MPC Container Ships ASA · OSL:MPCC
MPC Container Ships ASA — Q2 2022 Earnings Presentation
26 slides from MPC Container Ships ASA's earnings presentation, Aug 18, 2022
Slide 1: Q2 2022 Earnings Presentation
18th August 2022 Q2 2022 EARNINGS PRESENTATION
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
CONTENT 1. Company Highlights 2. Market Update 3. Company Outlook 4. Appendix MPC Container Ships | Q2 2022 Earnings Presentation Agenda | 3
Slide 4: Market-leading container ship company with strong financials and rational capital allocation
MARKET-LEADING CONTAINER SHIP COMPANY WITH STRONG FINANCIALS AND RATIONAL CAPITAL ALLOCATION Leading intra-regional Strong balance sheet and Clear strategy & Established corporate set- tonnage provider significant earnings backlog investment principles up with strong governance 68 STRONG BALANCE SHE
Slide 5: Strong financial performance in Q2 2022 amid macro uncertainty
STRONG FINANCIAL PERFORMANCE IN Q2 2022 AMID MACRO UNCERTAINTY PERFORMANCE SUMMARY YTD UPDATE Q2 22 Q2 21 Continuously strong financial performance and position: Revenue USD 152m 2,2x USD 69m » Further increased average TCE EBITDA USD 112m 3,5x USD 32m » Strong growth in Revenue, EBITDA and Net Prof
Slide 6: Value approach based on three strategic pillars
VALUE APPROACH BASED ON THREE STRATEGIC PILLARS 2. FINANCIAL 3. ACCRETIVE 1. DISTRIBUTIONS FLEXIBILITY GROWTH » Strong cash generation and EBITDA » Industry-low leverage of 21% » Rational Portfolio Management: backlog Selective vessel sales of 3 vessels 2 for − Debt Repayments of USD 45m YTD USD ~10
Slide 7: Delivering on our distribution strategy
DELIVERING ON OUR DISTRIBUTION STRATEGY Event-driven dividend Event-driven dividend from sale of AS Serafina (subject to successful handover) 33% Cumulative yield 1 Recurring dividend 0.45 355m Total cumulative distribution in USD 0.34 Cumulative distribution in USD per share 0.80 0.19 0.16 0.04 0.0
Slide 8: Content
CONTENT 1. Company Highlights 2. Market Update 3. Company Outlook 4. Appendix MPC Container Ships | Q2 2022 Earnings Presentation Agenda | 8
Slide 9: Freight market softened slightly but rates and congestion remain at record levels
FREIGHT MARKET SOFTENED SLIGHTLY BUT RATES AND CONGESTION REMAIN AT RECORD LEVELS CCFI SCFI FREIGHT RATES Total Port Congestion PORT CONGESTION INDEX Freight Rate Index TEUm MTEU 6,000 300 10.0 9.6 9.5 5,000 250 9.0 9.0 8.5 8.3 4,000 200 3,740 8.0 7.5 7.3 3,000 3,163 150 7.0 6.7 2,000 100 6.5 6.0 93
Slide 10: Tight capacity keeps charter rates significantly elevated
TIGHT CAPACITY KEEPS CHARTER RATES SIGNIFICANTLY ELEVATED SPOT TIME-CHARTER RATES (6-12M) - HARPEX START OF THE YEAR AVAILABILITY (VESSELS >900K TEU) k USD / day No of Vessels 110 2,000 104 100 1,800 90 90 1,600 -57% 80 79 1,400 70 1,200 60 52 1,000 50 40 4.3k TEU 800 1,410 1,392 30 3.5k TEU 600 20
Slide 11: Periods and forward fixtures impacted by market uncertainty
PERIODS AND FORWARD FIXTURES IMPACTED BY MARKET UNCERTAINTY CHARTER PERIODS AND REDELIVERY WINDOW FORWARD FIXTURES >30 DAYS Months Avg. Period (1-5.1k TEU) % >120 days 40 Redelivery spread (1-5.1k TEU) 70 90-120 days 60 60-90 days 30 +219% 30-60 days 50 21 8 40 8 8 12 20 5 7 5 30 2 9 6 7 10 10 10 6
Slide 12: Healthy mid-term outlook for regional trades
HEALTHY MID-TERM OUTLOOK FOR REGIONAL TRADES SUPPLY & DEMAND GROWTH (TOTAL MARKET) SUPPLY & DEMAND GROWTH (INTRA-REGIONAL) % Supply growth (TEU capacity) 12 % Demand growth (TEU throughput) Supply growth (TEU capacity <5.2k TEU) 12 10 Demand growth (intra-regional TEU throughput) 10 8 8 7.3 7.3 6.0
Slide 13: Content
CONTENT 1. Company Highlights 2. Market Update 3. Company Outlook 4. Appendix MPC Container Ships | Q2 2022 Earnings Presentation Agenda | 13
Slide 14: Charter backlog and forward visibility
CHARTER BACKLOG AND FORWARD VISIBILITY Fixed operating days & Revenue / EBITDA (consolidated vessels) 1, 2,3 Operating days (open) 3 Operating days (fixed) 3 Revenue backlog / USD 1.8bn / 1.4bn Proj. EBITDA 4 Revenue (USDm) 1607 1557 Contracted forward Revenues (USD m) 5 315 6 548 429 198 313 TCE ($
