MPC Container Ships ASA · OSL:MPCC

MPC Container Ships ASA — Q4 2018 Earnings Presentation

21 slides from MPC Container Ships ASA's earnings presentation, Feb 28, 2019

  1. Slide 1: Q4 2018 – Earnings Presentation

    Q4 2018 – Earnings Presentation Oslo, 28 February 2019

  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: Agenda

    Q4 2018 Earnings Presentation AGENDA 1) Highlights Q4 2018 and FY 2018 2) Market Update 3) Outlook 3

  4. Slide 4: Highlights Q4 2018 and FY 2018

    HIGHLIGHTS Q4 2018 AND FY 2018 FINANCIAL PERFORMANCE  Revenue: USD 52.5m (Q4 2018) and USD 183.5m (FY 2018)  EBITDA adj.1: USD 9.7m (Q4 2018) and USD 46.5m (FY 2018)  Net profit/loss adj.1: USD -4.9m (Q4 2018) and USD -0.3m (FY 2018)  Op. Cash Flow adj.2: USD 9.3m (Q4 2018) and USD 43.2m (FY 201

  5. Slide 5: Highlights Q4 2018 and FY 2018

    HIGHLIGHTS Q4 2018 AND FY 2018 FLEET / DEBT CAPACITY  69 vessels acquired and taken over as of 31 December 2018 – largest feeder container owner globally1  Preparations for IMO 2020 on track  9 unencumbered vessels remaining on the balance sheet, exploring additional leverage of USD 40m CONTAINER

  6. Slide 6: Financials – Overview Q4 2018 and FY 2018

    FINANCIALS – OVERVIEW Q4 2018 AND FY 2018 BALANCE SHEET AS PER 31 DECEMBER 2018 PROFIT AND LOSS Q4 & FULL-YEAR 2018 31/12/2018 30/09/2018 FY 2018 Q4 2018 Assets 722.1 730.1 Operating revenues 183.5 52.5 Non-current Assets 633.7 632.8 Gross Profit 53.8 11.8 Current Assets 88.4 97.3 EBITDA3 45.3 9.5 t

  7. Slide 7: Financials – Development of Charter Rates and Utilization

    FINANCIALS – DEVELOPMENT OF CHARTER RATES AND UTILIZATION TOP LINE KPI FOR CONSOLIDATED FLEET (61 VESSELS) No. of consolidated vessels 52 58 61 61 61 (end of period) Trading ratio1 96% 92% 93% 89% 92% 19,279 17,318 Ownership days Trading days 4,976 4,494 5,443 4,994 5,612 4,871 3,247 2,958 Q1 2018 Q

  8. Slide 8: MPCC Fleet – Regional and Size Distribution

    MPCC FLEET – REGIONAL AND SIZE DISTRIBUTION FLEET COMPOSITION – BY TEU CLUSTER FLEET COMPOSITION – BY TRADE 4 4 1 4 18 Intra-Asia 1,000 4 17 Intra-Europe 1,300 30 Latin America/Caribbean related 69 1,500 69 vessels vessels Middle East related 1,700 18 North Atlantic 2,200/2,500 12 6 Africa related 2

  9. Slide 9: MPCC Fleet – Upside Potential and Low Cash Break-even

    MPCC FLEET – UPSIDE POTENTIAL AND LOW CASH BREAK-EVEN HIGH UPSIDE TO NEWBUILDING PARITY INDUSTRY LOW CASH BREAK-EVEN1 in USD m USD per day Upside to new building parity 8,000 1,131 7,040 7,000 1,060 5,980 +78% 6,000 390 +127% 390 5,000 634 498 4,000 3,000 5,200 2,000 259 1,000 Implied fleet valuatio

  10. Slide 10: Agenda

    Q4 2018 Earnings Presentation AGENDA 1) Highlights Q4 2018 and FY 2018 2) Market Update 3) Outlook 10

  11. Slide 11: Market Update – Current Market

    MARKET UPDATE – CURRENT MARKET IDLE FLEET (IN % OF EXISTING FLEET) SECONDHAND ASSET VALUES (IN USDM) 18% 30 1-3k TEU Total Fleet 1,700 TEU grd (10 yrs) 2,750 TEU gls (10 yrs) 28 16% 26 14% 24 12% 22 20 10% 18 8% 16 5,7% 14 6% 12 12.5 4% 2,9% 10 9.5 8 2% 6 0% 4 2010 2011 2012 2013 2014 2015 2016 2017

