Mpc Container Ships Asa · OSL:MPCC
Mpc Container Ships Asa — Q4 2022 Earnings Presentation
32 slides from Mpc Container Ships Asa's earnings presentation, Feb 28, 2023
Slide 1: Q4 2022 Earnings Call
February 28, 2023 Q4 2022 EARNINGS CALL Constantin Baack, CEO Moritz Fuhrmann, CFO
Slide 2: Agenda
AGENDA 1. Q4 2022 and FY 2022 in review 2. Market Update 3. Company Outlook MPC Container Ships | Q4 2022 Earnings Presentation Agenda | 2
Slide 3: Highlights
HIGHLIGHTS POSITIVE Q4 2022 RESULTS ROUNDING OFF VERY STRONG YEAR » Net Profit of USD 104m in Q4 2022 and USD 435m for FY 2022 1 » USD 0.15/share recurring dividend for Q4 2022 » Total USD 537.5m distributed/declared since February 2022 (NOK 11.67/share1) » Industry-low financial leverage of 16.1% »
Slide 4: Positive performance in Q4 rounding off very strong financial year
POSITIVE PERFORMANCE IN Q4 22 ROUNDING OFF VERY STRONG FINANCIAL YEAR PROFIT OR LOSS FINANCIAL KPIs Q4 22 Q4 21 FY 22 FY 21 Q4 22 Q4 21 FY 22 FY 21 Gross Revenue USD m 162 143 617 385 DPS 3 USD 0.15 0.11 1.03 0.11 EBITDA 1 USD m 127 163 523 290 EPS USD 0.23 0.29 0.98 0.46 Net Profit 2 USD m 104 128
Slide 5: Charter activity throughout 2022
CHARTER ACTIVITY THROUGHOUT 2022 1,2,3 35 39 130 Avg. Rate (USD) 40 000 Number of Fixtures 30 35 000 30 000 25 25 000 20 23 284 19 700 20 000 17 095 17 210 33 15 15 000 23 10 10 000 5 5 000 5 2 3 0 0 Q1 2022 1 Q2 2022 2 Q3 2022 Q4 2022 FY 2022 Avg. Period 41 180 7 5 58 (months) Avg. TEU 2,480 1,300
Slide 6: Active portfolio management: returning capital to investors whilst optimizing portfolio
ACTIVE PORTFOLIO MANAGEMENT: EMPHASIS ON RETURNING CAPITAL TO INVESTORS WHILST OPTIMIZING THE PORTFOLIO DIVESTMENTS1 & INVESTMENTS2 2022 & YTD 2023 DIVESTMENTS 146,200 147,500 1 » Sold eight vessels with an average age of 16 years and a capacity of TEU 18,600 » Concluded two charter amendments » Div
Slide 7: Cash flow bridge FY 2022
CASH FLOW BRIDGE FY 2022 CASH DEVELOPMENT FY 2022 COMMENTS USD million 1) Operating cash flow includes: -55 » Received dividend of USD +60m from Bluewater JV, thereof USD ~51m (50% share) related to vessel sales and commercial agreements -100 » Vessel proceeds of USD 35m (AS Palatia) 2) CAPEX includ
Slide 8: Continued commitment to our distribution strategy
CONTINUED COMMITMENT TO OUR DISTRIBUTION STRATEGY DIVIDEND DISTRIBUTIONS USD million 537.5 Event-driven 31.1 RECURRING EVENT-DRIVEN PERIOD TOTAL DPS (NOK) DPS (NOK) Recurring 66.6 84.3 13.3 Q4 2021 0.95 0.95 71.0 84.3 Feb 2022 3.00 3.00 17.7 66.6 Q1 2022 1.30 0.30 1.60 71.0 13.3 57.7 47% Q2 2022 1.5
Slide 9: Agenda
AGENDA 1. Q4 2022 and FY 2022 in review 2. Market Update 3. Company Outlook MPC Container Ships | Q4 2022 Earnings Presentation | 9
Slide 10: Global economic downturn with first signs of relaxation in H2 2023
GLOBAL ECONOMIC DOWNTURN WITH FIRST SIGNS OF RELAXATION IN H2 20 23 CARGO VOLUMES AND FREIGHT RATES GLOBAL ECONOMY Freight Rate Index Freight Rate Index (CCFI Comp.) mTEU Annual World Seaborne Container Trade (RHS) 4,000 300 » Russia / Ukraine war: Scarcity of energy, inflation, increasing interest
Slide 11: Charter market down but consolidating at elevated levels
