MPC Container Ships ASA · OSL:MPCC
MPC Container Ships ASA — H1 2019 Earnings Presentation
23 slides from MPC Container Ships ASA's earnings presentation, Aug 30, 2019
Slide 1: H1 2019 – Earnings Call
H1 2019 – Earnings Call Oslo, 30 August 2019
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: Agenda
H1 2019 Earnings Presentation AGENDA 1) Highlights Q2 2019 2) Market Update 3) Outlook 4) Appendix 3
Slide 4: Highlights Q2 2019
HIGHLIGHTS Q2 2019 FINANCIAL PERFORMANCE Revenue: USD 47.8m (Q1 2019: USD 46.7m) EBITDA: USD 8.1m (Q1 2019: USD 4.7m) Op. Cash Flow: USD 9.8m (Q1 2019: USD 0.7m) Net Loss: USD 6.4m (Q1 2019: USD 7.7m) OPERATIONAL PERFORMANCE Fleet utilization1: 93% (Q1 2019: 90%) Average TCE: USD 9,071 p
Slide 5: Key Developments - Q2 2019
KEY DEVELOPMENTS - Q2 2019 BALANCE SHEET STRENGTH AND FINANCIAL FLEXIBILITY • Closed revolving credit facility of USD 40m at attractive terms • Maintain low financial leverage (36%) • Industry low cash break even CAPITAL ALLOCATION • Expanded share buy-backs in Q2 (now repurchased 351,098 treasury s
Slide 6: Operational Highlights
OPERATIONAL HIGHLIGHTS SOLID OPERATIONAL PERFORMANCE AND KPI’S (H1 2019) 2,90 • Officer retention rate across fleet ~ 95% MPCC (HY1 2019) • Competitive LTIR, TRCR and Port State Control Benchmark deficiency ratio 1,60 1,40 1,00 0,79 MPCC operational KPIs in H1 2019 0,20 significantly better than ind
Slide 7: Agenda
H1 2019 Earnings Presentation AGENDA 1) Highlights Q2 2019 2) Market Update 3) Outlook 4) Appendix 7
Slide 8: Market Update – Supply and Demand Outlook
MARKET UPDATE – SUPPLY AND DEMAND OUTLOOK SUPPLY & DEMAND BALANCE Container trade growth Container net fleet growth Container fleet growth (active capacity) 7,9% 7,9% 8% 7% 6,6% Rebalancing expected 5,9% 5,8% for 2019/2020 6% 5,5% 5,6% 7,8% 5% 4,6% 5,1% 5,2% 3,8% 3,4% 4% 4,3% 3,1% 3% 3,1% 2,5% 3,1%
Slide 9: Market Update – Demand
MARKET UPDATE – DEMAND DEVELOPMENT OF INTRA-REGIONAL & GLOBAL CONTAINER TRADE COMMENTS CAGR 2001-2018 Share of TEU Intra-Regional (RHS) • Share of intra-regional trade has increased Intra-Regional Container Trade, million TEU from 33% in 2001 to 42% in 2018 (43% in Global Trade: 6.2% Intra-Regional
Slide 10: Market Update – Supply (I)
MARKET UPDATE – SUPPLY (I) FLEET DEVELOPMENT ORDERBOOK TO FLEET (% PER TEU SEGMENT) M TEU % No. of vessels 0.1k - 2.9k 2.9k - 5.2k >5.2k 30 60 27 241 9 29 33 63 24,45 25,16 25 22,72 23,31 23,79 50 46,0 22,02 19,98 20,82 19,73 20 18,17 40 15,65 16,27 16,95 17,65 15 11,44 12,10 13,11 14,24 15,03 30 9,
Slide 11: Market Update – Supply (II)
MARKET UPDATE – SUPPLY (II) PLANNED DELIVERIES – FEEDER FLEET 1-3K DEMOLITION k TEU TEU 40,000 220 207 200 Non Feeder 35,000 180 Feeder (1-3k) 30,000 160 25,000 140 159 120 20,000 100 15,000 71 79 74 80 70 10,000 60 41 35 49 48 52 38 40 25 18 5,000 49 30 10 11 20 39 32 31 23 27 0 0 11 4 6 8 2 jul.19
Slide 12: Market Update – Key Market Parameters
MARKET UPDATE – KEY MARKET PARAMETERS IDLE TEU CAPACITY TC RATES (IN USD PER DAY) 30,000 1000 teu grd 4400 teu gls Growth since wk 20/19: k TEU > 7,500 TEU 27,500 3500 TEU: + 22,9% 1700 teu grd 6800 teu gls 2750 TEU: +7,8% 2750 teu gls 1.600 5,100 - 7,500 TEU 25,000 1700 TEU: +8,5% 1.400 3,000 - 5,1
