Fredrik Dybwad

Fredrik Dybwad asked for management's take on Sinokor's strategy to corner the VLCC market, how they practically achieve this, and how long such a strategy could be sustained if successful.

Answer

CEO Aristidis Alafouzos stated that the specifics of Sinokor's strategy are better directed to Sinokor itself. He observed that Sinokor has been consistent in setting target market rates and fixing ships at those levels, continuously raising expectations and pushing the market higher.

Fredrik Dybwad from Fearnley Securities inquired about the conditions required in the time charter (TC) market for Okeanis Eco Tankers to consider increasing its TC coverage.

Answer

Aristidis Alafouzos (executive) stated that while current TC rates are at good levels, they still need to rise further to bridge the gap with higher asset values and spot earning expectations. He suggested an opportunity would arise when charterers can make a strong profit on the first voyage, de-risking the remainder of the TC period for them.

Fredrik Dybwad of Fearnley Securities asked for an overview of the market opportunities for Golar's different FLNG designs (Mark I, II, and III) and questioned if the company would consider ordering more than one speculative unit.

Answer

CEO Karl Fredrik Staubo explained that while smaller units have more numerous opportunities, larger designs are essential for certain large-scale fields. He reiterated the strategy of having a maximum of one 'open' ship, noting that the Mark II is considered highly likely to be fixed, which would allow for ordering a fourth unit without changing this strategy.

Fredrik Dybwad from Fearnley Securities asked for more detail on the characteristics Golar looks for in prospective gas fields for the Mark II FLNG, such as reserve size.

Answer

CEO Karl Staubo specified that a prospective field should have at least 4 trillion cubic feet (Tcf) of reserves and sufficient gas flow to feed the FLNG. He added that the key gating item is ensuring the resource development timeline aligns with the FLNG delivery window. He also noted that opportunities exist in new locations with stranded reserves where fiscal regimes are now becoming favorable.