MPC Container Ships ASA · OSL:MPCC

MPC Container Ships ASA — Q2 2023 Earnings Presentation

34 slides from MPC Container Ships ASA's earnings presentation, Aug 22, 2023

  1. Slide 1: Q2 2023 Earnings Call

    August 22, 2023 Q2 2023 EARNINGS CALL Constantin Baack, CEO Moritz Fuhrmann, CFO

  2. Slide 2: Agenda

    AGENDA 1. Q2 2023 in Review 2. Market Update 3. Company Outlook | | 2

  3. Slide 3: Highlights

    HIGHLIGHTS Q2 2023 FINANCIALS 1 » Strong results with high utilization and continuation of low-leverage strategy » Profit for the period of USD 101.5m and USD 0.15/share recurring dividend » Flexible balance sheet enables MPCC to execute on attractive transactions while maintaining low leverage CONT

  4. Slide 4: Sustained strong financial and operational performance

    SUSTAINED STRONG FINANCIAL AND OPERATIONAL PERFORMANCE PROFIT OR LOSS FINANCIAL KPIs Q2 23 Q1 23 Q2 22 Q2 23 Q1 23 Q2 22 Gross Revenue USD m 194.4 180.1 151.7 DPS3 USD 0.15 0.22 0.16 EBITDA1 USD m 142.7 141.4 111.8 EPS USD 0.23 0.27 0.20 Net Profit2 USD m 101.5 119.7 90.1 Op. Cash Flow USD m 130.7 1

  5. Slide 5: Continuation of active portfolio management & optimization

    CONTINUATION OF ACTIVE PORTFOLIO MANAGEMENT & OPTIMIZATION MPCC FIXTURES IN YTD HIRE PERIOD HIRE PERIOD # DATE VESSEL TEU CHARTERER # DATE VESSEL TEU CHARTERER (USD/D) (MONTHS) (USD/D) (MONTHS) 1 Feb 2023 AS Rafaela 1,400 gls GFS 12,000 5–7 12 Jun 2023 AS Rosalia 1500 gls COSCO3 15,000 10 – 12 2 Feb

  6. Slide 6: Continuation of selective fleet renewal strategy

    CONTINUATION OF SELECTIVE FLEET RENEWAL STRATEGY VESSEL ACQUISITIONS IN H1 2023 VESSEL DIVESTMENTS IN H1 2023 TIME OF HANDOVER TIME OF HANDOVER # VESSEL TEU FEATURE BUILT # VESSEL TEU BUILT Price ACQUISITION STATUS SALE STATUS 1 Jan 2023 AS Nina 3,400 Scrubber 2010 Q1 23 1 Jan 2023 AS Cleopatra (JV)

  7. Slide 7: Cash flow bridge Q2 2023

    CASH FLOW BRIDGE Q2 2023 CASH DEVELOPMENT Q2 2023 COMMENTS USD million 1) Operating cash flow includes: -25.7 » Dividend of USD +1m from Bluewater JV 2) Investing cash flow includes: -71.3 » Class renewals, vessel upgrades and regulatory investments of USD 11m 131.8 -3.2 » Purchase of new vessels /

  8. Slide 8: Providing significant shareholder returns

    PROVIDING SIGNIFICANT SHAREHOLDER RETURNS RECURRING EVENT-DRIVEN PERIOD TOTAL DPS (NOK) DPS (NOK) DIVIDEND DISTRIBUTIONS USD million 66.6 670.6 Q4 2021 0.95 0.95 Event-driven 97.6 66.6 Recurring 31.1 Q1 2022 1.30 3.30 4.60 66.6 66.6 84.3 66.6 Q2 2022 1.57 0.42 1.98 13.3 84.3 71.0 Q3 2022 1.58 0.30 1

  9. Slide 9: Agenda

    AGENDA 1. Q2 2023 in Review 2. Market Update 3. Company Outlook MPC Container Ships | Q1 2023 Earnings Presentation | 9

  10. Slide 10: Global economy recovers slowly, but downside risks remain

    GLOBAL ECONOMY RECOVERS SLOWLY, BUT DOWNSIDE RISKS REMAIN CARGO VOLUMES AND FREIGHT RATES GLOBAL ECONOMY Freight Rate Index mTEU 4,000 300 Freight Rate Index (CCFI Comp.) Freight Rate Index (CCFI Comp.) Average 2016-2020 3,511 » Inflation & Interest Rates: Energy and food inflation declining, core i

