MPC Container Ships ASA · OSL:MPCC
MPC Container Ships ASA — Q1 2022 Earnings Presentation
27 slides from MPC Container Ships ASA's earnings presentation, May 19, 2022
Slide 1: Q1 2022 Earnings Presentation
19th May 2022 Q1 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 | Q1 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 67 STRONG BALANCE SHE
Slide 5: Strong financial performance in Q1 2022 amid macro uncertainty
STRONG FINANCIAL PERFORMANCE IN Q1 2022 AMID MACRO UNCERTAINTY PERFORMANCE SUMMARY Strong financial performance amid macro uncertainty: Q1 22 Q1 21 » Solid utilization and further increased average TCE Revenue USD 143m 2,8x USD 51m » High fixing activity: 23 additional charters secured, including st
Slide 6: Macroeconomic and operational highlights Q1 2022
MACROECONOMIC AND OPERATIONAL HIGHLIGHTS Q1 2022 Market » Global economic growth revised downwards to 3.6% (2022 and 2023) » Robust international trade expected (2022: 5.0% and 2023: 4.4%) MACRO » » Congestions and disruptions prevail and may relocate from China to the US when Shanghai lockdown ease
Slide 7: Corporate highlights Q1 2022
CORPORATE HIGHLIGHTS Q1 2022 Governance & ESG » EGM approved the dividend authorization for the Board » Peter Frederiksen elected as a new Board Member, replacing Darren Maupin CORPORATE » » 2nd ESG Report was published in March 2022 and various measures are in execution supporting ESG strategy Join
Slide 8: High charter activity in Q1 2022 with 23 fixtures
HIGH CHARTER ACTIVITY IN Q1 2022 WITH 23 FIXTURES 1 Significant value generation by executing prudent multi -year charter strategy Avg. Rate (USD) Avg. Forward Fixture (months) 6 7 7 40 000 6 35 000 30 000 5 25 000 4 20 000 3 15 000 2 10 000 1 1 1 1 5 000 0 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 No
Slide 9: Content
CONTENT 1. Company Highlights 2. Market Update 3. Company Outlook 4. Appendix MPC Container Ships | Q1 2022 Earnings Presentation Agenda | 9
Slide 10: Tight capacity and record liner earnings
TIGHT CAPACITY AND RECORD LINER EARNINGS Freight Rate Index TEUm 4,000 300 Freight Rate Index (CCFI Comp.) +234% 250 Annual World Seaborne Container Trade (RHS) 3,132 3,000 213 200 2,000 150 939 100 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-20 Jan-21 Jan-
Slide 11: Elevated charter rates and prolonged periods
ELEVATED CHARTER RATES AND PROLONGED PERIODS Index SPOT TIME-CHARTER RATE INDEX (6-12M) CHARTER PERIODS AND REDELIVERY WINDOW 5,000 50 Avg. Period (1-5.1k TEU) 4,500 4,395 HARPEX Redelivery spread (1-5.1k TEU) 4,000 40 3,500 +413% 3,000 30 28.2 2,500 2,000 20 1,500 1,000 10 5.5 500 0 4.0 0.4 0 01.01
Slide 12: Periods and forward fixing wiped out availability
PERIODS AND FORWARD FIXING WIPED OUT AVAILABILITY kUSD / Day No of Vessels % 70 Forward Fixtures >30 Days 70 2,000 Start of the Year Vessel Availability Avg. Rate (RHS) 1,800 60 60 1,600 -69% 50 50 1,400 42 1,200 40 40 1,000 30 61 30 1,663 53 800 1,550 1,490 44 46 20 20 600 37 30 400 10 23 10 200 45
Slide 13: Ongoing congestion and disruptions
ONGOING CONGESTION AND DISRUPTIONS MTEU Standard Deviation from Average Value 9.5 9.2 4.5 Total Port Congestion Global Supply Chain Pressure Index 9.0 4.0 8.3 3.5 8.5 3.0 8.0 2.5 7.5 7.3 2.0 7.0 6.7 1.5 6.5 1.0 6.0 0.5 0.0 0.0 01-Jan-16 01-Jan-17 01-Jan-18 01-Jan-19 01-Jan-20 01-Jan-21 01-Jan-22 01-
Slide 14: Encouraging S/D outlook for regional trades
ENCOURAGING S/D OUTLOOK FOR REGIONAL TRADES % % 12 12 Supply growth (TEU capacity) Demand growth (TEU throughput) 10 10 8 7.1 8 6.1 6.4 5.8 5.9 6 6 5.2 4.6 1.4 3.2 1.8 4.4 4.0 4.1 0.4 4.1 3.5 3.5 3.7 4 4.5 4 1.1 4.4 4.3 1.4 2.2 3.7 3.9 1.6 3.3 2 2 2.9 6.4 5.4 0.9 2.3 0 0 3.4 0.2 -2 -1.9 -2 -1.8 -1.8
Slide 15: Content
CONTENT 1. Company Highlights 2. Market Update 3. Company Outlook 4. Appendix MPC Container Ships | Q1 2022 Earnings Presentation Agenda | 15
