Our Highest-Conviction Crude Tanker Idea
Why we believe this name offers the clearest path to outsized returns.
By Jeremie | Aurelion Research
We have repeatedly stated that we are and remain bullish on crude oil tanker equities and on the crude tanker market through 2026. One company has consistently featured as one of our preferred ways to gain exposure, yet we had not produced a full deep dive on it. The aim of this report is to close that gap and set out a detailed view on its fleet, cash generation, and valuation after our initial highlight on August 16, 2025.
Executive summary
Okeanis Eco Tankers is a pure play crude tanker company with a young, fuel efficient fleet and a clear cash return profile. OET owns 14 large crude carriers, split between Suezmax vessels (medium sized crude tankers) and VLCCs (very large crude carriers), all built to eco standards and equipped with exhaust cleaning systems that allow them to burn cheaper fuel oil.
Commercially, Okeanis has outperformed peers on achieved rates in recent years and has shown discipline in shifting between spot and time charter exposure through the cycle. Since its IPO, OET has distributed more than $435M to shareholders, equal to roughly 1.8× its initial market cap. With the fleet fully delivered, it has recently returned ~89% of adjusted EPS to shareholders, showing a clear commitment to cash returns through dividends.
We see OET as a high quality crude tanker platform with a proven cash distribution track record and an attractive risk reward profile, supported by aligned family ownership and dual listings in Oslo and New York.
Investment thesis
1. Premium Fleet Advantage
OET owns a young fleet of fuel efficient Suezmax and VLCC tankers. These ships burn less fuel than older vessels and use exhaust systems that allow them to run on cheaper fuel oil. In practice, this has translated into higher day rates than most peers in recent years. We expect this gap to continue as long as the industry rewards newer, cleaner and cheaper to run ships.
2. Proven Capital Returns
OET has already shown what it does with free cash. Since listing, it has paid more than $435M in dividends, equal to ~1.8x its IPO market cap. With the fleet now fully delivered, Okeanis has recently returned ~89% of adjusted EPS to shareholders. Operating costs and interest are covered at rate levels well below what the market has delivered in the last few years, which supports continued high payouts while crude tanker conditions remain healthy.
3. Aligned Insider Ownership
The controlling family, board members and key institutions all hold meaningful stakes and there are no options or other dilutive instruments. This supports disciplined decisions on leverage, fleet risk and dividends. At the same time, a tight free float and the related party technical manager help explain why the stock can trade at a discount to our view of fair value.
We believe a company like OET, which possesses a modern fleet, strong cash generation and a high payout policy, deserves a valuation at least in line with leading crude tanker peers if the current cycle extends into 2026.