Mpc Container Ships Asa · OSL:MPCC
Mpc Container Ships Asa — Q3 2024 Earnings Presentation
35 slides from Mpc Container Ships Asa's earnings presentation, Nov 26, 2024
Slide 1: Q3 2024 Earnings Call
November 26, 2024 Q3 2024 EARNINGS CALL Constantin Baack, CEO Moritz Fuhrmann, Co-CEO and CFO
Slide 2: Agenda
AGENDA 01 Q3 2024 IN REVIEW 02 MARKET UPDATE 03 COMPANY OUTLOOK MPC Container Ships | Q3 2024 Earnings Presentation | 2
Slide 3: Q3 2024 Highlights
Q3 2024 HIGHLIGHTS FINANCIAL AND OPERATIONAL PERFORMANCE » Robust financial and operational performance with high utilization and continuation of low leverage strategy » Strong backlog, with 2024 fully booked and coverage for 85% of open days in 2025 and 57% in 2026 Adj. EBITDA » Successful placemen
Slide 4: Robust financial and operational performance
ROBUST FINANCIAL AND OPERATIONAL PERFORMANCE PROFIT OR LOSS FINANCIAL KPIs Q3 2024 Q2 2024 Q3 2023 Q3 2024 Q2 2024 Q3 2023 Gross Revenues USD m 132.5 130.9 184.0 Adj. EPS USD 0.13 0.13 0.18 Adj. EBITDA 1 USD m 78.7 78.0 140.4 DPS USD 0.10 0.10 0.14 Adj. Net Profit 2 USD m 57.5 58.4 68.2 Op. Cash Flo
Slide 5: Strong cash generation supports fleet renewal and dividend strategy
STRONG CASH GENERATION SUPPORTS FLEET RENEWAL AND DIVIDEND STRAT EGY CASH DEVELOPMENT COMMENTS USD million 1) Operating cash flow -26.2 » Total revenues of USD 127m in Q3 2024 » OPEX of USD 36m and commission of USD 4m 75 2) Investing cash flow -91 -12 » Class renewals, vessel upgrades and regulator
Slide 6: Continue to provide significant shareholder returns
CONTINUE TO PROVIDE SIGNIFICANT SHAREHOLDER RETURNS EVENT- RECURRING TOTAL DIVIDEND DISTRIBUTIONS PERIOD DRIVEN DPS (NOK) DPS 937 USD million 44.4 2021 Q4 0.95 0.95 Event-driven 44.4 Q1 1.30 3.30 4.60 Recurring 57.7 227 Q2 1.57 0.42 1.98 57.7 2022 62.1 Q3 1.58 0.30 1.87 66.6 Q4 1.58 1.58 31.1 66.6 Q
Slide 7: Utilizing strong charter market to increase earnings backlog
STRATEGICALLY UTILIZING THE STRONG CHARTER MARKET TO INCREASE EARNINGS BACKLOG AND CASHFLOW VISIBILITY # of fixtures Avg. hire Avg. period in months 7 7 9 8 19 6 5 Months Hire in USD/d 36 39,000 34 33 36,000 30 32,714 33,000 27 30,000 24 22 21 27,000 21 18 24,000 15 15 22,824 21,000 12 12 11 20,678
Slide 8: Fleet renewal strategy in execution
FLEET RENEWAL STRATEGY IN EXECUTION S&P ACTIVITY YTD COMPLETED ACQUISITION AND TAKE-OVER OF 4 x 3,800 TEU 2 Sales Acquisitions Genoa Express Detroit Express Livorno Express Barcelona Express VESSELS 5 7 IMO No. 9626041 IMO No. 9610169 IMO No. 9610157 IMO No. 9626053 Type 3,800 TEU (wide beam, eco-ve
Slide 9: Focus on sustainability as a strategic priority
FOCUS ON SUSTAINABILITY AS A STRATEGIC PRIORITY FOR VALUE CREATI ON KEY DEVELOPMENTS YTD 2024 INVESTING INTO FLEET RENEWAL & OPTIMIZATION Fleet in full compliance with EEXI, CII, and ETS regulations Dual-fuel methanol newbuilding, NCL Vestland, to be delivered in December Secured Green Loan fi
Slide 10: Agenda
AGENDA 01 Q3 2024 IN REVIEW 02 MARKET UPDATE 03 COMPANY OUTLOOK MPC Container Ships | Q3 2024 Earnings Presentation | 10
Slide 11: Disruptions and frontloading keep TEU-mile demand at record levels
DISRUPTIONS AND FRONTLOADING KEEP TEU-MILE DEMAND AT RECORD LEVELS THE GREATEST SURGE AND THE SHARPEST FALL RISING CONTAINER TRADE AND FREIGHT RATES GT million CCFI Composite Container Trade Index 90 4,000 Freight Rate Index (CCFI Comp.) 140 Total Container Arrivals Cape of Good Hope (COGH) 131.2 Fr
