Mpc Container Ships Asa · OSL:MPCC
Mpc Container Ships Asa — Q1 2024 Earnings Presentation
35 slides from Mpc Container Ships Asa's earnings presentation, May 28, 2024
Slide 1: Q1 2024 Earnings Call
May 28, 2024 Q1 2024 EARNINGS CALL Constantin Baack, CEO Moritz Fuhrmann, Co-CEO and CFO
Slide 2: Agenda
AGENDA 01 Q1 2024 IN REVIEW 02 MARKET UPDATE 03 COMPANY OUTLOOK MPC Container Ships | Q1 2024 Earnings Presentation | 2
Slide 3: Q1 2024 Highlights
Q1 2024 HIGHLIGHTS Adjusted EBITDA Utilization 111 98.7% 98.9% Robust financial and operational performance with high 106 102 96 97.4% 98.2% utilization of 98.9% and maintained low leverage. USD 57.7m in recurring dividend declared for Q1 2024, bringing total dividend yield year-to-date to 20%. Q2 2
Slide 4: Robust performance driven by high activity and utilization
ROBUST PERFORMANCE DRIVEN BY HIGH ACTIVITY AND UTILIZATION PROFIT OR LOSS FINANCIAL KPIs Q1 2024 Q4 2023 Q1 2023 Q1 2024 Q4 2023 Q1 2023 Gross Revenues USD m 147.5 152.8 180.1 Adj. EPS USD 0.17 0.18 0.20 Adj. EBITDA 1 USD m 96.3 101.5 110.7 DPS USD 0.13 0.13 0.22 Adj. Net Profit 2 USD m 76.7 78.5 88
Slide 5: Strong cash generation amidst positive market momentum
STRONG CASH GENERATION AMIDST POSITIVE MARKET MOMENTUM CASH DEVELOPMENT COMMENTS USD million 1) Operating cash flow +26.2 » Net Revenues of USD 137m received in Q1 2024 -2.2 -3.2 7.2 -7.5 2) Investing cash flow » Class renewals, vessel upgrades and regulatory investments of USD 5.5m -57.7 89.6 » Inv
Slide 6: Providing significant shareholder returns
PROVIDING SIGNIFICANT SHAREHOLDER RETURNS DIVIDEND DISTRIBUTIONS RECURRING EVENT-DRIVEN PERIOD TOTAL DPS (NOK) DPS (NOK) 848.1 USD million 57.7 Q4 2021 0.95 0.95 Event-driven 57.7 Recurring Q1 2022 1.30 3.30 4.60 62.1 66.6 Q2 2022 1.57 0.42 1.98 97.6 31.1 Q3 2022 1.58 0.30 1.87 66.6 84.3 66.6 Q4 202
Slide 7: Recent fixtures demonstrate strong charter momentum
RECENT FIXTURES DEMONSTRATE STRONG CHARTER MOMENTUM 1 # DATE VESSEL TEU CHARTERER CHARTER RATE PERIOD NEW MIN / MAX PREVIOUS MIN/MAX FORWARD FIXTURE (USD/D) (MONTHS) 1 Feb 24 AS ALEXANDRIA 2,000 gls SCI 13,500 11 - 13 Feb 25 / Apr 25 Mar 24 / Mar 24 ~ 1 month 2 Mar 24 AS SAVANNA 1,700 grd Maersk 12,
Slide 8: Continuous active portfolio management
CONTINOUS ACTIVE PORTFOLIO MANAGEMENT VESSEL SALES STATUS SINCE Q4 2023 REPORTING 1 # TIME OF SALE VESSEL TEU BUILT GROSS PRICE HANDOVER STATUS (USD) 1 Oct 2023 AS PAULINA 2,500 2004 Jan 2024 2 Oct 2023 AS PAULINE 2,500 2006 25.5m en bloc Mar 2024 3 Oct 2023 AS PETRA 2,500 2004 Mar 2024 4 Feb 2024 A
Slide 9: Focus on sustainability as a strategic priority for value creation
FOCUS ON SUSTAINABILITY AS A STRATEGIC PRIORITY FOR VALUE CREATI ON KEY DEVELOPMENTS FY 2023 INVESTING INTO FLEET RENEWAL IMO-ALIGNED GHG EMISSIONS INTENSITY AND YTD 2024 AND OPTIMIZATION REDUCTION TARGETS IMO Fleet in full compliance with EEXI, CII, Secondhand eco-vessels -40.0% and ETS regulat
Slide 10: Agenda
AGENDA 01 Q1 2024 IN REVIEW 02 MARKET UPDATE 03 COMPANY OUTLOOK MPC Container Ships | Q1 2024 Earnings Presentation | 10
Slide 11: Dynamic freight market development
DYNAMIC FREIGHT MARKET DEVELOPMENT CONTAINER TRADE AND FREIGHT RATES Freight Rate Index Billion TEU-miles 4,000 Freight Rate Index (CCFI Comp.) 1,100 Freight Rate Index (CCFI Comp.) Avg. 2016-2019 Annual World Seaborne Container Trade (RHS) 1,050 3,000 1,000 2,000 950 1,389 900 1,000 812 +75% Ø 793
Slide 12: Limited vessel supply pushes charter rates and periods
