MPC Container Ships ASA · OSL:MPCC
MPC Container Ships ASA — Q4 2021 Earnings Presentation
28 slides from MPC Container Ships ASA's earnings presentation, Feb 24, 2022
Slide 1: Q4 2021 Earnings Presentation
Q4 2021 Earnings Presentation 24th February 2022
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. PLEASE NOTE THAT NO REPRESENTATION OR WAR
Slide 3: Content
Q4 2021 Earnings Presentation CONTENT 1. Executive Summary 2. Company Highlights 3. Market Update 4. Company Outlook 5. Appendix 3
Slide 4: Executive Summary
Q4 2021 Earnings Presentation EXECUTIVE SUMMARY FOCUS ON CASH GENERATION AND DISTRIBUTION CAPACITY WHILE MAINTAINING LOW RISK PROFILE EBITDA EBITDA FY 2021 (1) Guidance FY ‘22 (2) RECORD FINANCIAL RESULTS IN 2021 ~450m – GUIDANCE SUGGEST EVEN STRONGER 2022 ~290m 470m USD Fixtures (3) Vessels FY 2021
Slide 5: Executive Summary: KPI Overview
Q4 2021 Earnings Presentation EXECUTIVE SUMMARY: KPI OVERVIEW FINANCIAL PERFORMANCE Q4 2021 Q3 2021 FY 2021 FY 2020 Net revenue in USDm 136.2 112,0 363.0 151.0 (1) EBITDA (adj.) in USDm 162.7 (97.6) 73.6 290.4 (225.3) 16.2 Op. Cash Flow in USDm 98.6 60.4 236.7 16.5 (2) Net result (adj.) in USDm 127.
Slide 6: Content
Q4 2021 Earnings Presentation CONTENT 1. Executive Summary 2. Company Highlights 3. Market Update 4. Company Outlook 5. Appendix 6
Slide 7: Corporate and Operational Highlights
Company Highlights CORPORATE AND OPERATIONAL HIGHLIGHTS Balance Sheet Optimization / Refinancing completed in December 2021 Reduced financial leverage and cost of debt, significant financial flexibility with >30 unencumbered vessels, high discretion regarding capital allocation Share liquidity and
Slide 8: Portfolio Highlights – Fixture Activity 2021 Added >USD 1bn Contract Volume
Company Highlights PORTFOLIO HIGHLIGHTS – FIXTURE ACTIVITY 2021 ADDED >USD 1BN CONTRACT VOLUME(1) (1/2) SIGNIFICANT VALUE GENERATION BY EXECUTING PRUDENT MULTI-YEAR CHARTER STRATEGY Avg. Rate (USD) Avg. Forward Fixture (months) 6 6 35 000 30 000 5 25 000 4 20 000 3 15 000 2 10 000 1 1 1 1 5 000 0 0
Slide 9: Portfolio Highlights – Accretive Acquisitions and Highly Profitable Exits
Company Highlights PORTFOLIO HIGHLIGHTS – ACCRETIVE ACQUISITIONS AND HIGHLY PROFITABLE EXITS (2/2) VESSEL ACQUISITIONS IN FY 2021 in USDm +75% Highly accretive vessel acquisitions conducted in 2021 395 Acquisition of AS Nadia and “Songa” fleet for USD 226m 306 89 Sale of three vessels (Anne Sibu
Slide 10: Content
Q4 2021 Earnings Presentation CONTENT 1. Executive Summary 2. Company Highlights 3. Market Update 4. Company Outlook 5. Appendix 10
Slide 11: Tight Capacity and Record Liner Earnings
Market Update TIGHT CAPACITY AND RECORD LINER EARNINGS Freight Rate Index TEUm +282% 4,000 300 3,588 250 3,000 Freight Rate Index (CCFI Comp.) 214 Annual World Seaborne Container Trade (RHS) 200 2,000 150 100 939 1,000 50 0 0 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-
Slide 12: Booming Charter-Market Turned into a Forward Market
Market Update BOOMING CHARTER-MARKET TURNED INTO A FORWARD MARKET kUSD / Day % 70 70 60 Avg. Rate (RHS) 60 Forward Fixtures >60 Days 50 Forward Fixtures 30-60 Days 31 50 40 42 40 30 30 10 20 21 20 36 15 10 24 10 5 0 2 0 Jan- Jul- Jan- Jul- Jan- Jul- Jan- 19 19 20 20 21 21 22 Record Spot Rates Prolon
Slide 13: Encouraging Supply Demand Outlook for Intra-Regional Trades
Market Update ENCOURAGING SUPPLY DEMAND OUTLOOK FOR INTRA-REGIONAL TRADES % % 12 12 10 Supply growth (TEU capacity) 10 Supply growth (TEU capacity <5.2k TEU) Demand growth (TEU throughput) Demand growth (intra-regional TEU throughput) 8 7.1 8 6.7 5.8 0.5 6 2.6 0.1 6 5.2 5.2 4.9 4.6 4.3 4.5 4.0 4.1 4
Slide 14: Content
Q4 2021 Earnings Presentation CONTENT 1. Executive Summary 2. Company Highlights 3. Market Update 4. Company Outlook 5. Appendix 14
Slide 15: Overview of Charter Positions in Calendar Year 2022
Company Outlook OVERVIEW OF CHARTER POSITIONS IN CALENDAR YEAR 2022 NUMBER OF FIXED AND UPCOMING CHARTERS POTENTIAL REVENUE AND EBITDA BACKLOG No. vessels 24 Revenue EBITDA Open vessels Open Potential Open Potential Contracted vessels Projected (USD ~435m) (1) (USD ~349m) (3) (USD ~466m) (4) 10 42%
Slide 16: Operating Days & Fixed Revenue – Increased Charter Backlog and Visibility
