Mpc Container Ships Asa · OSL:MPCC
Mpc Container Ships Asa — Q3 2019 Earnings Presentation
22 slides from Mpc Container Ships Asa's earnings presentation, Dec 2, 2019
Slide 1: Q3 2019 Earnings Presentation
Q3 2019 Earnings Presentation Oslo, 2 December 2019
Slide 2: Disclaimer
DISCLAIMER THIS PRESENTATION (THE “PRESENTATION”) HAS BEEN PREPARED BY MPC CONTAINER SHIPS ASA (THE “COMPANY”) FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY OF THE SECURITIES DESCRIBED HEREIN. TO THE BEST KNOWLEDGE OF THE COMPANY, ITS
Slide 3: Highlights Q3 2019
HIGHLIGHTS Q3 2019 FINANCIAL PERFORMANCE Operating revenue: USD 46.0m (Q2 2019: USD 47.8m) EBITDA: USD 4.5m, adjusted USD 7.9m1 (Q2 2019: USD 8.7m) Operating Cash Flow: USD 1.3m, adjusted USD 7.4m2 (Q2 2019: USD 9.8m) Net Loss: USD 11.4m (Q2 2019: USD 6.4m) OPERATIONAL PERFORMANCE Fleet ut
Slide 4: Key Developments – Q3 & Q3 YTD 2019
KEY DEVELOPMENTS – Q3 & Q3 YTD 2019 • Strong and highly competitive operational KPIs • Reliable OPEX on decent levels across the fleet Operational • 38 new fixtures with an average duration of 4 months concluded in Q3 (YTD: 149 fixtures) Excellence • Active relationship and close ties with larger li
Slide 5: Market Update – Market Consolidated Throughout 2019
MARKET UPDATE – MARKET CONSOLIDATED THROUGHOUT 2019 IDLE CAPACITY OF ACTIVE FLEET DECREASED TC RATES INCREASED k TEU k USD/day Change 983 since Jan 19: 1,000 16 0.5-1k 5.1-7.5 1000 teu grd 2750 teu gls 1-3k >7.5k 840 1700 teu grd 4400 teu gls 14 13.9 (+66%) 800 3-5.1k Inactivity due to 626 scrubber
Slide 6: Market Update – Supply and Demand Rebalancing Expected for 2020
MARKET UPDATE – SUPPLY AND DEMAND REBALANCING EXPECTED FOR 2020 LOW DEMAND MEETS (DUE TO IMO 2020 PREPARATIONS) REDUCED SUPPLY 12% Container net fleet growth Container trade growth 10% Reduced Supply due to Scrubber Retrofitting 7,9% 7,9% 8% 6,6% 7,4% 5,9% 5,8% 5,6% 6% 5,5% 4,6% 4% 4,9% 3,6% 3,5% 5,
Slide 7: Market Update – Robust Growth on Intra-Regional Trades
MARKET UPDATE – ROBUST GROWTH ON INTRA-REGIONAL TRADES ROBUST GROWTH EXPECTED FOR KEY MPCC TRADING REGIONS 1 Intra-Europe No of MPCC vesels: 10 Share of MPCC Fleet: 15% Avg. TEU: 2,040 k TEU +3.5% 15 12.3 11.4 11.6 11.9 10.3 11.0 Intra-Asia 10 No of vesels: 29 Latin America and Share of Vessels: 43%
Slide 8: Market Update – Encouraging Supply Outlook
MARKET UPDATE – ENCOURAGING SUPPLY OUTLOOK ALL-TIME LOW ON ORDER BOOK TO FLEET RATIO DECLINE IN ORDERING ACTIVITY m TEU k TEU 60% 25 60% 600 Total w/o 1k-3k 1k-3k 50% 20 500 40% 15 400 30% 10 300 20% 5 10%10% 200 Ø 131 100 0 0% 0 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Fleet Orderbook
Slide 9: Market Update – Increasing Demolitions Expected for Feeder Segment
MARKET UPDATE – INCREASING DEMOLITIONS EXPECTED FOR FEEDER SEGMENT FEEDERS ARE BIG CHUNK OF DEMOLITION SLOW STEAMING REDUCES EFFECTIVE SUPPLY No. Vessels Containership Average Speed Index Change in Effective Supply by Speed Reduction of 1 Knot 70 65 Index1) Non Feeder m TEU 0.0 60 Feeder (1-3k) 78 -
Slide 10: Market Update: IMO 2020 Impact Expected to Continue Well into 2020
MARKET UPDATE: IMO 2020 IMPACT EXPECTED TO CONTINUE WELL INTO 2020 RETROFITTING TAKES A LONG TIME CAPACITY OUT OF SERVICE INCREASED SIGNIFICANT FUEL PRICE SPREAD Days % of fleet (TEU) USD per ton Spread HSFO vs. LSFO 70 2.5 2.4 63 700 62 Rotterdam Singapore 59 60 2.0 1.9 600 53 2.0 50 48 501 493 483
Slide 11: Update on IMO 2020
UPDATE ON IMO 2020 MPCC STATUS QUO INDICATIVE SCRUBBER EFFECT ON ANNUAL EBITDA 1 • Global Sulphur cap of <0.5% as of 1 January 2020 Return on investment (years) Background Scrubber related savings share (USD) • Carriage ban on >0.5% sulphur fuels as of 1 March 2020 2.7 $ 28m 3 Return on investment (