LIMITED VESSEL SUPPLY PUSHES CHARTER RATES & PERIODS CHARTER RATES AND SECONDHAND PRICES CHARTER PERIODS ARE INCREASING AGAIN Months HARPEX 2nd Hand Price Index 40 Avg. Period (1-5.1k TEU) 5,000 140 2nd Hand Price Index Redelivery spread (1-5.1k TEU) HARPEX 120 4,000 HARPEX Avg. 2016-2019 30 27.2 28
Slide 13: Red Sea disruptions continue to drive demand
RED SEA DISRUPTIONS CONTINUE TO DRIVE DEMAND DIVERSION AROUND THE CAPE OF GOOD HOPE HOUTHIS FLIP MARKET BALANCE FULL YEAR TRENDS IMMEDIATE EFFECTS Container Trade 11.0% Additional TEU- (TEU) 9.3% Mile demand Rotterdam TEU Capacity Capacity expansion tied up by 4.7% congestions Suez Canal Strait of H
Slide 14: Record deliveries whilst orderbook geared towards larger sizes
RECORD DELIVERIES WHILST ORDERBOOK GEARED TOWARDS LARGER SIZES FLEET, ORDERBOOK, AND ORDERBOOK-TO-FLEET RATIO ORDERBOOK AND AGE STRUCTURE ACROSS SIZE SEGMENTS Ratio M TEU 28.9 40% 30 Total Fleet Orderbook-to-Fleet Ratio (LHS) Avg. Age OB to Fleet Ratio Size Segment Fleet Units OB Units 35% Orderbook
Slide 15: Agenda
AGENDA 01 Q1 2024 IN REVIEW 02 MARKET UPDATE 03 COMPANY OUTLOOK MPC Container Ships | Q1 2024 Earnings Presentation | 15
Slide 16: Proven strategy balancing priorities for long-term value creation
PROVEN STRATEGY BALANCING PRIORITIES FOR LONG-TERM VALUE CREATION PORTFOLIO & OPERATIONS » Continuation of Fleet Renewal & Optimization » Maintain High Utilization » Focus on Cost Control » Operational Excellence BALANCE SHEET MANAGEMENT » Reduction of the Fleet’s Carbon Footprint » High Balance She
Slide 17: Update on upcoming vessels in FY24 and FY25
UPDATE ON UPCOMING VESSELS IN FY 24 & FY 25 NUMBER OF FIXED AND UPCOMING VESSELS CURRENT CHARTER MARKET LEVEL 1 TEU CHARTER RATE PERIOD Open vessels (USD /D) (MONTHS) Fixed vessels 1,300 ~ 13,500 ~ 12 - 18 40 1,700 ~ 15,000 ~ 12 - 18 2,000 ~ 16,000 ~ 18 2,500 ~ 18,000 ~ 24 2,800 ~ 20,000 ~ 24 21 3,5
Slide 18: Robust backlog provides earnings visibility
ROBUST BACKLOG PROVIDES EARNINGS VISIBILITY FIXED OPERATING DAYS AND CHARTER BACKLOG / PROJECTED EBITDA 1, 2, 3 OPEN RATE SENSITIVITY 499 497 213 211 In USDm Forward charter backlog 2, 3 / Proj. EBITDA 2 ,3, 4 USD 0.9bn / 0.6bn 413 404 146 137 Contracted forward revenues (USDm) 1, 3, 5 325 241 109 2
Slide 19: Outlook & Summary
OUTLOOK & SUMMARY Positive financial and operational performance and continuation of our low leverage strategy. Executing on fleet renewal strategy, enhancing value whilst remaining committed to shareholder returns. Strong market with chartering activity at high levels and increasing contract durati
Slide 20: Questions & Answers
QUESTIONS & ANSWERS Q1 2024 Earnings Presentation | 20
Slide 21: Appendix
APPENDIX MPC Container Ships | Q1 2024 Earnings Presentation | 21
Slide 22: Decarbonization strategy in execution
DECARBONIZATION STRATEGY IN EXECUTION Completion of first Retrofit incl. Charterer Participation Delivery of 2x DF Methanol Vessels First onboard synthetic KEY DECARBONIZATION EFFORTS diesel fuel trial in 25 Investment into e-fuel Startup INERATEC Mission Ambassador of the Maersk Mc-Kinney Q1 Q2
Slide 23: Fleet and leverage structure
FLEET AND LEVERAGE STRUCTURE Newbuildings 1. Feeder (BOCOMM, OVB): 5 − 12 vessels with a Fair Market Value of USD 137m Eco-Feeder − Financing Volume of USD 83m 5 2. Eco-Feeder (HCOB): Unencumbered − 5 vessels with a Fair Market Value of USD 132m 23 − Financing Volume of USD 50m 3. Newbuildings (Cred
Slide 24: Overview of financing facilities
