MPC Container Ships ASA · OSL:MPCC

MPC Container Ships ASA — Q3 2021 Earnings Presentation

28 slides from MPC Container Ships ASA's earnings presentation, Nov 18, 2021

  1. Slide 1: Q3 2021 Earnings Presentation

    Q3 2021 Earnings Presentation 18th November 2021

  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. PLEASE NOTE THAT NO REPRESENTATION OR WAR

  3. Slide 3: Content

    Q3 2021 Earnings Presentation CONTENT 1. Company Highlights Q3 2021/YTD 2. Market Update 3. Company Outlook 4. Appendix 3

  4. Slide 4: Executive Summary

    Company Highlights Q3 2021 EXECUTIVE SUMMARY MPCC – FOCUS ON CASH GENERATION AND DISTRIBUTION CAPACITY WHILE MAINTAINING LOW RISK PROFILE Continuously strong container market 279% HARPEX-increase YTD (1) 53 ~1.1bn Significant revenue backlog Fixtures Contracted YTD Revenue (2) 12 11 Active and accre

  5. Slide 5: KPI Overview Q3 2021 (Q2 2021 in brackets)

    Q3 2021 Earnings Presentation KPI OVERVIEW Q3 2021 (Q2 2021 IN BRACKETS) FINANCIAL PERFORMANCE  Net revenue: USD 112.0m (USD 63.5m)  EBITDA: USD 73.6m (USD 31.9m)  Op. Cash Flow: USD 60.4m (USD 35.6m)  Net result: USD 46.5m (USD 12.0m)  Earnings per share(1): USD 0.11 per share/ NOK 0.96 per sh

  6. Slide 6: Strengthening MPCC Fleet and Balance Sheet

    Q3 2021 Earnings Presentation STRENGTHENING MPCC FLEET AND BALANCE SHEET Songa Container take-over  Closing of Songa acquisition on 9 August 2021 adding 11 vessels to the MPCC fleet ESG  Development of ESG strategy to meet new and upcoming regulations on ESG matters e.g. by EU and IMO  Ongoing ev

  7. Slide 7: Execution of Fleet Strategy in Historically Strong Market

    Q3 2021 Earnings Presentation EXECUTION OF FLEET STRATEGY IN HISTORICALLY STRONG MARKET Improving Global Economy, Ongoing Supply-Chain Disruption  Macroeconomic outlook continues to improve (GDP: 5.9% in 2021 and 4.9% in 2022)  Strong trade recovery (8.2% TEU growth in 2021; 4.3% in 2022) with sup

  8. Slide 8: Portfolio Optimization Measures Implemented

    Q3 2021 Earnings Presentation PORTFOLIO OPTIMIZATION MEASURES IMPLEMENTED VESSEL SALES IN FY 2021 SUMMARY in USDm Strategic sales in strong market # 11  2021 YTD MPCC has sold and handed over 5 (1) smaller and older units with an 15.2 years average age and 1,412 average TEU: #6 +149%  Historic acq

  9. Slide 9: Acquisitions in FY 2021 De-risked and In the Money

    Q3 2021 Earnings Presentation ACQUISTIONS IN FY 2021 DE-RISKED AND «IN THE MONEY» STRONG DE-RISKING WITH SIGNIFICANT UPSIDE POTENTIAL HIGHLY COMPELLING RISK-REWARD In USDm  Attractive scrap protection of USD 47m 122  Investment rapidly de-risked through a mix of +55% 226 225 conclusion of charters

  10. Slide 10: Content

    Q3 2021 Earnings Presentation CONTENT 1. Company Highlights Q3 2021/YTD 2. Market Update 3. Company Outlook 4. Appendix 10

  11. Slide 11: Strong Freight Market Amplified by Congestions and Disruptions

    Market Update: Short-Term Momentum STRONG FREIGHT MARKET AMPLIFIED BY CONGESTIONS AND DISRUPTIONS PORT CONGESTIONS INCREASED SIGNIFICANTLY TIGHT SUPPLY PUSHED UP BOX RATES TEUm Freight Rate Index TEUm +360% 10.0 +18% 6,000 Annual World Seaborne Container Trade (RHS) 300 Port Congestion Index (Total

