MPC Container Ships ASA · OSL:MPCC
MPC Container Ships ASA — Q3 2020 Earnings Presentation
31 slides from MPC Container Ships ASA's earnings presentation, Nov 23, 2020
Slide 1: Q3 2020 Earnings Presentation
Q3 2020 Earnings Presentation Oslo, 23 November 2020
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: Q3 2020 Earnings Presentation Agenda
Q3 2020 EARNINGS PRESENTATION 1) Company / Highlights Q3 2020 2) Market Update 3) Company Outlook 4) Appendix 3
Slide 4: Q3 2020 Key Figures
Company / Highlights Q3 2020 Q3 2020 KEY FIGURES FINANCIAL PERFORMANCE Operating revenue: USD 41.2m (Q2 2020: USD 39.1m) EBITDA: USD 2.7m (Q2 2020: USD 1.4m) Operating cash flow: USD -0.3m (Q2 2020: USD 2.5m) Net Loss: USD 17.8m (Q2 2020: USD 17.6m) OPERATIONAL PERFORMANCE Fleet utilizatio
Slide 5: Q3 2020 Key Developments
Company / Highlights Q3 2020 Q3 2020 KEY DEVELOPMENTS Market resurgence not reflected in Q3 2020 financials • Recapitalization executed over summer to address market uncertainties and lack of visibility • Q3 2020 earnings affected by fixtures made during depressed spring and summer months and does n
Slide 6: Market Update
Q3 2020 EARNINGS PRESENTATION 1) Company / Highlights Q3 2020 2) Market Update 3) Company Outlook 4) Appendix 6
Slide 7: Significant Recovery of Global Container Trade Volumes and Rates
Market Update: Short-Term Dynamics (Container Trade Volumes) SIGNIFICANT RECOVERY OF GLOBAL CONTAINER TRADE VOLUMES AND RATES GLOBAL TEU VOLUMES TRADED KEY BOX SHIPPING RATE INDICES TEUm Index Index 15.0 1,900 80 14.8 14.8 SCFI Comprehensive 80 14.7 1,850 Containership Time-Charter Rate Index (RHS)
Slide 8: Post-Summer Charter Market Resurgence
Market Update: Short-Term Dynamics (Charter Market) POST-SUMMER CHARTER MARKET RESURGENCE IDLE STATISTICS (AS PER 9 NOV. 2020) TIME-CHARTER RATE DEVELOPMENT Total fleet: No. of vessels 92 vessels USDk / day 347k TEU 13 Nov. (% since peak of crisis) 320 1.5% of total fleet 24 1-2k 2-3k 3-5.1k 1k TEU
Slide 9: Higher Rates, Longer Periods and Reduced Redelivery Spread
Market Update: Short-Term Dynamics (Charter Market Momentum) POSITIVE DEVELOPMENTS: HIGHER RATES, LONGER PERIODS AND REDUCED REDELIVERY SPREAD TC-RATE MOMENTUM (1-3K TEU) AVERAGE PERIOD AND REDEL. SPREAD (1-3K TEU) Index value Months 9.9 170 10 Period 9.2 160 Redelivery spread 8 150 140 6 130 4.5 4
Slide 10: Increasing Secondhand Prices for Larger Vessels and Increased S&P Activity
Market Update: Short-Term Dynamics (Time Lag Between TC Rates and Secondhand Prices) INCREASING SECONDHAND PRICES FOR LARGER VESSELS AND INCREASED S&P ACTIVITY S&P DEALS 10-YEAR OLD SECONDHAND PRICES USDm 4.5k TEU 1.7k TEU (grd) No. 40 20 2.8k TEU 1k TEU (grd) 35 30 15 25 11,0 20 10 9,0 15 6,3 10 5
Slide 11: Market Recovery Commenced in June, Main Rebound Expected for 2021
Market Update: Mid-Term Outlook (Supply and Demand Balance) MARKET RECOVERY COMMENCED IN JUNE, MAIN REBOUND EXPECTED FOR 2021 DEMAND / SUPPLY: TOTAL FLEET DEMAND / SUPPLY: INTRA-REGIONAL Percent Percent 12 12 Capacity growth (supply) Capacity growth <3k TEU (supply) Throughput growth (demand) Throug
Slide 12: Historic Low Container Vessel Order Book at Only 8% of Total Fleet
