Mpc Container Ships Asa · OSL:MPCC
Mpc Container Ships Asa — Q3 2023 Earnings Presentation
33 slides from Mpc Container Ships Asa's earnings presentation, Nov 21, 2023
Slide 1: Q3 2023 Earnings Call
November 21, 2023 Q3 2023 EARNINGS CALL Constantin Baack, CEO Moritz Fuhrmann, CFO
Slide 2: Agenda
AGENDA 01 Q3 2023 IN REVIEW 02 MARKET UPDATE 03 COMPANY OUTLOOK MPC Container Ships | Q3 2023 Earnings Presentation | 2
Slide 3: Highlights
HIGHLIGHTS Strong financial and operational performance with continued dividend distributions Increased FY 2023 financial guidance to revenues of USD 690m-700m and EBITDA of USD 500m-515m 1 Maintained low leverage and balance sheet flexibility while executing on fleet optimization strategy % Continu
Slide 4: Continued Robust Financial and Operational Performance
CONTINUED ROBUST FINANCIAL AND OPERATIONAL PERFORMANCE PROFIT OR LOSS FINANCIAL KPIs Q3 2023 Q2 2023 Q3 2022 Q3 2023 Q2 2023 Q3 2022 Gross Revenue USD m 184.0 194.4 160.1 Adj. EPS USD 0.18 0.23 0.21 Adj. EBITDA 1 USD m 105.7 111.7 115.3 DPS USD 0.14 0.15 0.16 3 Adj. Net Profit 2 USD m 81.6 88.8 94.0
Slide 5: Active Portfolio Management & Chartering Update
ACTIVE PORTFOLIO MANAGEMENT & CHARTERING UPDATE OPERATIONAL UPDATE CHARTERING UPDATE 1 Focus on fleet preparation for operational compliance and challenges ahead during H2 2023 and 2024 HIRE PERIOD » Joint retrofit programs with charterers initiated # DATE VESSEL TEU CHARTERER DELIVERY MIN / MAX (US
Slide 6: Selective Fleet Renewal Strategy in Execution
SELECTIVE FLEET RENEWAL STRATEGY IN EXECUTION VESSEL SALES VS. ACQUISITIONS YTD VESSEL DIVESTMENTS SINCE Q2 23 REPORTING Sales Acquisitions # TIME OF SALE VESSEL TEU BUILT GROSS PRICE HANDOVER 1 Sep 2023 AS Rosalia 1,500 2009 USD 7.0m Done 2 Sep 2023 AS Romina 1,500 2009 USD 7.0m Q4 2023 3 Oct 2023
Slide 7: Cash Flow Bridge Q3 2023
CASH FLOW BRIDGE Q3 2023 CASH DEVELOPMENT Q3 2023 COMMENTS USD million 1) Operating cash flow » Dividend of USD +20m from Bluewater JV +8.7 » Early termination settlement proceeds of AS Anne charter USD +22m -73.2 2) Investing cash flow -100.0 118.5 » Class renewals, vessel upgrades and regulatory i
Slide 8: Providing Significant Shareholder Returns
PROVIDING SIGNIFICANT SHAREHOLDER RETURNS DIVIDEND DISTRIBUTIONS RECURRING EVENT-DRIVEN PERIOD TOTAL USD million 732.7 DPS (NOK) DPS (NOK) 62.1 Q4 2021 0.95 0.95 Event-driven Recurring 97.6 66.6 31.1 Q1 2022 1.30 3.30 4.60 66.6 Q2 2022 1.57 0.42 1.98 84.3 66.6 13.3 Q3 2022 1.58 0.30 1.87 84.3 71.0 1
Slide 9: Agenda
AGENDA 01 Q3 2023 IN REVIEW 02 MARKET UPDATE 03 COMPANY OUTLOOK MPC Container Ships | Q3 2023 Earnings Presentation | 9
Slide 10: Subdued Macroeconomic Outlook but Carriers Well Positioned
SUBDUED MACROECONOMIC OUTLOOK BUT CARRIERS WELL POSITIONED GDP GROWTH & MACROECONOMIC OUTLOOK CARRIERS1 ARE WAY LESS LEVERAGED TODAY THAN IN 2019 Net Debt / Equity Ratio Cash and Cash Equivalents Equity Percent 7 World GDP Growth USD bn 6.3 1.3 6 134 2000-19 Avg. GDP Growth 5 4 3.8 Ø 3.8 3.6 3.5 3 3
Slide 11: Newbuilding Prices Decoupled from Charter Markets
