Untitled

ANNUAL

REPORT

2021

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT TABLE OF CONTENTS

TABLE OF

CONTENTS

03 Letter from the Chairman

07 History

8 Fleet

9 Presentation of the Board of Directors

12 Board of Directors’ Report

24 Responsibility Statement

26 Corporate Governance Statement

37 Consolidated Financial Statements

38 Directors’ Statement

39 Independent Auditor’s Report

46 Consolidated Statement of Profit or Loss and Other Comprehensive Income

47 Consolidated Statement of Financial Position

48 Consolidated Statement of Changes in Equity

49 Consolidated Statement of Cash Flows

50 Notes to the Consolidated Financial Statements

82 Parent Company Financial Statements

83 Independent Auditor’s Report

86 Statement of Profit or Loss and Other Comprehensive Income

87 Statement of Financial Position

88 Statement of Changes in Equity

89 Statement of Cash Flows

90 Notes to the Financial Statements

LETTER FROM

THE CHAIRMAN

HISTORY

& FLEET

PRESENTATION

OF THE BOARD

OF DIRECTORS

BOARD

OF DIRECTORS’

REPORT

RESPONSIBILITY STATEMENT

CORPORATE

GOVERNANCE

STATEMENT

CONSOLIDATED

FINANCIAL

STATEMENTS

PARENT COMPANY

FINANCIAL

STATEMENTS

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

LETTER FROM

THE CHAIRMAN

HISTORY

& FLEET

PRESENTATION

OF THE BOARD

OF DIRECTORS

BOARD

OF DIRECTORS’

REPORT

RESPONSIBILITY STATEMENT

CORPORATE

GOVERNANCE

STATEMENT

CONSOLIDATED

FINANCIAL

STATEMENTS

PARENT COMPANY

FINANCIAL

STATEMENTS

LETTER

FROM THE

CHAIRMAN

LETTER FROM THE CHAIRMAN

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT LETTER FROM THE CHAIRMAN

Our company’s focus has been to ensure that our seafaring and onshore staff remain safe

and protected from Covid-19 pandemic and the Ukrainian crisis while engaging in our daily

operations. I would like to take this opportunity to express our deepest gratitude especially to

the crews on our vessels for their unwavering professionalism, dedication and stamina during

these uncertain times.

We are deeply shocked by the atrocities perpetrated against the innocent people of Ukraine and

we condemn the Russian state’s invasion. Our focus has been to safeguard the wellbeing of our

onboard employees and comply with the continuously evolving legal and sanctions framework.

The crude tanker markets are known for their volatility and rapid response to geopolitical events.

The juxtaposition between our markets in 2020 and 2021 clearly demonstrates the challenges

and opportunities participants in the tanker sector have witnessed. In particular, the market

moved from the most profitable year of the last decade in 2020, to the most challenging year

since 1994 in 2021.

It was under these circumstances that Okeanis Eco Tankers (“OET”) continued to commercially

outperform the market and managed not only to breakeven but also improve its balance sheet,

that will allow the company to navigate through the cycle while remain opportunistic towards

scale, and return $38m back to shareholders in the form of dividends, capital distributions and

share buybacks.

The first half of the year was characterized by weak seaborne crude oil trade volumes, primarily

attributable to soft crude oil demand on the back the COVID-19 pandemic and mobility

restrictions in many parts of the world, further exacerbated by the curtailed production output

from the Organization of the Petroleum Exporting Countries (“OPEC”) and significant destocking

of cheap oil inventories that were built through the price war in 2020.

Our markets have experienced incremental pressure from the supply side. Firstly, a large portion

of the ﬂeet employed under ﬂoating storage business returned to the market. Secondly, a

frontloaded orderbook, even though at historically low levels, resulted in increased vessel deliveries

during the period. Thirdly, we have seen weaker than anticipated scrapping activity despite

softening rates and elevated steel prices on the back of lucrative employment opportunities in

sanctioned trades that absorbed approximately 6% of the large crude tanker ﬂeet.

Source: Company filings, OET.

VLCC Suezmax

OET PeerA PeerB PeerC PeerD OET PeerA PeerC PeerD

$15,400

$15,300

Full year 2021 Spot TCE performance ($/day)

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT LETTER FROM THE CHAIRMAN

Notwithstanding the improvement in crude oil demand and the tanker markets over the

second half of the year, a combination of new COVID-19 variants and further lagging of OPEC+

output versus quotas resulted in an inﬂationary, steeply backwardated, oil price environment

that kept cargo volumes rebound to a halt and prolongated the anticipated, fundamentally-

driven recovery in the crude tanker space. The disruption to crude tanker markets from these

factors has been reﬂected in spot daily earnings in 2021 that came in below operating costs for

conventional non-eco / non-scrubber crude tanker vessels.

Contrariwise, we generated well above market earnings leveraging on our young, fuel-efficient

ﬂeet, active management and scrubber investments that have more than paid off given the

large delta between High Sulphur Fuel Oil (“HSFO”) and Very Low Sulphur Fuel Oil (“VLSFO”). In

the VLCC segment, OET delivered daily spot earnings throughout the year of $15,400 per day,

representing 15% outperformance relative to the average of the crude tanker peer group and

379% compared to average sector earnings for conventional assets. Similarly, our Suezmax daily

spot earnings of $15,300 per day represented 35% outperformance relative to the peer group

and 108% versus the average sector earnings for conventional vessels.

Our active management was the imminent response to the adverse market conditions during

the year. OET optimized its vessel portfolio and strengthened its balance sheet through the sale

and purchase market. In particular, we have monetized our three investments in the Aframax/

LR2 tanker segment at very attractive prices during the first quarter of the year. Towards the end

of the second quarter, the Company rejuvenated its VLCC ﬂeet by selling at record prices for the

reported year two 2019 built vessels and replaced them with two Gas Ready (MEc), eco-design,

open loop scrubber-fitted 300,000 DWT VLCC crude tankers under construction at Hyundai

Heavy Industries, South Korea with delivery in the first half 2022.

Consistent with our promises to investors, we have returned $38m back to our shareholders in

the form of dividends, capital distributions and share buybacks in the most challenging year

ever in crude tankers, proving our dedication and focus on shareholder returns. Our increasing

allocation of returns via share repurchases reﬂects our firm conviction and belief of the dislocation

between our intrinsic value and the value assigned to our Company from the market. In this

regard, this is an attractive investment opportunity for the Company and we will closely monitor

the market to execute on such value accretive strategy.

Source: Clarksons Research, OET.

21,100

18,700

32,100

28,300

16,300

24,500

14,000

20,700

11,600

16,800

100 200 300 400 500

VLSFO-HFO spread, $ per tonne

Daily eco and scrubber savings ($/day)

VLCC

Suezmax

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT LETTER FROM THE CHAIRMAN

At OET we are acutely aware of our responsibility to be part of the efforts to achieve net zero carbon

and comply with sustainable investment practices. Our commitment towards sustainability has

been one of our founding pillars and is reﬂected in our carbon efficiency measures for our young

and fuel-efficient ﬂeet. As measured by the Annual Efficiency Ratio (“AER”) – a measure of our

ﬂeet’s carbon efficiency using the parameters of fuel consumption, distance travelled, and design

deadweight tonnage – OET’s AER of 2.1 grams/ton-mile is the lowest in the crude tanker peer

group. We are well equipped to comply with upcoming Energy Efficiency Existing Ship Index

(“EEXI”) regulations. The Company will publish its inaugural sustainability report during the year

and has already set the path, together with its managers, for continuous monitoring, reporting

and improvement on all sustainability related aspects.

Looking forward, we believe that recent market headwinds will be transitory and give way to

the unique set of supply and demand fundamentals that the sector has not seen since the

2000s. Namely, the supply side is expected to be muted if not negative given an undemanding

orderbook currently at historically low levels, tight yard capacity, incoming environmental

regulations and scrapping potential. Demand measured in tonne-miles is projected to rebound

significantly on the back of firm business activity and travel, as the world moves away from

mobility restrictions associated to the pandemic, emerging trade patterns that support tonne-

miles and pent-up demand to replace global inventory depletion.

Ioannis Alafouzos

Chairman

54%

11%

10%

(41%)

60%

40%

20%

(20%)

(40%)

(60%)

Total shareholder return (2021)

Share total return

OET PeerA PeerB PeerC PeerD PeerΕ

Source: Company filings.

Note: Shareholder total return for 2021 calculated as: (share price at 31 December 2021 less share

price at 31 December 2020 plus total cash distributions for 2021 per share, divided by share price

at 31 December 2020).

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT HISTORY

HISTORY

APRIL 2013

Ordered 3x LR2 Aframaxes at HHI

FY 2015

Took delivery of Aframaxes and ordered

2x Suezmaxes at JMU

FEBRUARY 2018

Ordered 2x scrubber-fitted VLCCs at HHI

JUNE 2018

Contributed Alafouzos family’s eco tanker

ﬂeet to OET in exchange for shares

DECEMBER 2018

Raised additional $30 million at NOK 66 per

MAY 2019

Raised additional $15 million from Alafouzos

family at NOK 83 per share

JANUARY 2020

Concluded VLCC NB program with HHI

DECEMBER 2020

Concluded scrubber retrofit program across

entire ﬂeet

OCTOBER 2021

Monetized 1x VLCC built 2019

JUNE 2021

Acquired 2x under construction ECO scrubber

fitted built 2022 VLCCs at HSHI from the

Sponsor - Monetized 2x Aframaxes built 2015

MARCH 2019

Uplisting of OET to Euronext Expand

OCTOBER 2019

Exercised free option to acquire 2x 2020-built

Suezmaxes under construction at HSHI from

sponsor (Mr Ioannis Alafouzos)

SEPTEMBER 2020

Concluded Suezmax NB program with HSHI

JANUARY 2021

Uplisted to Oslo Børs

AUGUST 2021

Monetized 1x Aframax built 2015

NOVEMBER 2021

Monetized 1x VLCC built 2019

MAY 2014

Ordered 2x Suezmaxes at SSME

DECEMBER 2017

Ordered 4x scrubber-fitted VLCCs at HHI

APRIL 2018

Ordered 2x scrubber-fitted VLCCs at HHI

Established Okeanis Eco Tankers Corp. (OET)

JULY 2018

Listing of OET on Euronext Growth; raised

$100 million at NOK 72 per share

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT FLEET

FLEET

LETTER FROM

THE CHAIRMAN

HISTORY

& FLEET

PRESENTATION

OF THE BOARD

OF DIRECTORS

BOARD

OF DIRECTORS’

REPORT

RESPONSIBILITY STATEMENT

CORPORATE

GOVERNANCE

STATEMENT

CONSOLIDATED

FINANCIAL

STATEMENTS

PARENT COMPANY

FINANCIAL

STATEMENTS

No. Type Vessel Yard Country Built Age DWT Employment Eco-Design? Scrubber? BWTS?

1 Milos SSME Korea 2016-10 5 157,525 Spot Yes Yes Yes

2 Poliegos SSME Korea 2017-01 5 157,525 Spot Yes Yes Yes

SUEZMAX

Kimolos JMU Japan 2018-05 4 159,159 Spot Yes Yes Yes

4 Folegandros JMU Japan 2018-09 3 159,221 Time charter Yes Yes Yes

5 Nissos Sikinos HSHI Korea 2020-09 1 157,971 Time charter Yes Yes Yes

6 Nissos Sifnos HSHI Korea 2020-09 1 157,971 Time charter Yes Yes Yes

7 Nissos Rhenia HHI Korea 2019-05 3 318,953 Time charter Yes Yes Yes

8 Nissos Despotiko HHI Korea 2019-06 3 318,953 Time charter Yes Yes Yes

Nissos Donoussa HHI Korea 2019-08 2 318,953 Spot Yes Yes Yes

10 VLCC Nissos Kythnos HHI Korea 2019-09 2 318,953 Spot Yes Yes Yes

11 Nissos Keros HHI Korea 2019-10 2 318,953 Spot Yes Yes Yes

12 Nissos Anafi HHI Korea 2020-01 2 318,953 Spot Yes Yes Yes

13 Nissos Kea HHI Korea 2022-03 - 300,000 Spot Yes Yes Yes

14 Nissos Nikouria HHI Korea 2022-05 - 300,000 - Yes Yes Yes

3,463,090

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

LETTER FROM

THE CHAIRMAN

HISTORY

& FLEET

PRESENTATION

OF THE BOARD

OF DIRECTORS

BOARD

OF DIRECTORS’

REPORT

RESPONSIBILITY STATEMENT

CORPORATE

GOVERNANCE

STATEMENT

CONSOLIDATED

FINANCIAL

STATEMENTS

PARENT COMPANY

FINANCIAL

STATEMENTS

PRESENTATION

OF THE BOARD

OF DIRECTORS

PRESENTATION OF THE BOARD OF DIRECTORS

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT PRESENTATION OF THE BOARD OF DIRECTORS

Ioannis Alafouzos,

Chairman

Mr. Ioannis Alafouzos serves as Chairman and CEO of Okeanis Eco Tankers.

Mr. Alafouzos began his career in shipping in 1981 and has over 40 years

of experience in all facets of the industry. Mr. Alafouzos founded Kyklades

Maritime Corporation’s tanker arm and has been the key strategist for the

company’s cyclical asset plays. Mr. Alafouzos holds an MA from Oxford

University in History of Economics. He was a member of the ABS Technical

Committee from 2005-2009, a board member of Ionian and Popular Bank

in the 1990’s, and a board member of the Hellenic Chamber of Shipping

in the 1980’s.

Robert Knapp,

Director

Robert Knapp is the CIO of Ironsides Partners, an investment manager

based in Boston, which he founded in 2007. Ironsides is an asset value

investor with an emphasis on market dislocations or disruptions. Mr. Knapp

serves as a director for several investment companies including Barings

BDC listed on the NYSE and was a director of MPC Container Ships AS

when it was founded. He is a graduate of Princeton University in the US

and Oxford University in the UK. Mr. Knapp is an American citizen.

Daniel Gold,

Director

Daniel Gold is the CEO, managing partner and founder of QVT Financial LP,

an asset management company with offices including New York, London,

Singapore, and New Delhi. QVT Financial, through its managed funds, is

an experienced global investor in the shipping and offshore industries. Mr.

Gold holds an AB in Physics from Harvard College. Mr. Gold is an American

citizen.

Joshua Nemser,

Director

Joshua Nemser is a New York-based senior portfolio manager at VR

Capital Group. Prior to joining VR, Mr. Nemser was an investment banking

associate at Moelis & Company, where he advised on a range of mergers,

acquisitions, recapitalizations, and restructurings. Prior to Moelis, he was

an attorney in the Business Finance & Restructuring department of Weil,

Gotshal & Manges. Prior to Weil, he was vice president and chief pilot of a

federally certificated air carrier. Mr. Nemser holds a J.D. from the New York

University School of Law, where he graduated magna cum laude, and a B.S.

in business administration from the University of Southern California. He is

a licensed airline transport pilot with over 2,000 ﬂight hours. Mr. Nemser is

an American citizen.

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT PRESENTATION OF THE BOARD OF DIRECTORS

Charlotte Stratos,

Independent Director

Charlotte Stratos has served as a Senior Advisor to Morgan Stanley’s

Investment Banking Division Global Transportation team since 2008.

Between 1987-2007, Mrs. Stratos served as managing director and head

of Global Greek Shipping for Calyon Corporate and Investment Bank of

the Credit Agricole Group. From 1976 to 1987, Ms. Stratos has served in

various roles with Bankers Trust Company, among them, as Vice President

of Greek shipping finance. Currently, Mrs. Stratos serves an independent

director of Costamare Inc., a containership company listed on the NY Stock

Exchange. Previously, she was an independent director on the board of

Hellenic Carriers Limited, a shipping company listed on London’s AIM

between 2007-2016 and a board member of Emporiki Bank between

2006–2008.

John Kittmer,

Independent Director

John Kittmer has held senior positions across the UK public sector. Between

2013-2016, he was British Ambassador to Greece and responsible among

other things for British commercial relations in Greece. He has served other

senior roles in the UK Foreign and Commonwealth Office, the Department

for Environment, Food and Rural Affairs, and the Cabinet Office. He holds a

BA from the University of Cambridge, an MA from the University of London

and a PhD from King’s College London. He is Chairman of The Anglo-

Hellenic League and the Gilbert Murray Trust, UK-registered charities

working on educational and cultural issues. Dr. John Kittmer is a UK citizen.

Petros Siakotos,

Director

Petros Siakotos has spent most of his career in international banking,

successively with Salomon Brothers, HSBC, Credit Suisse and as Managing

Director at UBS Russia. He has advised the Greek and Russian governments

in key privatisations and has helped corporate clients with numerous

equity and debt raising and strategic transactions. He then served as Senior

Advisor to EBRD for the Greek market until 2018. He is currently a director

at NUR MINOS, a company developing renewable energy generation

projects and is involved in several energy efficiency initiatives. Mr. Siakotos

has a BA from Yale University and an MBA from the Anderson School of

Management at UCLA.

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT BOARD OF DIRECTORS’ REPORT

LETTER FROM

THE CHAIRMAN

HISTORY

& FLEET

PRESENTATION

OF THE BOARD

OF DIRECTORS

BOARD

OF DIRECTORS’

REPORT

RESPONSIBILITY STATEMENT

CORPORATE

GOVERNANCE

STATEMENT

CONSOLIDATED

FINANCIAL

STATEMENTS

PARENT COMPANY

FINANCIAL

STATEMENTS

BOARD

OF DIRECTORS’

REPORT

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

Business Overview and Corporate Development

Okeanis Eco Tankers Corp. (the “Company”) was incorporated on April 30, 2018 under the laws

of the Republic of the Marshall Islands. On June 28, 2018, all of the shares in fifteen single-

purpose companies (the “SPVs”) and OET Chartering Inc., were transferred to the Company

from Okeanis Marine Holdings (“OMH”), a holding company controlled by the Alafouzos family.

Control was established from the time the Company had the power to govern the financial

and operating policies of the contributed SPVs, to accrue benefits from their activities. The eco

ﬂeet of OMH was contributed to the Company as a payment in-kind transaction where OMH

received shares in the Company in return. The Alafouzos family fully owned OMH and, as of the

date of this Annual Report, holds a stake of 56.82% in the Company.

The Company was admitted to trading on Euronext Growth (ex-Merkur Market) on July 3, 2018

and from January 2021, the Company’s shares are traded on Oslo Børs.

The Company is an international tanker company in the oil shipping industry. Its main activities

are the ownership, chartering and operation of oil tanker vessels. The Company owns, through

its vessel-owning subsidiaries, the SPVs, a ﬂeet of fourteen tanker vessels comprising six modern

Suezmax tankers, seven modern VLCC tankers and one newbulding VLCC with scheduled

delivery in May 2022.

Among the factors that are believed to differentiate the Company from its competitors are:

a) its focus on “future proof” vessels built to eco standards that consume less bunker fuel than

conventional tanker vessels; b) being equipped with exhaust gas cleaning systems (“scrubbers”)

and; c) being built to comply with regulations for ballast water treatment.

The following significant events occurred in 2021:

• In January 2021, the Company transferred its listing from Euronext Expand to Oslo Børs.

• In March 2021, the Company paid a cash dividend to its shareholders of $0.10 per share,

amounting to $3.2 million.

• In May 2021, the Company signed a memorandum of agreement (“MoA”) for the sale of its

Aframax/LR2 ﬂeet comprising three vessels (Nissos Therassia, Nissos Schinoussa and Nissos

Heraclea) to an unaffiliated third party for a total of $120.75 million.

• In June 2021, the Company delivered Nissos Therassia and Nissos Schinoussa to their new

owners. In connection with the completion of the sale, the Company recorded a net loss

of $7.6 million, retired $47.1 million concerning the outstanding loan principal amount of

the disposed vessels and further retired $2.8 million in relation to the vessels’ scrubber

financing. Moreover, the Company recorded an impairment loss of $3.9 million relating to

the classification of Nissos Heraclea as available for sale on June 30, 2021, since the vessel’s

carrying value was lower than her respective fair value less estimated selling expenses.

• Also in June 2021, the Company signed a MoA for the sale of the VLCC crude tankers, Nissos

Santorini and Nissos Antiparos, to an unaffiliated third party for a consideration of $180

million.

• Additionally, in June 2021:

• The Company entered into an agreement to acquire two Gas Ready (MEc), eco-design,

open loop scrubber-fitted 300,000 DWT VLCC crude tankers under construction at H.H.I.

South Korea (the “Resale VLCCs”) from entities controlled by OET’s Chairman and Chief

Executive Officer, Mr. Ioannis Alafouzos (the “Sponsor”), for $194 million.

BOARD OF DIRECTORS’ REPORT

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

• The Company entered into an agreement to replace its time charters on the VLCCs Nissos

Rhenia and Nissos Despotiko, undertaking the following actions: [i] transfer the remaining

2.0 year time charter (approx.) of the VLCC Nissos Keros to a leading international energy

company to Nissos Despotiko and accelerate debt repayment of Nissos Despotiko lease

by $1.8m p.a. over the next two years; and [ii] transfer the remaining 0.5 year time charter

(approx.) of the VLCC Nissos Donoussa to a leading national oil company to Nissos Rhenia,

accelerate debt repayment of Nissos Rhenia lease by $1.8m p.a. over the next two years

and adjust the lease facility’s margin over LIBOR over the corresponding period slightly

upwards to reﬂect the shorter duration of the replacement time charter.

• Finally, in June 2021, the Company distributed an amount of $24.3 million or $0.75 per share

via a return of paid-in capital.

• In August 2021, the Company delivered Nissos Heraclea to her new owners.

• In September 2021, the Company paid the amount of $17.4 million to the Sponsor in

connection with the acquisition of the Resale VLCCs.

• In October and November 2021, the Company delivered its vessels, Nissos Santorini and

Nissos Antiparos. In connection with the completion of the sale, the Company recorded a

net gain of $11.8 million and retired $134.2 million concerning the outstanding loan principal

amount of the disposed vessels.

