MPC Container Ships ASA · OSL:MPCC
MPC Container Ships ASA — Q4 2019 Earnings Presentation
20 slides from MPC Container Ships ASA's earnings presentation, Feb 28, 2020
Slide 1: Q4 2019 Earnings Presentation
Q4 2019 Earnings Presentation Oslo, 28 February 2020
Slide 2: 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. TO THE BEST KNOWLEDGE OF THE COMPANY, ITS
Slide 3: Highlights Q4 2019
HIGHLIGHTS Q4 2019 FINANCIAL PERFORMANCE Operating revenue: USD 44.2m (Q3 2019: USD 46.0m) EBITDA: USD 4.8m, adjusted USD 9.1m1 (Q3 2019: USD 4.5m, adjusted USD 7.9m1) Operating Cash Flow: USD 12.7m, adjusted USD 17.4m2 (Q3 2019: USD 1.3m, adjusted USD 7.4m2) Net Loss3: USD 14.2m (Q3 2019: U
Slide 4: Key Developments – Q4 & FY 2019
KEY DEVELOPMENTS – Q4 & FY 2019 Strong emphasis on operations in turbulent market environment • 157 fixtures with 42 charterers underlines strong relationships with major liner companies and regional operators Intensive 1st Full Year of • Established operations at highly competitive operational KPIs
Slide 5: Market Update – Coronavirus Implications Affect Charter Market Negatively
MARKET UPDATE – CORONAVIRUS IMPLICATIONS AFFECT CHARTER MARKET NEGATIVELY IDLE FLEET INCREASED IN FEB 2020 DUE TO COVID-19 IMPROVED TC RATE YOY DESPITE COVID-19 DOWNTURN Scrubber retrofits in Feb 2020: k TEU 1,000 TEU grd 2,500 TEU grd 0.5-1k 3-5.1k >7.5k 704k (35% of total reported number) k USD /
Slide 6: Market Update – Coronavirus Hampers Recovery in 2020
MARKET UPDATE – CORONAVIRUS HAMPERS RECOVERY IN 2020 MODIFIED DEMAND & SUPPLY PROSPECTS DUE TO IMO 2020 IMPACT AND CORONAVIRUS OUTBREAK 10% Container Fleet Growth Reduced due to IMO 2020 Seaborne Container Trade Growth Reduced due to Coronavirus 7.9% 7.9% 8% 7.8% 6.6% 5.9% 5.8% 6% 5.5% 5.6% 4.6% 5.1
Slide 7: Market Update – Improving Demand / Supply Balance for Feeders
MARKET UPDATE – IMPROVING DEMAND / SUPPLY BALANCE FOR FEEDERS GROWTH ESPECIALLY ON INTRA-REGIONAL TRADES … … FITS TO MODERATE FEEDER CAPACITY GROWTH Exp. pa Growth until 2024: Exp. pa Growth until 2024: m TEU m TEU Total Market: 4.0% Total Fleet: 2.9% 400 Intra-Regional: 4.3% 40 Feeder Segment: 1.9%
Slide 8: Market Update – Increasing Demolitions Expected for Feeder Segment
MARKET UPDATE – INCREASING DEMOLITIONS EXPECTED FOR FEEDER SEGMENT LARGE FEEDER SCRAPPING LOW CONTRACTING 2019 ALL-TIME-LOW OB-TO-FLEET RATIO Scrapped k TEU Ordered m TEU OB m TEU OB-to-Fleet % 120 118 1.4 1.25 25 70% 61% 100 1.2 60% 92 20 68 1.0 50% 80 (58%) 31 (34%) 15 40% 0.8 0.74 60 10% 30% 0.6
Slide 9: High Upside to Newbuilding Parity and Accretive Transactions
HIGH UPSIDE TO NEWBUILDING PARITY AND ACCRETIVE TRANSACTIONS ASSET APPRECIATION POTENTIAL (IN USDM)1 ACCRETIVE VESSEL SALE IN FEBRUARY (IN USDM)2 In February 2020, MPCC entered into agreements to sell “AS Leona” and “AS Lauretta” (2008 Korean-built Dae Sun ships with ~1,000 TEU carrying capacity). 1
Slide 10: Low CBE and Scrubbers Create Foundation for High Earnings Potential
LOW CBE AND SCRUBBERS CREATE FOUNDATION FOR HIGH EARNINGS POTENTIAL INDUSTRY LOW CASH BREAK-EVEN1 INDICATIVE ANNUALIZED FCF SENSITIVITIES3 USD per day FCF Yield 17% 31% 48% 87% 6,950 (%) 4 7,000 950 6,000 LSFO/HSFO spread EBITDA 6,000 400 +/- USD 50 p. mt. +/- USD 4.3m p.a. 400 5,000 166 Scrubber pr