NEWBUILDING PRICES DECOUPLED FROM CHARTER MARKETS CHARTER RATES & ASSET PRICES IDLE STATISTICS Total idle fleet as of November 06, 2023: HARPEX 2nd Hand/Newbuild Price Index No. of vessels 121 vessels (442k TEU; 1.6% of total fleet) 5,000 HARPEX 180 350 2nd Hand Price Index 3-5.1k 4,500 301 160 300
Slide 12: Expected Oversupply Will Weigh on Total Market Going Forward
EXPECTED OVERSUPPLY WILL WEIGH ON TOTAL MARKET GOING FORWARD DEMAND/SUPPLY DEVELOPMENT TOTAL MARKET GLOBAL AND INTRA-REGIONAL DEMAND DEVELOPMENT Demand Total Market % Demand Intra Regional Trades 10 Supply growth (TEU capacity) 5.9 4.5 4.3 5.0 5.5 Demand growth (TEU throughput) 4.1 3.7 3.3 8 7.5 2.2
Slide 13: Favorable Orderbook-Ratios & Recycling Potentials in Smaller Sizes
FAVORABLE ORDERBOOK-RATIOS & RECYCLING POTENTIALS IN SMALLER SIZES TEU FLEET (BY AGE) TEU ORDERBOOK FLEET EXPANSION HEAVILY SKEWED TOWARDS LARGER SEGMENTS 25+ 15-19 2023 2025 20-24 0-14 2024 % (Order Book/fleet) >17k TEU 17% 90 High OB/fleet, relatively young fleet 80 12-17k TEU 50% 70 12-17k TEU 8-
Slide 14: Surge in Recycling Potential as Markets Weaken and Fleet Ages
SURGE IN RECYCLING POTENTIAL AS MARKETS WEAKEN AND FLEET AGES TC RATES VS RECYCLING AGE OLDEST EVER FLEET FACES TOUGHEST EVER REGULATIONS Ø age 1,000 TEU TC rate index Avg. Age at Time of Demolition (right axis) 40 700 40 300 36y Container Ship Time-charter Rate Index 33y 16y 600 35 250 35 30y 31y 2
Slide 15: Agenda
AGENDA 01 Q3 2023 IN REVIEW 02 MARKET UPDATE 03 COMPANY OUTLOOK MPC Container Ships | Q3 2023 Earnings Presentation | 15
Slide 16: Robust Backlog and Counterparties Provides Forward Visibility
ROBUST BACKLOG AND COUNTERPARTIES PROVIDES FORWARD VISIBILITY FIXED OPERATING DAYS AND REVENUE / PROJECTED EBITDA 1, 2, 3 COUNTERPARTIES Revenue backlog 2, 3 / Proj. EBITDA 2 ,3, 4 USD 1.0bn / 0.7bn Contracted forward 140 386 180 84 247 TOP 10 revenues (USD m) 1, 3, 5 OTHER Contracted forward TCE (U
Slide 17: Strategic Execution – A Sustainable Container Shipping Company
STRATEGIC EXECUTION – A SUSTAINABLE CONTAINER SHIPPING COMPANY Q3 2021 Q3 2023 Total dividends of USD 732m distributed to DISTRIBUTIONS (USD M) 0 732 investors. High balance sheet flexibility. Further balance sheet UNENCUMBERED VESSELS 3 22 optimization in process. Reduced the balance sheet leverage
Slide 18: Operating with Industry-Low Leverage and a Flexible Balance Sheet
OPERATING WITH INDUSTRY-LOW LEVERAGE AND A FLEXIBLE BALANCE SHEET TRADING FLEET NEWBUILDINGS COMMENTS 531 » Continuation of de-levering the balance sheet with further envisaged debt repayments towards the end of 2023 » No significant debt maturities up until 2027 321 Additional Headroom under existi
Slide 19: Strong Value Proposition with Attractive Implied Yield
STRONG VALUE PROPOSITION WITH ATTRACTIVE IMPLIED YIELD CURRENT ENTERPRISE VALUE FULLY COVERED OPEN RATE SENSITIVITY In USDm In USDm 503 Further Upside Potential 473 242 ~830 425 213 364 Recycling Value 5 151 218 89 82 156 72 637 712 565 2024 2025 2024 2025 Operating Revenues 8 Net Profit 9 NIBD Q3 2
Slide 20: Well-Positioned for Sustained Shareholder Value Creation
WELL-POSITIONED FOR SUSTAINED SHAREHOLDER VALUE CREATION SUMMARY » Strong financial and operational performance with continued dividend distributions » Continuation of low-leverage strategy while executing on fleet optimization » Continued market softening with prevailing uncertainty OUTLOOK » Robus