• In November 2021, Suezmax tanker Milos performed its five-year anniversary special survey.

• Also in November 2021, the Company initiated a share buy-back plan dedicating an amount

of up to $5.0 million for acquiring own stock.

• In December 2021, the Company distributed an amount of $10.0 million or $0.31 per share

via a return of paid-in-capital.

• Additionally, in December 2021, Suezmax tanker Poliegos was docked for its five-year

anniversary special survey, earlier than scheduled, in order to benefit from an anticipated

rebound of the spot freight market moving into 2022.

• Also in December 2021, the Company purchased 59,236 of its own shares at an average

price of NOK 73.23 per share. Up to the date of this report, and in the context of this initiative

the Company has repurchased 181,809 shares at an average rate of NOK 71.67, or USD 8.34,

utilizing an amount of $1.5 million.

As of December 31, 2021, the Company’s share capital is $32,890 divided into 32,890,000 shares,

each with a nominal value of $0.001 per share.

The following significant events occurred after the Statement of Financial Position date:

• In January 2022, the Company purchased 122,573 of its own shares at an average price of

NOK 71.0 per share.

• In March 2022, the Company took delivery of Nissos Kea, one of the two VLCCs under

construction at Hyundai Heavy Industries. The cash consideration for the transaction was

financed through proceeds of a new sale and lease back agreement (the “Facility”) with

CMB Financial Leasing Co., Ltd. (“CMBFL”), with a gross finance amount of approximately

$145.5m. The Facility is repaid quarterly, amortizes over a 20-year profile, matures in 7 years

from drawdown and is priced at extremely competitive terms. According to the agreement,

the Company has a call option at each anniversary date. OET has already drawn $72.75m

from the Facility as it relates to the delivery of the Vessel. The Company expects to take

delivery of the second vessel NISSOS NIKOURIA at the end of May 2022 when it will also

draw the second tranche of the Facility.

BOARD OF DIRECTORS’ REPORT

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

Environmental Footprint

The maritime industry faces the challenge of adopting new technologies and operational

practices to comply with stricter international and local regulations in order to reduce carbon

intensity by 40% by 2040 and greenhouse gas emissions by 50% by 2050. In light of these

challenges, the Company believes that this will be a strong distinguishing factor between

tanker owner/operators going forward.

Adhering to ABS Monitoring Reporting and Verification Regulation and its strategy to reduce

carbon emissions, the Company has one of the youngest ﬂeets in operation, pursuing a strategy

of investing only in eco-design vessels, with the goal of reducing its environmental footprint,

exceeding industry emission benchmarks and generating value for its shareholders.

The below table presents the Company’s emissions data:

Reporting period is January 1, 2021 through December 31, 2021

REPORTING MEASURE CALCULATION VLCC SUEZMAX OET FLEET

Number of vessels reporting emissions data

at end of reporting period 6 6 12

Fleet average age at end of reporting period 1.76 yrs 3.27 yrs 2.52 yrs

Percentage of vessels equipped with scrubbers

at end of reporting period 100% 100% 100%

CO2 emissions generated from vessels (metric tons)

Laden Condition 205,000 91,900 296,900

All Conditions 350,300 147,000 497,300

Fleet Annual Efficiency Ratio (AER)

CO2 emissions - all conditions (from above) A 350,300 147,000 497,300

Design deadweight tonnage (DWT) B 319,000 158,400 238,700

Total distance travelled (nautical miles) C 615,000 379,900 994,900

Fleet AER for the period A/(B*C) 1.8g/

ton-mile 2.4g/ton-mile 2.1g/ton-mile

Fleet Energy Efficiency Operational Indicator (EEOI)

CO2 emissions - all conditions (from above) A 350,300 147,000 497,300

Weighted avg. cargo transported for the period (metric tons) D 156,800 61,000 217,800

Total distance travelled (nautical miles) E 615,000 379,900 994,900

Fleet EEOI for the period A/(D*E) 3.6

g/ton-mile 6.3g/ton-mile 2.3g/ton-mile

NOTES 1) Annual Efficiency Ratio is a measure of carbon efficiency using the parameters of fuel consumption, distance travelled, and design deadweight tonnage.

2) Energy Efficiency Operational Indicator is a tool for measuring the CO2 gas emissions in a given time period per unit transport work performed. This calculation is

performed as per IMO MEPC.1/Circ684. Reporting period is January 1, 2021 through December 31, 2021.

BOARD OF DIRECTORS’ REPORT

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

Climate Change

The energy transition to address climate change could lead to softer demand for oil and higher

operating costs that could have a negative impact on the Company’s profitability. Climate

change has caused the enactment of new regulations forcing the shipping industry to adapt

to this new business environment through the application of environmentally friendly policies

and operations.

Since inception, the Company controls one of the most fuel-efficient, young ﬂeets in the tanker

industry with vessels that burn less fuel and emit industry low greenhouse gas emissions per

nautical mile travelled while has taken every step required to monitor, report and minimize its

environmental footprint ever since.

The Company’s strategy is to comply with the current and future regulatory framework, maintain

and improve its sustainable investment practices through the ownership and operation of

young vessels built to meet the strictest environmental standards.

Consolidated Financial Statements

Income Statement

For the year ended December 31, 2021, the Company generated revenues of $169.0 million,

down from $282.9 million in 2020 mainly due to a 46% decrease in the daily ﬂeet-wide time

charter equivalent (TCE) earnings.

Operating expenses inclusive of technical management fees amounted to $46.1 million, up

from $43.6 million in 2020 deriving mainly from the revised technical management agreement

with the Managing Company Kyklades Maritime Corporation (“Kyklades” or “KMC”) increasing

the daily fee by $300 per vessel/per day for the year 2021, as well as, from increased Covid-19

related expenses to off-shore personnel.

Commissions and voyage expenses came in at $47.2 million, down from $51.9 million in 2020

mainly due to fewer port calls and a 5% increase in time charter coverage (from 43% in 2020

to 48% in 2021) in absolute terms offset by increased bunker fuel prices in the current year.

General and administrative expenses amounted to $5.1 million, up from $4.4 million in 2020

due to an increase in performance-based remuneration.

Depreciation and amortization expense totaled $38.7 million, down from $41.6 million in 2020

due to a 26% decrease in the depreciable asset base.

Net gain on disposal of vessels of $4.1 million relates to the disposal of the Company’s VLCC

(Nissos Santorini and Nissos Antiparos) and Aframax vessels (Nissos Therassia, Nissos Schinoussa

and Nissos Heraclea). Additionally, an impairment loss of $3.9 million was recorded referring

to the classification of Nissos Heraclea as available for sale on June 30, 2021, since the vessel’s

carrying value was lower than her respective fair value less estimated selling expenses.

BOARD OF DIRECTORS’ REPORT

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

Interest and other finance costs for the year ended December 31, 2021 were $36.5 million,

down from $37.7 million in 2020 due to a 31% decrease in gross indebtedness resulting to a

reduced interest expense cost of $7.3 million, counterbalanced by a write-off of unamortized

loan financing fees by $1.7 million and a further $4.1 million associated with the termination

of certain of the Company’s sale and lease-back agreements. Furthermore, the Company

recorded an additional gain amounting to $4.2 million resulting from derivative instruments,

interest rate swap agreements, held at fair value.

The Company reported a loss for the year of $0.9 million or basic and diluted loss of $0.03 per

share, compared to a profit of $101.3 million or basic and diluted earnings of $3.12 per share in

2020.

Statement of Financial Position

Total assets as at December 31, 2021 were $954.6 million, down from $1,259.7 million in 2020

resulting from the disposal of certain of the Company’s vessels during the year. Total liabilities

amounted to $596.3 million, down from $862.5 million in 2020, mainly due to long-term debt

retirement, associated with the abovementioned vessel disposals, while total equity was $358.3

million, down from $397.2 million in 2020, mainly as a result of the cumulative dividend and

capital distributions of $37.5 million, loss for the year of $0.9 million and repurchase of own

shares of $0.5 million, corresponding to an equity ratio of 38%. The Company’s cash and cash

equivalents (including restricted cash) as at December 31, 2021 was $45.5 million, up from $31.7

million in 2020, as a result of the cash ﬂow movements described below.

Cash Flow

For the year ended December 31, 2021 net cash provided by operating activities was $28.6

million (2020: $152.2 million) that was primarily the result of profitable operations. Net cash

provided by investing activities was $285.7 million (2020: used in $183.7 million), mainly

reﬂecting the vessel disposals during the year, payments for vessels under construction and

scheduled five-year special surveys of $22.3 million , as well as, an amount of $6.0 million from

related parties. Net cash used in financing activities was $299.4 million (2020: provided by

$41.5 million), primarily reﬂecting repayments of long term borrowings of $261.7 million, capital

distribution and dividend payments of $37.5 million and acquisition of treasury stock of $0.5

million.

Going Concern

The consolidated financial statements of the Company have been prepared on a going

concern basis and in accordance with the International Financial Reporting Standards (“IFRS”).

Based on the Company’s financial condition, together with the expected future cash ﬂows

from operations and the fact that there are no unfunded capital commitments, the Board of

Directors confirms the going concern assumption.

BOARD OF DIRECTORS’ REPORT

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

Principal Risks

Interest Rate Risk

The Company’s vessels are financed by long-term financing facilities at a margin over LIBOR.

Any increase or decrease in LIBOR will correspond to a change in the interest expense. Effective

from 2020, the Company uses interest rate swaps to hedge the risk arising from changes in

LIBOR rates. The principal objective of these contracts is to mitigate the risks and minimize the

costs associated with its ﬂoating-rate debt.

Currency Risk

USD is the functional currency of the Company. Some expenses largely relating to crewing

are incurred in other currencies, mainly EUR. The Company is exposed to currency exchange

rate ﬂuctuations, which affect its costs in other currencies. Any adverse movements of the USD

compared to other currencies will negatively affect the financial condition of the Company.

The Company has no hedging mechanisms in place.

Market Risk

The tanker shipping industry is cyclical with high volatility in charter rates and profitability.

The Company charters its vessels principally in the spot market, being exposed to various

unpredictable factors such as: supply and demand of energy resources, global economic

and political conditions, natural or other disasters, disruptions in international trade, COVID-19

outbreak, environmental and other legal regulatory developments and so on. During 2021,

the Company entered into Forward Freight Agreements (“FFAs”) in order to partially hedge its

exposure to spot charter rate ﬂuctuations and mitigate any adverse effect this may have in our

operating cash ﬂows and dividend policy.

Credit Risk

The Company only charters its vessels to international energy companies, national oil companies

and top-tier trading houses with a proven track record of creditworthiness in the charter

market. Any charterer that expresses a desire to trade on credit terms is subject to the Group’s

policy of stringent credit verification procedures, including an extensive KYC process and proof

of funds. Payments related to shipbuilding contracts are secured with refund guarantees from

top-tier financial institutions.

Liquidity Risk

Liquidity risk is the risk that arises when the maturity of assets and liabilities does not match. An

unmatched position potentially enhances profitability, but can also increase the risk of losses.

The Company manages liquidity risk by maintaining sufficient cash and cash equivalents.

Macroeconomic Conditions Risk

Any changes in macroeconomic factors will affect the demand for tanker vessels. Such factors

include international economic conditions, geopolitical changes and inﬂation levels on the

demand side, as well as, OPEC decisions on the supply side. Any adverse change on either the

demand for or supply of crude oil will affect seaborne oil demand, thus affecting oil tanker

earnings.

The Company has also purchased and maintains a Directors and Officers Liability Insurance

issued by a reputable, specialized insurer with appropriate rating.

BOARD OF DIRECTORS’ REPORT

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

Organisation and Personnel

The Company’s registered office is in the Republic of the Marshall Islands, and its corporate and

commercial management is performed by its wholly owned subsidiary, OET Chartering Inc.

that is based in Athens, Greece. Technical management of the ﬂeet is outsourced to Kyklades

Maritime Corporation.

Working Environment

The Company is an equal opportunity employer and is committed to creating and fostering

a diverse working environment by providing equal employment opportunities for all persons.

The Company currently employs twelve persons, of whom five are women and seven are men.

The Company’s Board of Directors comprises one woman and six men.

The Company makes employment decisions on the basis of merit alone, and is committed to

recruiting, training and promoting a diverse group of persons across all job ranks. Furthermore,

all other personnel actions are enacted without regard to race, color, religion, creed, sexual

orientation, ethnic origin, citizenship, gender, gender identity, age, disability, genetic

information, parental status, marital status, or any other status.

As clearly stated in the Company’s Corporate Governance policy:

The Company forbids the discrimination against any employee or any other individual in terms

of, but is not limited to, sex, color, race, religion, age, disability, pregnancy or maternity, sexual

preference, nationality, political view and ancestry.

The Company forbids harassment and bullying, and all employees are expected to treat

every individual with respect and without discrimination and provide everyone with equal

employment opportunities, training or promotion.

In case an employee observes such harassment or suspects as much, he/she should report it

immediately to his/her immediate supervisor or to the Board of Directors. The incident shall

then be investigated immediately, meticulously and with confidentiality.

The Company had no fatal or other accidents during the year and provided sickness absence

to its employees when necessary.

Human Rights

The Company has also taken specific measures to combat human rights inequalities and has

established its Slavery and Human Rights policy by which:

The Company is committed to establishing a corporate culture within which business is

conducted in an ethical, fair, honest and transparent manner. The Company emphasizes the

importance of preventing any kind of slavery violations and that no violation took place in any

of the supply chains that the Company is involved in.

The Company is compliant with the Maritime Labour Convention 2006, ensuring decent

working conditions for its seafarers covering almost every aspect of their work life on board

vessels, such as:

BOARD OF DIRECTORS’ REPORT

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

• A safe and secure workplace that complies with safety standards;

• Fair terms of employment;

• Decent working and living conditions on board vessels; and

• Health protection, medical care, welfare measures and other forms of social protection.

Outlook

Supply and demand balance for the seaborne crude tanker trade in 2021 came in unfavorable

and led to the most challenging market ever recorded. Demand contracted by 4.5% year on

year in 2021, to 9.2 billion tonne-miles. The primary drivers of such contraction were reduced

OPEC exports and the lingering but now transitory effects of the Covid-19 pandemic. On the

supply side, the crude tanker ﬂeet registered a manageable growth of 2.1% year on year in

2021, however, the unwinding of supply under ﬂoating storage added further pressure on the

market balance.

2022 started on a weak footing amid continued pressure on global seaborne crude oil trade.

The rapid spread of the Omicron Covid-19 variant kept the anticipated demand rebound to

a halt in the first months of the year. Elevating oil prices, and the ongoing crude oil supply

disruptions have further curtailed demand drivers in the seasonally weak first quarter of the

year.

The war in Ukraine is a continuously evolving and unpredictable situation both from a

humanitarian and market perspective. The crude tanker markets have so far seen positive

developments mainly driven by shifts in trade ﬂows that supported tonne-mile demand.

Russia’s seaborne crude oil exports account for 10% of world seaborne oil exports with

approximately 50% shipped to Europe. In the event of sanctions and/or choice by Europe, such

volumes would need to be replaced from more distant destinations, while Russia is expected

to find buyers in the East, that could also support demand measured in tonne-miles, in the

short term. In particular, spot freight rates for Suezmax and Aframax vessels have spiked as of

recently, with positive effects also for the VLCC market, despite projected decline in volumes

from the Black Sea, on the back of longer-haul trade routes into Europe from the US and

Middle East. Elevated fuel prices have resulted in a widening performance gap between fuel

efficient, scrubber-fitted vessels and the remaining, conventional non-eco / non-scrubber ﬂeet.

Forecasts and estimates for commodity markets, however, are highly uncertain at the time,

given the unpredictability around the effects of the Russian invasion on short-term economic

activity, trade ﬂows and on the timing of economic resurgence. The world is recovering

quickly though from the Covid-19 pandemic and mobility restrictions are scarcer and largely

concentrated.

Looking forward, the tanker market fundamentals appear constructive both on absolute and

relative terms, although with the obvious risks for the short-term as already outlined.

Global crude oil inventories have fallen steadily after peaking in June 2020, and stock draws

came in at 1.8 million barrels per day from the third quarter of 2020 until the end of 2021. Year

to date, stock draws have continued and commercial inventories are expected by consensus

BOARD OF DIRECTORS’ REPORT

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

energy agencies at 2.6 billion barrels for February 2022, which is the lowest level since 2014.

Looking forward, the crude oil supply disruption from the war in Ukraine (about 3 million bpd

loss of Russian oil for April, according to energy agencies) combined with the agreed release of

120 million barrels emergency oil stocks by International Energy Association (“IEA”) members

over a six month period (US Strategic Petroleum Reserves release accounts for 50% of total IEA

members contribution) is expected to add further pressure on global crude oil inventories that

will need to be replaced adding pent-up demand into 2023 for the tanker market. In terms of

ﬂoating storage, the market is now back to pre-pandemic levels seen in 2019.

Source: Energy Information Administration (EIA).

Million barrels 3.400

3.300

3.200

3.100

3.000

2.900

2.800

2.700

2.600

Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan

2017 2018 2019 2020 2021 2022

OECD commercial invertory

Oil demand is now projected to grow by 2.1 mbpd compared to 2021, including the effects

of the Russian invasion, to 99.7 mbpd, according to the IEA. The world is moving away from

mobility restrictions that have taken a toll on oil demand over the past two years, with firm

business activity and travel rebound. The timing when demand will emerge above pre-

pandemic levels is closely tied to recent geopolitical risks and its effect on world GDP and

inﬂation.

Highly depleted reserves and growing demand suggest that oil supply is the determinant

factor for market balance and crude tanker volumes. Several OPEC members have been

unable thus far to increase production in line with target of a monthly increase of 400 kbpd

from August 2021 until phasing out c.5.8 mbpd production cuts by September 2022. The

current status of prices is expected to further incentivize OPEC producers with substantial

spare capacity, mainly Saudi Arabia and the UAE, to tap into their reserves during the year.

Prospects for additional supply come from Venezuela (2018 exports at 1.5 mbpd vs 0.4 mbpd

in 2022) and Iran (2018 exports close to 3.0 mbpd vs less than 1 mbpd in 2022) with the talks

over a nuclear deal closer to finish line than ever. In the event that an agreement with Iran

is reached and US sanctions to Venezuela ease, exports could ramp up more than 2 mbpd

over a 6-month period. The perspective return of such volumes not only supports the demand

side for crude tankers but also the supply. According to trade reports, ﬂeet employed under

currently sanctioned, Iranian trades accounts for c.6% of the VLCC and Suezmax global ﬂeet.

An agreement on a nuclear deal and concurrent lifting of sanctions on Iran would mean that

these vessels, over 15 years of age, will have limited employment opportunities and scrapping

would appear the sole alternative.

BOARD OF DIRECTORS’ REPORT

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

Consensus energy agency forecasts agree on an improved oil market balance for 2022 and

2023, although market supply risks from the Russian invasion are unclear at this stage.

Source: Energy Information Administration (EIA).

Million barrels per day 105

100

2017 2018 2019 2020 2021 2022 2023

World liquid fuels production and consumption balance

forecast

world production

world consumption

The crude tanker market supply side is favored by a combination of constructive factors,

expected to keep ﬂeet growth muted. Firstly, the current orderbook is undemanding and

stands at historically low levels (7.7% for the VLCC and 6.5% for the Suezmax ﬂeet). Secondly,

new contracts have been subdued given extremely high replacement costs and tight yard

capacity. New orders may now only hit the water in mid-2025 as yards are occupied with

other segments, mainly containerships and LNG carriers, that also offer higher margins. Thirdly,

the average age of the ﬂeet is growing. In particular, more than 20% of the Suezmax and the

VLCC ﬂeet stands above 15 years of age. The aforementioned scrapping potential of the large

crude tanker ﬂeet, coupled with 18 months of soft daily earnings, elevating scrap prices and

additional costs associated with adherence to emission standards from 2023, suggest that

incentives for vessels to hit the yard are greater than ever.

No. vessels 80

(20)

(40)

(60)

(80)

(100)

(120)

Source: Clarksons Research.

VLCC

Eco scrubber

FoW>=2OY, scrap candidates

Non Eco - No scrubber

1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2023 2025

BOARD OF DIRECTORS’ REPORT

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

No. vessels 100

(25)

(50)

(75)

(100)

Source: Clarksons Research.

Suezmax

Eco scrubber

FoW>=2OY, scrap candidates

Non Eco - No scrubber

1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2023 20251993 1995

The price surge in bunker fuel has benefited widely fuel-efficient, scrubber-fitted vessels and

resulted in a two-tier market. We estimate that eco, scrubber-fitted VLCCs are generating

savings in excess of $15,000/day in the current oil price environment.

In summary, market fundamentals for the crude tanker sector appear very constructive both

on absolute and relative terms and suggest that market recovery would not only be significant

but also last for years to come. We believe that the crude tanker market is at an extremely

attractive point in the cycle and offers strong upside potential for owners with young, fuel

efficient vessels for the medium term. As such, we do expect meaningful rerating on crude

tanker freight rates to compensate for firm asset values that already incorporate market

dynamics but trade at a discount to replacement costs.

BOARD OF DIRECTORS’ REPORT

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT RESPONSIBILITY STATEMENT

RESPONSIBILITY

STATEMENT

LETTER FROM

THE CHAIRMAN

HISTORY

& FLEET

PRESENTATION

OF THE BOARD

OF DIRECTORS

BOARD

OF DIRECTORS’

REPORT

RESPONSIBILITY STATEMENT

CORPORATE

GOVERNANCE

STATEMENT

CONSOLIDATED

FINANCIAL

STATEMENTS

PARENT COMPANY

FINANCIAL

STATEMENTS

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT RESPONSIBILITY STATEMENT



We confirm that, to the best of our knowledge, that the consolidated financial statements as of and

for the year ended December 31, 2021 have been prepared in accordance with the International

Financial Reporting Standards published by the International Accounting Standards Board and

give a true and fair view of the assets, liabilities, financial position and profit or loss of Okeanis Eco

Tankers and its subsidiaries as a whole.

