MPC Container Ships ASA · OSL:MPCC

MPC Container Ships ASA — Q3 2018 Earnings Presentation

21 slides from MPC Container Ships ASA's earnings presentation, Nov 30, 2018

  1. Slide 1: Q3 2018 – Earnings Presentation

    Q3 2018 – Earnings Presentation Oslo, 30 November 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 Q3 2018

    HIGHLIGHTS Q3 2018 FINANCIAL PERFORMANCE STRONG BALANCE SHEET  Revenue of USD 55.8m (Q2 2018: USD 46.9m)  Total Assets of USD 730.1m (30 June 2018: USD 720.8m)  EBITDA adj.1 of USD 15.7m (Q2 2018: USD 13.3m)  Cash of USD 67.7m (30 June 2018: USD 106.7m)  Net profit adj.1 of USD 2.3m (Q2 2018: U

  4. Slide 4: Financials – Overview

    FINANCIALS – OVERVIEW BALANCE SHEET AS PER 30 SEPTEMBER 2018 PROFIT AND LOSS Q3 & NINE-MONTH 2018 30/09/2018 30/06/2018 YTD 2018 Q3 2018 Q2 2018 Assets 730.1 720.8 Operating revenues 131.0 55.8 46.9 Non-current Assets 632.8 599.4 Gross Profit 42.0 17.6 14.9 Current assets 97.3 121.5 EBITDA3 35.8 14.

  5. Slide 5: Financials – Development of Charter Rates and OPEX

    FINANCIALS – DEVELOPMENT OF CHARTER RATES AND OPEX CONSOLIDATED FLEET (61 VESSELS) #vessels3 17 24 52 58 61 (end of period) USD per day 11,000 10,230 10,000 9,841 9,352 9,000 +29.5% 7,901 8,000 7,263 7,000 6,000 5,255 5,238 5,114 4,908 4,810 5,000 4,000 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 TCE1 O

  6. Slide 6: MPCC – Fleet Overview

    MPCC – FLEET OVERVIEW REGIONAL DEPLOYMENT HEAT MAP OF MPCC FLEET FLEET COMPOSITION – BY TRADE 2 4 5 Africa related Intra-Asia 69 25 Intra Europe vessels Latin America related 25 ME/ISC related Oceania related 8 FLEET COMPOSITION – BY TEU CLUSTER 4 18 1,000 17 1,300 69 1,500 vessels 1,700 2,200/2,500

  7. Slide 7: MPCC – Vessels Acquired at Significant Discount to Newbuilding Parity

    MPCC – 69 VESSELS ACQUIRED AT SIGNIFICANT DISCOUNT TO NEWBUILDING PARITY DISCOUNT TO NEWBUILDING PARITY DYNAMICS IMPLIED CAPITAL MARKET VALUATION FOR 2,800 TEU (10YR) Discount to Upside to USD m newbuilding parity historical average 40 1,188 -49% 1,124 -46% 35 Current NB price 2,600 / 2,900 TEU 1,00

  8. Slide 8: MPCC – Industry Low Cash Break-even

    MPCC – INDUSTRY LOW CASH BREAK-EVEN… INDUSTRY LOW CASH BREAK-EVEN1 HISTORICAL TC RATES VS BREAK-EVEN 1,700 TEU grd USD per day USD per day 2,750 TEU gls 6,965 7,000 40,000 Operating CBE Operating and Financing CBE 975 5,990 35,000 6,000 400 390 30,000 5,000 25,000 4,000 20,000 3,000 5,200 15,000 2,0

  9. Slide 9: Leading to High Upside in Earnings Potential

    …LEADING TO HIGH UPSIDE IN EARNINGS POTENTIAL UPSIDE POTENTIAL IN RATES VS. CASH BREAK-EVEN EBITDA POTENTIAL (NORMALISED & ANNUALISED)3 USD per day USD million p.a. Gross TCE (excluding utilization and commissions) EBITDA potential EV / EBITDA4 Normalized Operating and Financing CBE1 Normalized Oper