Market Update: Long-Term Dynamics (Order Book Analysis) HISTORIC LOW CONTAINER VESSEL ORDER BOOK AT ONLY 8% OF TOTAL FLEET ORDER BOOK DEVELOPMENT TEU ON ORDER PER SEGMENT (NOV. 2020) Total fleet Orderbook Orderbook-to-Fleet ratio (rhs) TEUk TEUm Percent 905 25 1,000 (27.0%) 23.5m 35 20 800 30 15 25
Slide 13: Company Outlook
Q3 2020 EARNINGS PRESENTATION 1) Company / Highlights Q3 2020 2) Market Update 3) Company Outlook 4) Appendix 13
Slide 14: Recent MPCC Performance vs. Market
Company Outlook RECENT MPCC PERFORMANCE VS. MARKET COMMERCIAL IDLE TIMES: MPCC BETTER THAN MARKET (1) RATES: MPCC RATES VS. LAST DONE (3) Idle days market (2) Idle days MPCC Better Same Worse Clarksons TC Rate Index No. of fixtures Index 14% 13% 30 75 11% 11% 12% 11% 20 70 10% 10% 20 10% 10 13 18 65
Slide 15: Upcoming Charter Renewals and Fixtures
Company Outlook UPCOMING CHARTER RENEWALS (1) 20 FIXTURES CONCLUDED QTD Q4 2020 IN IMPROVING CHARTER MARKET; 40 MORE FIXTURES EXPECTED UNTIL Q2 2021 (2) 1,000 TEU 1,250 - 1,500 TEU 1,700 TEU 2,500 TEU 2,800 TEU 20 20 4 5 2 2 13 3 3 6 7 3 11 3 1 7 6 1 2 1 TEU Cluster Fixtures TEU Cluster Expected fix
Slide 16: Strong Cash Flow and De-leveraging Capacity
Company Outlook STRONG CASH FLOW AND DE-LEVERAGING CAPACITY Q3 2020 CASH BREAK-EVEN (“CBE”) (1) INDICATIVE ANNUALIZED EBITDA SENSITIVITIES (5) in USD per day per vessel in USDm 7,746 124 800 6,946 894 6,052 785 78 70 51 4,905 20 362 Voyage OPEX (net) G&A and Operating Interest and Operating Recurrin
Slide 17: Large Upside to Pre-COVID Levels, Historical Asset Values and Newbuild Parity
Company Outlook LARGE UPSIDE TO PRE-COVID LEVELS, HISTORICAL ASSET VALUES AND NEWBUILD PARITY UPSIDE POTENTIAL (USDm) Fleet value, ownership adjusted (in USDm) Net Asset Value - NAV (in USDm) (1) Scrap value (USDm) (2) 819 720 479 449 585 486 215 244 196 196 196 196 Implied value at Pre-COVID asset
Slide 18: Well-Positioned to Benefit from Short-Term Rebound and Long-Term Fundamentals
Company Outlook WELL-POSITIONED TO BENEFIT FROM SHORT-TERM REBOUND AND LONG-TERM FUNDAMENTALS CONTAINER SHIPPING MARKET Remarkably strong short-term momentum empowered by catch-up effects from COVID-bottlenecks on trade flows and logistics, changing retail consumption / trading patterns and scarcity
Slide 19: Appendix
Q3 2020 EARNINGS PRESENTATION 1) Company / Highlights Q3 2020 2) Market Update 3) Company Outlook 4) Appendix 19
Slide 20: Company Introduction
Appendix COMPANY INTRODUCTION DEDICATED TONNAGE PROVIDER Leading intra-regional container tonnage provider offering flexible fleet, reliable, safe and efficient vessel operations and strong industry network 66 vessels #1 tonnage provider for intra-regional trades STRONG FINANCIAL PROFILE Oslo St
Slide 21: Fleet at a Glance
Appendix FLEET AT A GLANCE LEADING PLAYER SERVING INTRA-REGIONAL TRADE ROUTES FLEET DISTRIBUTION BY SIZE CLUSTER 2 1,000 TEU 18 16 1,300 TEU 66 132,443 TEU ~2,000 TEU 2007 1,500 TEU 66 Vessels Total Carrying Average Average Age 1,700 TEU vessels Capacity Carrying 2,200/2,500 TEU Capacity 6 12 2,800
Slide 22: Financials – Overview Q3 2020