We also confirm that, to the best of our knowledge, the Board of Directors’ Report includes a

true and fair review of the development and performance of the business and the position of the

Company taken as a whole, together with a description of the principal risks and uncertainties

the Company faces.

Ioannis Alafouzos

Chairman/CEO

Robert Knapp

Director

Daniel Gold

Director

Joshua Nemser

Director

Charlotte Stratos

Director

John Kittmer

Director

Petros Siakotos

Director

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT CORPORATE GOVERNANCE STATEMENT

LETTER FROM

THE CHAIRMAN

HISTORY

& FLEET

PRESENTATION

OF THE BOARD

OF DIRECTORS

BOARD

OF DIRECTORS’

REPORT

RESPONSIBILITY STATEMENT

CORPORATE

GOVERNANCE

STATEMENT

CONSOLIDATED

FINANCIAL

STATEMENTS

PARENT COMPANY

FINANCIAL

STATEMENTS

CORPORATE

GOVERNANCE

STATEMENT

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT CORPORATE GOVERNANCE STATEMENT

Introduction

In order to be a trustworthy business partner and service provider, Okeanis Eco Tankers Corp.

has made a commitment to ensure trust in the Company and to enhance shareholder value

through efficient decision-making and smooth communication between management, the

board of directors (the “Board”) and shareholders. The Company’s corporate governance policy

is intended to decrease business risk, facilitate transparency, maximize value, and utilize the

Company’s resources in an efficient, sustainable manner, to the benefit of relevant stakeholders.

The Company will seek to comply with the Norwegian Code of Practice for Corporate

Governance (the “Corporate Governance Code”), last revised on October 14, 2021 (www.nues.no).

The principal purpose of the Corporate Governance Code is to ensure (i) that listed companies

implement corporate governance that clarifies the respective roles of shareholders, the Board

and executive management more comprehensively than what is required by legislation, and

(ii) effective management and control over activities with the aim of securing the greatest

possible value creation over time in the best interest of companies, shareholders, employees

and other parties concerned. Deviations from the Corporate Governance Code are discussed

under the relevant item in question.

The Company’s corporate governance policy was first adopted by the Board on February 26,

2019 and was last updated on April 29, 2021.

The Company voluntarily reports on Environmental, social and governance (“ESG”) issues in a

separate ESG report following the Euronext guidance on ESG reporting of January 2020.

All documents are uploaded to the Company’s website (www.okeanisecotankers.com) and

are being reviewed and updated on a regular basis.

Implementation and Reporting on Corporate Governance

The Company is primarily governed by the Marshall Islands Business Corporations Act (BCA), its

articles of incorporation (the “Articles of Incorporation”) and its bylaws (the “Bylaws”). In addition,

the Company is required to comply with certain aspects of the Norwegian Securities Trading

Act, the Norwegian Accounting Act, the Market Abuse Regulation (MAR) and The Issuer Rules

for Oslo Børs (Rule Book I: Harmonized Rules and Oslo Rule Book II-Issuer Rules).

The Company’s corporate governance principles are determined by the Board and are set

forth in the Company’s management documents. The purpose of the Company’s corporate

governance policy is to ensure an appropriate separation of roles and responsibilities among

the Company’s Board and its management and to make certain that the Company’s business

activities are subject to satisfactory control.

The Company’s key values are: integrity, accountability, innovation, reliability, quality

consciousness and dedication. These values characterize the behavior of the Company and

the Company’s employees, and form the basis for the Company’s ethical guidelines.

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT CORPORATE GOVERNANCE STATEMENT

Business

The Company is an international crude tanker business within the shipping industry, with the

ambition of owning, chartering out and operating modern shipping assets aiming to create

value for its shareholders in a sustainable manner.

The Company’s objectives and principal strategies are further described in the Company’s

annual reports and on the Company’s website: www.okeanisecotankers.com. The Company

has offices in Athens, Greece.

Deviation: Marshall Islands law does not require the business activities of the Company to

be narrowly defined in the Company’s Bylaws and the Company’s Articles of Incorporation.

The Company may be organized for any lawful purpose. It is customary for Marshall Island

companies to have general and expansive descriptions of permitted activities, but – as reﬂected

in other documents issued by the Company – the Company has clear objectives and strategy

for its business and seeks to create value for its shareholders in a sustainable manner.

Equity and Dividends

Equity

As of December 31, 2021, the Company’s consolidated equity was approximately $358.3 million,

equivalent to approximately 38% of total assets. The Company’s equity level and financial

strength shall be considered in light of its objectives, charter coverage and strategy.

Dividend Policy - value creation for shareholders

During the year ended December 31, 2021 the Company distributed an amount of $3.2 million

and an amount of $34.3 million through dividends and capital distributions respectively. It is

the intention of the Company that its shares shall offer a competitive yield and be reﬂective

of the cash ﬂows generated by the Company. The Company has selected to distribute/return

dividends/paid-in capital close to its free cash ﬂow adjusted for non-recurring items, working

capital needs or other discretionary items as from time to time will be decided by the Board.

The dividend payment or capital return frequency will be considered over time. The timing

and amount of dividends is at the discretion of the Board, who will also take into account any

applicable contractual and/or legal restrictions on such payments.

The Company will be aligned with and committed to creating value for its shareholders. As

part hereof,

• the Board has adopted a policy effective as from January 2021 to calculate the Company’s

Net Asset Value (“NAV”) per share and consider asset sales and capital reductions if there is

a large discrepancy to its equity market capitalization (the “Discount Control Mechanism”),

• a special sub-committee will handle inbound M&A interest and consider issuance of new

shares and/or new vessel acquisitions, and

• the Company will capitalize on an expected strengthening tanker market and pursue an

opportunistic asset divestment policy.

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT CORPORATE GOVERNANCE STATEMENT

Share capital increases and issuance of shares

The Company may issue in the aggregate, over the course of its lifetime, without the consent

of any shareholders, up to the 100,000,000 authorized shares as set forth in the Articles of

Incorporation. To the extent the Company wishes to issue any number of shares that are in

excess of such number of authorized shares (taking into account the number of shares that are

issued and outstanding), the Articles of Incorporation must be amended by shareholder vote.

Purchase of own shares

The Company may purchase its own shares out of surplus except if the Company is insolvent

or would thereby be made insolvent. Accordingly and further, the Company may purchase its

own shares out of stated capital, if the purchase is made for the purpose of: (a) eliminating

fractions of shares; (b) collecting or compromising indebtedness to the corporation; or (c)

paying dissenting shareholders entitled to receive payment for their shares. Shares that have

been issued and have been purchased or otherwise redeemed by the Company shall be

cancelled if they are redeemed out of stated capital, or if the Articles of Incorporation require

that such shares be cancelled upon redemption. Any shares reacquired by the corporation

and not required to be cancelled may be either retained as treasury shares or cancelled by the

Board at the time of redemption or at any time thereafter. Shares cancelled after repurchase

shall be restored to the status of authorized but unissued shares, except that if the Articles of

Incorporation prohibit the reissue of any shares required or permitted to be cancelled.

Deviation: According to Marshall Islands law, the Board is authorized to issue additional shares

at any time, up to the limits set by the Company’s authorized share capital. This authorization

is not limited to specific purposes or limited in time and can be increased only upon the

authorization of the shareholders.

Equal Treatment of Shareholders and Transactions with Related Parties

Neither the general meeting, nor the Board of Directors nor the chief executive may make any

decision that is intended to give an unreasonable advantage to certain shareholders or other

parties at the expense of other shareholders of the company unless there is a factual basis for

such discrimination.

Class of shares

The Company has one class of shares. All shares are vested with equal rights in the Company,

and neither the Articles of Incorporation nor the Bylaws contain any provisions restricting the

exercise of voting rights.

Trading in own shares

In the event of a future share buy-back program, the Board will aim to ensure that all transactions

pursuant to such program will be carried out through the trading system at Oslo Børs.

Transactions with close associates

No contract or transaction between the Company and one or more of the Company’s

directors or officers will be void or voidable solely because the director or officer is present at or

participates in the meeting of the Board or committee thereof which authorizes the contract

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT CORPORATE GOVERNANCE STATEMENT

or transaction, or solely because his or her or their votes are counted for such purpose, if (1) the

material facts as to such director’s interest in such contract or transaction and as to any such

common directorship, officership or financial interest are disclosed in good faith or known to

the Board or committee, and the Board or committee approves such contract or transaction

by a vote sufficient for such purpose without counting the vote of such interested director,

or, if the votes of the disinterested directors are insufficient to constitute an act of the Board,

by unanimous vote of the disinterested directors; or (2) the material facts as to such director’s

interest in such contract or transaction and as to any such common directorship, officership

or financial interest are disclosed in good faith or known to the shareholders entitled to vote

thereon, and such contract or transaction is approved by vote of such shareholders.

The Board has adopted rules of procedures for the Board which, inter alia, includes guidelines

for notification by members of the Board and executive management if they have any material

direct or indirect interest in any transaction entered into by the Company. These procedures

further ensure that the Company is made aware of possible conﬂicts of interests and handles

such agreements in a sufficiently thorough manner, with the aim of preventing value from

being transferred to related parties.

Deviation: According to the Articles of Incorporation, the shareholders do not have any pre-

emptive rights to subscribe for new shares. This is in line with Marshall Islands law and practice.

Guidelines for directors and executive management

Pursuant to Marshall Islands law, the Board is not required to obtain independent third party

evaluations in the event that the Company enters into transactions with close associates. The

Board may engage independent third parties to evaluate future transactions.

Shares and Negotiability

The shares of the Company are fully transferable. There are no restrictions on transferability of

shares pursuant to the Articles of Incorporation or Bylaws. Pursuant to Article VI of the Bylaws,

the Board shall have power and authority to make such rules and regulations as it may deem

appropriate concerning the issuance, registration and transfer of certificates representing

shares of the Company’s stock in uncertified form, and expects to issue all of its stock for the

foreseeable future in uncertified form.

Shareholder Meetings

General

The Board will make its best efforts with respect to the timing and facilitation of annual and

special meetings of the shareholders to ensure that as many shareholders as possible may

exercise their rights by participating in shareholder meetings, thereby making the shareholder

meeting an effective forum for the views of shareholders and the Board.

Special meetings of the shareholders may be called by the Board or by such person or persons

as may be authorized by the Articles of Incorporation or the Bylaws.

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT CORPORATE GOVERNANCE STATEMENT

Notification

The notice for a general meeting, with reference to or attached support information on

the resolutions to be considered at the general meeting, shall as a principal rule be sent

to shareholders no later than 15 and no more than 60 days prior to the date of the general

meeting. The Board will seek to ensure that the resolutions and supporting information are

sufficiently detailed and comprehensive to allow shareholders to form a view on all matters to

be considered at the meeting. The notice and support information, as well as a proxy voting

form, will normally be made available on the company’s website, www.okeanisecotankers.

com, no later than 15 and no more than 60 days prior to the date of the general meeting.

Participation and execution

The Board of Directors can choose whether to hold a general meeting as a physical meeting

or as an electronic meeting. Shareholders have the right to attend by electronic means unless

the Board of Directors finds that there is sufficient cause for it to refuse to allow this.

The Board shall, as a general rule, be present at general meetings. The auditor will attend the

annual shareholder meeting and any special shareholder meetings to the extent required by

the agenda items or other relevant circumstances. The chairman of the Board or an individual

appointed by the Chairman of the Board will chair shareholders’ meetings.

The Company will aim to prepare and facilitate the use of proxy forms which allows separate

voting instructions to be given for each item on the agenda, and nominate a person who

will be available to vote on behalf of shareholders as their proxy. The Board may decide that

shareholders may submit their votes in writing, including by use of electronic communication,

in a period prior to the relevant shareholder meeting. The Board should seek to facilitate such

advance voting.

To the extent deemed appropriate or necessary by the Board, the Board will seek to arrange

for the shareholder meeting to vote separately on each candidate nominated for election to

the company’s corporate offices.

Deviation: The Corporate Governance Code stipulates that at least 21 days’ notice must be

given to call a general meeting. The procedures for notification (as set out above) are in line

with Marshall Islands law and practice and believed to capture the intent thereof, and secure

shareholders’ rights.

The Corporate Governance Code stipulates that the Board shall ensure that the shareholder

meeting is able to elect an independent Chairman. However, having the Chairman of the

Board or a person appointed by him chairing the annual shareholder meeting simplifies the

preparations for the annual shareholder meeting significantly.

Nomination Committee

The Company’s Bylaws allow for the establishment of a nomination committee; however, the

Company has decided not to establish one.

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT CORPORATE GOVERNANCE STATEMENT

Deviation: The Company’s Bylaws provide that Okeanis Eco Tankers Corp. may appoint a

nomination committee. Shareholders have not expressed any desire to create such a body,

which is also not required under Marshall Islands law, being the jurisdiction in which the

Company is incorporated. The Company has based its solid operations, successful strategy and

growth on the leadership and stewardship of its majority shareholder, CEO and Chairman, Mr.

Ioannis Alafouzos, who (together with affiliates) owns approximately 57% of the Company. He

has throughout kept the best interests of all stakeholders in mind. This is evidenced, inter alia,

by the current composition of the Board, which comprises seven directors, of whom three are

entirely independent, while three are independent from Mr. Alafouzos and his affiliates but

serving by virtue of representing various funds that hold in aggregate approximately 16% of

the outstanding shares in the Company. All members of the Board are up for re-election in

the upcoming 2022 AGM. The Board of Directors will listen to shareholder demands, as and

if expressed, with a view to facilitating a Board going forward which continues to have the

support of shareholders, aligning ownership interest, expertise, integrity and independence in

accordance with the principles underlying the NUES recommendation.

Board of Directors: Composition and Independence

Pursuant to Section B of the Articles of Incorporation, the Company’s Board shall consist of at

least one director. The Board currently has seven directors.

As a listed company, the composition of the Board should ensure that it can attend to the

common interests of all shareholders and meet the Company’s need for expertise, capacity

and diversity. Attention should be paid to ensuring that the Board can function effectively

as a collaborative body. The composition of the Board should ensure that it can operate

independently of any special interests. At least two of the members of the Board should be

elected by shareholders and should also be independent of the Company’s main shareholder(s).

Other than as discussed herein, the Board should not include executive personnel. If the Board

does include executive personnel, the Company should provide an explanation for this and

implement consequential adjustments to the organization of the work of the Board, including

the use of board committees to help ensure more independent preparation of matters for

discussion by the Board.

The Chairman of the Board should be elected at the general meeting

Each Director, including the Chairman of the Board, shall be elected to serve for a term of a

maximum of two years and until his successor shall be elected and qualified. The annual report

provides information illustrating the expertise of the members of the Board, and information

on their record of attendance at Board meetings. In addition, the annual report identifies

which members are considered to be independent.

Deviation: The Company’s CEO is currently also the Chairman of the Board. In light of Mr.

Alafouzos’s unique experience and majority stake in the Company, it is the view of the Board

that he is naturally aligned with shareholders and that it is advantageous that he maintains

the dual roles. The Company’s current shareholders and financiers share a similar view.

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT CORPORATE GOVERNANCE STATEMENT

The Work of the Board of Directors

The rules of procedure for the Board of Directors

The Board is responsible for the overall management of the Company, and shall supervise the

Company’s business and activities, in general.

The Board has adopted rules of procedure, which provide regulation on, inter alia, the duties

of the Board and the CEO, the annual plan for the Board, notices of Board proceedings, and

the shareholders and matters of confidentiality.

The Board shall produce an annual plan for its work, with particular emphasis on objectives,

strategy and implementation. The CEO shall at least once a month, by attendance or in writing,

inform the Board about the Company’s activities, position and profit trend.

The Board’s consideration of material matters in which the chairman of the Board is, or has

been, personally involved, shall be chaired by some other member of the Board.

The Board of Directors shall act with sufficient clarity with regards to agreements with close

associates ensuring that the Company is made aware of possible conﬂicts of interests and shall

handle such agreements in a sufficiently thorough manner, with the aim of preventing value

from being transferred to related parties.

The Board conducts an annual self-evaluation of its own work and competence, with input

from various sources. The Board considers external investors’ perception of the Company’s

operational performance, corporate governance reputation, financial transparency and

effectiveness in communications with external stakeholders. The various Board committees

are also reviewed for their effectiveness in executing their responsibilities. A factor that is

believed to drive alignment between the Board and the Company’s shareholders is the Board’s

significant, cumulative shareholding of 74% in the Company.

In 2021, four regular meetings of the Board of Directors were held. Due to COVID-19 pandemic

and mobility restrictions, the majority of the Board actions were carried out either through

means of telecommunication or written consents of the Board of Directors. Besides the formal

meetings, the Board of Directors is in contact regularly via conference calls and email.

The decision-making process and the attendance rate of the members of the Board of

Directors for 2021 was as follows:

UNANIMOUS

NAME TITLE MEETINGS ATTENDED WRITTEN CONSENTS

Ioannis Alafouzos Chairman 4 out of 4 8

Robert Knapp Director 4 out of 4 8

Daniel Gold Director 4 out of 4 8

Joshua Nemser Director 4 out of 4 8

Charlotte Stratos Independent Director 4 out of 4 8

John Kittmer Independent Director 4 out of 4 8

Petros Siakotos Director - -

George Aronis Director 3 out of 4 8

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT CORPORATE GOVERNANCE STATEMENT

Audit Committee

The Company’s audit committee is governed by an instruction adopted by the Board. A

majority of the members shall be independent of the Company’s operations, and at least

one member who is independent of the Company shall have qualifications in accounting or

auditing. Board members who are also members of the executive management cannot be

members of the audit committee. The principal tasks of the audit committee are to:

(a) prepare the Board’s supervision of the Company’s financial reporting process;

(b) monitor the systems for internal control and risk management;

annual accounts; and

(d) review and monitor the independence of the Company’s auditor, including in particular

the extent to which the auditing services provided by the auditor or the audit firm

represent a threat to the independence of the auditor.

The Audit Committee consists of Charlotte Stratos and John Kittmer.

Remuneration Committee

The members of the remuneration committee shall be independent of the Company’s

executive management. The principal tasks of the remuneration committee are to prepare:

(a) the Board’s declaration on determination of salaries and other remuneration for executive

management;

(b other matters relating to remuneration and other material employment issues in respect

of the executive management;

The Remuneration Committee consists of Charlotte Stratos and John Kittmer.

Risk Management and Internal Control

Risk management and internal controls are given high priority by the Board to ensure

that adequate systems are in place. The control system consists of interdependent areas,

which include risk management, control environment, control activities, information and

communication and monitoring.

The Company’s management is responsible for establishing and maintaining sufficient internal

control over financial reporting. The CEO and CFO supervise and oversee the external reporting

and the internal reporting processes. This includes assessing financial reporting risks and

internal controls over financial reporting within the Group. The consolidated external financial

statements are prepared in accordance with IFRS and International Accounting Standards as

adopted by the EU.

The Board shall ensure that the Company has sound internal controls and systems for risk

management. If employees experience situations or matters that may be contrary to rules and

regulations, they are urged to raise their concern with their immediate superior or another

manager in the Company. The Company has established a whistle-blowing function that

enables employees to alert the Company’s governing bodies about possible breaches of rules

and regulations.

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT CORPORATE GOVERNANCE STATEMENT

The Board shall conduct an annual organizational risk review in order to identify real and

potential risks, and remedy any incidents that have occurred. This year, the Company

concluded an annual review in the most important areas of risk and implemented a series

of internal controls and procedures. The Company has established an audit committee that

regularly evaluates and discusses the various risk elements of the Company, and potential for

improvement. The audit committee reports to the Board of Directors.

Remuneration of the Board of Directors

Pursuant to the Company’s Bylaws, the remuneration of the Board is decided at the Company’s

general meeting, and reﬂects the Board’s responsibility, expertise, time commitment and

the complexity of the Company’s activities. The remuneration is not linked to the Company’s

performance.

Share options have not been granted to Board members.

The annual report provides details of all elements of the remuneration and benefits of each

member of the Board, which includes a specification of any remuneration in addition to

normal fees to the members of the Board. If and to the extent members of the Board and/or

companies with which they are associated are requested to take on specific assignments for

the Company in addition to their appointment as a member of the Board, the appointment

is being disclosed to the Board.

The remuneration for such additional duties is approved by the Board.

For additional information around Board of Directors’ remuneration, please refer to note 14 to

the consolidated financial statements.

Remuneration of the Executive Management

The Board prepares separate guidelines for the stipulation of salary and other remuneration

to key management personnel. The guidelines include the main principles applied in

determining the salary and other remuneration of the executive management, and ensure

alignment between executive management and shareholders. According to these, it is being

made clear which aspects of the guidelines are advisory and which, if any, are binding, thereby

enabling the general meeting to vote separately on each of these aspects.

The Board makes sure that performance-related remuneration of the executive management in

the form of annual bonus programs, share options or the like, if used, are linked to value creation

for shareholders or the Company’s earnings performance over time. Performance-related

remuneration is subject to an absolute limit. Furthermore, the Company ensures that such

arrangements are based on quantifiable factors that the employee in question can inﬂuence.

In addition, the Company has appointed a remuneration committee in order to help ensure

thorough and independent preparation of matters relating to compensation paid to the

executive management.

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT CORPORATE GOVERNANCE STATEMENT

For additional information around executive management’s remuneration, please refer to

note 14 to the consolidated financial statements.

Information and Communications

The Board will seek to ensure that market participants receive correct, clear, relevant and

up-to-date information in a timely manner, taking into account the requirement for equal

treatment of all participants in the securities market.

The Company each year publishes a financial calendar, providing an overview of the dates for

major events such as its ordinary general meeting and publication of interim reports.