Slide 11: Recent Developments YTD 2020
RECENT DEVELOPMENTS YTD 2020 MARKET AND COMPANY • Encouraging market situation (time-charter rates and idle numbers) at the beginning of 2020 Market • Extended Chinese New Year and COVID-19 with severe short-term implications • Significant increase in idle fleet and decreasing time-charter rates in
Slide 12: Summary and Outlook
SUMMARY AND OUTLOOK FEEDER CONTAINER SHIPPING MARKET • Demand affected by macroeconomic uncertainties, in particular continuing spread of COVID-19 and inherent global economic slowdown • Supply remains of limited growth due to: (i) both IMO 2020 bottlenecks and COVID-19 delaying newbuilding activity
Slide 13: Agenda: Appendix
Q4 2019 Earnings Presentation AGENDA Appendix 13
Slide 14: Financials – Overview Q4 2019
APPENDIX: FINANCIALS – OVERVIEW Q4 2019 BALANCE SHEET AS PER 31 DECEMBER 2019 PROFIT AND LOSS Q4 2019 31/12/2019 30/09/2019 Q4 2019 Q3 2019 Assets 718.1 714.1 Operating revenues 44.2 46.0 Non-current Assets 649.3 640.4 Gross Profit 7.7 6.7 Current Assets 68.8 73.6 EBITDA 4.8 4.5 thereof Cash & Cash
Slide 15: Financials – Development of Charter Rates and Utilization
APPENDIX: FINANCIALS – DEVELOPMENT OF CHARTER RATES AND UTILIZATION CONSOLIDATED FLEET No. of consolidated vessels 60 60 52 58 61 61 61 61 60 60 (end of period) Trading ratio 96% 92% 93% 89% 92% 90% 91% 90%1 94%1 91%1 10,230 9,841 9,991 9,911 9,352 9,240 9,071 8,885 8,718 8,505 5,129 5,045 5,049 5,1
Slide 16: ESG at MPC Container Ships
APPENDIX: ESG AT MPC CONTAINER SHIPS ENVIRONMENTAL COMMITMENT • Significant investments in exhaust gas cleaning and ballast water management systems • Continuously optimise vessel operations and minimise environmental impact of our business by exploring viable options for emission reductions and exc
Slide 17: Corporate Structure
APPENDIX: CORPORATE STRUCTURE SIMPLIFIED CORPORATE STRUCTURE 100% 100% 100% 50% Bond financed Bank financed JV / Bank financed Bank financed (recourse) (non-recourse) (non-recourse) (recourse) 9 vessels 39 vessels 12 vessels 8 vessels Fleet of 68 feeder containerships Note: Simplified structure as o
Slide 18: MPCC Fleet – Regional and Size Distribution
APPENDIX: MPCC FLEET – REGIONAL AND SIZE DISTRIBUTION HEAT MAP OF MPCC FLEET (AS PER 27/02/2020) Intra-Europe No of vesels: 10 Avg. TEU: 1,909 Top 3 Cluster # of Vsls 2,800 gls 3 2,500 HR grd 1 Intra-Asia 1,300 gls 2 No of vesels: 23 Avg. TEU 2,058 Latin America and Top Charterer # of Vsls Top 3 Clu
Slide 19: MPCC Fleet Employment 02/2020 (1/2)
APPENDIX: MPCC FLEET EMPLOYMENT 02/2020 (1/2) EMPLOYMENT STATUS & TIME CHARTER COVERAGE (AS PER 27/02/2020) Current Rate No. Vessel Cluster Charterer Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 ($pd) 1 AS LAETITIA 1,000 grd World Direct Shipping LLC 6,9
Slide 20: MPCC Fleet Employment 02/2020 (2/2)
APPENDIX: MPCC FLEET EMPLOYMENT 02/2020 (2/2) EMPLOYMENT STATUS & TIME CHARTER COVERAGE (AS PER 27/02/2020) Current Rate No. Vessel Cluster Charterer Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 ($pd) 39 AS ANGELINA 2,200 grd Maersk Line 9,150 40 AS PAOL