MPC Container Ships ASA · OSL:MPCC
MPC Container Ships ASA — Q1 2018 Earnings Presentation
27 slides from MPC Container Ships ASA's earnings presentation, May 31, 2018
Slide 1: Q1 2018 – Earnings Presentation
Q1 2018 – Earnings Presentation Oslo, 31 May 2018
Slide 2: Disclaimer
DISCLAIMER THIS PRESENTATION HAS BEEN PRODUCED BY MPC CONTAINER SHIPS ASA (“MPCC”) EXCLUSIVELY FOR INFORMATION PURPOSES. THIS PRESENTATION HAS NOT BEEN REVIEWED OR APPROVED BY ANY PUBLIC AUTHORITY OR STOCK EXCHANGE. THIS PRESENTATION MAY INCLUDE CERTAIN FORWARD-LOOKING STATEMENTS, ESTIMATES, PREDICT
Slide 3: Agenda
Q1 2018 – Earnings Presentation AGENDA 1) Introduction 2) Financials: Q1 2018 3) Fleet & Operational Update 4) Outlook 5) Appendix 3
Slide 4: MPC Container Ships ASA – At a Glance
MPC CONTAINER SHIPS ASA – AT A GLANCE INTRODUCTION CORPORATE STRUCTURE Established in April 2017 to take advantage of attractive market fundamentals – MPCC is now the #1 owner of feeder container ships up to 3,000 TEU globally Acquired 68 feeder containerships between 1,000 - 3,000 TEU at attrac
Slide 5: Developing a Market Leading Container Feeder Company
DEVELOPING A MARKET LEADING CONTAINER FEEDER COMPANY VESSEL ACQUISITIONS & CAPITAL MARKET ACTIVITIES 68 Fleet 4 7 1,100 development 23 14 1,300 (# vessels 6 1,500 acquired) 11 1,700 18 12 2,500 11 18 2,800 12 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 TEU cluster Funds April 2017 September 2017 Februar
Slide 6: Highlights Q1 2018 Financials and Operations
HIGHLIGHTS Q1 2018 Total revenue of USD 28.3m (up from USD 13.2m in Q4 2017) EBITDA of USD 7.6m (up from USD 0.3m in Q4 2017) Q1 2018 Net profit of USD 0.5m (up from USD – 2.1m in Q4 2017) Financials Operating cash flow of USD 4.8m Total assets of USD 628m, cash position of USD 76m Moder
Slide 7: Highlights Q1 2018 Corporate and Market Development
HIGHLIGHTS Q1 2018 Portfolio of 68 vessels acquired at ~40% discount to newbuilding parity USD 75m in equity and USD 100m in bond proceeds raised in Q1 2018 Post balance sheet date: Corporate Full listing at Main Board, Oslo Bors development Non-recourse debt facility of USD 50m (up to USD
Slide 8: Agenda
Q1 2018 – Earnings Presentation AGENDA 1) Introduction 2) Financials: Q1 2018 3) Fleet & Operational Update 4) Outlook 5) Appendix 8
Slide 9: Profit and Loss: Q1 2018 vs. Q4 2017
Financials: Quarterly Report Q1 2018 PROFIT AND LOSS: Q1 2018 VS. Q4 2017 CONSOLIDATED PROFIT AND LOSS NOTES: Q1 2018 Q1 2018 Q4 2017 The company has taken over 30 vessels in in ACTUAL ACTUAL Q1 2018 to grow its fleet in operation from 29 Operating revenues 28.3 13.2 vessels to 59 vessels Commissi
Slide 10: Balance Sheet: 31/03/2018 vs. 31/12/2017
Financials: Quarterly Report Q1 2018 BALANCE SHEET: 31/03/2018 VS. 31/12/2017 CONSOLIDATED BALANCE SHEET NOTES: 31 MARCH 2018 31 Mar. 2018 31 Dec. 2017 Balance sheet changes between 31/12/2017 ACTUAL ACTUAL and 31/03/2018 are influenced by vessel Assets 627.9 451.1 acquisitions and funding steps N
Slide 11: Cash Flow: Actuals Q1 2018
Financials: Quarterly Report Q1 2018 CASH FLOW: ACTUALS Q1 2018 CONSOLIDATED CASH FLOW NOTES Financing cash flow composition: Equity issues Net proceeds USD 72.9m Bond issue Net proceeds USD 97.5m 170.8 Investing cash flow composition: -264.5 Vessel purchase prices USD -319.2m / 30 vessels thereof d
Slide 12: Agenda
Q1 2018 – Earnings Presentation AGENDA 1) Introduction 2) Financials: Q1 2018 3) Fleet & Operational Update 4) Outlook 5) Appendix 12
Slide 13: Fleet Overview
Fleet and Operational Update FLEET OVERVIEW CURRENT FLEET OF 68 VESSELS FLEET COMPOSITION – BY TEU CLUSTER in USD m 4 Discount to new building parity 18 1,000 Upside to historical average 988 -40% 1,300 17 +56% 931 68 1,500 vessels 1,700 2,200/2,500 12 6 2,800 11 595 FLEET COMPOSITION – BY TRADE 2 3
Slide 14: Current Employment Status
Fleet and Operational Update CURRENT EMPLOYMENT STATUS CHARTER COVERAGE BY COUNTERPARTY1 CHARTER COVERAGE RATIO Maersk Line COSCO 8.2% CMA CGM Hapag-Lloyd 2.6% 97% Pool MSC 3.4% 2.9% Seaboard Sinokor 6.2% 2.6% USD 44.9% 19% 85% Wan Hai Lines Other 114m 9.5% 75% 18% 68% 9.8% 13% 9.8% 12% 55% 44% CHAR
Slide 15: Ownership and Trading Days