  12. Slide 12: Record Charter Rates at Prolonged Periods Meet Low Tonnage Availability

    Market Update: Short-Term Momentum RECORD CHARTER RATES AT PROLONGED PERIODS MEET LOW TONNAGE AVAILABILITY CHARTER RATES INCREASED TO RECORD HEIGHTS CHARTER PERIODS INCREASED SIGNIFICANTLY Index +452% Months Period Redelivery spread 4,000 3,936 35 +259% 30 3,000 25 23.1 20 2,000 15 1,000 713 10 6.4

  13. Slide 13: Significant Excess Demand Expected for Intra Regional Trades

    Market Update: Mid Term Outlook SIGNIFICANT EXCESS DEMAND EXPECTED FOR INTRA REGIONAL TRADES SUPPLY / DEMAND DEVELOPMENT (TOTAL) SUPPLY / DEMAND (INTRA-REGIONAL TRADES) % % 12 12 Supply growth (TEU capacity) Supply growth (TEU capacity <5.2k TEU) 10 Demand growth (TEU throughput) 10 Demand growth (i

  14. Slide 14: Encouraging Mid-Term Supply/Demand Outlook for Intra-Regional Trades

    Market Update: Mid-Term Outlook ENCOURAGING MID-TERM SUPPLY/ DEMAND OUTLOOK FOR INTRA-REGIONAL TRADES FLEET DEVELOPMENT (SUPPLY) TRADE DEVELOPMENT (DEMAND) m TEU m TEU CAGR 2020 - 2024: CAGR 2020 - 2024: 50 Total Fleet: 4.9% 400 Total Market: 5.1% 0.1-2.9k 5.2-7.6k Vessels <5.2k TEU: 0.2% Mainlane N

  15. Slide 15: Manageable Orderbook and Relative Old Fleet for Smaller Tonnage

    Market Update: Mid-Term Outlook MANAGEABLE ORDERBOOK AND RELATIVE OLD FLEET FOR SMALLER TONNAGE ORDERBOOK BIASED TOWARDS LARGER TONNAGE MANAGEABLE NEW-BUILD DELIVERIES <8K TEU TEUk 2.975 TEUk (68,7%) 3.000 800 TEU Capacity on Order Deliveries >8k TEU 647 2.500 Deliveries <8k TEU 601 614 615 600 530

  16. Slide 16: Intra-Regional Trades as Integral Part of Seaborne Trading

    Market Update: Mid-Term Outlook INTRA-REGIONAL TRADES AS INTEGRAL PART OF SEABORNE TRADING TEU DEMAND GROWTH (TOTAL) TEU DEMAND GROWTH (INTRA-REGIONAL) TEUm TEUm 235 100 TEU Demand Total 6.2% 230 TEU Demand Intra-Regional 230 96 95 6.9% 225 221 220 90 215 90 210 208 85 203 204 85 84 205 82 200 195 8

  17. Slide 17: Content

    Q3 2021 Earnings Presentation CONTENT 1. Company Highlights Q3 2021/YTD 2. Market Update 3. Company Outlook 4. Appendix 17

  18. Slide 18: Operating Days & Fixed Revenue - Increased Charter Backlog and Visibility

    Q3 2021 Earnings Presentation OPERATING DAYS & FIXED REVENUE (1) - INCREASED CHARTER BACKLOG AND VISIBILITY FIXED OPERATING DAYS (CONSOLIDATED VESSELS) COMMENTS (2) Operating days (open) Fixed 352 424 276 143 Consolidated vessels Operating days (fixed) Revenues  Assumed available days 2022 – 2023:

  19. Slide 19: Refinancing Creates High Flexibility and Discretion over Capital Allocation

    Q3 2021 Earnings Presentation REFINANCING CREATES HIGH FLEXIBILITY AND DISCRETION OVER CAPITAL ALLOCATION BALANCE PRO FORMA SHEET DEBTAS DEVELOPMENT PER 30 JUNE 2021 (1) PRO FORMA DEBT STRUCTURE (YE 2021) # unenc. 3 / 5% 34 / 51% ships 357 MPC Container Ships ASA (“Parent”) -122 Bond 204 235 CIT 100