Slide 21: Questions & Answers
QUESTIONS & ANSWERS Q3 2023 Earnings Presentation | 21
Slide 22: Appendix
APPENDIX MPC Container Ships | Q3 2023 Earnings Presentation | 22
Slide 23: Overview of Financing Facilities
OVERVIEW OF FINANCING FACILITIES Facility Type Outstanding 30/09/23 Total capacity Interest rate # Repayment profile Maturity 325bps + 1M SOFR Commitment will be reduced in semi-annually steps from Jan CIT RCF USD 35m USD 70m 8 Jul. 2024 2022 to Jul 2024 – to be repaid in full at YE 2023 2 installme
Slide 24: Calculation of Recurring Dividend for Q3 2023
CALCULATION OF RECURRING DIVIDEND FOR Q3 2023 USD million Q3 2023 (unaudited) 1 Operating revenue 184.0 EBITDA 140.4 Profit for the period 68.2 Adjustments Early redelivery of AS Anne, net of commission 21.5 Depreciation of TC contract related to AS Anne (22.0) Held for sale loss (13.1) Impairment (
Slide 25: Condensed Consolidated Statement of Profit or Loss
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS in USD thousands Q3 2023 Q3 2022 YTD 2023 YTD 2022 (unaudited) (unaudited) (unaudited) (unaudited) Operating Revenues 183,962 160,064 558,452 454,708 Commissions (5,084) (4,022) (15,635) (12,308) Vessel voyage expenditures (2,299) (5,432) (8,595) (1
Slide 26: Consolidated Statement of Financial Position
CONSOLIDATED STATEMENT OF FINANCIAL POSITION in USD thousands Sep. 30, 2023 Dec. 31, 2022 in USD thousands Sep. 30, 2023 Dec. 31, 2022 (unaudited) (audited) (unaudited) (audited) ASSETS EQUITY AND LIABILITIES Non-current Assets Equity Vessels 740,199 745,873 Share capital 48,589 48,589 Newbuildings
Slide 27: Condensed Consolidated Statement of Cash Flow
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW in USD thousands Q3 2023 Q3 2022 YTD 2023 YTD 2022 in USD thousands Q3 2023 Q3 2022 YTD 2023 YTD 2022 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Profit (loss) before income tax 68,332 124,584 289,575 3
Slide 28: Fleet Employment Overview
FLEET EMPLOYMENT OVERVIEW 7 MPCC Current No Vessel Cluster Charterer Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Min / Max Fixture (USD/day) 1 AS ROMINA1 1500 gls Sealead 12,000 Nov-23 / Nov-23 2 AS SILJE 1700 grd eco Maersk 12,325 DD2 Nov-23 / O
Slide 29: Fleet Employment Overview
FLEET EMPLOYMENT OVERVIEW 4 MPCC Current No Vessel Cluster Charterer Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Min / Max Fixture (USD/day) 26 AS SERENA 1700 grd Shanghai Jin Jiang 15,0001 Jul-24 / Sep-24 27 AS CHRISTIANA 2800 grd CMA CGM 32,400
Slide 30: Fleet Employment Overview
FLEET EMPLOYMENT OVERVIEW 5 MPCC Current No Vessel Cluster Charterer Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Min / Max Fixture (USD/day) 51 AS ANGELINA 2000 grd Maersk 36,500 Aug-25 / Oct-25 52 AS PIA 2500 grd Maersk 45,750 DD1 Aug-25 / Oct-2
Slide 31: References Slide
REFERENCES SLIDE SLIDE 16: ROBUST BACKLOG AND COUNTERPARTIES PROVIDES FORWARD 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, bu
Slide 32: 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 33: MPC Container Ships
MPC —_ CONTAINER SHIPS
Mpc Container Ships As — Q3 2023 Earnings Presentation on 6ix