CHARTER MARKET DOWN BUT CONSOLIDATING AT ELEVATED LEVELS CHARTER RATES AND SECOND HAND PRICES START OF THE YEAR VESSEL AVAILABILITY HARPEX 2nd Hand Price Index mTEU 5,000 140 5.0 2nd Hand Price Index 4.37 -67% 4,500 4.5 HARPEX 120 4.02 4,000 4.0 3,500 100 3.5 3,000 -77% 80 3.0 2,500 2.5 2,000 60 2.0
Slide 12: More favorable orderbook conditions for smaller vessels
MORE FAVORABLE ORDERBOOK CONDITIONS FOR SMALLER VESSELS ORDERBOOK PER SIZE SEGMENT DUAL-FUEL VS. CONVENTIONAL FUEL ORDERBOOK OB-To-Fleet-Ratio: 39% Conventional LNG Methanol kTEU 4,961 5,000 NOOs (Charter Backed) Global Liner Carriers 4,500 NOOs (No Operator) 6% 13% 3% 26% Intra-Regional Carriers 4,
Slide 13: Robust medium-term outlook for regional trades
ROBUST MEDIUM-TERM OUTLOOK FOR REGIONAL TRADES 1 ORDERBOOK (OB) TO FLEET RATIO AND VESSEL AGE ACROSS SIZE SEGMENTS BENEFITS OF INTRA-REGIONAL TRADES % (OB / Fleet) 100 » 49% of all container vessels sail on intra regional trades High OB / Fleet, Relatively Young Fleet 80 » 98% of vessels smaller 5.2
Slide 14: Agenda
AGENDA 1. Q4 2022 and FY 2022 in review 2. Market Update 3. Company Outlook MPC Container Ships | Q4 2022 Earnings Presentation | 14
Slide 15: Robust backlog provides forward visibility
ROBUST BACKLOG PROVIDES FORWARD VISIBILITY Fixed operating days and Revenue / EBITDA (consolidated vessels) 1, 2,3 Revenue backlog 6 / Proj. EBITDA 4 USD 1.5bn / 1.1bn Contracted forward Revenues (USD m) 5, 6, 7 576 419 189 76 245 Contracted forward TCE (USD per day) 5 ,6, 8 31,724 35,008 38,943 33,
Slide 16: Upcoming positions in 2023
UPCOMING POSITIONS IN 2023 NUMBER OF FIXED AND UPCOMING CHARTERS 1 SIZE DISTRIBUTION OF OPEN VESSELS IN FY 23 Open vessels 2,800 TEU 2,500 TEU 1,000-1,500 TEU Fixed vessels 13 19% 24% 57% 9 RECENT MPCC FIXTURES Charter Period 6 # Fixture Date Vessel TEU Charterer Rate (months) (USD / day) 5 2 1 Nov
Slide 17: Charter backlog with strong counterparties
CHARTER BACKLOG WITH STRONG COUNTERPARTIES 1 TOP 40 OTHER 5% 6% TOP 10 73% of revenue backlog CARGO-BACKED with top 20 liners 2 17% 2.2 years average remaining USD 1.5BN contract duration 3 TOP 20 CONTRACTED REVENUE 8% 65% 1 Please refer to the appendix for further details MPC Container Ships | Q4 2
Slide 18: Strong value proposition: low risk & significant distribution potential
STRONG VALUE PROPOSITION: LOW RISK & SIGNIFICANT DISTRIBUTION PO TENTIAL CURRENT ENTERPRISE VALUE FULLY COVERED COMMENTS USD million » Significant Upside Potential from 66 4 vessel fleet Further Upside » Current Enterprise Value fully covered by the projected Potential EBITDA backlog which alone cre
Slide 19: Strong value proposition: open rate sensitivity
STRONG VALUE PROPOSITION: LOW RISK & SIGNIFICANT DISTRIBUTION PO TENTIAL OPEN RATE SENSITIVITY 6 USD million Operating Revenues 1 Current Market Rates (close to Clarksons 10y Historical Averages) Adj. Net Profit 1, 3 Clarksons 5y Historical Average 629 651 646 381 597 360 365 567 319 289 454 181 FY
Slide 20: Significant debt reduction over the next years