Slide 12: Historically elevated charter rates and asset values
HISTORICALLY ELEVATED CHARTER RATES AND ASSET VALUES HARPEX SECONDHAND PRICES AND TIME-CHARTER RATES FOLLOW THE UPWARD TREND 2nd Hand Price Index 5,000 140 2nd Hand Price Index HARPEX HARPEX Avg. 2016-2019 120 4,000 100 +144% 3,000 +33% 80 69.5 60 2,000 1,978 40 1,000 20 810 Ø 500 0 0 Jan.-17 Jan.-1
Slide 13: Longer charter periods combined with stable, strong charter rates
LONGER CHARTER PERIODS COMBINED WITH STABLE, STRONG CHARTER RATE S CHARTER PERIODS ARE INCREASING AGAIN …AND CHARTER RATES STABILIZED Months 40 Avg. Period (1-5.1k TEU) Weekly HARPEX Redelivery spread (1-5.1k TEU) Change (abs) 30 20 16.7 Carriers announce 10 to reroute around the COGH 1.4 0 Q1 Q2 Q3
Slide 14: Orderbook remains skewed towards largest segments
ORDERBOOK REMAINS SKEWED TOWARDS LARGEST SEGMENTS AGE STRUCTURE OF FLEET AND ORDERBOOK BY NUMBER OF VESSELS Fleet OB/Fleet % >25y 20-24y 217 >17kTEU 45% 15-19y 10-14y 5-9y 486 12-17kTEU 51% <4y 665 8-12k TEU 23% 1,515 64 282 3-8k TEU 6% MPCC FOCUS 2,482 238 307 1-3k TEU 5% 1,364 367 148 <1k TEU 4% 2
Slide 15: Container fleet remains fully employed despite expansion
DESPITE STRONG EXPANSION, THE CONTAINER FLEET REMAINS FULLY EMPL OYED LESS THAN 1% OF CAPACITY IS IDLE… …AND FORWARD AVAILABILITY HAS DROPPED SIGNIFICANTLY Idle fleet % No. of Vessels 12% 11.6% 1,400 Idle TEU as percantage of total fleet 5-6 months 11% 1,200 3-4 months 10% 1-2 months 9% 1,000 8% 7%
Slide 16: Agenda
AGENDA 01 Q3 2024 IN REVIEW 02 MARKET UPDATE 03 COMPANY OUTLOOK MPC Container Ships | Q2 2024 Earnings Presentation | 16
Slide 17: Robust backlog provides earnings visibility
ROBUST BACKLOG PROVIDES EARNINGS VISIBILITY FIXED OPERATING DAYS AND CHARTER BACKLOG / PROJECTED EBITDA 1, 2, 3 CHARTER BACKLOG DEVELOPMENT AND COUNTERPARTIES Forward charter backlog 2, 3 1.2bn / Proj. EBITDA 2 ,3, 4 USD 1.2bn / 0.8bn Contracted forward 1.0bn revenues (USDm) 1, 3, 5 126 432 278 105
Slide 18: Upcoming charter positions and open rate sensitivity
UPCOMING CHARTER POSITIONS AND OPEN RATE SENSITIVITY NUMBER OF FIXED AND UPCOMING VESSELS 1 OPEN RATE SENSITIVITY Open vessels Fixed vessels Clarksons 10y Historical Average of USD ~16,270 pd 2 Current Market Rates of USD ~24,600 pd 2 62 In USDm IMPLIED DIVIDEND YIELD 5 61 61 18 28 527 12% 14% 8% 14
Slide 19: Strong execution track record positioning for further value creation
STRONG EXECUTION TRACK RECORD POSITIONING FOR FURTHER VALUE CREA TION Q3 2021 Q3 2024 CAPITAL ALLOCATION Strong Commitment to Shareholder Return REVENUE BACKLOG (USD BN) 1.1 1.2 Selective Accretive Acquisitions Residual Value Risk Mitigation DISTRIBUTIONS (USD BN) 0 0.94 BALANCE SHEET MANAGEME
Slide 20: Outlook & Summary
OUTLOOK & SUMMARY Robust 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 increasing contract durations and solid rates, but uncertain geopolit
Slide 21: Questions & Answers
QUESTIONS & ANSWERS Q3 2024 Earnings Presentation | 21
Slide 22: Appendix
APPENDIX MPC Container Ships | Q3 2024 Earnings Presentation | 22
Slide 23: Fixtures increase backlog of revenues and EBITDA