Slide 13: Agenda
H1 2019 Earnings Presentation AGENDA 1) Highlights Q2 2019 2) Market Update 3) Outlook 4) Appendix 13
Slide 14: Recent Market Trends and Outlook
RECENT MARKET TRENDS AND OUTLOOK IDLE FLEET IN % VS. TC RATE BASKET HOWE ROBINSON CONTAINER INDEX 2012-2019 YTD Idle Fleet, excl. Scrubber retrof. (LHS) No. of Fixtures 2012 2015 2018 Idle Fleet (LHS) 2013 2016 2019 Clarksons Avg. TC rate (RHS) 2014 2017 USD p.d. HRCI % 846 8 12.000 850 +13% 11.500
Slide 15: Update on IMO 2020
UPDATE ON IMO 2020 SCRUBBER RETROFITS AND FORECASTED SPREADS MPCC PROJECT STATUS QUO Scrubber retrofits and HSFO availability Scrubber fitted vessels (HSFO) Number of/share of retrofits still relative small (increases with vessel size) Non-scrubber fitted vessels (compliant fuel) Owners installe
Slide 16: Upside Potential and Low Cash Break-Even
UPSIDE POTENTIAL AND LOW CASH BREAK-EVEN HIGH UPSIDE TO NEWBUILDING PARITY INDUSTRY LOW CASH BREAK-EVEN1 in USDm USD per day 8,000 Upside to newbuilding parity 1,176 7,040 7,000 1,060 5,980 6,000 390 +96% 390 +190% 5,000 601 4,000 3,000 405 5,200 2,000 1,000 278 0 Implied fleet valuation Book value
Slide 17: Summary
SUMMARY FEEDER CONTAINER SHIPPING MARKET MPCC KEY PRIORITIES: GETTING READY FOR 2020 • Demand affected by macroeconomic uncertainties e.g. 1) Ensure smooth IMO 2020 transition US-Sino trade tensions and potential risk of economic • majority of scrubber programme to be concluded in H2 2019 slowdown •
Slide 18: Agenda
H1 2019 Earnings Presentation AGENDA 1) Highlights Q2 2019 2) Market Update 3) Outlook 4) Appendix 18
Slide 19: Appendix: Financials – Overview Q2 2019
APPENDIX: FINANCIALS – OVERVIEW Q2 2019 BALANCE SHEET AS PER 30 JUNE 2019 PROFIT AND LOSS Q2 2019 30/06/2019 31/03/2019 Q2 2019 Q1 2019 Assets 709.3 704.7 Operating revenues 47.8 46.7 Non-current Assets 627.8 625.9 Gross Profit 10.5 7.2 Current Assets 81.5 78.8 EBITDA adjusted2 8.7 6.9 thereof Cash
Slide 20: Appendix: Financials – Development of Charter Rates and Utilization
APPENDIX: FINANCIALS – DEVELOPMENT OF CHARTER RATES AND UTILIZATION CONSOLIDATED FLEET No. of consolidated vessels 52 58 61 61 61 61 60 (end of period) Trading ratio 96% 92% 93% 89% 92% 90% 93% 10,230 9,841 9,991 9,911 9,352 9,240 9,071 5,238 5,114 5,274 5,172 4,927 5,049 4,810 TCE Opex Q1 2018 Q2 2
Slide 21: Appendix: MPCC Fleet – Regional and Size Distribution
APPENDIX: MPCC FLEET – REGIONAL AND SIZE DISTRIBUTION REGIONAL DEPLOYMENT HEAT MAP OF MPCC FLEET1) Current avg. gross TC rate in USD Intra-Europe No of vesels: 10 Avg. TEU: 2,040 Top 3 Cluster Avg Hire # of Vsls 2,800 9,463 4 1,300 7,925 4 Intra-Asia No of vesels: 29 - Top Charterer # of Vsls - Avg.
Slide 22: Appendix: 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 68 feeder containerships 22 Note: Simplified structure as of 30/0
Slide 23: Appendix: MPCC Fleet Details
APPENDIX: MPCC FLEET DETAILS No. IMO Vessel Cluster Trade No. IMO Vessel Cluster Trade 1 9362566 AS LAURETTA 1000 gls Intra Asia 39 9357092 AS ANGELINA 2200 grd Caribs 2 9356799 AS LEONA 1000 gls Intra Asia 40 9294549 AS PAULINE 2500 gls Caribs 3 9366237 AS LAETITIA 1000 grd Other 41 9294537 AS PENE