OVERVIEW OF FINANCING FACILITIES Facility Type Outstanding 31/03/24 Total capacity Interest rate # Repayment profile Maturity HCOB RCF USD 0m USD 99m 295bps + SOFR 13 Commitment will be reduced starting in Mar 2024 – Dec 2027 Dec. 2027 Pre- & Post- 48x USD 1.1m + 8x USD 2.4m, 4x USD 1.4m, followed b
Slide 25: Calculation of recurring dividend for Q1 2024
CALCULATION OF RECURRING DIVIDEND FOR Q1 2024 USD million Q1 2024 (unaudited) 1 Operating revenue 147.5 EBITDA 96.1 Profit for the period 76.5 Adjustment related to vessel sales 0.2 Adjusted profit for the period 76.7 No. of shares outstanding 443.7 Adjusted earnings per share (in USD) 0.17 75% decl
Slide 26: Condensed consolidated statement of profit or loss
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS In USD thousands Q1 2024 Q1 2023 (unaudited) (unaudited) Operating revenues 147,543 180,123 Commissions (3,991) (5,130) Vessel voyage expenditures (3,344) (2,847) Vessel operation expenditures (37,421) (34,184) Ship management fees (2,621) (2,314) S
Slide 27: Consolidated statement of financial position
CONSOLIDATED STATEMENT OF FINANCIAL POSITION March 31, 2024 Dec 31, 2023 March 31, 2024 Dec. 31, 2023 in USD thousands in USD thousands (unaudited) (audited) (unaudited) (audited) ASSETS EQUITY AND LIABILITIES Non-current Assets Equity Vessels 679,432 691,291 Share capital 48,589 48,589 Newbuildings
Slide 28: Condensed consolidated statement of cash flow
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW Q1 2024 Q1 2023 Q1 2024 Q1 2023 in USD thousands in USD thousands (unaudited) (unaudited) (unaudited) (unaudited) Profit (loss) before income tax 76,058 119,703 Dividends paid (57,938) (97,906) Income tax expenses paid - (31) Proceeds from debt financing
Slide 29: Charter backlog and counterparties
CHARTER BACKLOG AND COUNTERPARTIES REGIONAL 4% TOP 10 » 85% of revenue backlog with top 10 liners and cargo-backed 1 24% CARGO-BACKED 62% » 1.7 years average remaining contract duration TOP 20 10% MPC Container Ships | Q1 2024 Earnings Presentation 1 Ranking based on list of 100 largest container/li
Slide 30: Fleet employment overview
FLEET EMPLOYMENT OVERVIEW 4 MPCC Current No Vessel Cluster Charterer Remark May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Min / Max Fixture (USD/day) 1 AS FILIPPA 1300 grd CMA CGM 18,250 Jun-24 / Jul-24 2 AS CLARITA(1) 2800 gls Oman Shipping Lines
Slide 31: Fleet employment overview
FLEET EMPLOYMENT OVERVIEW 5 MPCC Current No Vessel Cluster Charterer Remark May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Min / Max Fixture (USD/day) 26 AS SARA 1700 grd Maersk Retrofit 35,000 DD(1) Feb-25 / Apr-25 27 AS FLORIANA 1300 gls CFS 27,75
Slide 32: Fleet employment overview
FLEET EMPLOYMENT OVERVIEW 5 MPCC Current No Vessel Cluster Charterer Remark May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Min / Max Fixture (USD/day) 51 AS PIA 2500 grd Maersk Retrofit 45,750(1) DD(2) Aug-26 / Jan-27 52 AS PALINA 2500 HR grd Maersk
Slide 33: References slide 18: Robust backlog provides earnings visibility
REFERENCES SLIDE 18: ROBUST BACKLOG PROVIDES EARNINGS VISIBILITY 1. Underlying min/max periods for contracted charter based on management assessment. Contracted Revenue and Projected EBITDA not including IFRS adjustments 2. Revenues / Periods / TCE’s / costs in good faith, but indicative only and su
Slide 34: 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
Slide 35: MPC Container Ships
MPC —_ CONTAINER SHIPS
Mpc Container Ships As — Q1 2024 Earnings Presentation on 6ix