Mpc Container Ships Asa · OSL:MPCC
Mpc Container Ships Asa — Q3 2022 Earnings Presentation
29 slides from Mpc Container Ships Asa's earnings presentation, Nov 17, 2022
Slide 1: Q3 2022 Earnings Call
November 17, 2022 Q3 2022 EARNINGS CALL Constantin Baack, CEO
Slide 2: Agenda
AGENDA 1. Q3 2022 in review 2. Market Update 3. Company Outlook MPC Container Ships | Q3 2022 Earnings Presentation Agenda | 2
Slide 3: Highlights
HIGHLIGHTS Q3 2022 FINANCIAL RESULTS 1 » » Continued strong financial and operational performance Robust revenue backlog of USD 1.7bn with solid counterparties » Low leverage with more than 50% of fleet unencumbered » Total USD 84m dividends declared for Q3, total USD 440m YTD MARKET DEVELOPMENTS 2
Slide 4: Strong financial performance in Q3 amid macro uncertainty
STRONG FINANCIAL PERFORMANCE IN Q3 22 AMID MACRO UNCERTAINTY PROFIT OR LOSS FINANCIAL KPIs Q3 22 Q3 21 Q3 22 Q3 21 Revenue USD 160m 1.3x USD 119m DPS1 USD 0.19 USD 0.00 EBITDA USD 146m 2.0x USD 74m EPS USD 0.28 USD 0.11 1.9x Profit USD 125m 2.7x USD 47m Operating Cash Flow USD 124m 2.1x USD 60m BALA
Slide 5: Delivering on our distribution strategy
DELIVERING ON OUR DISTRIBUTION STRATEGY DIVIDEND DISTRIBUTIONS 0.45 Change compared to previous quarter Event-driven dividend (USD/share) Recurring dividend (USD/share) 0.34 59% Cumulative yield 1 0.19 0.19 0.16 +15.4% +6.7% 0.03 0.04 +18.2% 0.03 USD 440m Total distribution YTD (NOK 4.4bn) 0.15 0.16
Slide 6: Continuation of active portfolio management during Q3 2022
CONTINUATION OF ACTIVE PORTFOLIO MANAGEMENT DURING Q3 2022 CHARTERING SUMMARY1 PORTFOLIO MANAGEMENT 17 » Sale of AS Serafina (1,700 TEU) for USD 34.0m. Handover in Aug 223 Avg. Periods in months Avg. Rates in USD » Sale of AS Laetitia (1,000 TEU) for USD 16.2m. Handover in Sep 22 6 35,518 7 » 5 new
Slide 7: Agenda
AGENDA 1. Q3 2022 in review 2. Market Update 3. Company Outlook MPC Container Ships | Q3 2022 Earnings Presentation | 7
Slide 8: Significant regional differences in freight rate development
SIGNIFICANT REGIONAL DIFFERENCES IN FREIGHT RATE DEVELOPMENT CARGO VOLUMES AND FREIGHT RATES FREIGHT MARKET DEVELOPMENT YTD Freight Rate Index Freight Rate Index (CCFI Comp.) TEUm Annual World Seaborne Container Trade (RHS) 20% 4,000 300 14% 3,511 8% 250 3,000 200 -49% 2,000 150 -21% 1,791 939 100 +
Slide 9: Charter market softened but still elevated compared to pre-Covid
CHARTER MARKET SOFTENED BUT STILL ELEVATED COMPARED TO PRE-COVID CHARTER RATES AND SECOND HAND PRICES CHARTER RATES AND PERIODS HARPEX 2nd Hand Price Index Period (months) 1.7k TEU TC Rate 2.8k TEU TC Rate 3.5k TEU TC Rate USD / day 1-2k TEU Period 20 5,000 140 20 100 4,500 2nd Hand Price Index 2-3k
Slide 10: Robust mid-term outlook for regional trades
ROBUST MID-TERM OUTLOOK FOR REGIONAL TRADES 1 ORDERBOOK TO FLEET RATIO AND VESSEL AGE ACROSS SIZE SEGMENTS BENEFITS OF INTRA-REGIONAL TRADES % (OB / Fleet) 100 High OB / Fleet, » 49% of all container vessels sail on intra regional trades Relative Young Fleet 80 12-17k TEU » 99% of vessels smaller 5.