Company Outlook OPERATING DAYS & FIXED REVENUE (1) - INCREASED CHARTER BACKLOG AND VISIBILITY FIXED OPERATING DAYS (CONSOLIDATED VESSELS) (2), (3) Operating days (open) (4) Revenue backlog / USD 1.4bn / 1.1bn Proj. EBITDA 22 – 25 (5) Operating days (fixed) (4) Fixed Revenues (USD m) (6) 530 470 311
Slide 17: Significant Potential for Capital Distributions to Investors
Company Outlook CURRENT MARKET ENVIRONMENT EXHIBITS SIGNIFICANT POTENTIAL FOR CAPITAL DISTRIBUTIONS TO INVESTORS INDICATIVE SENSITIVITIES ON OPEN RATES (1) DISTRIBUTION PLAN SCENARIO 1: CURRENT MARKET RATES TCE (2): USD 42.580/day Priority on returning capital to investors by way of using signific
Slide 18: Well Positioned to Continue Company Strategy with Disciplined Capital Allocation
Company Outlook WELL POSITIONED TO CONTINUE COMPANY STRATEGY WITH DISCIPLINED CAPITAL ALLOCATION Corporate Profile Largest container tonnage provider for intra-regional trades with strong Market Momentum & industry network and prudent capital Outlook Fundamentals allocation Low financial leverage
Slide 19: Content
Q4 2021 Earnings Presentation CONTENT 1. Executive Summary 2. Company Highlights 3. Market Update 4. Company Outlook 5. Appendix 19
Slide 20: Calculation of Distribution Based on Q4 Results
Q4 2021 Earnings Presentation - Appendix CALCULATION OF DISTRIBUTION BASED ON Q4 RESULTS AND RESOLVED DISTRIBUTION PLAN Distribution calculation for Q1 22 COMMENTS Quarter for calculation Q4 21 (1) Recurring distribution in Q1 2022 to be based on Net operating revenue 136,2 adjusted (un-audited) Q
Slide 21: Q4 2021 Financials
Q4 2021 Earnings Presentation - Appendix Q4 2021 FINANCIALS BALANCE SHEET AS PER 31 DECEMBER 2021 PROFIT & LOSS Q4 2021 USDm 31 Dec 2021 30 Sep 2021 USDm Q4 2021 Q3 2021 Assets 1,033.4 1,017.1 Operating revenues 140.1 118.5 Non-current assets 803.0 826.0 Gross profit 117.0 79.6 Current assets 230.4
Slide 22: KPI Development
Q4 2021 Earnings Presentation - Appendix KPI DEVELOPMENT NET OPERATING REVENUE FY 2021 EBITDA FY 2021 Ownership days 5,904 5,121 5,735 136 163 5,182 112 65 Non-recurring (4) 64 74 51 98 32 22 Q1 21 Q2 21 Q3 21 Q4 21 Q1 21 Q2 21 Q3 21 Q4 21 NET PROFIT FY 2021 NET IBD (1) EPS normalized (2) 0.15 240 2
Slide 23: Cash Flow Bridge FY 2021
Q4 2021 Earnings Presentation - Appendix CASH FLOW BRIDGE FY 2021 CASH DEVELOPMENT FY 2021 COMMENTS in USD m 1) Operating cash flow including received dividend from Bluewater JV with USD +25m +141 2) Vessel proceeds including 8 vessel sales in 2021 3) Net acquisition costs include positive impact fr
Slide 24: Significant Debt Reduction During the Next Years
Q4 2021 Earnings Presentation - Appendix SIGNIFICANT DEBT REDUCTION DURING THE NEXT YEARS DEBT MATURITY (1) COMMENTS in USD m Good visibility on future cash flows due to high charter rates and long MPCC Group (2) Unencumbered vessels periods Significant de-levering until end of 2023 No of vessel
Slide 25: Fleet Employment Overview
Q4 2021 Earnings Presentation - Appendix FLEET EMPLOYMENT OVERVIEW MPCC Current Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- No. Vessel Cluster Charterer Min / Max Fixture (USD/day) 22 22 22 22 22 22 22 22 22 22 22 23 23 1 SEVILLIA 1700 grd CMA CGM 42.000 DD(1) Mar-22 / Mar-22 2
Slide 26: Fleet Employment Overview
Q4 2021 Earnings Presentation - Appendix FLEET EMPLOYMENT OVERVIEW MPCC Current Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- No. Vessel Cluster Charterer Min / Max Fixture (USD/day) 22 22 22 22 22 22 22 22 22 22 22 23 23 26 AS SAVANNA 1700 grd Seaboard 22.400(2,3) Apr-24 / May-24
Slide 27: Fleet Employment Overview
Q4 2021 Earnings Presentation - Appendix FLEET EMPLOYMENT OVERVIEW MPCC Current Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- No. Vessel Cluster Charterer Min / Max Fixture (USD/day) 22 22 22 22 22 22 22 22 22 22 22 23 23 51 AS SARA 1700 grd Maersk Line 35.000 Feb-25 / Apr-25 52 A
Slide 28: Breakdown Days
Q4 2021 Earnings Presentation - Appendix BREAKDOWN DAYS MPCC Group Bluewater JV Year 2022 2023 2024 2025 2022 2023 2024 2025 Available days (1) 21,909 21,900 21,960 21,900 1,928 1,825 1,830 1,825 Utilization 95% for all vessels 95% for all vessels Operating days 20,814 20,805 20,862 20,805 1,831 1,7