Takeovers

In the event the Company becomes the subject of a takeover bid, the Board shall seek to ensure

that the Company’s shareholders are treated equally and that the Company’s activities are not

unnecessarily interrupted. The Board shall also ensure that the shareholders have sufficient

information and time to assess the offer. With a view to secure a shareholder-friendly policy,

the Board has appointed a special sub-committee, with solid shareholder representation,

which will handle any inbound M&A interest and/or take-over initiatives.

There are no defense mechanisms against takeover bids in the Company’s Articles of

Incorporation or Bylaws, nor have other measures been implemented to specifically hinder

acquisitions of shares in the Company. The Board has not established written guiding principles

for how it will act in the event of a takeover bid, as such situations are normally characterized

by unique, non-recurring events that make a guideline challenging to prepare. In the event

of a proposed takeover, the Board will consider relevant, specific recommendations in the

Corporate Governance Code.

Auditor

The Board requires the Company’s auditor to annually present to the Company a review of

the Company’s internal control procedures, including identified weaknesses and proposals for

improvement, as well as the main features of the plan for the audit of the Company.

Furthermore, the Board requires the auditor to participate in meetings of the Board that deal

with the annual accounts. A Board meeting with the auditor in which no member of the

executive management is present is being held at the request of the auditor.

The Board reviews and monitors the independence of the Company’s auditor, including in

particular the extent to which services other than auditing provided by the auditor or the audit

firm represents a threat to the independence of the auditor.

The ordinary general meeting approves the remuneration. The Board reports to the general

meeting on details of fees for audit work and for other specific assignments.

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT CONSOLIDATED FINANCIAL STATEMENTS

LETTER FROM

THE CHAIRMAN

HISTORY

& FLEET

PRESENTATION

OF THE BOARD

OF DIRECTORS

BOARD

OF DIRECTORS’

REPORT

RESPONSIBILITY STATEMENT

CORPORATE

GOVERNANCE

STATEMENT

CONSOLIDATED

FINANCIAL

STATEMENTS

PARENT COMPANY

FINANCIAL

STATEMENTS

CONSOLIDA TED

FINANCIAL

STATEMENTS

OKEANIS ECO TANKERS CORP.

[

Incorporated under the laws of the Republic of the Marshall Islands with registration number 96382]

Consolidated Financial Statements

for the Year Ended December 31, 2021

and Independent Auditor’s Report

Index

38 Directors’ Statement

39 Independent Auditor’s Report

46 Consolidated Statement of Profit or Loss and Other Comprehensive Income,

for the years ended December 31, 2021 and 2020

47 Consolidated Statement of Financial Position, as of December 31, 2021 and 2020

48 Consolidated Statement of Changes in Equity, for the years ended December 31, 2021

and 2020

49 Consolidated Statement of Cash Flows, for the years ended December 31, 2021 and 2020

50 Notes to the Consolidated Financial Statements

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT CONSOLIDATED FINANCIAL STATEMENTS

DIRECTORS’ STATEMENT

For the year ended December 31, 2021

The Directors present their statement to the members together with the audited financial

statements of the Group for the financial year ended December 31, 2021.

In the opinion of the Directors,

a) The consolidated financial statements of the Group as set out are drawn up as to give a true

and fair view of the financial position of the Group as at December 31, 2021 and the financial

performance, changes in equity and cash ﬂows of the Group for the financial year covered by

the consolidated financial statements.

b) As at the date of this report, the Board does not have any reason to believe that the Group’s

shareholders do not support the going concern of the Group and it confirms that the

conditions for continued operations as a going concern are present for the Group. These

financial statements have been prepared under this assumption.

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT CONSOLIDATED FINANCIAL STATEMENTS

Okeanis Eco Tankers Corp.

Consolidated statement of profit or loss and other comprehensive income

For the years ended December 31, 2021 and 2020

(

All amounts expressed in U.S. Dollars)

FOR THE TWELVE MONTHS

ENDED DECEMBER 31,

NOTE 2021 2020

Revenue 21 168,998,225 282,870,330

Operating expenses

Commissions (2,229,156) (3,757,075)

Voyage expenses 11 (45,006,762) (48,116,343)

Vessel operating expenses 10 (40,695,997) (40,178,632)

Management fees 14 (5,425,200) (3,416,400)

Depreciation and amortization 7 (38,666,266) (41,619,641)

General and administrative expenses 12 (5,094,940) (4,421,483)

Total operating expenses (137,118,321) (141,509,574)

Operating profit before impairment loss

and net gain on disposal of vessels 31,879,904 141,360,756

Impairment loss on classification of vessels

as held for sale 7 (3,932,873) —

Net gain on disposal of vessels 7 4,076,668 —

Operating profit 32,023,699 141,360,756

Other income/(expenses)

Interest income 3,470 50,499

Other expenses 23 — (1,354,921)

Interest and other finance costs 22 (36,465,423) (37,649,743)

Unrealized gain/(loss) on derivatives 24 4,156,933 (1,116,166)

Realized loss on derivatives (558,916) (23,770)

Foreign exchange (loss)/gain (62,662) 52,287

Total other expenses (32,926,598) (40,041,814)

(Loss)/profit for the year (902,899) 101,318,942

Other comprehensive income

Items that will not be reclassified to profit or loss:

Re-measurement of post-employment benefit obligations (203) (3,051)

Total comprehensive (loss)/income for the year (903,102) 101,315,891

Attributable to the owners of the Group (903,102) 101,315,891

Earnings/(loss) per share - basic & diluted 18 (0.03) 3.12

Weighted average no. of shares - basic & diluted 32,372,393 32,462,659

The accompanying notes are an integral part of these consolidated financial statements.

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT CONSOLIDATED FINANCIAL STATEMENTS

Okeanis Eco Tankers Corp.

Consolidated statement of financial position

As of December 31, 2021 and 2020

(All amounts expressed in U.S. Dollars)

AS OF DECEMBER 31, NOTE 2021 2020

Assets

Non-current assets

Vessels, net 7 865,208,380 1,199,364,846

Vessels under construction 8 18,193,257 —

Other fixed assets 61,019 41,019

Derivative financial instrument 24 3,150,767 —

Restricted cash 5,410,000 6,410,000

Total non-current assets 892,023,423 1,205,815,865

Current assets

Inventories 6 12,630,531 5,767,484

Trade and other receivables 7,448,390 14,633,061

Claims receivable 19 261,093 154,448

Prepaid expenses and other current assets 1,032,640 964,416

Current accounts due from related parties 14 1,070,101 7,063,619

Current portion of restricted cash 1,939,443 1,991,381

Cash & cash equivalents 38,183,154 23,338,062

Total current assets 62,565,352 53,912,471

Total assets 954,588,775 1,259,728,336

Shareholders’ equity & liabilities

Shareholders’ equity

Share capital 15 32,890 32,890

Additional paid-in capital 15 300,019,846 334,328,863

Treasury shares 15 (3,571,790) (3,068,260)

Other reserves (26,150) (25,947)

Retained earnings 61,838,062 65,960,647

Total shareholders’ equity 358,292,858 397,228,193

Non-current liabilities

Long-term borrowings, net of current portion 13 534,783,459 759,218,688

Retirement benefit obligations 17,294 61,175

Derivative financial instrument 24 — 1,116,166

Total non-current liabilities 534,800,753 760,396,029

Current liabilities

Trade payables 15,960,456 17,697,198

Accrued expenses 9 2,623,745 2,306,868

Deferred revenue — 6,462,292

Current accounts due to related parties 14 698,153 379,803

Current portion of long-term borrowings 13 42,212,810 75,257,953

Total current liabilities 61,495,164 102,104,114

Total liabilities 596,295,917 862,500,143

Total shareholders’ equity & liabilities 954,588,775 1,259,728,336

The accompanying notes are an integral part of these consolidated financial statements.

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT CONSOLIDATED FINANCIAL STATEMENTS

Okeanis Eco Tankers Corp.

Consolidated statement of changes in equity

For the years ended December 31, 2021 and 2020

(All amounts, expressed in U.S. Dollars, except for number of shares)

ADDITIONAL

NUMBER PAID IN

OF SHARE CAPITAL TREASURY OTHER RETAINED

NOTE SHARES CAPITAL (NOTE 15) SHARES RESERVES EARNINGS TOTAL

Balance

January 1, 2020 32,739,851 32,890 334,328,863 (1,010,155) (22,896) 8,365,601 341,694,303

Acquisition

of equity shares

at NOK 57.3 per share 15 (113,934) — — (698,924) — — (698,924)

Acquisition

of equity shares

at NOK 57.5 per share 15 (250,000) — — (1,359,181) — — (1,359,181)

Profit for the year — — — — — 101,318,942 101,318,942

Dividends paid 15 — — — — — (43,723,896) (43,723,896)

Other comprehensive

loss for the year — — — — (3,051) — (3,051)

Balance

December 31, 2020 32,375,917 32,890 334,328,863 (3,068,260) (25,947) 65,960,647 397,228,193

Acquisition

of equity shares

at NOK 75.3 per share 15 (22,500) — — (197,116) — — (197,116)

Acquisition

of equity shares

at NOK 75.9 per share 15 (8,000) — — (70,642) — — (70,642)

Acquisition

of equity shares

at NOK 70.5 per share 15 (28,736) — — (235,772) — — (235,772)

Loss for the year — — — — — (902,899) (902,899)

Capital distribution 15 — — (34,309,017) — — — (34,309,017)

Dividends paid 15 — — — — — (3,219,686) (3,219,686)

Other comprehensive

loss for the year — — — — (203) — (203)

Balance

December 31, 2021 32,316,681 32,890 300,019,846 (3,571,790) (26,150) 61,838,062 358,292,858

The accompanying notes are an integral part of these consolidated financial statements.

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT CONSOLIDATED FINANCIAL STATEMENTS

Okeanis Eco Tankers Corp.

Consolidated statement of cash ﬂows

For the years ended December 31, 2021 and 2020

(

All amounts expressed in U.S. Dollars)

FOR THE TWELVE MONTHS

ENDED DECEMBER 31,

NOTE 2021 2020

Cash flows from operating activities

(Loss)/profit for the year (902,899) 101,318,942

Adjustments to reconcile (loss)/profit to net cash

provided by operating activities:

Depreciation 38,666,266 41,619,641

Interest expense 27,082,841 34,373,842

Amortization of loan financing fees 4,233,322 2,519,363

Unrealized (gain)/loss on derivatives (4,156,933) 1,116,166

Interest income (3,470) (50,499)

Other non-cash items (44,084) 8,109

Net gain on disposal of vessels (4,076,668) —

Impairment loss 3,932,873 —

Total reconciliation adjustments 65,634,147 79,586,622

Changes in working capital:

Trade and other receivables 7,184,671 3,597,901

Prepaid expenses and other current assets (173,406) 1,380,519

Inventories (6,863,047) 784,973

Trade payables (2,945,453) 588,189

Accrued expenses 469,704 (1,892,202)

Deferred revenue (6,462,292) 1,543,166

Claims receivable (106,645) (61,840)

Interest paid (27,240,486) (34,643,912)

Total changes in working capital (36,136,954) (28,703,206)

Net cash provided by operating activities 28,594,294 152,202,358

Cash flows from investing activities

Current accounts due from related parties 5,993,518 (5,226,567)

Payments for other fixed assets (20,000) (1,019)

Proceeds from vessels’ disposal 300,938,574 —

Decrease/(increase) in restricted cash 1,051,938 (4,991,381)

Dry-dock expenses (1,921,472) (1,403,289)

Payments for vessels and vessels under construction (20,367,653) (172,165,396)

Interest received 3,470 50,499

Net cash provided by/(used in) investing activities 285,678,375 (183,737,153)

Cash flows from financing activities

Proceeds from long-term borrowings — 277,677,250

Repayments of long-term borrowings (261,713,694) (175,908,202)

Capital distribution (34,309,017) —

Current accounts due to related parties 318,350 (12,743,952)

Payment of loan financing fees — (1,765,961)

Acquisition of treasury stock 15 (503,530) (2,058,105)

Dividends paid (3,219,686) (43,723,896)

Net cash (used in)/provided by financing activities (299,427,577) 41,477,134

Net change in cash and cash equivalents 14,845,092 9,942,339

Cash and cash equivalents at the beginning of year 23,338,062 13,395,723

Cash and cash equivalents at the end of year 38,183,154 23,338,062

Supplemental cash flow information

Capital expenditures included in trade payables 1,285,135 3,673,472

The accompanying notes are an integral part of these consolidated financial statements.

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT CONSOLIDATED FINANCIAL STATEMENTS

1. Incorporation and General Information

Okeanis Eco Tankers Corp. (“OET” or the “Company” or “Okeanis Eco Tankers”), was founded on

April 30, 2018 as a private limited corporation under the laws of the Republic of the Marshall

Islands having its registered offices at the following address: Trust Company Complex, Ajeltake

Road, Ajeltake Island, Majuro, Republic of the Marshall Islands. OET is majority controlled

by Glafki Marine Corp. (“Glafki”) through voting interest. Glafki is owned by Ioannis Alafouzos

and Themistoklis Alafouzos. The Company, as of the date of this report, owns thirteen vessels

on the water and one vessel under construction. The principal activity of its subsidiaries is to

own, charter out and operate tanker vessels on an international level.

The consolidated financial statements comprise the financial statements of Okeanis Eco

Tankers Corp. and its wholly owned subsidiaries (collectively the “Group”).

The Alafouzos family fully owned OMH and currently holds, through Glafki, a stake of 56.82% in

the Company. The Company traded on the Merkur Market (currently named Euronext Growth)

from July 3, 2018 until March 8, 2019, when it was then admitted for trading on the Oslo Axess

(currently named Euronext Expand). In January 2021, the Company transferred its listing from

Euronext Expand to Oslo Børs.

As at December 31, 2021 the Group comprises the following companies:

DATE OF INTEREST

CONTRIBUTION HELD BY

COMPANY NAME TO OET INCORPORATED OET

Therassia Marine Corp. June 28, 2018 Liberia 100%

Milos Marine Corp. June 28, 2018 Liberia 100%

Ios Maritime Corp. June 28, 2018 Liberia 100%

Omega One Marine Corp. June 28, 2018 Marshall Islands 100%

Omega Two Marine Corp. June 28, 2018 Marshall Islands 100%

Omega Three Marine Corp. June 28, 2018 Marshall Islands 100%

Omega Four Marine Corp. June 28, 2018 Marshall Islands 100%

Omega Five Marine Corp. June 28, 2018 Marshall Islands 100%

Omega Six Marine Corp. October 30, 2019 Marshall Islands 100%

Omega Seven Marine Corp. June 28, 2018 Marshall Islands 100%

Omega Nine Marine Corp. June 28, 2018 Marshall Islands 100%

Omega Ten Marine Corp. October 30, 2019 Marshall Islands 100%

Omega Eleven Marine Corp. June 28, 2018 Marshall Islands 100%

Nellmare Marine Ltd June 28, 2018 Marshall Islands 100%

Anassa Navigation S.A. June 28, 2018 Marshall Islands 100%

Arethusa Shipping Ltd June 28, 2018 Marshall Islands 100%

Moonsprite Shipping Corp. June 28, 2018 Marshall Islands 100%

Theta Navigation Ltd June 14, 2021 Marshall Islands 100%

Ark Marine S.A. June 14, 2021 Marshall Islands 100%

OET Chartering Inc. June 28, 2018 Marshall Islands 100%

Okeanis Eco Tankers Corp. April 30, 2018 Marshall Islands

—

NOTES

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

2. Basis of Preparation and Statement of Compliance

The consolidated financial statements of the Group have been prepared in accordance with

International Financial Reporting Standards (“IFRS”) published by the International Accounting

Standards Board (the “IASB”). The consolidated financial statements are presented in United

States Dollars ($) since this is the currency in which the majority of the Group’s transactions

are denominated, thus the U.S. Dollar is the Company’s functional and presentation currency.

The consolidated financial statements have been prepared on the historical cost basis, except

for interest rate swaps and forward freight agreements measured at their fair value. The

consolidated financial statements have been prepared on a going concern basis.

Okeanis Eco Tankers annual consolidated financial statements were approved and authorized

for issue by the Company’s Board of Directors on April 14, 2022.

3. Basis of Consolidation

Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and

ceases when the Company loses control of the subsidiary. Specifically, income and expenses

of a subsidiary acquired or disposed of during the year are included in the consolidated

statements of profit or loss and other comprehensive income from the date the Company

gains control until the date it ceases to control the subsidiary.

Control is achieved when the Company:

• has power over the investee;

• is exposed, or has rights, to variable returns from its involvement with the investee; and

• has the ability to use its power to affect its returns.

The Company reassesses whether or not it controls a subsidiary if facts and circumstances

indicate that there are changes to one or more of the three elements of control listed above.

On June 14, 2021 the Company established two Marshall Islands-based subsidiary owning

companies, Ark Marine S.A. and Theta Navigation Ltd, that will own and operate Nissos Kea

(Hull 3211) and Nissos Nikouria (Hull 3212). Each of the companies have 500 shares issued at par

value, owned 100% by Okeanis Eco Tankers Corp.

4. Summary of Significant Accounting Policies

Use of estimates

The preparation of the consolidated financial statements in conformity with IFRS requires

management to make estimates and assumptions that affect the reported amounts of assets

and liabilities, the disclosures of contingent assets and liabilities at the date of the consolidated

financial statements, and the stated amounts of revenues and expenses during the reporting

period. Actual results could differ from those estimates.

CONSOLIDATED FINANCIAL STATEMENTSNOTES

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

Vessel revenue recognition

Revenues are generated from time charter and voyage charter agreements.

Under a time charter agreement, the vessel is hired by the charterer for a specified period

of time in exchange for consideration which is usually based on a daily hire rate. In addition,

certain of our time charter arrangements may, from time to time, include profit sharing

clauses, arising from the sharing of earnings together with third parties and the allocation

to the Group of such earnings based on a predefined methodology. The charterer has

the full discretion over the ports visited, shipping routes and vessel speed. The contract/

charter party generally provides typical warranties regarding the speed and performance

of the vessel. The charter party generally has some owner-protective restrictions such that

the vessel is sent only to safe ports by the charterer, subject always to compliance with

applicable sanction laws, and carry only lawful or non-hazardous cargo. In a time charter

contract, the Group is responsible for all the costs incurred for running the vessel such as

crew costs, vessel insurance, repairs and maintenance and lubricants. The charterer bears

the voyage related costs such as bunker expenses, port charges, canal tolls during the hire

period. The performance obligations in a time charter contract are satisfied over the term of

the contract, beginning when the vessel is delivered to the charterer until it is redelivered

back to the Group. The charterer generally pays the charter hire in advance of the upcoming

contract period. The time charter contracts are considered operating leases accounted for

in accordance with IFRS 16. Time charter contracts do not fall under the scope of IFRS 15-

Revenue from Contracts with Customers because (i) the vessel is an identifiable asset (ii) the

Group does not have substantive substitution rights and (iii) the charterer has the right to

control the use of the vessel during the term of the contract and derives the economic benefits

from such use. Revenue from time charter agreements is recognized on a straight-line basis

over the duration of the time charter agreement. In case of a time charter agreement with

contractual changes in rates throughout the term of the agreement, any differences between

the actual and the straight-line revenue in a reporting period is recognized as a straight-line

asset or liability and reﬂected under current assets or current liabilities, respectively, in the

consolidated statement of financial position.

Under a voyage charter agreement, the vessel transports a specific agreed-upon cargo for

a single voyage which may include multiple load and discharge ports. The consideration is

determined on the basis of a freight rate per metric ton of cargo carried, or on a lump sum

basis. The charter party generally has a minimum amount of cargo. The charterer is liable

for any short loading of cargo or “dead” freight. The voyage contract generally has standard

payment terms, where freight is paid within certain days after the completion of discharge.

The voyage charter party generally has a “demurrage” or “despatch” clause. As per this clause,

the charterer reimburses the Group for any potential delays exceeding the allowed laytime

as per the charter party clause at the ports visited which is recorded as demurrage revenue.

Conversely, the charterer is given credit if the loading/ discharging activities happen within the

allowed laytime known as despatch resulting in a reduction in revenue. In a voyage charter

contract, the performance obligations begin to be satisfied once the vessel begins loading

the cargo. The Company determined that its voyage charter contracts consist of a single

performance obligation of transporting the cargo within a specified time period. Therefore,

the performance obligation is met evenly as the voyage progresses, and as a result revenue

is recognized on a straight line basis over the voyage days from the commencement of the

loading of cargo to completion of discharge.

CONSOLIDATED FINANCIAL STATEMENTSNOTES

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

The voyage contracts are considered service contracts which fall under the provisions of IFRS

15, because the Group as shipowner retains control over the operations of the vessel, such as

directing the routes taken or the vessel’s speed.

Under a voyage charter agreement, the Company bears all voyage related costs such as fuel

costs, port charges and canal tolls, as applicable. Voyage related costs which are incurred

during the period prior to commencement of cargo loading are accounted for as contract

fulfilment costs when they (a) relate directly to a contract or anticipated contract, (b) generate

or enhance resources that will be used in satisfying a performance obligation and (c) they are

expected to be recovered. These costs are deferred and recorded under current assets, and are

amortized on a straight-line basis as the related performance obligation to which they relate

is satisfied.

Address commissions are discounts provided to charterers under time and voyage charter

agreements. Brokerage commissions are commissions payable to third-party chartering brokers

for commercial services rendered. Both address and brokerage commissions are recognized

on a straight-line basis over the duration of the voyage or the time charter period, and are

reﬂected under Revenue and Commissions, respectively, in the consolidated statement of

profit or loss and other comprehensive income.

Deferred revenue represents revenue collected in advance of being earned. The portion of

deferred revenue, which is recognized in the next twelve months from the consolidated

statement of financial position date, is classified under current liabilities in the consolidated

statement of financial position.

Vessel voyage expenses

Vessel voyage expenses mainly relate to voyage charter agreements and consist of port, canal

and bunker costs that are unique to a particular voyage, and are recognized as incurred. Under

time charter arrangements, voyage expenses are paid by charterers.