Slide 11: Agenda
AGENDA 1. Q3 2022 in review 2. Market Update 3. Company Outlook MPC Container Ships | Q3 2022 Earnings Presentation | 11
Slide 12: Value approach based on three strategic pillars
VALUE APPROACH BASED ON THREE STRATEGIC PILLARS 1. DISTRIBUTIONS 2. FINANCIAL FLEXIBILITY » Strong cash generation and EBITDA backlog » Industry-low leverage of 18% and 15%1 based on Market Values » Commitment to distribution policy » High Balance Sheet Flexibility (33 unencumbered vessels) » Consid
Slide 13: Charter backlog and forward visibility
CHARTER BACKLOG AND FORWARD VISIBILITY Fixed operating days and Revenue / EBITDA (consolidated vessels) 1, 2,3 Revenue backlog7 / USD 1.7bn / 1.3bn Proj. EBITDA4 Contracted forward 159 6 560 433 198 319 Revenues (USD m) 5, 7 Contracted forward TCE 31,666 6 32,152 35,276 38,871 (USD per day) 5 ,7 Ope
Slide 14: High backlog visibility with strong counterparties
HIGH BACKLOG VISIBILITY WITH STRONG COUNTERPARTIES 1 TOP 40 OTHER 5% 8% 74% of revenue backlog CARGO-BACKED TOP 10 with top 20 liners2 13% 2.4 years average USD 1.7BN contract duration3 TOP 20 CONTRACTED REVENUE 8% 66% 1 Please refer to the appendix for further details MPC Container Ships | Q3 2022
Slide 15: Strong value proposition: low risk & significant distribution potential
STRONG VALUE PROPOSITION: LOW RISK & SIGNIFICANT DISTRIBUTION PO TENTIAL 1 In USD CURRENT ENTERPRISE VALUE FULLY COVERED In USDm OPEN RATE SENSITIVITY 6 701 697 441 438 642 394 601 568 352 310 450 705 1,260 192 -49 745 793 238 NIBD Q3 Market cap 3 Enterprise Scrap 4 Projected Excess FY 23 FY 24 FY 2
Slide 16: Well-positioned for continued value creation
WELL-POSITIONED FOR CONTINUED VALUE CREATION Q3 SUMMARY » Continued strong financial and operational performance » Low leverage with more than 50% of fleet unencumbered » Slowdown and normalization of charter market OUTLOOK » Robust revenue backlog of USD 1.7bn provides high earnings visibility » We
Slide 17: Questions & Answers
QUESTIONS & ANSWERS Q3 2022 Earnings Presentation | 17
Slide 18: Appendix
APPENDIX MPC Container Ships | Q3 2022 Earnings Presentation | 18
Slide 19: Calculation of distribution based on Q3 results and resolved distribution plan
CALCULATION OF DISTRIBUTION BASED ON Q3 RESULTS AND RESOLVED DISTRIBUTION PLAN Distribution calculation for Q4 22 Comments Quarter for calculation Q3 221 » Recurring distribution in Q4 2022 to be based on (un-audited) results Net operating revenue 152.9 for Q3 2022 EBITDA 145.8 Net profit 124.5 » Ne
Slide 20: Q3 2022 Financials
Q3 2022 FINANCIALS Balance sheet as of September 30, 2022 Profit or Loss Q3 2022 USDm September 30, 2022 June 30, 2022 USDm September 30, 2022 June 30, 2022 Assets 950.9 904.0 Operating revenues 160.1 151.7 Non-current assets 784.0 781.6 Gross profit 118.7 114.8 Current assets 166.9 122.3 EBITDA 145
Slide 21: Cash flow bridge Q3 2022
CASH FLOW BRIDGE Q3 2022 Cash development Q3 2022 - in USD m Comments +38 1) Operating cash flow including received dividend from Bluewater JV with USD +4m and proceeds from vessel sales with USD 50m 2) Distribution to shareholders based on recurring distribution of USD 67m and -84 event-driven with
Slide 22: Significant debt reduction during the next years
SIGNIFICANT DEBT REDUCTION DURING THE NEXT YEARS Debt maturity 1 - in USD m Comments MPCC Group Unencumbered vessels » Debt end of Q3 2022 at USD 175m » Good visibility on future cash flows due to high charter backlog No of vessels (cons.) 2 58 33 Market value 3 1,179m 558m » Significant de-levering
Slide 23: Upcoming positions in FY23
UPCOMING POSITIONS IN FY23 Number of Fixed and Upcoming charters Open vessels Fixed vessels 15 12 7 6 4 6 2 3 2 0 3 0 0 0 0 Q1 23 Q2 23 Q3 23 Q4 23 FY 23 MPC Container Ships | Q3 2022 Earnings Presentation Appendix | 23
Slide 24: Fleet employment overview
FLEET EMPLOYMENT OVERVIEW No MPCC Current Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Vessel Cluster Charterer Min / Max . Fixture (USD/day) 22 22 23 23 23 23 23 23 23 23 23 23 23 23 1 AS CALIFORNIA 2800 gls Sinotrans 22,000 DD(1) Nov-22 / Dec-22 2 AS FLORA 1200 gls Asean S
Slide 25: Fleet employment overview
FLEET EMPLOYMENT OVERVIEW No MPCC Current Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Vessel Cluster Charterer Min / Max . Fixture (USD/day) 22 22 23 23 23 23 23 23 23 23 23 23 23 23 26 AS SICILIA 1700 grd UNIFEEDER FZCO 30,000 Jul-24 / Sep-24 27 AS SAMANTA 1700 grd Seaboar
Slide 26: Fleet employment overview
FLEET EMPLOYMENT OVERVIEW No MPCC Current Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Vessel Cluster Charterer Min / Max . Fixture (USD/day) 22 22 23 23 23 23 23 23 23 23 23 23 23 23 51 AS NADIA 3500 gls The Pasha Group 61,000 Jul-25 / Aug-25 52 AS ANGELINA 2000 grd Maersk
Slide 27: References slide 15
REFERENCES SLIDE 15 2 NIBD = net interest-bearing debt (gross debt – cash & cash equivalent) as of September 30, 2022 3 Market cap and Implied Dividend Yield calculation based on closing price NOK 16.67 as of 14 November 2022 and USD/NOK 9.934 4 Scrap Value of MPCC fleet per September 30, 2022, calc
Slide 28: 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
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