Fleet and Operational Update OWNERSHIP AND TRADING DAYS CONSOLIDATED VESSELS #vessels Days Trading ratio1 (end of period) 902 Q3 2017 96% 17 855 1,739 Q4 2017 24 95% 1,575 3,247 Q1 2018 52 96% 2,958 Ownership days Trading days 1 excluding dry docking days 15
Slide 16: Development of Charter Rates and OPEX
Fleet and Operational Update DEVELOPMENT OF CHARTER RATES AND OPEX CONSOLIDATED FLEET 1) Time Charter Equivalent (TCE): Time charter revenue divided by trading days during a reporting period. Trading days are ownership days net of commercial and technical off-hire days, including dry docking and rep
Slide 17: Agenda
Q1 2018 – Earnings Presentation AGENDA 1) Introduction 2) Financials: Q1 2018 3) Fleet & Operational Update 4) Outlook 5) Appendix 17
Slide 18: Strong Market Position in the Feeder Container Segment
STRONG MARKET POSITION IN THE FEEDER CONTAINER SEGMENT OWNERS OF FEEDER CONTAINER VESSELS TRENDS & CHALLENGES On-The-Water Non-operating owner TEU Consolidation in the container liner industry Rank Managing Owner Ships 1 MPC Container Ships 68 134,079 New regulations – IMO 2020 2 A.P. Moller 60
Slide 19: High Upside in Earnings Potential
HIGH UPSIDE IN EARNINGS POTENTIAL UPSIDE POTENTIAL IN RATES EBITDA POTENTIAL (FULLY DELIVERED & ANNUALIZED)2 TCE Normalized CBE1 EBITDA USD per day USD million p.a. 13,500 120+ 12,800 100+ 9,352 6,800 6,800 6,800 50+ Q1 2018 TCE 15-year avg rate Newbuilding parity rate Q1 2018 TCE 15-year avg rate N
Slide 20: MPC Container Ships ASA – Outlook
MPC CONTAINER SHIPS ASA – OUTLOOK OUTLOOK MPCC Vision: “Create the market leading container feeder company positioned to get maximum interest from the capital markets and offer unique and flexible service to its customers“ STRATEGY Strategy: Assets / Growth: Explore further asset acquisitions
Slide 21: Agenda
Q1 2018 – Earnings Presentation AGENDA 1) Introduction 2) Financials: Q1 2018 3) Fleet & Operational Update 4) Outlook 5) Appendix 21
Slide 22: Capital Market Snapshot
Appendix CAPITAL MARKET SNAPSHOT SHARE PRICE AND VALUATION TRADING INFORMATION NOK Shares Ticker MPCC Segment Oslo Stock Exchange, Oslo 56,00 Number of shares traded 1 000 000 ISIN NO0010791353 Share price (NOK) 900 000 54,00 Trading currency NOK 800 000 Shares outstanding 77,003,000 52,00 700 000 M
Slide 23: Market Update – Positive Momentum in Rates and Asset Values
Appendix MARKET UPDATE – POSITIVE MOMENTUM IN RATES AND ASSET VALUES IDLE FLEET (IN % OF EXISTING FLEET) TC RATES (IN USD/DAY) 16 18,000 1-3k TEU Total Fleet 1700 teu grd 14 16,000 2750 teu gls 12 14,000 10 12,000 11,300 8 10,800 10,000 6 4 8,000 2.2% 2 6,000 1.6% 0 4,000 2010 2011 2012 2013 2014 20
Slide 24: Supply and Demand Balance Improving in the Whole Container Shipping Market
Appendix SUPPLY AND DEMAND BALANCE IMPROVING IN THE WHOLE CONTAINER SHIPPING MARKET DEMAND: TRADE DEVELOPMENT ORDER BOOK AT HISTORIC LOW mTEU Exp. growth 2018 Other Regional 20% 70% Total market: 4.8% y/y fleet growth OB fleet ratio 220 Intra-Asia Intra-Regional: 5.1% 18% 60% 200 North-South Order b
Slide 25: Even More Favorable Supply/Demand Dynamics for the Feeder Segment
Appendix EVEN MORE FAVORABLE SUPPLY/DEMAND DYNAMICS FOR THE FEEDER SEGMENT Trade deployment of feeder tonnage (1-3k TEU) LIMITED ORDERING OF FEEDER TONNAGE AGEING FEEDER CONTAINER FLEET 64.6% 4% 3% Order book to fleet ratio (per teu cluster) 4% 1% 7% Vessels 14% 11% 2% 1-3k TEU 15% 23% > 15 years: 3
Slide 26: Fleet Employment 1,000 – 1,700 TEU
Appendix FLEET EMPLOYMENT 1,000 – 1,700 TEU VESSEL EMPLOYMENT DETAILS Rate No. Vessel Stake Cluster Charterer Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19 ($pd) 1 AS LAURETTA 100% 1000 gls SITC 8,000 2 AS LEONA 100% 1000 gls Heung-A 7,250 3 AS LAETITIA 100% 1000 grd CMA CGM 7,950 4 AS LAGUNA 100% 1000 grd Mae
Slide 27: Fleet Employment 2,000 – 2,800 TEU
Appendix FLEET EMPLOYMENT 2,000 – 2,800 TEU VESSEL EMPLOYMENT DETAILS Rate No. Vessel Stake Cluster Charterer Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19 ($pd) 39 AS ANGELINA 100% 2200 grd Seaboard 7,600 40 AS PAULINE 100% 2500 gls Evergreen 8,650 Take-over after TC 41 AS PENELOPE 100% 2500 gls Sinotrans 8,7