  10. Slide 10: Market – Improving Supply and Demand Balance in 2019

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

  11. Slide 11: Market – Supply and Demand Fundamentals Favourable in the Feeder Market

    MARKET – SUPPLY AND DEMAND FUNDAMENTALS FAVOURABLE IN THE FEEDER MARKET DEMAND: TRADE DEVELOPMENT SUPPLY: FLEET DEVELOPMENT mTEU mTEU Other Regional Exp. growth 2019 12+ k TEU 2.9-3.9 k TEU Exp. growth 2019 Intra-Asia Total market: 4-5% 7.6-12 k TEU 1.3-2.9 k TEU Total market: 3% Intra-Regional: 5-6

  12. Slide 12: IMO 2020 – Regulation & Compliance

    IMO 2020 – REGULATION & COMPLIANCE BACKGROUND  Under the new IMO MARPOL regulation, the sulphur content of any bunker fuel used shall not exceed 0.5% on and after 1 January 2020  Relevant compliance options: I. Using Low Sulphur Fuel Oil (LSFO, max. 0.5% SOx) or Marine Gas Oil (MGO) II. Using High

  13. Slide 13: IMO 2020 – Scrubber Economics

    IMO 2020 – SCRUBBER ECONOMICS EXAMPLE SCRUBBER RETROFIT VESSEL EXAMPLE 2,500 TEU VESSEL1 Daily Savings (USDk) 8.0 200 Payback Period (indicative) 1.6 LSFO/HFO spread 12.0 300 1.0 16.0 400 0.8 20.0 500 0.6  Example trades for 2,500 TEU high reefer container ship:  For scrubber retrofits, MPCC will

  14. Slide 14: MPC Container Ships ASA – Outlook

    MPC CONTAINER SHIPS ASA – OUTLOOK COMPANY – PERFECTLY POSITIONED  Largest feeder containership owner globally with 69 vessels HIGHLY PROMSING OUTLOOK FOR MPCC  Focused capital allocation and disciplined growth  Low leverage and industry-low cash break-even  Strong balance sheet with significant

  15. Slide 15: Appendix

    Q3 2018 – Earnings Presentation APPENDIX 15

  16. Slide 16: MPCC Stock

    SHARE INFORMATION SHARE PRICE AND VALUATION NOK Shares 61 2 500 000 Number of shares traded Share price (NOK) 56 2 000 000 51 1 500 000 46 1 000 000 41 500 000 36 0 05/2017 06/2017 07/2017 08/2017 09/2017 10/2017 11/2017 12/2017 01/2018 02/2018 03/2018 04/2018 05/2018 06/2018 07/2018 08/2018 09/2018

  17. Slide 17: Market Update (I)

    MARKET UPDATE (I) IDLE FLEET (IN % OF EXISTING FLEET) TC RATES (IN USD/DAY) 18,000 18% 1-3k TEU 1,700 TEU grd Total Fleet 16,000 16% 14% 14,000 12% 12,000 11,000 10% 10,000 8% 8,800 8,000 6% 5,2% 6,000 4% 2,4% 2% 4,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 0% 01/10 01/11 01/12 01/13 01/1

  18. Slide 18: Market Update (II)

    MARKET UPDATE (II) FEEDER ORDERBOOK BUILDING UP AGEING FEEDER CONTAINER FLEET Order book to fleet ratio (per teu cluster) 4% 3% 7% Vessels 62,9% 15% 5% 1-3k TEU 18% > 15 years: 28% 36% 25% 18% 55% Avg. other segments: 36% 26% 14% 32% 32% 88% Age 20,1% 29% 25+ 13,1% 18% 32% 45% 20-24 13,5 36% 7,0% 11

  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 19 Note: Simpl

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

    FLEET EMPLOYMENT 1,000 – 1,700 TEU VESSEL EMPLOYMENT DETAILS Rate No. Vessel Cluster Charterer Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19 (USD p.d.) 1 AS LAURETTA 1000 gls SITC 8,250 2 AS LEONA 1000 gls Asean Seas Line (ASL) 8,000 3 AS LAETITIA 1000 grd CMA CGM 7,950 4 AS LAGUNA 1000 grd Seaboard 7,000 5 AS

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

    FLEET EMPLOYMENT 2,200 – 2,800 TEU VESSEL EMPLOYMENT DETAILS Rate No. Vessel Cluster Charterer Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19 (USD p.d.) 40 AS ANGELINA 2200 grd Seaboard 7,600 41 AS PAULINE 2500 gls CMA CGM 10,500 42 AS PENELOPE 2500 gls Sinotrans 9,200 43 AS PALATIA 2500 grd COSCO 10,450 44 AS

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