Mpc Container Ships Asa · OSL:MPCC
Mpc Container Ships Asa — Q1 2023 Earnings Presentation
33 slides from Mpc Container Ships Asa's earnings presentation, May 23, 2023
Slide 1: Q1 2023 Earnings Call
May 23, 2023 Q1 2023 EARNINGS CALL Constantin Baack, CEO Moritz Fuhrmann, CFO
Slide 2: Agenda
AGENDA 1. Q1 2023 in review 2. Market Update 3. Company Outlook | | 2
Slide 3: Highlights
HIGHLIGHTS POSITIVE Q1 2023 RESULTS » Operating revenues of USD 180.1m incl. USD 25.2m gross proceeds from 1 the early redelivery of AS Carlotta » Profit for the period of USD 119.7m and USD 0.15/share recurring dividend » Industry-low financial leverage of 15.2% » Fleet optimization measures carrie
Slide 4: Sustained strong financial and operational performance
SUSTAINED STRONG FINANCIAL AND OPERATIONAL PERFORMANCE PROFIT OR LOSS FINANCIAL KPIs Q1 23 Q4 22 Q1 22 Q1 23 Q4 22 Q1 22 Gross Revenue USD m 180.1 162.1 142.9 DPS 3 USD 0.15 0.15 0.13 EBITDA 1 USD m 141.4 127.0 137.7 EPS USD 0.27 0.23 0.26 Net Profit 2 USD m 119.7 103.6 116.8 Op. Cash Flow USD m 135
Slide 5: Continuation of active portfolio management & optimization in Q1 2023
CONTINUATION OF ACTIVE PORTFOLIO MANAGEMENT & OPTIMIZATION IN Q1 2023 MPCC FIXTURES YEAR-TO-DATE PORTFOLIO MANAGEMENT FIXTURE HIRE PERIOD Continuation of the selective fleet renewal strategy VESSEL TEU CHARTERER MONTH (USD/D) (MONTHS) » Acquisition and take-over of two scrubber-fitted secondhand ves
Slide 6: Cash flow bridge Q1 2023
CASH FLOW BRIDGE Q1 2023 CASH DEVELOPMENT Q1 2023 COMMENTS USD million 1) Operating cash flow includes: -7.2 » Dividend of USD +20m from Bluewater JV 2) CAPEX includes: -55.3 » Class renewals, vessel upgrades and regulatory investments of -2.1 8.3 -15.0 USD 17m 154.9 » Installments for Newbuildings
Slide 7: Providing significant shareholder returns
PROVIDING SIGNIFICANT SHAREHOLDER RETURNS DIVIDEND DISTRIBUTIONS USD million 97.6 604.0 31.1 RECURRING EVENT-DRIVEN Event-driven PERIOD TOTAL 66.6 66.6 4 DPS (NOK) DPS (NOK) Recurring 84.3 66.6 13.3 Q4 2021 0.95 0.95 84.3 71.0 17.7 Q1 2022 1.30 3.30 4.60 222.4 66.6 Q2 2022 1.57 0.42 1.98 164.8 Q3 20
Slide 8: Agenda
AGENDA 1. Q1 2023 in review 2. Market Update 3. Company Outlook MPC Container Ships | Q1 2023 Earnings Presentation | 8
Slide 9: Freight markets show signs of stabilization amid macro uncertainties
FREIGHT MARKETS SHOW SIGNS OF STABILIZATION AMID MACRO UNCERTAIN TIES CARGO VOLUMES AND FREIGHT RATES GLOBAL ECONOMY Freight Rate Index mTEU » Inflation & Interest Rates: Energy and food inflation declining, core inflation sticky 300 with tight labor markets in several advanced economies. Central ba
Slide 10: Time-charter rates rise as vessel availability remains tight
TIME-CHARTER RATES RISE AS VESSEL AVAILABILITY REMAINS TIGHT CHARTER RATES AND SECOND HAND PRICES START OF THE YEAR VESSEL AVAILABILITY HARPEX 2nd Hand Price Index No. of Vessels -60% 5,000 4,580 140 1,500 1,410 1,392 2nd Hand Price Index 4,500 HARPEX 120 4,000 HARPEX-Average 2016-2020 3,500 100 1,0
Slide 11: Relevance of intra-regional trades is underrated