Vessel operating expenses

Vessel operating expenses comprise all expenses relating to the operation of the vessel, including

crewing, insurance, repairs and maintenance, stores, lubricants, spares and consumables and

miscellaneous expenses. Vessel operating expenses are recognized as incurred; payments in

advance of services or use are recorded as prepaid expenses.

Trade and other receivables

Trade receivables include estimated recoveries from hire and freight billings to charterers, net

of any provision for doubtful accounts, as well as interest receivable from time deposits. At

each statement of financial position date, all potentially uncollectible accounts are assessed

individually for purposes of determining the appropriate provision. As of December 31, 2021

and 2020, the provision for doubtful accounts amounted to nil.

As of the date of this report, trade and other receivables’ fair value approximate their carrying

amount.

CONSOLIDATED FINANCIAL STATEMENTSNOTES

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

Trade payables

Trade payables are obligations to pay for goods or services that have been acquired in the

ordinary course of business from suppliers. Accounts payable are classified as current liabilities

if payment is due within one year or less (or in the normal operating cycle of the business if

longer). If not, they are presented as non-current liabilities.

Deferred financing costs

Fees incurred for obtaining new loans or refinancing existing facilities such as arrangement,

structuring, legal and agency fees are deferred and classified against long-term debt in

the consolidated statement of financial position. Any fees incurred for loan facilities not yet

advanced are deferred and classified under non-current assets in the consolidated statement

of financial position. These fees are classified against long-term debt on the loan drawdown

date.

Deferred financing costs are deferred and amortized over the term of the relevant loan using

the effective interest method, with the amortization expense reﬂected under interest and

finance costs in the consolidated statement of profit or loss and other comprehensive income.

Any unamortized deferred financing costs related to loans which are either fully repaid before

their scheduled maturities or related to loans extinguished are written-off in the consolidated

statement of profit or loss and other comprehensive income.

Vessels and depreciation

Vessels are stated at cost, which comprises vessels’ contract price, major improvements, and

direct delivery and acquisition expenses less accumulated depreciation and any impairment.

Depreciation is calculated on a straight line basis over the estimated useful life of the vessels,

after considering their estimated residual value. Each vessel’s residual value is equal to the

product of its lightweight tonnage and its estimated scrap rate. The scrap value is estimated to

be approximately $400 per ton of lightweight steel. The Group currently estimates the useful

life of each vessel to be 25 years from the date of original construction.

Special survey and dry-docking costs

Special survey and dry-docking costs are capitalized as a separate component of vessel cost.

These costs are capitalized when incurred and amortized over the estimated period to the

next scheduled dry-docking/special survey. The Group’s vessels are required to undergo dry-

docking approximately every 5 years, until a vessel reaches 10 years of age, after which a vessel

is required to be dry-docked approximately every 2.5 years. If a special survey or dry-docking

is performed prior to the scheduled date, any remaining unamortized balances are written-

off and reﬂected in depreciation in the statement of profit or loss and other comprehensive

income.

Impairment of vessels

The Group assesses at each reporting date whether there are any indications that the vessels’

carrying amounts may not be recoverable. If such an indication exists, and where the carrying

amount exceeds the estimated recoverable amount, the vessels are written down to their

recoverable amount. The recoverable amount is the greater of fair value less costs to sell and

value in use. The fair value less costs to sell is the amount obtainable from the sale of a vessel

in an arm’s length transaction, less any associated costs of disposal. In assessing value-in-use,

CONSOLIDATED FINANCIAL STATEMENTSNOTES

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

the estimated future cash ﬂows are discounted to their present value using a discount rate

that reﬂects current market assessments of the time value of money and the risks specific to

the vessels.

Advances for vessels under construction

Advances for vessels under construction comprise the cumulative amount of instalments paid

to shipyards for vessels under construction, other pre-delivery expenses directly related to the

construction of the vessel and capitalised interest at the statement of financial position date.

On delivery of a vessel, the balance is transferred to vessels, net, in the consolidated statement

of financial position.

Foreign currency translations

The functional currency of the Company and its subsidiaries is the U.S. dollar because the

vessels operate in international shipping markets, which primarily transact business in U.S.

dollars. Transactions denominated in foreign currencies are converted into U.S. dollars and

are recorded at the exchange rate in effect at the date of the transactions. For the purposes

of presenting these consolidated financial statements, monetary assets and liabilities

denominated in foreign currencies are translated to U.S. dollars at the rate of exchange

prevailing at the consolidated statement of financial position date. Any resulting foreign

exchange differences are reﬂected under foreign exchange gains/(losses) in the consolidated

statement of profit or loss and other comprehensive income. The company presents its

consolidated financial statements in U.S. dollars.

Interest bearing loans and borrowings

Loans and borrowings are initially recognized at fair value, being the fair value of the

consideration received net of issue costs associated with the borrowing. After initial recognition,

interest-bearing loans and borrowings are subsequently measured at amortized cost using

the effective interest method.

Cash and cash equivalents

The Group considers highly liquid investments such as time deposits and certificates of deposit

with original maturities of three months or less to be cash equivalents. For the purposes of

the consolidated cash ﬂow statement, cash and cash equivalents consist of cash and cash

equivalents as defined above.

Segment Information

The Group’s chief operating decision maker (the “CODM”), being the Chief Executive Officer,

evaluates the performance of the Group on a consolidated basis. Financial information

for different types of vessels or different employment contracts is available, however, the

performance is measured for a single reportable segment, being the “Crude Oil Transportation”.

Employment of vessels varies every period between spot and time charter with a strategy of

maximizing profit and shareholders’ investment. Furthermore, when the Group charters a

vessel to a charterer, the charterer is free to trade the vessel worldwide, so, the vessels of the

ﬂeet are calling at various ports across the globe, over many trade routes. This makes the

segment information on a geographical basis not practicable or meaningful.

CONSOLIDATED FINANCIAL STATEMENTSNOTES

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

Restricted cash

Restricted cash represents pledged cash deposits or minimum liquidity to be maintained with

certain banks under the Group’s borrowing arrangements. In the event that the obligation

relating to such deposits is expected to be terminated within the next twelve months from

the statement of financial position date, they are classified under current assets otherwise they

are classified as non current assets on the statement of financial position. The Group classifies

restricted cash separately from cash and cash equivalents in the consolidated statement of

financial position. Restricted cash does not include general minimum liquidity requirement.

Inventories

Inventories consist of bunkers, lubricants, stores and provisions on board. At each statement

of financial position date inventories are stated at the lower of cost or net realizable value. The

Group uses the FIFO method to evaluate inventories.

Pension and retirement benefit obligations – crew

The crew on board the Group’s vessels is employed under short-term contracts (usually up

to nine months) and, accordingly, the Group is not liable for any pension or other retirement

benefits.

Cash ﬂow statement policy

The Group uses the indirect method to report cash ﬂows from operating activities.

Earnings/(Loss) per share

Basic earnings/(loss) per share is calculated by dividing income/(loss) attributable to equity

holders of OET by the weighted average number of common shares outstanding. Diluted

earnings/(loss) per share is calculated by adjusting income/(loss) attributable to equity holders

of OET and the weighted average number of common shares used for calculating basic per

share for the effects of all potentially dilutive shares. Such dilutive common shares are excluded

when the effect would be to reduce a loss per share or increase earnings per share. The Group

applies the if-converted method when determining diluted (loss)/earnings per share. This

requires the assumption that all potential ordinary shares have been converted into ordinary

shares at the beginning of the period or, if not in existence at the beginning of the period, the

date of the issue of the financial instrument or the granting of the rights by which they are

granted. Under this method, once potential ordinary shares are converted into ordinary shares

during the period, the dividends, interest and other expense associated with those potential

ordinary shares will no longer be incurred. The effect of conversion, therefore, is to increase

income (or reduce losses) attributable to ordinary equity holders as well as the number of

shares in issue. Conversion will not be assumed for purposes of computing diluted earnings

per share if the effect would be anti-dilutive.

Employee compensation – personnel

Employee compensation is recognized as an expense, unless the cost qualifies to be capitalized

as an asset. Defined contribution plans are post-employment benefit plan under which the

Group pays fixed contributions into separate entities on a mandatory, contractual or voluntary

basis. The Group has no further payment obligations once the contributions have been paid.

The Group’s contributions are recognized as employee compensation expenses when they

are due.

CONSOLIDATED FINANCIAL STATEMENTSNOTES

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

Employee entitlements to annual leave are recognized when they accrue to employees. A

provision is made for the estimated liability of annual leave as a result of services rendered by

employees up to the statement of financial position date.

Termination benefits are those benefits which are payable when employment is terminated

before the normal retirement date, or whenever an employee accepts voluntary redundancy

in exchange for these benefits. The Group recognizes termination benefits when it is

demonstrably committed to either terminating the employment of current employees

according to a detailed formal plan without possibility of withdrawal or providing termination

benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due

more than 12 months after the statement of financial position date are discounted to present

value.

Taxation

All companies comprising the Group are not subject to tax on international shipping income

since their countries of incorporation do not impose such taxes. The Group’s vessels are subject

to registration and tonnage taxes, which are included under vessel operating expenses in the

consolidated statement of profit or loss and other comprehensive income.

Equity

The Company has one class of shares. All the shares rank in parity with one another. Each share

carries the right to one vote in a meeting of the shareholders and all shares are otherwise

equal in all respects.

The Company’s registered share capital is represented by 32,890,000 shares without par value.

As of the date of this report the OET holds 695,892 own shares. Neither the Company nor any

of its subsidiaries have issued any restricted shares, share options, warrants, convertible loans

or other instruments that would entitle a holder of any such instrument to subscribe for any

shares in the Company or its subsidiaries. Neither the Company nor any of its subsidiaries have

issued subordinated debt or transferable securities other than the shares in the Company

and the shares in the Company’s subsidiaries which are held directly or indirectly by the

Company.

Dividends and capital distributions to shareholders are recognized in shareholder’s equity in

the period when they are authorized. Share buybacks are recognized when they incur.

Provisions and contingencies

Provisions are recognized when the Group has a present legal or constructive obligation as

a result of past events and it is probable that an outﬂow of resources embodying economic

benefits will be required to settle this obligation and a reliable estimate of the amount of the

obligation can be made.

Provisions are reviewed at each statement of financial position date and adjusted to reﬂect the

present value of the expenditure expected to be required to settle the obligation. Contingent

liabilities are not recognized in the consolidated financial statements but are disclosed unless

the possibility of an outﬂow of resources embodying economic benefits is remote. Contingent

assets are not recognized in the consolidated financial statements but are disclosed when an

inﬂow of economic benefits is probable.

CONSOLIDATED FINANCIAL STATEMENTSNOTES

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

Fair value of financial assets and liabilities

The definitions of the levels, provided by IFRS 13 Fair Value Measurement, are based on the

degree to which the fair value is observable.

• Level 1 fair value measurements are those derived from quoted prices in active markets for

identical assets or liabilities.

• Level 2 fair value measurements are those derived from inputs other than quoted prices

included within Level 1 that are observable for the asset or liability, either directly (i.e. as

prices) or indirectly (i.e. derived from prices).

• Level 3 fair value measurements are those derived from valuation techniques that include

inputs for the asset or liability that are not based on observable market data (unobservable

inputs).

Cash and cash equivalents and restricted cash are considered Level 1 financial instruments.

Variable rate long-term borrowings, interest rate swaps and forward agreements are considered

Level 2 financial instruments. There are no financial instruments in Level 3, nor any transfers

between fair value hierarchy levels during the periods presented.

The carrying amounts reﬂected in the consolidated statement of financial position for

cash and cash equivalents, restricted cash, trade and other receivables, receivable claims,

and other current liabilities, approximate their respective fair values due to the relatively

short-term maturity of these financial instruments. The fair value of variable rate long-term

borrowings approximates their recorded value, due to their variable interest being the USD

LIBOR and due to the fact that financing institutions have the ability to pass on their funding

cost to the Group under certain circumstances, which reﬂects their current assessed risk.

The terms of the Group’s long-term borrowings are similar to those that could be procured

as of December 31, 2021. LIBOR rates are observable at commonly quoted intervals for the

full term of the loans and hence variable rate long-term borrowings are considered Level 2

financial instruments.

Sale and leaseback transactions

In case a vessel is sold and subsequently leased back by the Group, pursuant to a memorandum

of agreement MoA and a bareboat charter agreement, the Group determines when a

performance obligation is satisfied in IFRS 15, to determine whether the transfer of a vessel

is accounted for as a sale. If the transfer of a vessel satisfies the requirements of IFRS 15 to be

accounted for as a sale, the Group measures the right-of-use asset arising from the leaseback

at the proportion of the previous carrying amount of the asset that relates to the right of

use retained and recognizes only the amount of any gain or loss that relates to the rights

transferred to the buyer-lessor. If the transfer of a vessel does not satisfy the requirements of

IFRS 15 to be accounted for as a sale, the Group continues to recognize the transferred vessel

and shall recognize a financial liability equal to the transfer proceeds.

Leases

The Group as a lessee

The Group is a lessee, pursuant to a contract for the lease of office space.

The Group assesses whether a contract is, or contains a lease, at inception of the contract

applying the provisions of IFRS 16, and recognises a right-of-use asset and a corresponding

lease liability with respect to all lease arrangements in which it is the lessee, except for instances

CONSOLIDATED FINANCIAL STATEMENTSNOTES

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

where the Group makes use of the available practical expedients included in IFRS 16. These

expedients relate to short-term leases (defined as leases with a lease term of twelve months

or less) or leases of low value assets. For these leases, the Company continues to recognize the

lease payments as an operating expense on a straight-line basis over the term of the lease,

unless another systematic basis is more representative of the time pattern in which economic

benefits from the leased assets are consumed.

The lease liability is initially measured at the present value of the lease payments that are not

paid at the commencement date, discounted by using the rate implicit in the lease. If this rate

cannot be readily determined, the Group uses its incremental borrowing rate.

The Group as a lessor

The Group enters into lease agreements as a lessor with respect to chartering out its vessels.

Leases for which the Group is a lessor are classified as finance or operating leases. Whenever

the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee,

the contract is classified as a finance lease. All other leases are classified as operating leases.

Lease classification is made at the inception date and is reassessed only if there is a lease

modification. Changes in estimates (for example, changes in estimates of the economic life or

of the residual value of the underlying asset), or changes in circumstances (for example, default

by the lessee), do not give rise to a new classification of a lease.

Rental income from operating leases is recognised on a straight-line basis over the term of

the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease

are added to the carrying amount of the asset and recognised on a straight-line basis over

the lease term. Amounts due from leases under finance leases are recognised as receivables

at the amount of the Group’s net investment in the leases. Finance lease income is allocated

to accounting periods so as to reﬂect a constant periodic rate of return on the Group’s net

investment outstanding in respect of the leases.

When a contract includes lease and non-lease components, the Company applies IFRS 15 to

allocate the consideration under the contract to each component.

The Company has determined that the lease component is the vessel and the non-lease

component is the technical management services provided to operate the vessel. Each

component is quantified on the basis of the relative stand-alone price of each lease component;

and on the aggregate stand-alone price of the non-lease components.

These components are accounted for as follows:

• All fixed lease revenue earned under these arrangements is recognized on a straight-line

basis over the term of the lease.

• The non-lease component is accounted for as services revenue under IFRS 15. This revenue

is recognized “over time” as the customer (i.e. the charterer) is simultaneously receiving and

consuming the benefits of the service.

Derivative financial instruments – interest rate swaps

The Group uses interest rate swaps to economically hedge its exposure to interest rate risk

arising from its variable rate borrowings. Interest rate swaps are initially recognized at fair

CONSOLIDATED FINANCIAL STATEMENTSNOTES

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

value on the consolidated statement of financial position on the date the derivative contracts

are entered into and are subsequently remeasured to their fair value at each reporting date.

The fair value of these derivative financial instruments is based on a discounted cash ﬂow

calculation. The resulting changes in fair value are recognized in the consolidated statement

of profit or loss and other comprehensive income unless the derivative is designated and

effective as a hedging instrument, in which event the timing of the recognition in the

consolidated statement of profit or loss depends on the nature of the hedge relationship.

Derivatives are presented as assets when their valuation is favourable to the Company

and as liabilities when unfavourable to the Company. Cash outﬂows and inﬂows resulting

from derivative contracts are presented as cash ﬂows from operations in the consolidated

statement of cash ﬂows.

Derivative financial instruments – Forward Freight Agreements

The Company entered into Forward Freight Agreements (the “FFAs”) to economically hedge

its trading exposure in the spot market. FFAs are derivative financial instruments initially

recognized at fair value on the consolidated statement of financial position on the date the

derivative contracts are entered into and are subsequently remeasured to their fair value at

each reporting date. Upon settlement, if the contracted charter rate is less than the average

of the rates, as reported by an identified index, for the specified route and time period, the

seller of the FFA is required to pay the buyer the settlement sum, being an amount equal

to the difference between the contracted rate and the settlement rate, multiplied by the

number of days in the specified period covered by the FFA. Conversely, if the contracted rate

is greater than the settlement rate, the buyer is required to pay the seller the settlement sum.

The resulting changes in fair value are recognized in the consolidated statement of profit or

loss and other comprehensive income unless the derivative is designated and effective as

a hedging instrument, in which event the timing of the recognition in the consolidated

statement of profit or loss depends on the nature of the hedge relationship. FFA derivatives

are presented as current or non-current assets or as current or non-current liabilities when

their valuation is favorable to the Company and as non-current liabilities when unfavorable

to the Company. Cash outﬂows and inﬂows resulting from derivative contracts are presented

as cash ﬂows from operations in the consolidated statement of cash ﬂows. Forward freight

derivatives are considered to be Level 2 items in accordance with the fair value hierarchy as

defined in IFRS 13 Fair Value Measurement. FFAs do not qualify for hedge accounting and

therefore unrealized gains or losses are recognized under Unrealized/realized gain/(loss) on

derivatives.

Adoption of new and revised IFRS

Standards and interpretations adopted in the current year

In August 2020, the IASB issued the Phase 2 amendments to IFRS 9 Financial Instruments,

IFRS 7 Financial Instruments: Disclosures, IFRS 4 and IFRS 16 in connection with the Phase

2 of the interest rate benchmark reform. The amendments address the issues arising from

the implementation of the reforms, including the replacement of one benchmark with an

alternative one. The amendments are effective for annual periods beginning on or after

January 1, 2021 and did not have a material impact on the Group’s consolidated financial

statements.

CONSOLIDATED FINANCIAL STATEMENTSNOTES

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

Standards and amendments in issue not yet adopted

In January 2020, the IASB issued a narrow-scope amendment to IAS 1 Presentation of Financial

Statements, to clarify that liabilities are classified as either current or non-current, depending

on the rights that exist at the end of the reporting period. Classification is unaffected by the

expectations of the entity or events after the reporting date (for example, the receipt of a

waiver or a breach of covenant). The amendment also defines the “settlement” of a liability as

the extinguishment of a liability with cash, other economic resources or an entity’s own equity

instruments. The amendment will be effective for annual periods beginning on or after January

1, 2022 and should be applied retrospectively in accordance with IAS 8 Accounting Policies,

Changes in Accounting Estimates and Errors. Earlier application is permitted. Management

anticipated that this amendment will have no significant impact at the Company’s financial

statements. There are no other IFRS standards and amendments issued by but not yet adopted

that are expected to have a material effect on the Group’s financial statements.

5. Critical Accounting Judgements and Key Sources of Estimation Uncertainty

The preparation of financial statements in conformity with International Financial Reporting

Standards requires management to make estimates and assumptions that affect the reported

amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date

of the consolidated financial statements, and the stated amounts of revenues and expenses

during the reporting period. Management evaluates whether estimates should be in use

on an ongoing basis by utilizing historical experience, consultancy with experts and other

methods it considers reasonable in the particular circumstances. However, uncertainty about

these assumptions and estimates could result in outcomes that could require a material

adjustment to the carrying amount of the asset or liability in the future.

The key sources of estimation uncertainty are as follows:

Classification of lease contracts

The classification of the leaseback element of a sale and leaseback transaction as either an

operating or a finance leaseback requires judgment. The Group follows a formalized process

to determine whether a sale of the vessel has taken place, in accordance with the criteria

established in IFRS 15. In this determination, an assessment of the nature of any repurchase

options is made. The outcome of the transaction (at option exercise dates in particular) may

differ from the original assessment made at inception of the lease contract.

Vessels’ economic life and residual values

The carrying value of the vessels represents their original cost at the time of purchase, less

accumulated depreciation and any impairment. Vessels are depreciated to their residual values

on a straight-line basis over their estimated useful lives. The estimated useful life of 25 years

is management’s best estimate and is also consistent with industry practice for similar types

of vessels. The residual value is estimated as the lightweight tonnage of the vessel multiplied

by a forecast scrap value per ton. The scrap value per ton is estimated using the current scrap

prices assuming a vessel is already of age and condition as expected at the end of its useful

life at the statement of financial position date. The scrap rate is estimated to be approximately

$400 per ton of lightweight steel.

CONSOLIDATED FINANCIAL STATEMENTSNOTES

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

An increase in the estimated useful life of a vessel or in its scrap value would have the effect

of decreasing the annual depreciation charge and extending it into later periods. A decrease

in the useful life of a vessel or in its scrap value would have the effect of increasing the annual

depreciation charge.

When regulations place significant limitations over the ability of a vessel to trade on a worldwide

basis, the vessel’s useful life is adjusted to end at the date such regulations become effective.

The estimated salvage value of the vessel may not represent the fair market value at any one

time since market prices of scrap values tend to ﬂuctuate.

Impairment of vessels

The carrying amount of each vessel is evaluated at each statement of financial position date

to determine whether there is any indication that this vessel has suffered an impairment loss.

If any such indication exists, the recoverable amount of the vessel is estimated in order to

determine the extent of the impairment loss (if any).

