Mpc Container Ships Asa · OSL:MPCC

Mpc Container Ships Asa — Q1 2020 Earnings Presentation

22 slides from Mpc Container Ships Asa's earnings presentation, May 27, 2020

  1. Slide 1: Q1 2020 Earnings Presentation

    Q1 2020 Earnings Presentation Oslo, 27 May 2020

  2. 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

  3. Slide 3: MPC Container Ships at a Glance

    MPC CONTAINER SHIPS AT A GLANCE STRONG LISTED FEEDER CONTAINERSHIP PLATFORM  Largest feeder tonnage provider globally with strong industry network  Owns and operates 68 high specification feeder container-ships ranging from 1,000 - 3,000 TEU  Listed on the Main Board of the Oslo Stock Exchange 

  4. Slide 4: Key Figures Q1 2020

    KEY FIGURES Q1 2020 FINANCIAL PERFORMANCE  Operating revenue: USD 46.0m (Q4 2019: USD 44.2m)  EBITDA: USD 7.5m (Q4 2019: USD 4.8m)  Operating Cash Flow: USD 12.8m (Q4 2019: USD 12.7m)  Net Loss: USD 10.7m (Q4 2019: USD 14.2m) OPERATIONAL PERFORMANCE  Fleet utilization1: 87% (Q4 2019: 89%) compa

  5. Slide 5: Key Developments

    KEY DEVELOPMENTS COVID-19 pandemic and preventative countermeasures dominate market sentiment • Encouraging start to the year: Time-charter rates at solid levels (HARPEX1 +47% yoy) Market • Significant global recession in 2020 expected due to COVID-19 pandemic, regional lockdowns and tumbling demand

  6. Slide 6: Severe Global Recession in 2020, Outlook Uncertain but Rebalancing Expected

    SEVERE GLOBAL RECESSION IN 2020, OUTLOOK UNCERTAIN BUT REBALANCING EXPECTED GDP GROWTH INTERNATIONAL TRADE CONTAINER TRADE S/D BALANCE % % 10 25 21.3 10 9.6 8 20 8 5.8 5.6 6 15 6 4.6 3.4 3.8 3.6 5.8 4 3.0 4 2.9 10 4.3 2.2 4.7 5.1 1.2 3.8 1.6 2 2 5 3.1 2.9 0.5 0 1.8 4.1 0 0 2.7 -0.1 1.4 -2 -2 -5 -5.5

  7. Slide 7: COVID-19 Turns 2020 into One of the Worst Years for Container Trade Ever

    COVID-19 TURNS 2020 INTO ONE OF THE WORST YEARS FOR CONTAINER TRADE EVER TRADE DEVELOPMENT: DROP IN 2020 FLEET GROWTH: MODERATE FEEDER GROWTH IN 2021 Mainlane Non-mainlane East-West North-South Intra-Regional <3k TEU 3-8k TEU 8-12k TEU >12k TEU k TEU m TEU 220 25 24.2 202.9 206.9 23.5 199.0 23.0 200

  8. Slide 8: Time-Charter Market Significantly Under Pressure as a Result of COVID-19

    TIME-CHARTER MARKET SIGNIFICANTLY UNDER PRESSURE AS A RESULT OF COVID-19 TIME-CHARTER RATE DEVELOPMENT IDLE STATISTICS (AS OF 11 MAY 2020) - 71 vessels in dry dock for scrubber retrofits (13.5%) k USD / day No. Vessels 30 600 1k TEU grd 2k TEU 3.5k TEU 4.4k TEU 6.8k TEU 524 (2.6m TEU) >7.5k 1-3k 25

  9. Slide 9: Reduced Activity in S&P and Newbuilding Market, Decreasing Scrap Prices

    REDUCED ACTIVITY IN S&P AND NEWBUILDING MARKET, DECREASING SCRAP PRICES NEW BUILDING PRICES FAIRLY STABLE SH PRICES (10 YRS) DECREASING ON LOW VOLUMES S&P Deals 1-3k TEU 1700 teu grd m USD m USD S&P Deals 2750 teu gls 1700 teu grd 1000 teu grd 2750 teu gls 1000 teu grd 40 20 30 Apr-20 (% Jan - Apr):

  10. Slide 10: Short-Term Market Risks Increased Due to COVID-19

    SHORT-TERM MARKET RISKS INCREASED DUE TO COVID-19 RATES: MPCC RATES VS. LAST DONE IDLE TIMES: MPCC OUTPERFORMS REST OF THE MARKET better same worse Clarksons TC Rate Index Idle days market2 Idle days MPCC No. of fixtures % 10% 10% 30 65 10% 9% 20 60 9% 8% 18 10 18 8% 7% 7% 10 11 55 10 0 7% 8 5 5 7 6