RELEVANCE OF INTRA-REGIONAL TRADES IS UNDERRATED CONTAINER TRADE GROWTH (DEMAND) DEPLOYMENT BY TRADE (VESSEL COUNT) m TEU Mainlane North-South 300 Other East-West Intra-Regional INTRA-REGIONAL OTHER EAST-WEST MAINLANE NORTH-SOUTH 4.6% 250 243 231 212 218 0% 11% 65 2% 200 63 0% 59 30% 17% 59 6% 13% 7
Slide 12: Polarized orderbook/fleet ratios – massively tilted towards >12k TEU
POLARIZED ORDERBOOK/FLEET RATIOS – MASSIVELY TILTED TOWARDS >12K TEU AGE STRUCTURE ORDERBOOK-TO-FLEET RATIOS / DELIVERY YEAR 0-4 10-14 20-24 2023 2024 2025 5-9 15-19 25+ >17k TEU 41% 50% 5% 4% 17% 8% 7% 32% 12-17k TEU 32% 33% 35% 0% 14% 30% 20% 64% 2% 5% 8-12k TEU 6% 34% 29% 28% 3% 1% 8% 1% 3-8k TEU
Slide 13: Additional factors influencing the supply side
ADDITIONAL FACTORS INFLUENCING THE SUPPLY SIDE ENVIRONMENTAL REGULATION & SLOW STEAMING SHIPYARD CAPACITIES FULLY UTILIZED CASCADING LIMITATIONS Knots m Compensated Gross Ton (CGT) TEUk 16 40 4,000 3,562 Containership Avg. Speed Orderbook per (71%) 35 3,500 Segment & 7 OB-Fleet-Ratios 15 30 3,000 25
Slide 14: Robust mid-term outlook for regional trades
ROBUST MID-TERM OUTLOOK FOR REGIONAL TRADES 1 ORDERBOOK TO FLEET RATIO AND VESSEL AGE ACROSS SIZE SEGMENTS BENEFITS OF INTRA-REGIONAL TRADES % (OB / Fleet) High OB / Fleet, 100 » 49% of all container vessels sail on intra-regional trades Relatively Young Fleet » 98% of vessels smaller 5.2k TEU 80 12
Slide 15: Agenda
AGENDA 1. Q1 2023 in review 2. Market Update 3. Company Outlook MPC Container Ships | Q1 2023 Earnings Presentation | 15
Slide 16: Adhering to prudent capital allocation principles
ADHERING TO PRUDENT CAPITAL ALLOCATION PRINCIPLES USD million USD million 400 650 Debt Outstanding 600 350 Distributions (rhs) 550 300 500 450 250 Debt outstanding 400 Distributions 350 200 300 150 250 200 100 150 100 50 50 0 0 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q3 2021 Q1 2023
Slide 17: 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 1.3bn / 1.0bn Contracted forward Revenues (USD m) 5, 6, 7 406 420 189 76 246 Contracted forward TCE (USD per day) 5 ,6, 8 29,942 34,393 38,972 33,
Slide 18: Charter backlog and counterparties
CHARTER BACKLOG AND COUNTERPARTIES 1, 2 TOP 10 OTHER 9% 91% of revenue backlog CARGO-BACKED with top 20 liners and cargo-backed 2 18% USD 1.3BN 66% CONTRACTED REVENUE 2.1 years average remaining contract duration TOP 20 7% MPC Container Ships | Q1 2023 Earnings Presentation 1 Please refer to the app
Slide 19: Indicative upcoming positions in 2023
INDICATIVE UPCOMING POSITIONS IN 2023 NUMBER OF FIXED AND UPCOMING CHARTERS 1 SIZE DISTRIBUTION OF OPEN VESSELS IN 2023 Open vessels Fixed vessels 21 >3k TEU 10% 10 30% 2k - 3k TEU 7 60% <2k TEU 0 6 5 11 2 7 3 5 4 3 0 0 Q1 23 Q2 23 Q3 23 Q4 23 2023 MPC Container Ships | Q1 2023 Earnings Presentation
Slide 20: Strong value proposition: low risk & significant upside potential
STRONG VALUE PROPOSITION: LOW RISK & SIGNIFICANT UPSIDE POTENTIA L 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 creates a
Slide 21: Sensitivity analysis demonstrates robust distribution potential
