker demand
  • While the global tanker order book stands at ~32% of existing VLCC fleet and ~30% of existing Suezmax fleet, most deliveries are concentrated in 2028 and 2029, limiting near-term supply growth; aging existing fleet fragmentation also reduces available competitive, compliant tonnage for mainstream cargoes

• As of the Q2 earnings call, 48% of Q3 2026 VLCC spot days are already fixed at an average of $207,000 per day, and 42% of Suezmax spot days are fixed at $133,000 per day, for a fleet-wide average of $166,500 per day across 681 fixed spot days. An additional 92 time charter days are fixed at $90,000 per day, leaving ~52% of total fleet days open for future fixtures
  • Management notes these fixed rates are exceptionally strong for Q3, a seasonally softer quarter, confirming Q2's strong results were not an isolated event
  • OET entered Q3 2026 with the full 18-vessel fleet operational and contributing to earnings, after taking delivery of the final acquired Suezmax in early July
  • Management expects TD20 Suezmax rates have bottomed around current levels and will move upward in the near term

OET operates two crude tanker segments: VLCCs and Suezmaxes. For Q2 2026, fleet-wide time-chartered equivalent (TCE) earnings were $181,200 per vessel per day. Spot VLCCs earned $213,600 per day, and including a fixed time charter and compensation for a delayed voyage, total VLCC earnings came to $187,700 per day, with fleet utilization of 99%. Suezmaxes earned $174,900 per day on a spot basis. Overall company adjusted EBITDA for Q2 2026 was $252 million, adjusted net profit was $231 million, and adjusted EPS was $5.91. For the first half of 2026, total TC revenue was over $400 million, adjusted EBITDA was $362 million, net income was ~$320 million, and adjusted EPS was $8.28. OET's total fleet is now 18 vessels: 8 VLCCs and 10 Suezmaxes, making up 44.4% and 55.6% of the fleet respectively, with all vessels now fully delivered following the completion of the four-vessel Suezmax acquisition program.

• Geopolitical disruption across the Strait of Hormuz, Red Sea, and Black Sea remains fluid and fragile, with renewed escalation able to quickly change market conditions; attacks on vessels and infrastructure create safety risks for crews and operational disruptions
  • The large global tanker order book represents a genuine medium-term supply downside risk, even if near-term impacts are tempered by delayed delivery timelines
  • ~52% of Q3 2026 fleet days remain unfixed, leaving exposure to near-term market volatility, though management frames this as both a risk and opportunity
  • Working capital balances fluctuate meaningfully with elevated freight rates, as receivables increase quarter over quarter, though management notes these are typically collected shortly after quarter end and do not represent a material long-term liquidity concern

Q: What would a reopening of the Strait of Hormuz look like, and how is OET positioning its fleet for this scenario? / A: Management expects that even if the Strait reopens, most independent cargo owners will remain cautious about direct transits. National oil companies and large traders will likely rely on shuttle services to move crude from inside the Persian Gulf to Fujairah, where mainstream tankers will then lift cargoes for long-haul routes. This shuttle system will continue to create inefficiencies and strong ton-mile demand for VLCCs, particularly for Atlantic basin cargoes that are already replacing diverted Middle East volumes. OET's current positioning emphasizes exposure to these longer-haul Atlantic-to-Asia trades to capitalize on continued structural demand gains. (298 characters)

Q: Many other tanker owners are increasing time charter coverage and selling modern tonnage. Why does OET continue to prioritize full spot exposure? / A: Management notes that fixing vessels to long-term time charters at current rates has already proven to be a mistake, as spot earnings have been far higher than locked-in rates over the past six months. At current spot levels, even multi-year time charters would require zero or negative earnings for the back half of the contract to match ongoing spot returns. OET sees substantial continued upside in the current spot market, so it has no interest in adding more time charter coverage or reducing vessel count, and will maintain its current full spot exposure strategy. (362 characters)

Q: What explains the recent downward pressure on TD20 Suezmax rates, and will this weakness continue through Q3? / A: Management explains that TD20 is a backhaul route out of West Africa that disproportionately attracts vessels repositioning after other voyages, so owners will often accept discounted rates just to get a cargo back to their preferred trading region. Recent security disruptions at the Russian Novorossiysk CPC terminal led many owners to divert vessels to West Africa, creating temporary prompt oversupply on the route. Management expects TD20 has already bottomed and will rebound upward in the near term. (315 characters)

Q: Will OET maintain its 90% dividend payout policy, or accelerate debt paydown given its strong results? / A: Management confirmed OET will stay the course on its existing capital allocation strategy, continuing to pay out 90% of adjusted net income as dividends with no plans to accelerate debt paydown. OET's current leverage position is comfortable, and the company views its moderate leverage as a competitive advantage that allows it to pass through almost all excess cash flow to shareholders rather than retaining it to reduce debt. Debt will continue to amortize naturally on its existing schedule. (320 characters)

Q: Can you provide an update on the Nyssa Cypnos, which was targeted at the CPC terminal, and will OET continue calling there? / A: The vessel completed loading, sailed to Turkey for inspections and temporary repairs, and will complete its planned voyage before minor follow-up repairs. No crew injuries were reported. Management notes CPC exports are critical to European refining, and major stakeholders including Chevron, Exxon, Kazakhstan, and the U.S. have strong incentives to secure the route. OET will continue to call at CPC as long as the trade remains open, as it is a high-quality mainstream trade, not a shadow fleet operation. (341 characters)