Appendix FINANCIALS – OVERVIEW Q3 2020 BALANCE SHEET AS PER 30 SEPT. 2020 PROFIT & LOSS Q3 2020 USDm 30.09.2020 30.06.2020 USDm Q3 2020 Q2 2020 Assets 702.1 698.1 Operating revenues 41.2 39.1 Non-current assets 628.7 644.6 Gross profit 5.0 3.4 Current assets 73.3 53.5 EBITDA 2.7 1.4 thereof cash & c
Slide 23: Financials – Development of Charter Rates and Utilization
Appendix FINANCIALS – DEVELOPMENT OF CHARTER RATES AND UTILIZATION CONSOLIDATED FLEET No. of consolidated vessels 61 61 61 61 60 60 60 60 60 60 59 (end of period) Trading ratio (1) 93% 89% 92% 90% 93% 93% 96% 93% 89% 87% 94% 10,230 9,991 9,911 9,240 9,071 8,885 8,969 8,718 8,505 7,938 7,412 5,045 5,
Slide 24: Encouraging Long-Term Supply / Demand Outlook for Feeder Vessels
Appendix ENCOURAGING LONG-TERM SUPPLY / DEMAND OUTLOOK FOR FEEDER VESSELS FLEET DEVELOPMENT (SUPPLY) TRADE DEVELOPMENT (DEMAND) TEUm TEUm CAGR 2020 - 2024: CAGR 2020 - 2024: 40 Total fleet: 1.9% 350 Total market: 5.5% 0.1-2.9k 5.2-7.6k Feeder segment: 0.1% Mainlane North-South Intra-regional: 5.8% 2
Slide 25: Scrapping Numbers Significantly Increased After Ease of Lockdowns
Appendix SCRAPPING NUMBERS SIGNIFICANTLY INCREASED AFTER EASE OF LOCKDOWNS DELIVERIES SCRAPPING Total (withou 1-5.1k TEU) 3-5.1k 1-3k TEU Total (without 1-5.1k TEU) 3-5.1k 1-3k TEU No. of vessels No. of vessels 16 16 16 22 21 2 14 20 14 1 18 5 12 7 16 12 11 16 6 1 10 9 4 14 8 8 5 1 12 8 8 2 7 1 10 9
Slide 26: 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 exch
Slide 27: Corporate Structure
Appendix CORPORATE STRUCTURE DEBT FACILITIES STRUCTURED IN FOUR SEPARATE AND RING-FENCED SILOS (1) MPC Container Ships ASA (“Parent”) 100% 100% 100% 50% MPCC First Bluewater Holding MPC Container Ships MPCC Second Financing Financing GmbH & Co. Schifffahrtsgesellschaft Invest B.V. GmbH & Co. KG (2)
Slide 28: MPCC Fleet – Regional and Size Distribution
Appendix MPCC FLEET – REGIONAL AND SIZE DISTRIBUTION HEAT MAP OF MPCC FLEET (AS PER 19 NOV. 2020) Intra-Europe No of vesels: 11 Avg. TEU: 1,890 Top 3 cluster # of vessels 2,800 gls 3 2,500 HR grd 1 Intra-Asia 1,500 gls 2 No of vesels: 20 Avg. TEU 2,248 Latin America and Top charterer # of vsls Top 3
Slide 29: MPCC Fleet Employment (1/3)
Appendix MPCC FLEET EMPLOYMENT (1/3) EMPLOYMENT STATUS & TIME-CHARTER COVERAGE (AS PER 19 NOV. 2020) Clarksons Rate MPCC Current Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- No. Vessel Cluster Charterer (USD/day) (1) Fixture (USD/day) 20 21 21 21 21 21 21 21 21 21 21 21 21 1 AS F
Slide 30: MPCC Fleet Employment (2/3)
Appendix MPCC FLEET EMPLOYMENT (2/3) EMPLOYMENT STATUS & TIME-CHARTER COVERAGE (AS PER 19 NOV. 2020) Clarksons Rate MPCC Current Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- No. Vessel Cluster Charterer (USD/day) (1) Fixture (USD/day) 20 21 21 21 21 21 21 21 21 21 21 21 21 31 AS
Slide 31: MPCC Fleet Employment (3/3)
Appendix MPCC FLEET EMPLOYMENT (3/3) EMPLOYMENT STATUS & TIME-CHARTER COVERAGE (AS PER 19 NOV. 2020) Clarksons Rate MPCC Current Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- No. Vessel Cluster Charterer (USD/day) (1) Fixture (USD/day) 20 21 21 21 21 21 21 21 21 21 21 21 21 1 AS R