  11. Slide 11: Favourable Age Structure Provides Positive Mid-Term Outlook

    FAVOURABLE AGE STRUCTURE PROVIDES POSITIVE MID-TERM OUTLOOK AGE STRUCTURE OF THE FLEET BETWEEN 1,000 AND 3,000 TEU 1,000 TEU - 3,000 TEU 9% Orderbook (OB) OB • Historical-low orderbook to fleet-ratio (9%) (182 units) • Limited ordering activities due to covid-19 affected market environment and uncer

  12. Slide 12: Industry Low Cash Break Even and Asset Appreciation Potential

    INDUSTRY LOW CASH BREAK EVEN AND ASSET APPRECIATION POTENTIAL CASH BREAK EVEN (USD) VALUE UPSIDE (USDM)3 Cash Break Even (CBE) Q1 2020 Upside to newbuilding parity 859 6,610 5,859 751 790 +148% 347 4,624 293 1 445 Voyage OPEX (net) 2 G&A and Operating CAPEX Operating Implied fleet valuation Newbuild

  13. Slide 13: MPCC Outlook

    MPCC OUTLOOK 2020 2021 AND BEYOND Disrupted shipping market MPCC Response Market normalization: • Following the outbreak of Internal: • Market fundamentals remain • Maintaining 15% market Covid-19 the containerized intact and expected to regain share as key tonnage freight volumes are globally momen

  14. Slide 14: Appendix

    Q1 2020 EARNINGS PRESENTATION Appendix 14

  15. Slide 15: Financials – Overview Q1 2020

    APPENDIX: FINANCIALS – OVERVIEW Q1 2020 BALANCE SHEET AS PER 31 MARCH 2020 PROFIT AND LOSS Q1 2020 31/03/2020 31/12/2019 Q1 2020 Q4 2019 Assets 716.4 718.1 Operating revenues 46.0 44.2 Non-current Assets 648.4 649.3 Gross Profit 9.4 7.7 Current Assets 68.1 68.8 EBITDA 7.5 4.8 thereof Cash & Cash Equ

  16. Slide 16: 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 60 60 60 60 (end of period) Trading ratio 96% 92% 93% 89% 92% 90% 91% 90%1 94%1 91%1 89%1 10,230 9,841 9,991 9,911 9,352 9,240 9,071 8,885 8,969 8,718 8,505 5,129 5

  17. Slide 17: Aged Feeder Fleet and Low Order Book

    APPENDIX: AGED FEEDER FLEET AND LOW ORDER BOOK ORDER BOOK, CONTRACTING AND AGE STRUCTURE DELIVERIES AND DEMOLITIONS 0.1-2.9k TEU Contracting Orderbook-to-Fleet Ratio (RHS) k TEU k TEU 2.9k+ TEU Contracting % 2,000 Deliveries 1-3k TEU Deliveries Total (without 1-3k TEU) 2,500 20 15.7 2,000 1,500 14.1

  18. Slide 18: 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

  19. Slide 19: 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: 19 Simplified structure a

  20. Slide 20: MPCC Fleet – Regional and Size Distribution

    APPENDIX: MPCC FLEET – REGIONAL AND SIZE DISTRIBUTION HEAT MAP OF MPCC FLEET (AS PER 20/05/2020) Intra-Europe No of vesels: 12 Avg. TEU: 1,909 Top 3 Cluster # of Vsls 2,500 HR grd 3 2,800 gls 1 Intra-Asia 2,500 gls 2 No of vesels: 21 Avg. TEU 2,115 Latin America and Top Charterer # of Vsls Top 3 Clu

  21. Slide 21: MPCC Fleet Employment 05/2020 (1/2)

    APPENDIX: MPCC FLEET EMPLOYMENT 05/2020 (1/2) EMPLOYMENT STATUS & TIME CHARTER COVERAGE (AS PER 20/05/2020) Current Rate No. Vessel Cluster Charterer May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 (USD/p.d.) 1 AS LAETITIA 1000 grd Spot Position 2 AS LAGUNA

  22. Slide 22: MPCC Fleet Employment 05/2020 (2/2)

    APPENDIX: MPCC FLEET EMPLOYMENT 05/2020 (2/2) EMPLOYMENT STATUS & TIME CHARTER COVERAGE (AS PER 20/05/2020) Current Rate No. Vessel Cluster Charterer May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 (USD/p.d.) 39 AS ANGELINA 2200 grd Spot Position 40 AS PAOL

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