MPC Container Ships ASA · OSL:MPCC

MPC Container Ships ASA — H1 2018 Earnings Presentation

21 slides from MPC Container Ships ASA's earnings presentation, Aug 31, 2018

  1. Slide 1: H1 2018 – Earnings Presentation

    H1 2018 – Earnings Presentation Oslo, 31 August 2018

  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: Highlights Q2 2018

    HIGHLIGHTS Q2 2018 Q2 FINANCIAL PERFORMANCE STRONG BALANCE SHEET  Revenue of USD 46.9m (Q1 USD 28.3m)  Total Assets of USD 721m (31 Mar 2018 USD 628m)  EBITDA of USD 13.3m (Q1 USD 8.0m)  Cash of USD 107m (31 Mar 2018 USD 75m)  Net profit of USD 1.8m (Q1 USD 0.5m)  Moderate leverage of 34%  Op

  4. Slide 4: Balance Sheet and Profit and Loss

    BALANCE SHEET PROFIT AND LOSS BALANCE SHEET 30 JUNE 2018 PROFIT AND LOSS Q2/H1 2018 31/03/2018 30/06/2018 H1 2018 Q2 2018 Q1 2018 Assets 627.9 720.8 Operating revenues 75.2 46.9 28.3 Non-current Assets 540.8 599.4 Gross Profit 24.4 14.9 9.51 Current assets 87.1 121.5 EBITDA 21.2 13.3 8.01 Thereof Ca

  5. Slide 5: Cash Flow Q1/Q2 2018

    CASH FLOW CASH FLOW Q1/Q2 2018 Q1 Q2 170.8 -264.5 164.3 -65.9 89.6 106.71 7.6 75.5 4.8 Cash at Financing Cash Flow Investing Cash Flow Operating Cash Flow Cash at Financing Cash Flow Investing Cash Flow Operating Cash Flow Cash at 31/12/2017 31/03/2018 30/06/2018 5 in USDm 1 Three vessels outstandin

  6. Slide 6: 69 Vessels Acquired at Significant Discount to Newbuilding Parity

    69 VESSELS ACQUIRED AT SIGNIFICANT DISCOUNT TO NEWBUILDING PARITY NEWBUILDING PARITY DYNAMICS Fleet acquisition Discount to newbuilding parity Upside to historical average price 1 1,196 -49% 1,098 -45% 1,007 -40% 36% 946 609 259 Newbuilding parity Newbuilding parity Newbuilding parity Acquired fleet

  7. Slide 7: Fleet Overview

    FLEET OVERVIEW FLEET COMPOSITION – BY TEU CLUSTER CHARTER COVERAGE BY COUNTERPARTY1 4 Maersk Line 13.9% 18 1,000 Pool 1,300 2.4% Seaboard 17 1,500 4.4% 2.4% CMA CGM 69 USD 47.7% vessels 1,700 96m Wan Hai Lines 7.9% 2,200/2,500 COSCO 12 6 2,800 8.9% Yang Ming 12 Other 12.4% FLEET COMPOSITION – BY TRA

  8. Slide 8: Development of Charter Rates and OPEX

    DEVELOPMENT OF CHARTER RATES AND OPEX CONSOLIDATED FLEET #vessels3 (end of period) 17 24 52 58 USD per day 10,000 9,841 9,352 9,000 +24.6% 8,000 7,901 7,263 7,000 6,000 5,255 5,238 5,000 4,908 4,810 4,000 Q3 2017 Q4 2017 Q1 2018 Q2 2018 TCE1 OPEX 2 1 Time Charter Equivalent (TCE): Time charter reven

  9. Slide 9: Development of Supply and Demand

    DEVELOPMENT OF SUPPLY AND DEMAND SUPPLY AND DEMAND BALANCE IN CONTAINER SHIPPING 15% 13,8% Supply Demand 10% 7,9% 7,9% 5,9% 6,6% 6,0% 5,7% 5,9% 9,6% 5,5% 5,0% 7,8% 4,2% 5% 5,1% 5,3% 5,3% 3,1% 3,8% 3,4% 0% 2,1% 1,2% -5% -9,2% -10% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018e 2019e COMMENTS ON 2

  10. Slide 10: Supply and Demand Fundamentals Favourable in the Feeder Market

    SUPPLY AND DEMAND FUNDAMENTALS FAVOURABLE IN THE FEEDER MARKET DEMAND: TRADE DEVELOPMENT SUPPLY: FLEET DEVELOPMENT mTEU Exp. growth 2018 mTEU Exp. growth 2018 Other Regional 12+ k TEU 2.9-3.9 k TEU Total market: 5% Total market: 6% 220 Intra-Asia Intra-Regional: 6% 22 7.6-12 k TEU 1.3-2.9 k TEU Feed