FIXTURES INCREASE BACKLOG OF REVENUES TO USD 1.2BN & EBITDA TO U SD 0.8BN RECENT NEW FIXTURES CHARTER RATE PERIOD # FIXTURE DATE VESSEL TEU CHARTERER MIN PERIOD MAX PERIOD (USD /D) (MONTHS) 1 Sep 24 AS ANNE 2200 grd eco OOCL 25,500 23 - 25 Nov 26 Jan 27 2 Sep 24 AS PAMELA 2500 grd Evergreen 26,500 2
Slide 24: Overview of financing facilities
OVERVIEW OF FINANCING FACILITIES Outstanding Facility Type 30/09/24 Total capacity Interest rate # Repayment profile Maturity HCOB Commitment will be reduced starting in Mar 2024 – Dec RCF USD 0m USD 93.4m 295bps + SOFR 13 Dec. 2027 2027 48x USD 1.1m + 8x USD 2.4m, 4x USD 1.4m, followed by CA-CIB Po
Slide 25: Calculation of recurring dividend for Q3 2024
CALCULATION OF RECURRING DIVIDEND FOR Q3 2024 USD million Q3 2024 (unaudited) 1 Operating revenue 132.5 EBITDA 84.8 Profit for the period 63.7 Adjustment related to vessel sales -6.2 Adjusted profit for the period 57.5 No. of shares outstanding 443.7 Adjusted earnings per share (in USD) 0.13 75% dec
Slide 26: Condensed consolidated statement of profit or loss
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS In USD thousands Q3 2024 Q3 2023 YTD 2024 YTD 2023 (unaudited) (unaudited) (unaudited) (unaudited) Operating revenues 132,467 183,962 410,909 558,452 Commissions (3,477) (5,084) (11,231) (15,635) Vessel voyage expenditures (6,189) (2,299) (13,469) (
Slide 27: Consolidated statement of financial position
CONSOLIDATED STATEMENT OF FINANCIAL POSITION September 30, 2024 Dec. 31, 2023 September 30, 2024 Dec. 31, 2023 in USD thousands in USD thousands (unaudited) (audited) (unaudited) (audited) ASSETS EQUITY AND LIABILITIES Non-current Assets Equity Vessels 829,574 691,291 Share capital 48,589 48,589 New
Slide 28: Condensed consolidated statement of cash flow
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW YTD 2024 YTD 2023 YTD 2024 YTD 2023 in USD thousands in USD thousands (unaudited) (unaudited) (unaudited) (unaudited) Profit (loss) before income tax 204,704 289,575 Dividends paid (159,989) (231,016) Income tax expenses paid - (503) Additions from non-c
Slide 29: References
REFERENCES SLIDE 17: 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 30: Overview of counterparties
OVERVIEW OF COUNTERPARTIES REGIONAL 2% TOP 10 CARGO-BACKED 17% 76% TOP 20 5% MPC Container Ships | Q3 2024 Earnings Presentation For detailed footnotes, please refer to slide 29 | 30
Slide 31: Fleet employment overview
FLEET EMPLOYMENT OVERVIEW MPCC Current No Vessel Cluster Charterer Remark Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Min / Max Fixture (USD/day) 1 AS PAOLA1 2500 grd CMA CGM 28,900 DD2 Nov-24 / Dec-24 2 AS FENJA 1200 gls COSCO 13,800 DD2 Jan-25
Slide 32: Fleet employment overview
FLEET EMPLOYMENT OVERVIEW MPCC Current No Vessel Cluster Charterer Remark Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Min / Max Fixture (USD/day) 26 AS PATRIA 2500 grd KMTC 25,0001 DD2 15,500 Mar-26 / Jul-26 27 AS CARELIA 2800 gls Hapag-Lloyd 19,
Slide 33: Fleet employment overview
FLEET EMPLOYMENT OVERVIEW MPCC Current No Vessel Cluster Charterer Remark Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Min / Max Fixture (USD/day) 51 AS SUSANNA 1700 grd ONE 39,990 DD1 / 18,000 Mar-27 / Jun-27 52 AS NURIA 3500 gls Maersk A/S Retro
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
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