Slide 12: Upside Potential and Low Cash Break-Even
UPSIDE POTENTIAL AND LOW CASH BREAK-EVEN HIGH UPSIDE TO NEWBUILDING PARITY1 INDUSTRY LOW CASH BREAK-EVEN2 in USDm USD per day 6,950 7,000 Upside to newbuilding parity 1,077 950 6,000 6,000 400 400 +66% 5,000 +172% 647 4,000 3,000 396 5,200 2,000 1,000 229 0 Implied fleet valuation Book value Newbuil
Slide 13: Significant Earnings Potential (Annualized)
SIGNIFICANT EARNINGS POTENTIAL (ANNUALIZED) INDICATIVE EBITDA SENSITIVITIES1 FCF Yield2 16% 22% 27% 41% 71% 161 Scrubber profit3 LSFO/HSFO spread EBITDA 17 EBITDA +/- USD 50 p. mt. +/- USD 4.5m p.a. FCF4 123 TCE EBITDA +/- USD 1,000 p.d. +/- USD 20m p.a. 110 17 86 76 17 71 67 144 17 Total EBITDA (US
Slide 14: Summary
SUMMARY FEEDER CONTAINER SHIPPING MARKET • Demand affected by macroeconomic uncertainties e.g. global economic slowdown and trade tensions • Supply remains of limited growth due to: (i) further (delayed) docking of vessels for BWTS and scrubber installations; (ii) an increased focus on ship recyclin
Slide 15: Appendix
Q3 2019 Earnings Presentation AGENDA Appendix 15
Slide 16: Appendix: Financials – Overview Q3 2019
APPENDIX: FINANCIALS – OVERVIEW Q3 2019 BALANCE SHEET AS PER 30 SEPTEMBER 2019 PROFIT AND LOSS Q3 2019 30/09/2019 30/06/2019 Q3 2019 Q2 2019 Assets 714.1 709.3 Operating revenues 46.0 47.8 Non-current Assets 640.4 627.8 Gross Profit 6.7 10.5 Current Assets 73.6 81.5 EBITDA adjusted1 7.9 8.7 thereof
Slide 17: Appendix: Financials – Development of Charter Rates and Utilization
APPENDIX: FINANCIALS – DEVELOPMENT OF CHARTER RATES AND UTILIZATION CONSOLIDATED FLEET No. of consolidated vessels 52 58 61 61 61 61 60 60 (end of period) Trading ratio 96% 92% 93% 89% 92% 90% 93% 90%1 10,230 9,841 9,991 9,911 9,352 9,240 9,071 8,718 5,129 5,045 5,049 5,187 5,026 4,969 4,662 4,824 T
Slide 18: Appendix: ESG at MPC Container Ships
APPENDIX: ESG AT MPC CONTAINER SHIPS ENVIRONMENTAL COMMITMENT • Significant investments in exhaust gas cleaning and ballast water management systems • Continuously optimise vessel operations and minimise environmental impact of our business by exploring viable options for emission reductions and exc
Slide 19: Appendix: Corporate Structure
APPENDIX: CORPORATE STRUCTURE SIMPLIFIED CORPORATE STRUCTURE 100% 100% 100% 50% Bond financed Bank financed JV / Bank financed Bank financed (recourse) (non-recourse) (non-recourse) (recourse) 9 vessels 39 vessels 12 vessels 8 vessels 68 feeder containerships 19 Note: Simplified structure as of 30/0
Slide 20: Appendix: MPCC Fleet – Regional and Size Distribution
APPENDIX: MPCC FLEET – REGIONAL AND SIZE DISTRIBUTION HEAT MAP OF MPCC FLEET (AS PER 29/11/2019) Current avg. gross TC rate in USD Intra-Europe No of vesels: 10 Avg. TEU: 2,041 Top 3 Cluster Avg Hire # of Vsls 2,500 HR grd 11,000 1 2,800 gls 9,988 4 Intra-Asia 1,300 gls 2 No of vesels: 29 8,050 Avg.
Slide 21: Appendix: MPCC Fleet Employment 11/2019 (1/2)
APPENDIX: MPCC FLEET EMPLOYMENT 11/2019 (1/2) EMPLOYMENT STATUS & TIME CHARTER COVERAGE (AS PER 29/11/2019) No. Vessel Cluster Charterer Rate (USD p.d.) Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 1 AS LAETITIA 1000 grd World Direct Shipping LLC 6,900 C
Slide 22: Appendix: MPCC Fleet Employment 11/2019 (2/2)
APPENDIX: MPCC FLEET EMPLOYMENT 11/2019 (2/2) EMPLOYMENT STATUS & TIME CHARTER COVERAGE (AS PER 29/11/2019) No. Vessel Cluster Charterer Rate (USD p.d.) Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 36 AS ANGELINA 2200 grd Maersk Line 9,150 C1 C3 C3 C3 C3