  11. Slide 11: Strong Market Position in the Feeder Container Segment

    STRONG MARKET POSITION IN THE FEEDER CONTAINER SEGMENT OWNERS OF FEEDER CONTAINER VESSELS TRENDS & CHALLENGES Operating owner Non-Operating owner  Consolidation in the container liner industry On-The-Water  New regulations – IMO 2020 Rank Managing Owner Total Fleet Size (TEU) Ships  Digitalizatio

  12. Slide 12: High Upside in Earnings Potential

    HIGH UPSIDE IN EARNINGS POTENTIAL UPSIDE POTENTIAL IN RATES UPSIDE POTENTIAL (FULLY DELIVERED & ANNUALIZED)2 TCE Normalized CBE1 EBITDA Free Cash Flow USD per day USD million p.a. 13,900 150+ 12,300 125+ 120+ 9,841 95+ 6,855 6,855 6,855 70+ 45+ Q2 2018 TCE 15-year avg rate Newbuilding party rate Q2

  13. Slide 13: IMO 2020 Global Sulphur Cap – Regulation & Compliance

    IMO 2020 GLOBAL SULPHUR CAP – REGULATION & COMPLIANCE WHAT IS THE GLOBAL SULPHUR CAP?  Under the new IMO MARPOL regulation, the sulphur content of any bunker fuel used shall not exceed 0.5% on and after 1/1/20.  The relevant compliance options are:  Using Low Sulphur Fuel Oil (LSFO, max. 0.5% SOx

  14. Slide 14: MPC Container Ships ASA – Outlook

    MPC CONTAINER SHIPS ASA – OUTLOOK OUTLOOK  MPCC Vision: “Create the market leading container feeder company positioned to get maximum interest from the capital markets and offer unique and flexible service to its customers“ GROWTH OPERATIONS  Explore further asset acquisitions  Implement measures

  15. Slide 15: Appendix

    15 APPENDIX HE MPC ll CONTAINER SHIPS

  16. Slide 16: MPCC Stock

    SHARE INFORMATION SHARE PRICE AND VALUATION NOK Shares 58 1 000 000 Number of shares traded Share price (NOK) 56 900 000 800 000 54 700 000 52 600 000 50 500 000 48 400 000 300 000 46 200 000 44 100 000 42 0 05/2017 06/2017 07/2017 08/2017 09/2017 10/2017 11/2017 12/2017 01/2018 02/2018 03/2018 04/2

  17. Slide 17: Market Update

    MARKET UPDATE IDLE FLEET (IN % OF EXISTING FLEET) TC RATES (IN USD/DAY) 16 18,000 1-3k TEU Total Fleet 1700 teu grd 14 16,000 2750 teu gls 12 14,000 10 12,000 11,750 8 10,000 10,400 6 3.6% 4 8,000 2.7% 2 6,000 0 4,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 2011 2012 2013 2014 2015 20

  18. Slide 18: Even More Favourable Supply/Demand Dynamics for the Feeder Segment

    EVEN MORE FAVOURABLE SUPPLY/DEMAND DYNAMICS FOR THE FEEDER SEGMENT LIMITED ORDERING OF FEEDER TONNAGE AGEING FEEDER CONTAINER FLEET 50,2% 4% 3% Order book to fleet ratio (per teu cluster) 4% 1% 7% Vessels 13% 3% 1-3k TEU 14% 18% > 15 years: 27% 36% 25% 18% 55% Avg. other 35% segments: 14% 26% 32% 31

  19. Slide 19: Developing a Market Leading Container Feeder Company

    DEVELOPING A MARKET LEADING CONTAINER FEEDER COMPANY VESSEL ACQUISITIONS & CAPITAL MARKET ACTIVITIES Fleet development 2017 2018 69 5 7 1.100 (# vessels acquired) 14 1.300 23 6 1.500 12 1.700 18 12 2.500 11 18 2.800 12 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 TEU cluster Funds April 2017 September 20

  20. Slide 20: Fleet Employment 1,000 – 1,999 TEU

    FLEET EMPLOYMENT 1,000 – 1,999 TEU VESSEL EMPLOYMENT DETAILS Rate No. Vessel Stake Cluster Charterer Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 ($pd) 1 AS LAURETTA 100% 1000 gls SITC 8.000 2 AS LEONA 100% 1000 gls ASL 8.800 3 AS LAETITIA 100% 1000 grd CMA CGM 7.950 4 AS LAGUNA 100% 1000 grd Unimed ex UFS 6.

  21. Slide 21: Fleet Employment 2,000 – 2,800 TEU

    FLEET EMPLOYMENT 2,000 – 2,800 TEU VESSEL EMPLOYMENT DETAILS Rate No. Vessel Stake Cluster Charterer Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 ($pd) 40 AS ANGELINA 100% 2200 grd Seaboard 7.600 41 AS PAULINE 100% 2500 gls CMA CGM 10.500 12.250 42 AS PENELOPE 100% 2500 gls Maersk Line 11.250 43 AS PAOLA1 100

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