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing

value in use, the estimated future cash ﬂows are discounted to their present value, using a

discount rate that reﬂects current market assessments of the time value of money and the

risks specific to the asset for which the estimates of future cash ﬂows have not been adjusted.

The projection of cash ﬂows related to the vessel is complex and requires management to

make various estimates including future vessel earnings, operating expenses, dry-docking

costs, management fees, commissions and discount rates. These items have been historically

volatile. The vessels’ future cash ﬂows from revenue are estimated based on a combination of

the current contracted charter rates until their expiration and thereafter, until the end of the

vessels’ useful life, the estimated daily hire rate for the first 5 years (from 2022 to 2026) is based

on the prevailing spot and time charter market as of date of this report for year 1 and then

linearly moving to the newbuilding parity curve in year 5, while being onwards estimated using

the simple historical average rate, for each of the Suezmax and VLCC segment. This change in

estimate was effectuated from the fourth quarter of 2021. As part of the process of assessing

the fair value less cost to sell for a vessel, the Group obtains valuations from independent ship

brokers on a quarterly basis or when there is an indication that an asset or assets may be

impaired. If an indication of impairment is identified, the need for recognizing an impairment

loss is assessed by comparing the carrying amount of the vessel to the higher of the fair value

less cost to sell and the value in use.

As of December 31, 2021, the carrying amount of one vessel owned by the Group was

higher than its respective fair value, as determined taking into consideration independent

brokers’ valuations. As a result, the Group estimated the recoverable amount of this vessels

to determine the extent of any impairment loss. Given the vessel’s recoverable amounts

was higher than her respective carrying amount, there was no requirement to record an

impairment loss.

As of December 31, 2020, the carrying amounts of ten vessels owned by the Group were

higher than their respective fair values, as determined taking into consideration independent

broker valuations. As a result, the Group estimated the recoverable amounts for each of these

vessels to determine the extent of any impairment loss. All vessels’ recoverable amounts were

CONSOLIDATED FINANCIAL STATEMENTSNOTES

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

higher than their respective carrying amounts, hence there was no requirement to record an

impairment loss.

The value in use calculation is most sensitive to variances in the discount rate and in future

tanker daily earnings for non-contracted periods. The Group’s sensitivity analysis performed

for the Suezmax ﬂeet having an impairment indication, allowed for either reductions in daily

tanker earnings up to 19% or for increases in the discount rate of up to 4% before impairment

losses would be triggered.

Deferred dry-docking costs

The Group recognizes dry-docking costs as a separate component from the vessels’ carrying

amounts and amortizes them on a straight-line basis over the estimated period until the next

dry-docking of the vessels. If a vessel is disposed of before the next scheduled dry-docking, the

remaining unamortized balance is written-off and forms part of the gain or loss recognized

upon disposal of vessels in the period when contracted. Vessels are estimated to undergo

dry-docking every 5 years after their initial delivery from the shipyard, until a vessel reaches

10 years of age, and thereafter every 2.5 years to undergo special or intermediate surveys, for

major repairs and maintenance that cannot be performed while in operation. However, this

estimate might be revised in the future. Management estimates costs capitalized as part of

the dry-docking component as costs to be incurred during the first dry-docking at the dry-

dock yard for a special survey and parts and supplies used in making such repairs that meet

the recognition criteria, based on historical experience with similar types of vessels.

6. Inventories

Inventories are analysed as follows:

AS OF DECEMBER 31, 2021 2020

Bunkers 10,427,636 3,461,559

Lubricants 1,925,361 1,947,399

Provisions 175,199 256,190

Bonded stores 102,336 102,336

Total 12,630,531 5,767,484

Inventories’ carrying values approximate their fair values as at the reporting date.

CONSOLIDATED FINANCIAL STATEMENTSNOTES

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

7. Vessels, Net

Vessels, net are analysed as follows:

DRY-DOCKING

VESSELS’ AND SPECIAL

COST SURVEY COSTS TOTAL

Cost

Balance - January 1, 2020 1,052,249,142 12,900,505 1,065,149,647

Transfers from Vessels under construction 220,749,318 2,600,000 223,349,318

Fully amortized Dry-Dock component — (2,400,000) (2,400,000)

Additions 6,840,435 2,801,820 9,642,255

Balance - December 31, 2020 1,279,838,895 15,902,325 1,295,741,220

Disposal of Vessels (336,269,467) (4,991,532) (341,260,999)

Fully amortized Dry-Dock component — (1,601,576) (1,601,576)

Additions — 2,028,635 2,028,635

Balance - December 31, 2021 943,569,428 11,337,851 954,907,279

Accumulated Depreciation

Balance - January 1, 2020 (52,904,254) (4,252,479) (57,156,733)

Fully amortized Dry-Dock component — 2,400,000 2,400,000

Depreciation charge for the period (38,901,859) (2,717,782) (41,619,641)

Balance - December 31, 2020 (91,806,113) (4,570,261) (96,376,374)

Disposal of Vessels 46,473,065 1,201,972 47,675,038

Impairment loss (3,932,873) — (3,932,873)

Fully amortized Dry-Dock component — 1,601,576 1,601,576

Depreciation charge for the year (36,045,763) (2,620,503) (38,666,266)

Balance - December 31, 2021 (85,311,684) (4,387,215) (89,698,899)

Net Book Value - December 31, 2020 1,188,032,782 11,332,064 1,199,364,846

Net Book Value - December 31, 2021 858,257,744 6,950,636 865,208,380

In the twelve-month period ended December 31, 2021, the Company disposed three Aframax

vessels (Nissos Therassia, Nissos Schinoussa and Nissos Heraclea) and two VLCC vessels (Nissos

Santorini and Nissos Antiparos) to unaffiliated parties. The first two Aframaxes were delivered

to their new owners in June 2021 and the third one in August 2021. Additionally, the VLCCs

were delivered to their new owners in October and November 2021, respectively. In connection

with the completion of their sale, the Group recorded a net gain on disposal amounting to $4.1

million. Further, an impairment loss of $3.9 million was recorded relating to the classification of

Nissos Heraclea as available for sale on June 30, 2021, since the vessel’s carrying value was lower

than her respective fair value less estimated selling expenses.

The Group has pledged the above vessels to secure the loan facilities granted to the Company

(see Note 13).

CONSOLIDATED FINANCIAL STATEMENTSNOTES

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

An analysis of the net gain on disposal of vessels can be found in the following table:

VESSEL GAIN/(LOSS) ON DISPOSAL

Nissos Therassia (3,348,501)

Nissos Schinoussa (4,267,793)

Nissos Heraclea (173,004)

Nissos Santorini 5,878,751

Nissos Antiparos 5,987,215

Net gain on Vessels’ disposal 4,076,668

8. Vessels Under Construction

Vessels under construction are analysed as follows:

Balance - January 1, 2020 56,266,949

Capitalized Interest 1,124,388

Additions during the year 165,957,981

Transfers during the year to vessels, net (223,349,318)

Balance - December 31, 2020 —

Additions during the year 18,193,257

Balance - December 31, 2021 18,193,257

Additions for the year 2021 concern the Hulls 3211 and 3212. On June 14, 2021 the Company

established two Marshall Islands-based subsidiary owning companies, Ark Marine S.A. and Theta

Navigation Ltd, that will own and operate the abovementioned Hulls. Each of the companies

have 500 shares issued at par value, owned 100% by Okeanis Eco Tankers Corp.

9. Accrued Expenses

Accrued expenses are analysed as follows:

AS OF DECEMBER 31, 2021 2020

Accrued payroll related taxes 15,842 135,724

Accrued voyage expenses 30,406 60,521

Accrued loan interest 1,254,301 1,407,128

Accrued social insurance contributions 94,530 145,878

Accrued operating expenses 826,167 557,617

Sundry liabilities 402,500 —

Total 2,623,745 2,306,868

CONSOLIDATED FINANCIAL STATEMENTSNOTES

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

10. Vessel Operating Expenses

Vessel operating expenses are analysed as follows:

FOR THE YEAR ENDED DECEMBER 31, 2021 2020

Crew wages and other crew costs 27,617,203 27,697,465

Insurances 3,332,394 3,101,525

Stores 1,206,306 1,276,312

Spares 1,450,609 1,409,271

Repairs and surveys 2,153,673 2,012,668

Flag expenses 417,241 534,819

Lubricants 2,282,815 2,371,416

Telecommunication expenses 280,937 314,796

Miscellaneous expenses 1,954,820 1,460,361

Total 40,695,997 40,178,632

11. Voyage Expenses

Voyage expenses are analysed as follows:

FOR THE YEAR ENDED DECEMBER 31, 2021 2020

Port expenses 13,678,442 20,557,287

Bunkers 31,070,105 27,258,361

Other voyage expenses 258,215 300,695

Total 45,006,762 48,116,343

12. General & Administrative Expenses

General and administrative expenses are analysed as follows:

FOR THE YEAR ENDED DECEMBER 31, 2021 2020

Employee costs 3,896,025 3,499,514

Directors’ fees and expenses 875,506 635,638

Professional fees 262,332 223,942

Other expenses 61,077 62,389

Total 5,094,940 4,421,483

Auditor remuneration for the years ended December 31, 2021 and December 31, 2020

amounted to $177,787 and $181,433, respectively. The Company records audit fees as incurred.

Expenditure related to auditor remuneration is reﬂected in professional fees which, for the

year ended December 31, 2021 and December 31, 2020, amounted to $204,490 and $106,202,

respectively.

CONSOLIDATED FINANCIAL STATEMENTSNOTES

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

13. Long-Term Borrowings

The Companies have entered into loan agreements which are analysed as follows:

UNAMORTIZED OUTSTANDING INTEREST

OUTSTANDING LOAN DEFERRED NET OF LOAN RATE

BALANCE AS OF FINANCING FEES AS OF FINANCING FEES AS OF (LIBOR[L]+

VESSEL DECEMBER 31, 2021 DECEMBER 31, 2021 DECEMBER 31, 2021 MARGIN)

Milos 40,991,919 337,250 40,654,669 L+5.20%

Poliegos 37,046,699 317,570 36,729,129 L+6.16%

Kimolos 38,693,750 269,940 38,423,810 L+2.50%

Folegandros 36,183,750 320,018 35,863,732 L+2.60%

Nissos Sikinos 47,346,670 282,073 47,064,597 L+1.96%

Nissos Sifnos 47,346,670 283,483 47,063,187 L+1.96%

Nissos Rhenia 64,618,418 1,296,734 63,321,684 L+5.10%

Nissos Despotiko 65,178,500 1,314,300 63,864,200 L+5.00%

Nissos Donoussa 48,497,000 349,858 48,147,142 L+2.50%

Nissos Kythnos 50,430,000 323,933 50,106,067 L+2.25%

Nissos Keros 51,711,000 358,787 51,352,213 L+2.25%

Nissos Anafi 51,700,000 372,416 51,327,584 L+2.09%

Scrubber Financing 3,093,756 15,501 3,078,255 L+2.00%

Total 582,838,132 5,841,863 576,996,269 L+3.33%

Debt retired in connection with 2021 vessel sales

Up to December 31 2021, the Company retired a total outstanding principal amount of $209.9

million in connection with the disposal of three Aframax and two VLCC vessels. Specifically, the

Company retired $23.0 million of first mortgage debt outstanding on Nissos Therassia, $24.1

million of first mortgage debt outstanding on Nissos Schinoussa, $25.8 million of first mortgage

debt outstanding on Nissos Heraclea and $2.8 million of second mortgage scrubber debt

outstanding, $67.1 million of first mortgage debt outstanding on Nissos Santorini and $67.1

million of first mortgage debt outstanding on Nissos Antiparos.

The Company is the Corporate Guarantor for all bank loans as at December 31, 2021.

Description of Group borrowing arrangements

Omega Two Marine Corp (the “Omega Two”) has entered into a debt financing transaction

with OCY Knight AS. On June 8, 2017, Omega Two transferred Poliegos to OCY Knight AS (the

“original buyer”) for $54,000,000, and, as part of the agreement, bareboat chartered the vessel

back for a period of 14 years, with penalty free purchase options at the end of the seventh,

tenth and twelfth year. Omega Two received $47,000,000 in cash as part of the transaction,

with $7,000,000 to be retained by the original buyer as a deposit which can be used towards

the repurchase of the vessel pursuant to the purchase options. This transaction is treated as a

financing transaction and Poliegos continues to be recorded as an asset on the consolidated

statement of financial position, since the risks and rewards of ownership have effectively

remained with Omega Two, and it is probable that Omega Two Marine Corp. will exercise the

purchase option by the end of year 12. Pursuant to a memorandum of agreement dated on

August 23, 2018 the original buyer sold Poliegos to OCY Poliegos Limited (the “new buyer”) for

an amount of $48,032,540. As a result, on the same date, both aforementioned parties and the

CONSOLIDATED FINANCIAL STATEMENTSNOTES

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

company accordingly novated the bareboat charter so that the new buyer could substitute

the original buyer. Omega Two continues to technically manage, commercially charter, and

operate Poliegos. Pursuant to this financing arrangement, Omega Two will pay a daily bareboat

charter rate of $11,550, plus interest pursuant to USD LIBOR adjustment.

On December 19, 2018, Anassa Navigation S.A. entered into a loan agreement with Credit

Suisse AG for the financing of Nissos Kythnos. The total proceeds of the loan were $58,125,000.

The loan bears annual interest of LIBOR plus a margin of 2.25%.

On January 24, 2019, Arethusa Shipping Corp. entered into a loan agreement with BNP Paribas

for the financing of Nissos Keros. The total proceeds of the loan were $58,175,000. The loan

bears annual interest of LIBOR plus a margin of 2.25%.

On January 29, 2019, Omega One Marine Corp. entered into a debt financing transaction with

Ocean Yield Malta for the refinancing of Milos. On January 29, 2019, Omega One Marine Corp.

transferred Milos to Ocean Yield Malta (the “original buyer”) for an agreed consideration of

$56,000,000, and, as part of the agreement, bareboat chartered the vessel back for a period of

13 years, with purchase options at the end of the fifth, seventh, tenth and twelfth year. Omega

One Marine Corp. received $49,000,000 in cash as part of the transaction, with $7,000,000 to

be retained by the original buyer as a deposit which can be used towards the repurchase of

the vessel pursuant to the purchase options.

On February 14, 2019, Nellmare Marine Ltd. entered into a loan agreement with ABN Amro for

the financing of Nissos Donoussa. The total proceeds of the loan were $59,000,000. The loan

bears annual interest of LIBOR plus a margin of 2.50%.

On February 27, 2019, Moonsprite Shipping Corp. entered into a loan agreement with CACIB

and Export-Import Bank of Korea for the financing of Nissos Anafi. The total proceeds of the

loan were $58,000,000. The loan bears annual interest of LIBOR plus a margin of 2.09%.

On May 3, 2019, Omega Five Marine Corp. entered into a debt financing transaction with OCY

KNIGHT 1 LIMITED for the financing of Nissos Rhenia. On May 3, 2019, Omega Five Marine

Corp. transferred Nissos Rhenia to OCY KNIGHT 1 LIMITED (the “original buyer”) for an agreed

consideration of $83,750,000, and, loan related fees of $1,010,000, and, as part of the agreement,

bareboat chartered the vessel back for a period of 15 years, with purchase options at the end

of the seventh, tenth, twelfth and fourteenth year for an amount of $49,830,000, $36,300,000,

$25,860,000 and $14,170,000 respectively. Omega Five Marine Corp. received $75,260,000 in

cash as part of the transaction, with $9,500,000 to be retained by the original buyer as a

deposit which can be used towards the repurchase of the vessel pursuant to the purchase

options. This transaction is not evaluated in accordance with IFRS 16, but treated as a financing

transaction and Nissos Rhenia continues to be recorded as an asset on the consolidated

statement of financial position, since the risks and rewards of ownership have effectively

remained with Omega Five Marine Corp., and it is probable that Omega Five Marine Corp. will

exercise the purchase option by the end of year 14. Pursuant to this financing arrangement,

Omega Five Marine Corp., had initially agreed to pay a daily bareboat charter rate of $18,600

(year 1-5)/$18,350 (year 6-15), plus interest pursuant to USD LIBOR adjustment. On June 28, 2021,

the Company transferred the remaining 0.5 year time charter from Nissos Donoussa to Nissos

CONSOLIDATED FINANCIAL STATEMENTSNOTES

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

Rhenia and the following action resulted to the acceleration of debt repayments of Nissos

Rhenia for two years beginning May 2, 2021 by revising onwards the daily bareboat charter

rate to $25,000 (year 3-4)/$17,200 (year 5-15), plus interest pursuant to USD LIBOR adjustment.

On June 10, 2019, Omega Seven Marine Corp. entered into a debt financing transaction with

OCY KNIGHT 2 LIMITED for the financing of Nissos Despotiko. On June 10, 2019, Omega Seven

Marine Corp. transferred Nissos Despotiko to OCY KNIGHT 2 LIMITED (the “original buyer”) for

an agreed consideration of $83,750,000 and loan related fees $1,010,000, and, as part of the

agreement, bareboat chartered the vessel back for a period of 15 years, with purchase options

at the end of the seventh, tenth, twelfth and fourteenth year for an amount of $49,830,000,

$36,300,000, $25,860,000 and $14,170,000 respectively. Omega Seven Marine Corp. received

$75,260,000 in cash as part of the transaction, with $9,500,000 to be retained by the original

buyer as a deposit which can be used towards the repurchase of the vessel pursuant to the

purchase options. This transaction is not evaluated in accordance with IFRS 16, but treated

as a financing transaction and Nissos Despotiko continues to be recorded as an asset on the

consolidated statement of financial position, since the risks and rewards of ownership have

effectively remained with Omega Seven Marine Corp., and it is probable that Omega Seven

Marine Corp. will exercise the purchase option by the end of year 14. Pursuant to this financing

arrangement, Omega Seven Marine Corp., had initially agreed to pay a daily bareboat charter

rate of $18,600 (year 1-5)/$18,350 (year 6-15), plus interest pursuant to USD LIBOR adjustment.

On June 28, 2021, the Company transferred the remaining 0.5 year time charter from Nissos

Keros to Nissos Despotiko and the following action resulted to the acceleration of debt

repayments of Nissos Despotiko for two years beginning June 9, 2021 by revising onwards the

daily bareboat charter rate to $23,336 (year 3-4)/$17,200 (year 5-15), plus interest pursuant to

USD LIBOR adjustment.

On June 27, 2019, the Company entered into a loan agreement with BNP Paribas for its scrubber

retrofit program. The total proceeds of the loan were $11,000,000. The loan bears interest LIBOR

plus a margin of 2.00%, a 5-year tenor, and a 4-year repayment profile beginning one year

after drawdown. As a result of the Company’s Aframax vessels (Nissos Schinoussa and Nissos

Therassia) disposal and according to the relevant loan agreement clause, on June 16, 2021, the

Company further retired the amount of $2,750,004 in connection to the said disposal.

On October 22, 2019, Omega Six and Omega Ten entered into a loan agreement with Alpha

Bank for an amount of $45,901,000 for the 88.95% financing of pre-delivery yard instalments of

Nissos Sikinos and Nissos Sifnos. The loan bore annual interest of LIBOR plus a margin of 3.50%.

As at December 31, 2019 the Company had drawn the amount of $6,450,000. As of December

31, 2020 the total amount of the financing had been drawn down and repaid in full.

On July 7, 2020 Omega Four Marine Corp. entered into a loan agreement with BNP Paribas for

an amount of $39,150,000 in order to refinance the existing loan of the Folegandros. The loan

bears annual interest of LIBOR plus a margin of 2.60%.

On July 8, 2020 Omega Three Marine Corp. entered into a loan agreement with ABN Amro for

an amount of $42,168,750 in order to refinance the existing loan of the Kimolos. The loan bears

annual interest of LIBOR plus a margin of 2.50%.

CONSOLIDATED FINANCIAL STATEMENTSNOTES

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

On September 9, 2020, Omega Six Marine Corp. and Omega Ten Marine Corp. entered into

a loan agreement with Export-Import Bank of Korea, the BNK Busan Bank and the BNK

Kyongnam Bank for the refinancing of the existing indebtedness of Nissos Sikinos and Nissos

Sifnos and the financing of the vessels’ delivery instalments. The total proceeds of the loan

were $103,208,000. The loan bears annual interest of LIBOR plus a margin of 1.96%.

Long-term debt net of current portion and current portion of long-term borrowings are

analyzed as follows:

LONG-TERM CURRENT PORTION

BORROWINGS, OF LONG-TERM

AS OF DECEMBER 31, 2020 NET OF CURRENT PORTION BORROWINGS TOTAL

Outstanding loan balance 767,827,742 76,724,086 844,551,828

Loan financing fees (8,609,054) (1,466,133) (10,075,187)

Total 759,218,688 75,257,953 834,476,641

AS OF DECEMBER 31, 2021

Outstanding loan balance 539,586,057 43,252,075 582,838,132

Loan financing fees (4,802,598) (1,039,265) (5,841,863)

Total 534,783,459 42,212,810 576,996,269

The loans are repayable as follows:

AS OF DECEMBER 31, 2021 2020

No later than one year 43,252,075 76,724,086

Later than one year and not later than five years 336,790,145 378,579,849

Thereafter 202,795,912 389,247,893

Total 582,838,132 844,551,828

Less: Amounts due for settlement within 12 months (43,252,075) (76,724,086)

Long-term borrowings, net of current portion 539,586,057 767,827,742

Cash ﬂow reconciliation of liabilities arising from financing activities:

A reconciliation of the Group’s financing activities for the years ended December 31, 2021 and

2020 are presented in the tables below:

Long-term borrowings - January 1, 2020 732,705,697

Cash flows - drawdowns 277,677,250

Cash flows - repayments (175,908,202)

Deferred financing fees transferred to long-term borrowings (751,505)

Loan financing fees (1,765,961)

Non-cash flows - amortization of loan financing fees 2,519,362

Long-term borrowings - December 31, 2020 834,476,641

Cash flows - repayments (261,713,694)

Non-cash flows - amortisation of loan financing fees 4,233,322

Long-term borrowings - December 31, 2021 576,996,269

All loans are secured by first preferred mortgages of the Companies’ vessels and assignment

of earnings and insurances.