  12. Slide 12: Market Update – Supply and Demand Outlook

    MARKET UPDATE – SUPPLY AND DEMAND OUTLOOK SUPPLY AND DEMAND BALANCE IN CONTAINER SHIPPING 10% Supply Demand 7,9% 7,9% 7,8% 6,6% 5,9% 6,0% 5,5% 5,6% 5% 4,2% 4,3% 4,0% 5,3% 4,1% 5,1% 3,8% 3,1% 2,9% 3,2% 2,1% 1,2% 0% 2011 2012 2013 2014 2015 2016 2017 2018e 2019e 2020e COMMENTS ON 2018 COMMENTS ON 2019

  13. Slide 13: Market Update – Supply and Demand Outlook

    MARKET UPDATE – SUPPLY AND DEMAND OUTLOOK DEMAND: ESTIMATED TRADE GROWTH IN 2019 SUPPLY: ESTIMATED FLEET GROWTH IN 2019 5,2% 12,2% 4,8% 4,6% 4,1% 1,8% 2,9% 1,5% 1,1% 0,4% Transpacific Far East- Other North-South Intra- Total -1,7% Europe East-West regional <3,000 teu 3-7,999 teu 8-11,999 teu >12,000

  14. Slide 14: Agenda

    Q4 2018 Earnings Presentation AGENDA 1) Highlights Q4 2018 and FY 2018 2) Market Update 3) Outlook 14

  15. Slide 15: Outlook – Preparing for IMO 2020

    OUTLOOK – PREPARING FOR IMO 2020 GLOBAL SULPHUR CAP 2020 MARKET IMPACT AND MPCC APPROACH IMO 2020 regulations Market impact  Starting date: 1 January 2020  Majority of the containership fleet will switch to burning  New global limit of 0.5% sulphur content of ships’ fuel oil compliant fuel  Comp

  16. Slide 16: Outlook – MPC Container Ships

    OUTLOOK – MPC CONTAINER SHIPS 2019 2020 and beyond Market expectations Company Positive outlook  Liners increased focus on other areas of  Largest feeder owner globally and only the business (e.g. digitization, logistics)  Supply and demand currently imbalanced, sizeable listed feeder platform su

  17. Slide 17: Appendix

    Q3 2018 Earnings Presentation APPENDIX 17

  18. Slide 18: MPCC Stock and MPCC Invest Bond Share Information

    SHARE INFORMATION SHARE PRICE AND VALUATION NOK Shares Number of shares traded Share price (NOK) 60 2 500 000 55 2 000 000 50 45 1 500 000 40 1 000 000 35 500 000 30 25 0 05/2017 07/2017 09/2017 11/2017 01/2018 03/2018 05/2018 07/2018 09/2018 11/2018 01/2019 Ticker MPCC Ticker MPCBV01 MPCC INVEST BO

  19. Slide 19: Corporate Structure

    CORPORATE STRUCTURE SIMPLIFIED CORPORATE STRUCTURE 100% 100% 100% 80% 50% Bond financed Bank financed Unencumbered JV / Bank financed JV / Bank financed (recourse) (non-recourse) (non-recourse) (non-recourse) 40 vessels 10 vessels 9 vessels 2 vessels 8 vessels 69 feeder containerships Note: Simplifi

  20. Slide 20: Fleet Employment 1,000 – 1,700 TEU

    FLEET EMPLOYMENT 1,000 – 1,700 TEU VESSEL EMPLOYMENT DETAILS No. Vessel Cluster Charterer Rate ($pd) Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 1 AS LAURETTA 1000 gls SITC 8.250 2 AS LEONA 1000 gls SITC 7.750 3 AS LAETITIA 1000 grd CMA CGM 6.050 4 AS LAGUNA 1000 grd Seaboard 7.000 5 AS FENJA 1200 gls CMA CG

  21. Slide 21: Fleet Employment 2,200 – 2,800 TEU

    FLEET EMPLOYMENT 2,200 – 2,800 TEU VESSEL EMPLOYMENT DETAILS No. Vessel Cluster Charterer Rate ($pd) Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Q2 '20 40 AS ANGELINA 2200 grd Seaboard 7.600 41 AS PAULINE 2500 gls CMA CGM 10.500 42 AS PENELOPE 2500 gls MCC 8.200 43 AS PALATIA 2500 grd COSCO 9.350 44 AS PAOLA

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