Slide 16: Operating days & fixed revenue – increased charter backlog and visibility
OPERATING DAYS & FIXED REVENUE 1 – INCREASED CHARTER BACKLOG AND VISIBILITY Fixed operating days & Revenue / EBITDA (consolidated vessels ) 2,3 Operating days (open) 3 Operating days (fixed) 3 Revenue backlog / USD 1.7bn / 1.4bn Proj. EBITDA 4 Contracted forward Revenue (act) 1327 Revenues (USD m) 5
Slide 17: Upcoming positions in FY22 & FY23
UPCOMING POSITIONS IN FY22 & FY23 Number of Fixed & Upcoming charters Current Period Charter Market 1 Open vessels Fixed vessels Cluster (TEU) Charter Rate (USD / day) Period 1.0k - 1.4k 28,000 ~ 3 yrs 4 6 7 1 18 2 1.5k 28,000 ~ 3 yrs 11 1.7k – 2.0k 39,000 ~ 3 yrs 2.5k 45,000 ~ 3 yrs 2.8k 48,000 ~ 3
Slide 18: Current market environment provides significant potential for sustainable distributions
CURRENT MARKET ENVIRONMENT PROVIDES SIGNIFICANT POTENTIAL FOR SU STAINABLE DISTRIBUTIONS TO INVESTORS Indicative sensitivities on open rates 1 Distribution plan SCENARIO 1: CURRENT MARKET RATES TCE 2: USD 42.425/day In USDm Priority on returning capital to investors by way of using significant 913 8
Slide 19: Well positioned to continue company strategy with disciplined capital allocation
WELL POSITIONED TO CONTINUE COMPANY STRATEGY WITH DISCIPLINED CA PITAL ALLOCATION Market Momentum & Fundamentals Corporate Profile Outlook Short-term Largest container tonnage provider for intra-regional Well-positioned » Historically strong container market, despite geopolitical trades with strong
Slide 20: Content
CONTENT 1. Company Highlights 2. Market Update 3. Company Outlook 4. Appendix MPC Container Ships | Q1 2022 Earnings Presentation Agenda | 20
Slide 21: Calculation of distribution based on Q1 results and resolved distribution plan
CALCULATION OF DISTRIBUTION BASED ON Q4 RESULTS AND RESOLVED DISTRIBUTION PLAN Distribution calculation for Q2 22 Comments Quarter for calculation Q1 221 » Recurring distribution in Q2 2022 to be based on adjusted (un-audited) Net operating revenue 136.5 Q1 2022 results EBITDA 137.7 Net profit 116.8
Slide 22: Q1 2022 Financials
Q1 2022 FINANCIALS Balance sheet as per 31 March 2022 Profit & Loss Q1 2022 USDm 31 Mar 2022 31 Dec 2021 USDm 31 Mar 2022 31 Dec 2021 Assets 915.5 1,033.4 Operating revenues 142.9 140.1 Non-current assets 805.0 803.0 Gross profit 122.7 117.0 Current assets 110.6 230.4 EBITDA 137.7 162.7 thereof cash
Slide 23: Cash flow bridge Q1 2022
CASH FLOW BRIDGE Q1 2022 Cash development Q1 2022 - in USD m Comments -99 1) Operating cash flow including received dividend from Bluewater JV 35 with USD +15m 1 vessel disposal 1 2) Vessel proceeds related to AS Palatia 2 3) Distribution to shareholders includes recurring (~USD 50m) and event-drive
Slide 24: 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 Q1 2022 at USD 212.5m » Good visibility on future cash flows due to high charter rates No of vessels (cons.) 2 60 31 and long periods Market value 3 2,381m 1,093m Book v
Slide 25: Fleet employment overview
FLEET EMPLOYMENT OVERVIEW MPCC Current May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- No. Vessel Cluster Charterer Min / Max Fixture (USD/day) 22 22 22 22 22 22 22 22 23 23 23 23 23 1 AS SERAFINA 1700 grd Shanghai Jin Jiang 29,500 Jun-22 / Jul-22 2 AS ALEXANDRIA 2000 gls Global Fee
Slide 26: Fleet employment overview
FLEET EMPLOYMENT OVERVIEW MPCC Current May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- No. Vessel Cluster Charterer Min / Max Fixture (USD/day) 22 22 22 22 22 22 22 22 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 27: Fleet employment overview
FLEET EMPLOYMENT OVERVIEW MPCC Current May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- No. Vessel Cluster Charterer Min / Max Fixture (USD/day) 22 22 22 22 22 22 22 22 23 23 23 23 23 51 CARPATHIA(2) 2800 gls Wan Hai Lines 16,000 The Pasha Group – 42,000 Mai-25 / Jun-25 52 AS FABIANA