  20. Slide 20: Significant Capital Returns to Investors Expected Based on Distribution Plan

    Q3 2021 Earnings Presentation SIGNIFICANT CAPITAL RETURNS TO INVESTORS EXPECTED BASED ON DISTRIBUTION PLAN INDICATIVE SENSITIVITIES ON OPEN RATES (1) CAPITAL ALLOCATION SCENARIO 1: CURRENT MARKET RATES  Priority on returning capital to investors by way of using significant In USDm 566 609 Q4 2021 p

  21. Slide 21: Capitalizing on Solid Corporate Foundations and Favourable Fundamentals

    Q3 2021 Earnings Presentation CAPITALIZING ON SOLID CORPORATE FOUNDATIONS AND FAVOURABLE FUNDAMENTALS MARKET MOMENTUM & OUTLOOK CORPORATE PROFILE FUNDAMENTALS Short-Term Short-term Largest container tonnage provider for intra-regional trades with strong industry Well-positioned…  Historically stron

  22. Slide 22: Content

    Q3 2021 Earnings Presentation CONTENT 1. Company Highlights Q3 2021/YTD 2. Market Update 3. Company Outlook 4. Appendix 22

  23. Slide 23: Q3 2021 Financials

    Appendix Q3 2021 FINANCIALS BALANCE SHEET AS PER 30 SEPTEMBER 2021 PROFIT & LOSS Q3 2021 USDm 30.09.2021 30.06.2021 USDm Q3 2021 Q2 2021 Assets 1017.1 679.6 Operating revenues 118.5 65.8 Non-current assets 826.0 611.5 Gross profit 79.6 35.1 Current assets 191.1 68.1 EBITDA 73.6 31.9 thereof cash & c

  24. Slide 24: Significantly De-risking the Enterprise Value

    Appendix SIGNIFICANTLY DE-RISKING THE ENTERPRISE VALUE ENTERPRISE VALUE RISK MPCC FLEET – EV RISK (3) 1,008 1,289 246 A EBITDA backlog fixed USDm 842 Average # of vessels # 63 842 Fixed period Days 38,700 Fixed TCE USD/day 25,800 EV Risk w/o B Break-even TCE (6) planned EBITDA USD 201m EV Breakeven

  25. Slide 25: Fleet Employment Overview

    Appendix FLEET EMPLOYMENT OVERVIEW MPCC Current Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- No. Vessel Cluster Charterer Min / Max Fixture (USD/day) 21 21 22 22 22 22 22 22 22 22 22 22 22 1 AS RICCARDA 1500 gls HMM / Sold (1) Pool Rate(2) Nov-21 / Nov-21 (2) 2 AS FEDERICA 1300 g

  26. Slide 26: Fleet Employment Overview

    Appendix FLEET EMPLOYMENT OVERVIEW MPCC Current Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- No. Vessel Cluster Charterer Min / Max Fixture (USD/day) 21 21 22 22 22 22 22 22 22 22 22 22 22 26 AS CARLOTTA 2800 grd The Pasha Group 70,000 Aug-22 / Sep-22 (5) 27 AS PETRONIA 2500 HR g

  27. Slide 27: Fleet Employment Overview

    Appendix FLEET EMPLOYMENT OVERVIEW MPCC Current Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- No. Vessel Cluster Charterer Min / Max Fixture (USD/day) 21 21 22 22 22 22 22 22 22 22 22 22 22 51 AS SABRINA 1700 grd Seaboard 22,400(5,6) Jun-24 / Jul-24 52 AS ANITA 2000 gls Diamond Li

  28. Slide 28: Debt Structure - Details

    Appendix DEBT STRUCTURE - DETAILS Facility Type Outstanding Total capacity Interest rate (3) No of Repayment profile Maturity 30/09/21 vessels Bond Bond USD 204m USD 204m 475bps + L 37 Balloon Mar 2023 DNB Term loan USD 97.5m USD 97.5m 500bps + L 18 Planned repayment in Nov 21 (2) Jun 2023 CIT RCF U

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