  11. Slide 11: Time-charter rates decreasing while vessel availability remains tight

    TIME-CHARTER RATES DECREASING WHILE VESSEL AVAILABILITY REMAINS TIGHT CHARTER RATES AND SECOND HAND PRICES START OF THE YEAR VESSEL AVAILABILITY HARPEX 2nd Hand Price Index No. of Vessels 5,000 2nd Hand Price Index 140 1,500 -50% HARPEX 4,580 1,410 1,392 1,400 4,500 HARPEX-Average 2016-2020 120 1,30

  12. Slide 12: Oversupply expected for total market whilst intra-regional dynamics appear more favorable

    OVERSUPPLY EXPECTED FOR TOTAL MARKET WHILST INTRA-REGIONAL DYNAMICS APPEAR MORE FAVORABLE TOTAL MARKET INTRA-REGIONAL TRADES % % 12 12 Supply growth (TEU capacity) Supply growth (TEU capacity <5.2k TEU) Demand growth (TEU throughput) Demand growth (intra-regional TEU throughput) 10 10 8 8 6.7 5.9 5.

  13. Slide 13: Favourable orderbook-ratios & scrapping potentials in smaller sizes

    FAVOURABLE ORDERBOOK-RATIOS & SCRAPPING POTENTIALS IN SMALLER SIZES TEU FLEET (BY AGE) TEU ORDERBOOK GLOBAL SHIPYARD CAPACITY REMAINS MAXED OUT IN THE SHORT TERM 25+ 15-19 2023 2025 20-24 0-14 2024 M CGT Est. Potential Orderbook Delivered >17k TEU 32% 45 40 12-17k TEU 64% 35 4 30 21 8-12k TEU 8% 18

  14. Slide 14: Robust mid-term outlook for intra-regional trades

    ROBUST MID-TERM OUTLOOK FOR INTRA-REGIONAL TRADES ORDERBOOK TO FLEET RATIO AND VESSEL AGE ACROSS SIZE SEGMENTS WILDCARD FACTORS INFLUENCING THE OUTLOOK High OB/fleet, » Environmental regulations: The decarbonization framework will become Relatively young fleet stricter, tightening supply further by

  15. Slide 15: Agenda

    AGENDA 1. Q2 2023 in Review 2. Market Update 3. Company Outlook MPC Container Ships | Q1 2023 Earnings Presentation | 15

  16. Slide 16: Robust backlog provides forward visibility

    ROBUST BACKLOG PROVIDES FORWARD VISIBILITY Fixed operating days and Revenue / EBITDA (consolidated vessels) 1, 2 Revenue backlog 3 / Proj. EBITDA 4 USD 1.2bn / 0.9bn Contracted forward Revenues (USD m) 3, 5 317 404 178 77 250 Contracted forward TCE (USD per day) 3, 6 29,691 30,501 36,105 37,506 Oper

  17. Slide 17: Charter backlog and counterparties

    CHARTER BACKLOG AND COUNTERPARTIES 1, 2 TOP 10 OTHER 9% 85% of revenue backlog CARGO-BACKED with top 10 liners and cargo-backed 2 11% USD 1.2BN 74% CONTRACTED REVENUE 1.8 years average remaining contract duration TOP 20 7% MPC Container Ships | Q2 2023 Earnings Presentation 1 2023 including effect f

  18. Slide 18: Indicative upcoming positions in 2023 & 2024

    INDICATIVE UPCOMING POSITIONS IN 2023 & 2024 NUMBER OF FIXED AND UPCOMING CHARTERS 1 SIZE DISTRIBUTION OF OPEN VESSELS IN 2023 < 2k 2k 3k TEU > 3k Open vessels Fixed vessels 27 67% 25% 8% 10 SIZE DISTRIBUTION OF OPEN VESSELS IN 2024 < 2k 2k 3k TEU > 3k 8 8 49% 49% 2% 7 0 17 0 6 4 » Q1 2024: 5 positi

  19. Slide 19: Creating shareholder value across cycles

    CREATING SHAREHOLDER VALUE ACROSS CYCLES GROWTH PHASE: FLEET BUILD-UP STRATEGIC EXECUTION 106 Investments in USDm Newbuildings in USDm Divestments in USDm SECOND-HAND INVESTMENTS Clarksons 2nd NB Price Index 50 Hand Price Index » 88 vessels acquired for USD ~1bn (avg. USD ~12m per vessel) 174 77 » 2

  20. Slide 20: Strong value proposition: low risk & significant distribution potential

    STRONG VALUE PROPOSITION: LOW RISK & SIGNIFICANT DISTRIBUTION PO TENTIAL CURRENT ENTERPRISE VALUE FULLY COVERED OPEN RATE SENSITIVITY In USDm In USDm 687 686 Further Upside Potential 421 406 ~1,000 568 552 532 498 Recycling Value 4 260 244 219 186 253 38 34 799 837 871 2023 2024 2025 2023 2024 2025