CONSOLIDATED FINANCIAL STATEMENTSNOTES

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

The loan agreements include several ship finance covenants, amongst which are restrictions

as to changes in management and ownership of the vessels; declaration of dividends; further

indebtedness; mortgaging of vessels without the bank’s prior consent and a hull cover ratio as

well as several financial covenants. These mainly consist of:

• A hull cover ratio, being the ratio of a mortgaged vessel’s fair market value over its respective

outstanding debt, of no less than 130%.

• A hull cover ratio, being the ratio of a mortgaged vessel’s excess fair market values due to the

scrubber installations over the respective outstanding debt, of no less than 150%.

• Minimum corporate liquidity, being the higher of $10,000,000 and $750,000 per vessel, in

the form of free and unencumbered cash and cash equivalents.

• A ratio of total liabilities to the carrying value of total assets (adjusted for the vessel’s fair

market value) of no more than 75%.

As at December 31, 2021, the Group was in compliance with its loan covenants.

14. Transactions and Balances with Related Parties

The Company has entered into management agreements with OET Chartering Inc. (a fully

owned subsidiary) as commercial manager and Kyklades Maritime Corporation (“Kyklades”

or “KMC”) as technical manager. Kyklades provides the vessels with a wide range of shipping

services such as technical support, maintenance and insurance consulting in exchange for a

daily fee of $900 per vessel (2020: $600 per vessel), which is reﬂected under management

fees in the consolidated statement of profit or loss and other comprehensive income. For the

year ended December 31, 2021 and December 31, 2020, total technical management fees

amounted to $5,425,200 and $3,416,400, respectively.

Amounts due to the Board of Directors as at December 31, 2021 amounting to $698,153

compared to an amount of $379,803 as of December 31, 2020, represent outstanding fees

payable to Directors.

The below table presents and analyzes the outstanding amounts due from the Management

Company and from FRPEs:

AS OF DECEMBER 31, 2021 2020

Amounts due from Management Company 389,925 2,332,400

Amounts due from FRPEs, net 680,176 4,731,219

Total 1,070,101 7,063,619

Amounts due from the Management Company as of December 31, 2021 of $389,925 as

compared to December 31, 2020 of $2,332,400, represent payments made to the Management

Company, per the terms of the respective vessel technical management agreements.

“FRPEs” are “Family Related Party Entities” vessel owning companies privately owned by the

Alafouzos family. In the period prior to the contribution of the Contributed Companies from

Okeanis Marine Holdings SA (“OMH”) to the Company (i.e., when they were beneficially owned

100% by OMH), for the sake of operational convenience various expenses or other liabilities of

CONSOLIDATED FINANCIAL STATEMENTSNOTES

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

the Contributed Companies were paid by the FRPEs and recorded as unsecured amounts

payable, with no fixed terms of payment, from the Contributed Companies to the FRPEs.

Examples of the types of expenses and liabilities giving rise to such payables due to the FRPEs

include, without limitation: (i) bunker fuel (ii) port expenses; and, (iii) canal fees.

Amounts due from FRPEs as at December 31, 2021 amounting to $680,176 as compared to

$4,731,219 as at December 31, 2020, represent amounts loaned to vessel owning companies

privately owned by members of the Alafouzos family, for working capital purposes and to

secure volumetric discounts on bunker procurement.

All balances noted above are unsecured, interest-free, with no fixed terms of payment and

repayable on demand.

Key management and Directors remuneration

Each of the Company’s directors, except for the Chairman of the Board of Directors, is entitled

to an annual fee of $75,000. Directors’ fees for the year ended December 31, 2021 amounted

to $418,900 (2020: $419,300). In addition, each director is entitled to a reimbursement for

travelling and other minor out-of-pocket expenses.

Furthermore, OET Chartering Inc. and OET provide compensation to members of its key

management personnel, which comprise its CEO, CFO and COO. The remuneration structure

comprises salaries, bonuses, insurance cover (covering also the members of the Board of

Directors), telecommunications and other benefits which are minor in nature. For the year

ended December 31, 2021, key management personnel remuneration, covering all the above

amounted to $2,071,165 (2020: $1,770,000). There was no amount payable related to key

management remuneration as of December 31, 2021 and 2020.

None of the members of the administrative, management or supervisory bodies’ of the

Company have any service contracts with the Company or any of its subsidiaries in the Group

providing for benefits upon termination of employment.

The table below sets forth the number of shares beneficially owned by each of the Company’s

Directors and key management, as at December 31, 2021:

NUMBER OF SHAREHOLDING %

NAME POSITION SHARES HELD (DIRECT AND INDIRECT)

Ioannis Alafouzos Chairman and CEO 18,658,786 56.73%

Daniel Gold Director 2,516,386 7.65%

Joshua Nemser Director 1,602,689 4.87%

Robert Knapp Director 1,010,000 3.07%

Aristidis Alafouzos COO 27,800 0.08%

Konstantinos Oikonomopoulos CFO — —

John Kittmer Director — —

Charlotte Stratos Director — —

Petros Siakotos Director — —

CONSOLIDATED FINANCIAL STATEMENTSNOTES

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

15. Share Capital and Additional Paid-in Capital

The Company’s common shares have been registered under the laws of the Republic of the

Marshall Islands. Pursuant to an agreement with DNB Bank ASA, DNB Bank ASA is recorded

as the sole shareholder in the records of the Company, as nominee on behalf of Euronext

Securities Oslo and maintains, in its role as VPS registrar, a sub-register of shareholders in

the VPS where the ownership of the shares is registered in book-entry form under their ISIN

MHY641771016.

The Company has one class of shares. All shares rank in parity with one another and each one

carries one vote in a meeting of the shareholders. All shares are equal in all respects.

On March 5, 2019, the board of directors of the Oslo Stock Exchange approved the Company’s

listing application to trading on Oslo Axess. Trading in the shares on Oslo Axess commenced

on March 8, 2019, under the trading symbol “OET”.

On March 9, 2020 the Company purchased 113,934 of its own shares for an aggregate

consideration of $698,924 at an average price of NOK 57.3 per share.

On April 6, 2020 the Company purchased 250,000 of its own shares for an aggregate

consideration of $1,359,181 at an average price of NOK 57.5 per share.

The Company has distributed cumulative cash dividends to its shareholders amounting to

$43,723,896 million in the year ended December 31, 2020.

On January 27, 2021, the board of directors of the Oslo Stock Exchange approved the Company’s

listing application to transfer its listing from Euronext Expand to Oslo Børs. Trading in the

shares on Oslo Børs commenced on January 29, 2021, under the trading symbol “OET”.

In March 2021, the Company paid a cash dividend to its shareholders of $0.10 per share,

amounting to $3.2 million.

In June 2021, the Company distributed an amount of $24.3 million or $0.75 per share via a

return of paid-in capital.

On December 6, 2021 the Company purchased 22,500 of its own shares for an aggregate

consideration of $197,116 at an average price of NOK 75.3 per share.

On December 9, 2021 the Company purchased 8,000 of its own shares for an aggregate

consideration of $70,642 at an average price of NOK 75.9 per share.

On December 14, 2021 the Company purchased 28,736 of its own shares for an aggregate

consideration of $235,773 at an average price of NOK 70.5 per share.

Also, in December 2021, the Company distributed an amount of $10.0 million or $0.31 per

share via a return of paid-in-capital.

As of December 31, 2021, the Company had 32,316,681 shares outstanding (net of 573,319

treasury shares).

CONSOLIDATED FINANCIAL STATEMENTSNOTES

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

Neither the Company nor any of its subsidiaries have issued any restricted shares, share

options, warrants, convertible loans or other instruments that would entitle a holder of any

such instrument to subscribe for any shares in the Company or its subsidiaries. Neither the

Company nor any of its subsidiaries have issued subordinated debt or transferable securities

other than the shares in the Company and the shares in the Company’s subsidiaries which are

held directly or indirectly by the Company.

The table below shows the movement in the Company’s issued share capital up to and for the

year ended on December 31, 2021 hereof:

No. OF ISSUED

CHANGE IN NEW ISSUED (NET OF

ISSUED SHARE SHARE TREASURY) PAR VALUE

DATE TYPE OF CHANGE CAPITAL (USD) CAPITAL (USD) SHARES PER SHARE

May 14, 2019 Issuance of shares in third offering

at NOK 83 per share 1,580 32,890 32,890,000 0.001

Aug 30, 2019 Share buy-back — — 32,739,851 0.001

March 9, 2020 Share buy-back — — 32,625,917 0.001

April 6, 2020 Share buy-back — — 32,375,917 0.001

December 6, 2021 Share buy-back — — 32,353,417 0.001

December 9, 2021 Share buy-back — — 32,345,417 0.001

December 14, 2021 Share buy-back — — 32,316,681 0.001

Major Shareholders as at December 31, 2021

NAME HOLDING OF SHARES % STAKE

ALAFOUZOS FAMILY 18,686,586 56.82%

BNP PARIBAS 2,516,386 7.65%

INTERACTIVE BROKERS LLC 1,236,840 3.76%

THE BANK OF NEW YORK MELLON 1,195,453 3.63%

EUROCLEAR BANK S.A./N.V. 747,722 2.27%

AVANZA BANK AB 557,601 1.70%

CREDIT SUISSE SECURITIES (USA) LLC 520,714 1.58%

VERDIPAPIRFONDET KLP AKSJENORGE 516,835 1.57%

BROWN BROTHERS HARRIMAN (LUX.) SCA 490,052 1.49%

CACEIS BANK SPAIN SA 313,642 0.95%

AS AUDLEY 299,500 0.91%

STAVANGER FORVALTNING AS 240,035 0.73%

NORDNET BANK AB 235,301 0.72%

NORDNET LIVSFORSIKRING AS 231,577 0.70%

DΝB NOR ΒΑΝΚ ASA, MEGLERKONTO INNLAND 224,573 0.68%

SPESIALFONDET KLP ALFA GLOBAL ENER 203,256 0.62%

CLEARSTREAM BANKING S.A. 185,683 0.56%

CREDIT SUISSE (SWITZERLAND) LTD 183,584 0.56%

MERRILL LYNCH, PIERCE, FENNER & SM 175,901 0.53%

ΟTHER SHAREHOLDERS 3,555,440 10.81%

Top 20 Shareholders 32,316,681 98.26%

OKEANIS ECO TANKERS CORP. 573,319 1.74%

Total 32,890,000 100.00%

CONSOLIDATED FINANCIAL STATEMENTSNOTES

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

16. Financial Risk Management

The Group’s principal financial instruments comprise of long-term borrowings, interest rate

swaps, forward freight agreements, cash and cash equivalents and restricted cash. The main

purpose of these financial instruments is to finance the Group’s operations as well as mitigate

its exposure to market and interest rate ﬂuctuations. The Group has various other financial

assets and liabilities such as trade receivables, current accounts with related parties and

payables which arise directly from its operations.

The main risks arising from the Group’s financial instruments are credit risk, foreign currency risk,

interest rate risk, liquidity risk and market risk. The Group’s policies for addressing these risks are

set out below:

•

Credit risk

The Group only trades with charterers who have been subject to satisfactory credit screening

procedures. Furthermore, outstanding balances are monitored on an ongoing basis with

the result that the Group’s exposure to bad debts is not significant.

With respect to the credit risk arising from the Group’s cash and cash equivalents and

restricted cash, the Group’s exposure arises from default by the counterparties, with a

maximum exposure equivalent to the carrying amount of these instruments. The Group

mitigates such risks by dealing only with high credit quality financial institutions.

•

Foreign currency risk

The Group’s vessels operate in international shipping markets, which utilize the U.S. dollar

as the functional currency. Although certain operating expenses are incurred in foreign

currencies, the Group does not consider the risk to be significant and takes no other steps

to manage its currency exposure.

•

Interest rate risk

The Company is exposed to the impact of interest rate changes primarily through its

ﬂoating-rate borrowings that require the Company to make interest payments based

on LIBOR. Significant increases in interest rates could adversely affect operating margins,

results of operations and ability to service debt. Effective from 2020, the Company uses

interest rate swaps to reduce its exposure to market risk from changes in interest rates. The

principal objective of these contracts is to manage the risks and costs associated with its

ﬂoating-rate debt (Note 24).

As an indication of the sensitivity from changes in interest rates, an increase by 50 basis

points in interest rates would increase interest expense for the year ended December 31, 2021

by $1,948,856 (2019: $ 3,794,849) assuming all other variables held constant and taking into

consideration that the Company has entered into interest rate swap agreements for some

of its loans, therefore partially economically hedging part of its ﬂoating-rate borrowings.

•

Liquidity risk

Liquidity risk is the risk that arises when the maturity of assets and liabilities does not

match. An unmatched position potentially enhances profitability, but can also increase the

risk of losses. The Group minimizes liquidity risk by maintaining sufficient cash and cash

equivalents.

CONSOLIDATED FINANCIAL STATEMENTSNOTES

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

The following table details the Group’s expected cash outﬂows for its financial liabilities.

The table has been drawn up based on the undiscounted cash ﬂows of financial liabilities

based on the earliest date on which the Group would be required to pay to settle. The table

includes both interest and principal cash ﬂows. Variable future interest payments were

determined based on the one month LIBOR as of December 31, 2021 of 0.10%, plus the

margin applicable to the Group’s loan at the end of the year presented.

•

Market risk

The tanker shipping industry is cyclical with high volatility in charter rates and profitability.

The Company charters its vessels principally in the spot market, being exposed to various

unpredictable factors such as: supply and demand of energy resources, global economic

and political conditions, natural or other disasters, disruptions in international trade,

COVID-19 outbreak, environmental and other legal regulatory developments and so on.

During 2021, the Company entered into FFAs in order to minimize losses from charter rate

ﬂuctuations and eliminate any adverse effect this may have in our operating cash ﬂows and

dividend policy.

WEIGHTED AVERAGE

EFFECTIVE LESS THAN 1-3 3-12 1-5 5+

INTEREST RATE 1 MONTH MONTHS MONTHS YEARS YEARS TOTAL

December 31, 2021

Derivative Liabilities

Derivative financial

instrument 95,636 60,499 316,507 377,560 — 850,201

Non-Derivative Liabilities

Trade payables — — 15,960,456 — — 15,960,456

Accrued expenses — — 2,623,745 — — 2,623,745

Current accounts

due to related parties — — 698,153 — — 698,153

Variable interest loans 2.34% 3,703,399 5,306,980 26,865,137 335,093,434 34,729,947 405,698,896

Variable interest

for debt financing 5.28% 2,230,079 4,338,378 20,053,746 88,237,974 168,511,569 283,371,746

Total 6,029,115 9,705,856 66,517,745 423,708,967 203,241,516 709,203,198

17. Commitments and Contingencies

Commitments under time charter agreements (Lessor)

Future minimum contractual charter revenue, based on vessels committed non-cancellable,

long-term time charter agreements, net of address commissions, were as follows, as of

December 31, 2021:

AS OF DECEMBER 31, 2021

Within one year 41,649,500

Between one and two years 24,015,000

Total 65,664,500

CONSOLIDATED FINANCIAL STATEMENTSNOTES

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

Commitments under shipbuilding contracts

As of December 31, 2021, the Company had commitments under two shipbuilding contracts

in connection with the acquisition of the resale VLCCs from the Sponsor totalling $176.6 million

that are expected to be settled as follows:

AS OF DECEMBER 31, 2021

Less than one year - payable to the yard 141,461,400

More than one year and less than three years - payable to the Sponsor 35,128,600

Total 176,590,000

18. Earnings/(loss) per Share

Basic and diluted earnings/(loss) per share for the years ended December 31, 2021 and 2020,

are presented below:

YEAR ENDED DECEMBER 31, 2021 2020

From continuing operations (0.03) 3.12

Earnings/(loss) per share, basic and diluted (0.03) 3.12

The profit/(loss) and weighted average number of common shares used in the calculation of

basic and diluted earnings/(loss) per share are as follows:

YEAR ENDED DECEMBER 31, 2021 2020

(Loss)/profit for the year attributable to the Owners of the Group (902,899) 101,318,942

Weighted average number of common shares outstanding in the period 32,372,393 32,462,659

Earnings/(loss) per share, basic and diluted (0.03) 3.12

During the years ended December 31, 2021 and 2020, there were no potentially dilutive

instruments affecting weighted average number of shares, and hence diluted earnings per

share equals basic earnings per share for the years presented.

19. Claims Receivable

As of December 31, 2021, the Group has recognized and presented under “Claims receivable”

in the consolidated statement of financial position, receivable amounts from vessel insurers

totaling $261,093 (2020: $154,448) regarding various claims. The recognition of the respective

receivable claims in the consolidated statement of financial position was made since

realization of the claimable amounts from the insurers in the short-term was or is deemed

highly probable.

20. Capital Risk Management

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue

as a going concern, ensure that it maintains a strong credit rating and healthy capital ratios in

order to support its business and maximize shareholders value.

CONSOLIDATED FINANCIAL STATEMENTSNOTES

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

The Group monitors capital using gearing ratio, which is total debt divided by total equity plus

total debt, and its calculation is presented below:

AS OF DECEMBER 31, 2021 2020

Total borrowings 576,996,269 834,476,641

Total equity 358,292,858 397,228,193

Gearing ratio 62% 68%

21. Lease and Non-Lease Components of Revenue and voyage charter revenue

IFRS 16 requires the identification of lease and non-lease components of revenue and account

for each component in accordance with the applicable accounting standard. Regarding Time-

charter arrangements, we have concluded that the direct lease component concerns the

vessel and indirectly, the non-lease component concerns the technical management services

provided to operate the vessel.

These components are being accounted for as follows:

• All fixed lease revenue earned under these arrangements will be recognized on a straight-

line basis over the term of the lease.

• Lease revenue earned under Company’s time charter arrangements will be recognized as it

is earned, since it is 100% variable.

• The non-lease component will be accounted for as services revenue under IFRS 15. This

revenue is recognized ‘over time’ as the customer (i.e. the charterer) is simultaneously

receiving and consuming the benefits of the service.

The below table analyses revenue generated under time charter arrangements:

FOR THE YEAR ENDED DECEMBER 31, 2021 2020

Lease Component 59,098,416 79,685,623

Non-Lease Component 21,486,951 20,938,286

Total 80,585,367 100,623,909

For the years ended December 31, 2021 and 2020 revenue generated from voyage charter

agreements amounted to $90,489,134 and $180,576,897. The difference between total revenues

as reﬂected in the consolidated statement of profit or loss and other comprehensive income

and the amount disclosed in this note relates to address commissions.

As of December 31, 2021 and 2020, trade receivables include the amounts of $5,838,509

and $11,440,691 respectively, generated from voyage charter agreements within the scope of

IFRS 15. Payment terms under voyage charters are disclosed in the relevant voyage charter

agreements. Further, as of December 31, 2021 and 2020, capitalized contract fulfilment costs

amounted to $477,732 and $506,058, respectively. Changes in balances between years are

mainly attributable to the timing of commencement of revenue recognition.

CONSOLIDATED FINANCIAL STATEMENTSNOTES

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

22. Interest and Other Finance Costs

Interest and finance related costs for the years ended December 31, 2021 and 2020, are

presented below:

FOR THE YEAR ENDED DECEMBER 31, 2021 2020

Interest expense 27,082,841 34,373,842

Amortization and write-off of financing fees 4,233,322 2,519,363

Finance costs related to covenants of early termination 4,092,000 —

Bank charges and loan commitment fees 781,978 628,442

Other finance costs 275,282 128,095

Total 36,465,423 37,649,743

23. Other expenses, net

Other expenses for the year ended December 31, 2020 amounting to $1,354,921 relate to one-

off legal and settlement fees paid to legal advisors and Ocean Yield, respectively, in respect

of the arbitration process against Ocean Yield which was concluded in February 2020. No

amount was recorded in other expenses for the year ended December 31, 2021.

24. Derivative Financial Instruments

Interest rate swaps

As of December 31, 2021, the Company has eight interest rate swaps outstanding, having

notional amounts totalling $371.9 million and with maturity ranging from the third quarter

2023 to the first quarter 2024. The average fixed interest rate is 0.331%. As of December 31, 2021,

the fair value of the derivative financial asset related to the swaps amounted to $3.0 million, as

further analysed in the below table:

FAIR VALUE

EXPIRATION NOTIONAL DECEMBER 31,

VESSEL DESCRIPTION DATE AMOUNT 2021

Nissos Kythnos Swap pays 0.330%, receive floating 19-09-23 50,430,000 397,728

Nissos Keros Swap pays 0.312%, receive floating 11-10-23 51,711,000 409,435

Kimolos Swap pays 0.303%, receive floating 09-10-23 38,693,750 309,905

Nissos Donoussa Swap pays 0.302%, receive floating 26-08-23 48,497,000 348,346

Nissos Anafi Swap pays 0.385%, receive floating 02-01-24 51,700,000 497,979

Folegandros Swap pays 0.346%, receive floating 09-01-24 36,183,750 352,638

Nissos Sikinos Swap pays 0.336%, receive floating 11-09-23 47,346,670 336,317

Nissos Sifnos Swap pays 0.338%, receive floating 25-09-23 47,346,670 358,315

371,908,840 3,010,662

Interest rate swap agreements are stated at fair value, which is determined using a discounted

cash ﬂow approach, based on market-based LIBOR swap yield rates. LIBOR swap rates are

observable at commonly quoted intervals for the full terms of the swaps and, therefore, are

considered Level 2 items in accordance with the fair value hierarchy as defined in IFRS 13

CONSOLIDATED FINANCIAL STATEMENTSNOTES

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

Fair Value Measurement. The fair value of the interest rate swap agreements approximates

the amount that the Company would have to pay or receive for the early termination of the

agreements.