SIGNIFICANT DEBT REDUCTION OVER THE NEXT YEARS DEBT REPAYMENT STRUCTURE 1 COMMENTS Scrap MPCC fleet at USD 400 / lwt 2 ~240m » Debt end of Q4 2022 at USD 155m » Good visibility on future cash flows due to high charter backlog 155 Headroom ~ 160m » Significant de-levering until end of 2023 132 55 » E
Slide 21: Well-positioned for continued value creation
WELL-POSITIONED FOR CONTINUED VALUE CREATION SUMMARY » Continued strong financial and operational performance » Low leverage with more than 50% of fleet unencumbered » Strategy for continuous fleet optimization » Charter rates consolidated above historical averages over recent months » Improved medi
Slide 22: Questions & Answers
QUESTIONS & ANSWERS Q4 2022 Earnings Presentation | 22
Slide 23: Appendix
APPENDIX MPC Container Ships | Q4 2022 Earnings Presentation | 23
Slide 24: Significant debt reduction during the next years
SIGNIFICANT DEBT REDUCTION DURING THE NEXT YEARS MPCC Group Unencumbered Vessels No of vessels (cons.) 1 58 33 Book value Dec 2022 747m 331m Scrap at USD 400 / lwt 3 236m 118m OVERVIEW OF DEBT OUTSTANDING Facility Type Outstanding 31/12/22 Total capacity Interest rate # Repayment profile Maturity 32
Slide 25: Cash flow bridge Q4 2022
CASH FLOW BRIDGE Q4 2022 Cash development Q4 2022 - in USD m Comments 1) Operating cash flow including received dividend from Bluewater JV -34 with USD +16m (related to commercial agreements and vessel sales) 2) CAPEX include class renewals, vessel upgrades and regulatory investments with USD 20m an
Slide 26: Calculation of recurring distribution for Q4 2022
CALCULATION OF RECURRING DISTRIBUTION FOR Q4 2022 COMMENTS USD million Q4 2022 » Recurring distribution in Q1 2023 to be based on (unaudited) results for Q4 2022 Net operating revenue 157.2 EBITDA 126.9 Profit for the period 103.6 » Profit for the period adjusted for USD 12.7m recognized in the prof
Slide 27: Q4 2022 financials
Q4 2022 FINANCIALS BALANCE SHEET AS OF DECEMBER 31, 2022 PROFIT OR LOSS Q4 2022 USD m December 31, 2022 September 30, 2022 USD m Q4 2022 Q3 2022 Assets 956.3 950.9 Operating revenues 162.1 160.1 Non-current assets 799.8 784.0 Gross profit 132.4 118.7 Current assets 156,5 166.9 EBITDA 127.0 145.8 the
Slide 28: Fleet employment overview
FLEET EMPLOYMENT OVERVIEW MPCC Current No Vessel Cluster Charterer Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Min / Max Fixture (USD/day) 1 AS CARINTHIA 1 2,800 gls Sold 24,750 Mar-23 / Mar-23 2 STADT DRESDEN 2,800 gls Diamond Line (COSCO) 24,75
Slide 29: Fleet employment overview
FLEET EMPLOYMENT OVERVIEW MPCC Current No Vessel Cluster Charterer Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Min / Max Fixture (USD/day) 26 AS FILIPPA 1,300 grd CMA CGM 18,250 DD 2 Jun-24 / Jul-24 27 AS CLARITA 2,800 gls Oman Shipping Lines 26,
Slide 30: Fleet employment overview
FLEET EMPLOYMENT OVERVIEW MPCC Current No Vessel Cluster Charterer Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Min / Max Fixture (USD/day) 51 SEVILLIA 1,700 grd Samudera 65,000 3 40,000 May-25 / Jul-25 52 AS NADIA 3,500 gls The Pasha Group 61,000
Slide 31: 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
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