  21. Slide 21: Strategic execution – building a sustainable container fleet

    STRATEGIC EXECUTION – BUILDING A SUSTAINABLE CONTAINER FLEET FLEET SIZE 66 9 60 69 » Continued portfolio optimization towards younger and more fuel-efficient vessels DISTRIBUTIONS (USDM) 0 670 » Distributed USD >670m to investors through dividends » Significantly reduced debt outstanding to DEBT OUT

  22. Slide 22: Well-positioned for continued value creation

    WELL-POSITIONED FOR CONTINUED VALUE CREATION SUMMARY » Strong financial and operational performance » Continuation of low-leverage strategy while executing on fleet optimization » Favorable dynamics for intra-regional tonnage (supply and demand) OUTLOOK » Robust revenue backlog of USD 1.2bn provides

  23. Slide 23: Questions & Answers

    QUESTIONS & ANSWERS Q2 2023 Earnings Presentation | 23

  24. Slide 24: Appendix

    APPENDIX MPC Container Ships | Q2 2023 Earnings Presentation | 24

  25. Slide 25: Overview of debt financings

    OVERVIEW OF DEBT FINANCINGS MPC Container Ships ASA 100% 100% 100% 100% 100% 100% 100% 90.1% 1 2 3 4 5 6 7 8 MPCC MPCC Third MPCC Unencum- AS Claudia Second Financing Eco-fleet Ecoboxes Greenboxes Invest B.V. bered Financing AS # of vessels 1 12 8 21 16 5 2 2 Financing OVB BOCOMM CIT Bank - HCOB Eur

  26. Slide 26: Overview of financing facilities

    OVERVIEW OF FINANCING FACILITIES Facility Type Outstanding 30/06/23 Total capacity Interest rate # Repayment profile Maturity 325bps + 1M SOFR Commitment will be reduced in semi-annually steps from Jan CIT RCF USD 55m USD 70m 8 Jul. 2024 2022 to Jul 2024 2 installments with USD 22.5m 1 installment w

  27. Slide 27: Calculation of recurring dividends for Q2 2023

    CALCULATION OF RECURRING DIVIDENDS FOR Q2 2023 COMMENTS USD million Q2 2023 » Recurring dividend based on (unaudited) results for Q2 2023 1 Operating revenue 194.4 » Profit for the period adjusted for USD 32.4m recognizing the revenue from the EBITDA 142.8 cash settlement of AS Nadia and USD 18.4m h

  28. Slide 28: Q2 2023 Financials

    Q2 2023 FINANCIALS BALANCE SHEET AS OF JUNE 30, 2023 PROFIT OR LOSS Q2 2023 USD m June 30, 2023 December 31, 2022 USD m Q2 2023 Q2 2022 Assets 984.3 956.3 Operating revenues 194.4 151.7 Non-current assets 835.5 799.8 Gross profit 146.4 114.8 EBITDA 142.7 111.8 Current assets 148.8 156.5 Profit for t

  29. Slide 29: Fleet employment overview

    FLEET EMPLOYMENT OVERVIEW MPCC Current No Vessel Cluster Charterer Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Min / Max Fixture (USD/day) 1 AS RAFAELA 1400 gls Global Feeder Services 12,000 Jul-23 / Sep-23 2 AS ROBERTA 1400 gls BTL 24,000 10,500

  30. Slide 30: Fleet employment overview

    FLEET EMPLOYMENT OVERVIEW MPCC Current No Vessel Cluster Charterer Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Min / Max Fixture (USD/day) 26 STADT DRESDEN 2800 gls Hapag-Lloyd 18,300 May-24 / Aug-24 27 AS RAGNA 1500 gls ZISS 30,000 DD(1) Jun-24

  31. Slide 31: Fleet employment overview

    FLEET EMPLOYMENT OVERVIEW MPCC Current No Vessel Cluster Charterer Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Min / Max Fixture (USD/day) 51 AS FREYA 1300 grd Maersk Line 28,000 DD(2) Feb-25 / Apr-25 52 AS SUSANNA 1700 grd ONE 39,990 Mar-25 / Ma

  32. Slide 32: References slide

    REFERENCES SLIDE SLIDE 16: EBITDA BACKLOG 1. Underlying min/max periods for contracted charter based on management assessment. Contracted Revenue and EBITDA not including IFRS adjustments 2. Revenues / Periods / TCE’s / costs in good faith, but indicative only and subject to changes. Fixed revenue a

  33. Slide 33: 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. Please note that no representation or war

  34. Slide 34: MPC Container Ships

    MPC —_ CONTAINER SHIPS

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