Forward freight agreements

As of December 31, 2021, the Company has entered into FFAs, having a notional amount

totalling $0.1 million with maturities ranging from the fourth quarter 2022 to the fourth quarter

2023. Forward freight derivatives are considered to be Level 2 items in accordance with the

fair value hierarchy as defined in IFRS 13 Fair Value Measurement. As of December 31, 2021,

the fair value of the derivative financial asset related to the FFAs amounted to $0.1 million

and the unrealized gain on derivatives is included in the statement profit or loss and other

comprehensive income. Their fair value approximates the amount that the Company would

have to pay or receive for the early termination of the agreements.

25. Subsequent Events

In January 2022, the Company purchased 122,573 of its own shares at an average price of NOK

71.0 per share.

In March 2022, the Company took delivery of Nissos Kea, one of the two Gas Ready (MEc),

ECO-design, open loop scrubber-fitted 300,000 DWT VLCCs under construction at Hyundai

Heavy Industries. The cash consideration for the transaction was financed through proceeds

of a new sale and lease back agreement (the “Facility”) with CMB Financial Leasing Co.,

Ltd. (“CMBFL”), with a gross finance amount of approximately $145.5m. The Facility is repaid

quarterly, amortizes over a 20-year profile and matures in 7 years from drawdown. According

to the agreement, the Company has a call option at each anniversary date. OET has already

drawn $72.75m from the Facility as it relates to the delivery of the Vessel. The Company expects

to take delivery of the second vessel NISSOS NIKOURIA at the end of May 2022 when it will

also draw the second tranche of the Facility.

COVID-19 Update

Our primary concern continues to be the wellbeing of our seafarers and shore-based employees,

and, in tandem, providing safe and reliable services to our clients. In line with industry response

standards, we have updated and continue to update vessels’ procedures and supplied our ﬂeet

with protective equipment. We have effected crew changes in permissible ports, a vaccination

programme for all of our ships’ seafarers approaching Greek ports, limited superintendent

visits and provisions in heavily affected areas and are complying with local directives and

recommendations. Shore-side, all our employees are fully vaccinated. We have also instituted

enhanced safety protocols such as weekly Covid-19 testing for all office staff, regular cleaning/

disinfection of our premises, availability of hand sanitizer and surgical masks throughout our

premises, prohibition of on-site visitors, total elimination of non-essential travel, mandatory self-

isolation of personnel returning from travel and substitution of physical meetings with virtual

meetings. We are also taking measures to improve the security of our network and online

communications and have enhanced monitoring of our network. Lastly, we have created an

infectious disease preparedness and response plan that we have communicated to all of our

staff.

CONSOLIDATED FINANCIAL STATEMENTSNOTES

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

War in Ukraine

Russia’s invasion in Ukraine is a continuously evolving and unpredictable situation both from

a humanitarian and market perspective. The Company’s ultimate goal is to protect the lives

of its seafarers, safeguard its vessels and comply with global sanctions framework. Forecasts

and estimates around the outcome of this situation are highly uncertain at the time, and the

Company recognizes that further escalation could adversely affect global shipping markets.

In February 2022, both the European Union and the United States led economic sanctions

against Russia vis-à-vis conﬂict in Ukraine. Given Russia’s role as a lead exporter of crude oil,

among other commodities, such sanctions could have material impact in our business.

The war in Ukraine is expected to result in rerouting of crude oil ﬂows leading to longer tonne-

mile voyages. Russia’s seaborne crude oil exports account for 10% of world seaborne oil exports

with approximately 50% shipped to Europe. In the event of sanctions and/or choice by Europe,

such volumes would need to be replaced from more distant destinations, while Russia is

expected to find buyers in the East that could also support demand measured in tonne-miles.

The disruption on trade ﬂows could adversely impact freight rates and vessel economics,

while the recent increases in bunker fuel prices, following crude supply shortages, would

negatively affect voyage costs for our ﬂeet, albeit expected less severe than our industry peers

with conventional, not equipped with scrubber vessels that consume more fuel and at higher

prices per metric tonne.

CONSOLIDATED FINANCIAL STATEMENTSNOTES

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT PARENT COMPANY FINANCIAL STATEMENTS

LETTER FROM

THE CHAIRMAN

HISTORY

& FLEET

PRESENTATION

OF THE BOARD

OF DIRECTORS

BOARD

OF DIRECTORS’

REPORT

RESPONSIBILITY STATEMENT

CORPORATE

GOVERNANCE

STATEMENT

CONSOLIDATED

FINANCIAL

STATEMENTS

PARENT COMPANY

FINANCIAL

STATEMENTS

PARENT

COMPANY

FINANCIAL

STATEMENTS

OKEANIS ECO TANKERS CORP.

[

Incorporated under the laws of the Republic of the Marshall Islands with registration number 96382]

Parent Company Financial Statements

for the Year Ended December 31, 2021

and Independent Auditor’s Report

Index

83 Independent Auditor’s Report

86 Statement of Profit or Loss and Other Comprehensive Income,

for the years ended December 31, 2021 and 2020

87 Statement of Financial Position, as of December 31, 2021 and 2020

88 Statement of Changes in Equity, for the years ended December 31, 2021

and 2020

89 Statement of Cash Flows, for the years ended December 31, 2021 and 2020

90 Notes to the Parent Company Financial Statements

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT PARENT COMPANY FINANCIAL STATEMENTS

Okeanis Eco Tankers Corp.

Statement of profit or loss and other comprehensive income

For the years ended December 31, 2021 and 2020

(

All amounts expressed in U.S. Dollars)

FOR THE YEAR ENDED DECEMBER 31,

NOTE 2021 2020

Expenses

General and administrative expenses 5 (1,164,045) (1,143,006)

Total expenses (1,164,045) (1,143,006)

Operating loss (1,164,045) (1,143,006)

Other income/(expenses)

Dividend income 3,904,000 47,782,750

Interest and other finance costs 11 (349,015) (383,382)

Unrealized gain on forward derivatives 30,105 —

Foreign exchange gain 6,387 31,910

Total other income/(expenses), net 3,591,477 47,431,278

Profit for the year 2,427,433 46,288,272

Other comprehensive income — —

Total comprehensive income for the year 2,427,433 46,288,272

Earnings per share from continuing operations,

basic and diluted 10 0.07 1.43

Weighted average no. of shares - basic & diluted 32,372,393 32,462,659

The accompanying notes are an integral part of these financial statements.

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

Okeanis Eco Tankers Corp.

Statement of financial position

As of December 31, 2021 and 2020

(All amounts expressed in U.S. Dollars)

AS OF DECEMBER 31,

NOTE 2021 2020

Assets

Non-current assets

Investment in subsidiaries 4 255,718,980 329,245,580

Derivative financial instrument 140,105 —

Total non-current assets 255,859,085 329,245,580

Current assets

Other receivables 40 40

Current account due from related parties 6 23,607,391 14,901,121

Cash & cash equivalents 24,282,086 3,443,176

Total current assets 47,889,517 18,344,337

Total assets 303,748,602 347,589,916

Shareholder’s equity & liabilities

Shareholder’s equity

Share capital 7 32,890 32,890

Additional paid in capital 7 300,046,621 334,355,638

Treasury shares 7 (3,571,791) (3,068,260)

(Accumulated losses)/retained earnings (53,468) 738,784

Total-Shareholder’s equity 296,454,252 332,059,052

Non-Current liabilities

Long-term borrowings, net of current portion 12 1,710,201 5,130,420

Total non-current liabilities 1,710,201 5,130,420

Current Liabilities

Trade payables 147,590 239,878

Current account due to related parties 6 4,068,505 7,880,470

Current portion of long-term borrowings 12 1,368,054 2,280,096

Total current liabilities 5,584,148 10,400,444

Total liabilities 7,294,349 15,530,863

Total shareholder’s equity & liabilities 303,748,602 347,589,916

The accompanying notes are an integral part of these financial statements.

PARENT COMPANY FINANCIAL STATEMENTS

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

Okeanis Eco Tankers Corp.

Statement of changes in shareholder’s equity

For the years ended December 31, 2021 and 2020

(All amounts, expressed in U.S. Dollars, except for number of shares)

(ACCUMULATED

ADDITIONAL LOSSES)/

NUMBER SHARE PAID IN TREASURY RETAINED

NOTE OF SHARES CAPITAL CAPITAL SHARES EARNINGS TOTAL

Balance - January 1, 2020 32,739,851 32,890 334,355,638 (1,010,155) (1,825,592) 331,552,782

Acquisition of equity shares

at NOK 57.3 per share 7 (113,934) — — (698,924) — (698,924)

Acquisition of equity shares

at NOK 57.5 per share 7 (250,000) — — (1,359,181) — (1,359,181)

Profit for the year — — — — 46,288,272 46,288,272

Dividend paid — — — — (43,723,896) (43,723,896)

Balance - December 31, 2020 32,375,917 32,890 334,355,638 (3,068,260) 738,784 332,059,052

Acquisition of equity shares

at NOK 75.3 per share 7 (22,500) — — (197,116) — (197,116)

Acquisition of equity shares

at NOK 75.9 per share 7 (8,000) — — (70,642) — (70,642)

Acquisition of equity shares

at NOK 70.5 per share 7 (28,736) — — (235,773) — (235,773)

Profit for the year — — — — 2,427,433 2,427,433

Dividend paid 7 — — — — (3,219,686) (3,219,686)

Capital distribution 7 — — (34,309,017) — — (34,309,017)

Balance - December 31, 2021 32,316,681 32,890 300,046,621 (3,571,791) (53,468) 296,454,252

The accompanying notes are an integral part of these financial statements.

PARENT COMPANY FINANCIAL STATEMENTS

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

Okeanis Eco Tankers Corp.

Statement of cash ﬂows

For the years ended December 31, 2021 and 2020

(All amounts expressed in U.S. Dollars)

FOR THE YEAR ENDED DECEMBER 31,

NOTE 2021 2020

Cash flows from operating activities:

Profit for the year 2,427,433 46,288,272

Adjustments to reconcile profit to net cash

used in operating activities:

Interest expense 11 117,461 315,061

Amortization of loan financing fees 21,905 11,602

Dividend income (3,904,000) (47,782,750)

Unrealized gain on derivatives (30,105) —

Total reconciliation adjustments (1,367,307) (1,167,815)

Changes in working capital:

Prepaid expenses and other current assets (110,000) —

Trade payables (92,287) 49,699

Accrued expenses — (1,577)

Interest paid (117,461) (318,820)

Net cash used in operating activities (1,687,054) (1,438,513)

Cash flows from investing activities:

Current account due from related parties (8,706,270) (1,228,623)

Capital returns from subsidiaries 90,936,600 —

Investment in subsidiaries (17,410,000) (181,600)

Dividends received 3,904,000 47,782,750

Net cash provided by investing activities 68,724,330 46,372,527

Cash flows from financing activities:

Repayments of long-term borrowings (4,354,166) (3,552,077)

Current accounts due to related parties 6 (3,811,965) 7,601,217

Acquisition of treasury stock 7 (503,531) (2,058,105)

Capital Distribution (34,309,017) —

Dividends paid (3,219,686) (43,723,896)

Net cash used in financing activities (46,198,365) (41,732,861)

Net change in cash and cash equivalents 20,838,911 3,201,153

Cash and cash equivalents at the beginning of year 3,443,176 242,023

Cash and cash equivalents at the end of year 24,282,087 3,443,176

The accompanying notes are an integral part of these financial statements.

PARENT COMPANY FINANCIAL STATEMENTS

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

1. Incorporation and General Information

Okeanis Eco Tankers Corp. (“OET” or the “Company”), was founded on April 30, 2018 as a private

limited corporation under the laws of the Republic of the Marshall Islands. OET is ultimately

controlled by Glafki Marine Corporation (“Glafki”) through voting interest. Glafki is owned by

Ioannis Alafouzos and Themistoklis Alafouzos. The Company currently owns thirteen vessels on

the water and one vessel under construction. The principal activity of its subsidiaries is to own,

charter out and operate tanker vessels on an international level.

The Alafouzos family holds, through Glafki, a stake of 56.82% in the Company. The Company

traded on the Merkur Market (currently named Euronext Growth) from July 3, 2018 until March

8, 2019, when it was then admitted for trading on the Oslo Axess (currently named Euronext

Expand). In January 2021, the Company transferred its listing from Euronext Expand to Oslo

Børs under the symbol “OET”.

The table below sets forth an overview of the Company’s wholly owned subsidiaries:

INTEREST

HELD

COMPANY NAME DATE INCORPORATED BY OET

Therassia Marine Corp. June 28, 2018 Liberia 100%

Milos Marine Corp. June 28, 2018 Liberia 100%

Ios Maritime Corp. June 28, 2018 Liberia 100%

Omega One Marine Corp. June 28, 2018 Marshall Islands 100%

Omega Two Marine Corp. June 28, 2018 Marshall Islands 100%

Omega Three Marine Corp. June 28, 2018 Marshall Islands 100%

Omega Four Marine Corp. June 28, 2018 Marshall Islands 100%

Omega Five Marine Corp. June 28, 2018 Marshall Islands 100%

Omega Six Marine Corp. October 30, 2019 Marshall Islands 100%

Omega Seven Marine Corp. June 28, 2018 Marshall Islands 100%

Omega Nine Marine Corp. June 28, 2018 Marshall Islands 100%

Omega Ten Marine Corp. October 30, 2019 Marshall Islands 100%

Omega Eleven Marine Corp. June 28, 2018 Marshall Islands 100%

Nellmare Marine Ltd June 28, 2018 Marshall Islands 100%

Anassa Navigation S.A. June 28, 2018 Marshall Islands 100%

Arethusa Shipping Ltd. June 28, 2018 Marshall Islands 100%

Moonsprite Shipping Corp. June 28, 2018 Marshall Islands 100%

Theta Navigation Ltd June 14, 2021 Marshall Islands 100%

Ark Marine S.A. June 14, 2021 Marshall Islands 100%

OET Chartering Inc. June 28, 2018 Marshall Islands 100%

On June 14, 2021 the Company established two Marshall Islands-based subsidiary owning

companies, Ark Marine S.A. and Theta Navigation Ltd, that will own and operate the two

Newbuilding VLCCs, the Hulls 3211 and 3212, with delivery dates set end of March and May

2022, respectively. Each of the companies have 500 shares issued at par value, owned 100%

by Okeanis Eco Tankers Corp.

PARENT COMPANY FINANCIAL STATEMENTSNOTES

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

2. Basis of Preparation and Statement of Compliance

The financial statements of the Company have been prepared in accordance with International

Financial Reporting Standards (“IFRS”) published by the International Accounting Standards

Board (the “IASB”). The financial statements are presented in United States Dollars ($) since

this is the currency in which the majority of the Company’s transactions are denominated. The

financial statements have been prepared on the historical cost basis.

The financial statements have been prepared on a going concern basis.

Okeanis Eco Tankers annual financial statements were approved and authorized for issue by

the Company’s Board of Directors on April 14, 2022.

3. Summary of Significant Accounting Policies

Use of estimates

The preparation of the financial statements in conformity with IFRS requires management to

make estimates and assumptions that affect the reported amounts of assets and liabilities, the

disclosures of contingent assets and liabilities at the date of the financial statements, and the

stated amounts of revenues and expenses during the reporting period. Actual results could

differ from those estimates.

Cash and cash equivalents

The Company considers highly liquid investments such as time deposits and certificates of

deposit with original maturities of three months or less to be cash equivalents. For the purposes

of the cash ﬂow statement, cash and cash equivalents consist of cash and cash equivalents as

defined above.

Dividend income

Dividend income is recognized when the right by the Company to receive payment of

dividends is established.

Interest income

The Company’s interest income comprises interest earned from short-term time deposits.

Investment in subsidiaries

The Company’s investments in the wholly owned subsidiaries are recorded at cost. When

necessary, the carrying amount of each of the Company’s investments separately, is tested for

impairment in accordance with IAS 36 Impairment of Assets, by comparing the investment’s

recoverable amount with its carrying amount. During the years ended December 31, 2021 and

2020, no impairment charges were deemed necessary regarding the Company’s investments.

Interest bearing loans and borrowings

Loans and borrowings are initially recognized at fair value, being the fair value of the

consideration received net of issue costs associated with the borrowing. After initial recognition,

interest-bearing loans and borrowings are subsequently measured at amortized cost using

the effective interest method.

PARENT COMPANY FINANCIAL STATEMENTSNOTES

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

Share capital, additional paid-in capital and dividends to the Company’s shareholders

Common shares issued are classified in equity, with the excess over par value classified under

additional paid-in capital. Additional paid-in capital also includes the cost of the common

shares issued in exchange for the historical acquisition of ownership in the Contributed

Companies (refer note 1). Incremental costs directly attributable to the issuance of new

common shares are deducted against additional paid-in capital. Dividends to the Company’s

shareholders are recognized when the respective dividends are approved for payment by the

Company’s Board of Directors.

Treasury shares

Common share repurchases are recorded at cost based on the settlement date of the

transaction. These shares are classified as treasury shares, which is a reduction to shareholders’

equity. Treasury shares are included in authorized and issued shares, but excluded from

outstanding shares.

Foreign currency translation

The functional currency of the Company is the U.S. dollar because the majority of the Company’s

transactions are denominated in U.S. dollars. Transactions denominated in foreign currencies

are converted into U.S. Dollars and are recorded at the exchange rate in effect at the date of the

transactions. Monetary assets and liabilities denominated in foreign currencies are translated

to U.S. Dollars at the rate of exchange prevailing at the statement of financial position date.

Any resulting foreign exchange differences are reﬂected under foreign exchange gains/(losses)

in the statement of profit or loss and other comprehensive income.

Cash ﬂow statement policy

The Company uses the indirect method to report cash ﬂows from operating activities.

Earnings/(Loss) per share

Basic earnings/(loss) per share is calculated by dividing income/(loss) attributable to equity

holders of OET by the weighted average number of common shares outstanding. Diluted

earnings/(loss) per share is calculated by adjusting income/(loss) attributable to equity holders

of OET and the weighted average number of common shares used for calculating basic

per share for the effects of all potentially dilutive shares. Such dilutive common shares are

excluded when the effect would be to reduce a loss per share or increase earnings per share.

The Company applies the if-converted method when determining diluted earnings/(loss) per

share. This requires the assumption that all potential ordinary shares have been converted

into ordinary shares at the beginning of the period or, if not in existence at the beginning of

the period, the date of the issue of the financial instrument or the granting of the rights by

which they are granted. Under this method, once potential ordinary shares are converted into

ordinary shares during the period, the dividends, interest and other expense associated with

those potential ordinary shares will no longer be incurred. The effect of conversion, therefore,

is to increase income (or reduce losses) attributable to ordinary equity holders as well as the

number of shares in issue. Conversion will not be assumed for purposes of computing diluted

earnings per share if the effect would be anti-dilutive.

During the years ended December 31, 2021 and 2020, there were no potentially dilutive items.

PARENT COMPANY FINANCIAL STATEMENTSNOTES

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

Taxation

The Company is not subject to tax on international shipping income since its country of

incorporation do not impose such taxes.

Provisions and contingencies

Provisions are recognized when the Company has a present legal or constructive obligation

as a result of past events and it is probable that an outﬂow of resources embodying economic

benefits will be required to settle this obligation and a reliable estimate of the amount of the

obligation can be made.

Provisions are reviewed at each statement of financial position date and adjusted to reﬂect the

present value of the expenditure expected to be required to settle the obligation. Contingent

liabilities are not recognized in the financial statements but are disclosed unless the possibility

of an outﬂow of resources embodying economic benefits is remote. Contingent assets are not

recognized in the financial statements but are disclosed when an inﬂow of economic benefits

is probable.

Fair value of financial assets and liabilities

The definitions of the levels, provided by IFRS 7 Financial Instruments Disclosure, are based on

the degree to which the fair value is observable.

• Level 1 fair value measurements are those derived from quoted prices in active markets for

identical assets or liabilities.

• Level 2 fair value measurements are those derived from inputs other than quoted prices

included within Level 1 that are observable for the asset or liability, either directly (i.e. as

prices) or indirectly (i.e. derived from prices).

• Level 3 fair value measurements are those derived from valuation techniques that include

inputs for the asset or liability that are not based on observable market data (unobservable

inputs).

Cash and cash equivalents are considered Level 1 financial instruments. Variable rate long-

term borrowings and forward agreements are considered Level 2 financial instruments. There

are no financial instruments in Level 3, nor any transfers between fair value hierarchy levels

during the periods presented.

The carrying amounts reﬂected in the statement of financial position for cash and cash

equivalents, other receivables and other current liabilities, approximate their respective fair

values due to the relatively short-term maturity of these financial instruments.

Trade and other receivables

Trade payables are obligations to pay for goods or services that have been acquired in the

ordinary course of business from suppliers. Accounts payable are classified as current liabilities

if payment is due within one year or less (or in the normal operating cycle of the business if

longer). If not, they are presented as non-current liabilities.

Deferred financing costs

Fees incurred for obtaining new loans or refinancing existing facilities such as arrangement,

structuring, legal and agency fees are deferred and classified against long-term debt in the

PARENT COMPANY FINANCIAL STATEMENTSNOTES

OKEANIS ECO TANKERS

OKEANIS ECO TANKERS 2021 ANNUAL REPORT

statement of financial position. Any fees incurred for loan facilities not yet advanced are

deferred and classified under non-current assets in the consolidated statement of financial

position. These fees are classified against long-term debt on the loan drawdown date.

Deferred financing costs are deferred and amortized over the term of the relevant loan using

the effective interest method, with the amortization expense reﬂected under interest and

finance costs in the consolidated statement of profit or loss and other comprehensive income.

Any unamortized deferred financing costs related to loans which are either fully repaid before

their scheduled maturities or related to loans extinguished are written-off in the consolidated

statement of profit or loss and other comprehensive income.

Derivative financial instruments - Forward Freight Agreements