Slide 15: Current enterprise value fully covered
CURRENT ENTERPRISE VALUE FULLY COVERED 1.2 bn 242m 1.1bn 101m 1.4 bn 33m -546m NIBD Q2 2022 1 Market cap 2 Enterprise Value Scrap 3 Projected EBITDA 4 Proceeds from Excess Value vessel sale Aug. 22 above current EV 1 NIBD = net interest-bearing debt (gross debt – cash & cash equivalent) as per 30th
Slide 16: Significant potential for sustainable distributions
SIGNIFICANT POTENTIAL FOR SUSTAINABLE DISTRIBUTIONS Indicative sensitivities on open rates 1 Distribution policy SCENARIO 1: CURRENT MARKET RATES TCE 2: USD 40.500/day In USDm 866 FY 2023 Priority on returning capital to investors by way of using 800 FY 2024 significant parts of earnings as per the
Slide 17: Well positioned to continue company strategy with disciplined capital allocation
WELL POSITIONED TO CONTINUE COMPANY STRATEGY WITH DISCIPLINED CA PITAL ALLOCATION Market Assessment Corporate Profile Outlook Market & Fundamentals Largest container tonnage provider for intra-regional Well-positioned » Historically strong container market, despite geopolitical trades with strong in
Slide 18: Content
CONTENT 1. Company Highlights 2. Market Update 3. Company Outlook 4. Appendix MPC Container Ships | Q2 2022 Earnings Presentation Agenda | 18
Slide 19: Charter activity increases long-term earnings visibility
CHARTER ACTIVITY INCREASES LONG-TERM EARNINGS VISIBILITY 1 Avg. Rate per TEU (USD) Significant and long-term value generation by executing prudent multi-year charter strategy Avg. Forward Fixture (months) 30 29 18 16 25 14 20 12 10 15 8 10 6 7 6 4 5 2 1 1 1 0 0 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 202
Slide 20: Calculation of distribution based on Q2 results and resolved distribution plan
CALCULATION OF DISTRIBUTION BASED ON Q2 RESULTS AND RESOLVED DISTRIBUTION PLAN Distribution calculation for Q3 22 Comments Quarter for calculation Q2 221 » Recurring distribution in Q3 2022 to be based on (un-audited) results Net operating revenue 146.6 for Q2 2022 EBITDA 111.8 Net profit 90.1 » No
Slide 21: Q2 2022 Financials
Q2 2022 FINANCIALS Balance sheet as per 30 June 2022 Profit & Loss Q2 2022 USDm 30 Jun 2022 31 Mar 2022 USDm 30 Jun 2022 31 Mar 2022 Assets 904.0 915.5 Operating revenues 151.7 142.9 Non-current assets 781.6 805.0 Gross profit 114.8 122.7 Current assets 122.3 110.6 EBITDA 111.8 137.7 thereof cash &
Slide 22: Cash flow bridge Q2 2022
CASH FLOW BRIDGE Q2 2022 Cash development Q2 2022 - in USD m Comments +5 1) Operating cash flow including received dividend from Bluewater JV with USD +25m 2) Distribution to shareholders based on recurring distribution of ~USD 56m and -72 event-driven with ~USD 15m 3) Debt reduction based on regula
Slide 23: Significant debt reduction during the next years
SIGNIFICANT DEBT REDUCTION DURING THE NEXT YEARS Debt maturity 1 - in USD m Comments MPCC Group Unencumbered vessels » Debt end of Q2 2022 at USD 190m » Good visibility on future cash flows due to high charter backlog No of vessels (cons.) 2 60 34 Market value 3 2,047m 1,013m » Significant de-leveri
Slide 24: Fleet employment overview
FLEET EMPLOYMENT OVERVIEW MPCC Current Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- No. Vessel Cluster Charterer Min / Max Fixture (USD/day) 22 22 22 22 22 23 23 23 23 23 23 23 23 1 AS ALEXANDRIA 2000 gls Dry-Docking DD(1) Aug-22 / Aug-22 2 AS SERAFINA(2) 1700 grd Sold Aug-22 / A
Slide 25: Fleet employment overview
FLEET EMPLOYMENT OVERVIEW MPCC Current Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- No. Vessel Cluster Charterer Min / Max Fixture (USD/day) 22 22 22 22 22 23 23 23 23 23 23 23 23 26 AS CLARITA 2800 gls Oman Shipping Lines 26,975 Jun-24 / Aug-24 27 AS RAGNA 1500 gls ZISS 30,000 J
Slide 26: Fleet employment overview
FLEET EMPLOYMENT OVERVIEW MPCC Current Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- No. Vessel Cluster Charterer Min / Max Fixture (USD/day) 22 22 22 22 22 23 23 23 23 23 23 23 23 (1) 51 SEVILLIA 1700 grd Samudera 65,000 40,000 May-25 / Jul-25 52 CARPATHIA(2) 2800 gls The Pasha G