SENSITIVITY ANALYSIS DEMONSTRATES ROBUST DISTRIBUTION POTENTIAL OPEN RATE SENSITIVITY USD million Operating Revenues 1 Clarksons 10y Historical Average Adj. Net Profit 1, 3 653 664 Clarksons 5y Historical Average 404 414 617 613 364 553 569 343 460 285 300 194 2022 (act) 4 2023 2024 2025 2022 (act)
Slide 22: 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 ~244m » Debt end of Q1 2023 at USD 148m » Good visibility on future cash flows due to high charter Headroom +110 backlog 148 » Significant de-levering until end of 2023 132 130 134
Slide 23: 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 » Executing on fleet optimization strategy » Charter rates consolidated above historical averages over recent months » Improved medium
Slide 24: Questions & Answers
QUESTIONS & ANSWERS Q1 2023 Earnings Presentation | 24
Slide 25: Appendix
APPENDIX MPC Container Ships | Q1 2023 Earnings Presentation | 25
Slide 26: Significant debt reduction during the next years
SIGNIFICANT DEBT REDUCTION DURING THE NEXT YEARS MPCC Group Unencumbered Vessels 3 No of vessels (cons.) 1 60 32 Book value Mar 2023 813m 300m Scrap at USD 400 / lwt 2 244m 117m OVERVIEW OF DEBT OUTSTANDING Facility Type Outstanding 31/03/23 Total capacity Interest rate # Repayment profile Maturity
Slide 27: Calculation of recurring distribution for Q1 2023
CALCULATION OF RECURRING DISTRIBUTION FOR Q1 2023 COMMENTS USD million Q1 2023 » Recurring dividend based on (unaudited) results for Q1 2023 1 Operating revenue 180.1 » Profit for the period adjusted for USD 30.8m recognizing the revenue from the EBITDA 141.4 exercised option for redelivery of AS Ca
Slide 28: Q1 2023 Financials
Q1 2023 FINANCIALS BALANCE SHEET AS OF MARCH 31, 2023 PROFIT OR LOSS Q1 2023 USD m March 31, 2023 December 31, 2022 USD m Q1 2023 Q4 2022 Assets 970.1 956.3 Operating revenues 180.1 162.1 Non-current assets 820.4 799.8 Gross profit 144.4 132.4 Current assets 149.7 156,5 EBITDA 141.4 127.0 thereof ca
Slide 29: Fleet employment overview
FLEET EMPLOYMENT OVERVIEW MPCC Current No Vessel Cluster Charterer May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Min / Max Fixture (USD/day) 1 AS ROSALIA 1,500 gls Diamond Line (COSCO) 17,000 Jun-23 / Aug-23 2 AS ROMINA 1,500 gls APL / CMA CGM 22,0
Slide 30: Fleet employment overview
FLEET EMPLOYMENT OVERVIEW MPCC Current No Vessel Cluster Charterer May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Min / Max Fixture (USD/day) 26 AS SICILIA 1,700 grd UNIFEEDER FZCO 30,000 Jul-24 / Sep-24 27 AS SAMANTA 1,700 grd Seaboard 22,400 1 Aug
Slide 31: Fleet employment overview
FLEET EMPLOYMENT OVERVIEW MPCC Current No Vessel Cluster Charterer May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Min / Max Fixture (USD/day) 51 AS NADIA 3,500 gls The Pasha Group 61,000 Jul-25 / Aug-25 52 AS ANGELINA 2,000 grd Maersk Line 36,500 Au
Slide 32: 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
Slide 33: MPC Container Ships
MPC —_ CONTAINER SHIPS
Mpc Container Ships As — Q1 2023 Earnings Presentation on 6ix