MPC Container Ships ASA · OSL:MPCC
MPC Container Ships ASA — Q1 2019 Earnings Presentation
25 slides from MPC Container Ships ASA's earnings presentation, May 27, 2019
Slide 1: Q1 2019 – Earnings Presentation
Q1 2019 – Earnings Presentation Oslo, 27 May 2019
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
Slide 3: Agenda
Q1 2019 Earnings Presentation AGENDA 1) Highlights Q1 2019 2) Market Update 3) Outlook 4) Appendix 3
Slide 4: Highlights Q1 2019
HIGHLIGHTS Q1 2019 FINANCIAL PERFORMANCE Revenue: USD 46.7m (Q4 2018: USD 52.5m) EBITDA adj.1: USD 6.9m (Q4 2018: USD 9.7m) Op. Cash Flow adj.2: USD 7.0m (Q4 2018: USD 9.3m) OPERATIONAL PERFORMANCE Fleet utilization3: 90% (Q4 2018: 89%) Average TCE: USD 9,240 per day (Q4 2018: USD 9,991 pe
Slide 5: Highlights Q1 2019 – Fleet, Investment, Debt Capacity
HIGHLIGHTS Q1 2019 FLEET / INVESTMENT / DEBT CAPACITY 69 vessels with a total capacity of ~135,800 TEU owned by MPCC1 Due to a grounding the AS FORTUNA has been declared a constructive total loss in Q2 2019 IMO 2020 preparations on-going; first of 10 scheduled scrubber installations to commenc
Slide 6: Financials – Overview Q1 2019
FINANCIALS – OVERVIEW Q1 2019 BALANCE SHEET AS PER 31 MARCH 2019 PROFIT AND LOSS Q1 2019 31/03/2019 31/12/2018 Q1 2019 Q4 2018 Assets 704.7 722.1 Operating revenues 46.7 52.5 Non-current Assets 625.9 633.7 Gross Profit 7.2 11.8 Current Assets 78.8 88.4 EBITDA adjusted2 6.9 9.7 thereof Cash & Cash Eq
Slide 7: MPCC Fleet – Regional and Size Distribution
MPCC FLEET – REGIONAL AND SIZE DISTRIBUTION REGIONAL DEPLOYMENT HEAT MAP OF MPCC FLEET1) Number of vessels per cluster 2,800 gls 4 1,300 gls 2 1,300 grd 2 1,500 gls 1 Intra-Europe 2,500 HR grd 1 Intra-Asia 2,800 gls 8 1,700 grd 6 Latin America and TEU: 1,300 grd 8 Carribeans related 858,832 1,200 gl
Slide 8: MPCC Fleet – Upside Potential and Low Cash Break-Even
MPCC FLEET – UPSIDE POTENTIAL AND LOW CASH BREAK-EVEN HIGH UPSIDE TO NEWBUILDING PARITY INDUSTRY LOW CASH BREAK-EVEN1 in USDm USD per day 8,000 Upside to newbuilding parity 1,143 7,040 7,000 1,060 5,980 6,000 +83% 390 +137% 390 5,000 626 4,000 482 3,000 5,200 2,000 1,000 261 0 Implied fleet valuatio
Slide 9: Agenda
Q1 2019 Earnings Presentation AGENDA 1) Highlights Q1 2019 2) Market Update 3) Outlook 4) Appendix 9
Slide 10: Market Update – Supply and Demand Outlook
MARKET UPDATE – SUPPLY AND DEMAND OUTLOOK SUPPLY AND DEMAND BALANCE IN CONTAINER SHIPPING Container net fleet growth Container trade growth 10% 7,9% 7,9% 6,6% 5,9% 5,7% 5,6% 5,5% 7,8% 5% 4,4% 3,9% 5,1% 5,2% 3,8% 3,6% 4,2% 3,1% 3,4% 2,7% 2,0% 1,3% 0% 2011 2012 2013 2014 2015 2016 2017 2018 2019e 2020
Slide 11: Market Update – Supply and Demand Outlook
MARKET UPDATE – SUPPLY AND DEMAND OUTLOOK DEMAND: ESTIMATED TRADE GROWTH IN 2019 SUPPLY: ESTIMATED FLEET GROWTH IN 2019 4,9% 12,5% 4,1% 3,7% 3,6% 2,0% 2,7% 0,4% 0,5% -0,1% Transpacific Far East- Other North-South Intra- Total -2,0% Europe East-West regional <3,000 TEU 3-7,999 TEU 8-11,999 TEU >12,00
Slide 12: Market Update – Intra-Regional Container Trade
MARKET UPDATE – INTRA-REGIONAL CONTAINER TRADE INTRA-REGIONAL CONTAINER TRADE TOP 10 INTRA-REGIONAL OPERATORS1 Global Container Trade (2018) Chartering 196 million TEU Operator relationship 169 China COSCO Shipping Intra-Regional 29% 146 Maersk 42% Non-Mainlane E-W North-South 131 MSC Mainlane
Slide 13: Market Update – Current Market
MARKET UPDATE – CURRENT MARKET TC RATES (IN USD/DAY) SECONDHAND ASSET VALUES (IN USDM) 30,000 30 28,000 1,700 TEU grd 28 1,700 TEU grd (10 yrs) 2,750 TEU gls (10 yrs) 26,000 2,750 TEU gls 26 24,000 4,400 TEU gls 24 22,000 22 20,000 20 18,000 18 16,000 16 14,000 14 12 12.5 12,000 9,000 10 9.5 10,000
Slide 14: Market Update – Current Market
MARKET UPDATE – CURRENT MARKET IDLE FLEET IN % OF TOTAL CONTAINERSHIP FLEET VS. TC RATE BASKET 9% 12,000 Idle Fleet (LHS) Clarksons Average Containership TC rate (RHS) 8% 11,000 7% 10,000 Average TC rate (USD/day) 6% Percent of fleet in lay-up 9,000 5% ? 8,000 4% 7,000 3% 6,000 2% 1% 5,000 0% 4,000
Slide 15: Agenda
Q1 2019 Earnings Presentation AGENDA 1) Highlights Q1 2019 2) Market Update 3) Outlook 4) Appendix 15
Slide 16: Outlook – Simplified Supply/Demand Growth Analysis
OUTLOOK – SIMPLIFIED SUPPLY/DEMAND GROWTH ANALYSIS Projected trade growth ‘19-’20 Vessel trading patterns1 Required vessel capacity (Net) 2 Over-/Undersupply Trade lanes CAGR Volume Voyages p.a. (Assumed) Demand Supply Blended size # of vessels (% pa) (TEUm) (#) Utilization (TEUm) (TEUm)3 Tier A 2.1
Slide 17: Outlook – Industry Trends
OUTLOOK – INDUSTRY TRENDS Liner operators charter-in vessels to increase flexibility and reduce balance sheet requirements 100% Share of charter owner fleet 75% 50% 47% 45% 44% 50% 36% 28% 25% 0% 1995 2000 2005 2010 2015 2020 Changing market Why own a Shipping boom and Positioning as dedicated tonna
Slide 18: Outlook / Summary
OUTLOOK / SUMMARY COMPANY – PERFECTLY POSITIONED Largest feeder containership owner globally HIGHLY PROMSING OUTLOOK FOR MPCC Focused capital allocation and disciplined growth Low financial leverage and industry-low cash break-even Strong balance sheet Significant operational leverage on i
Slide 19: Agenda
Q1 2019 Earnings Presentation AGENDA 1) Highlights Q1 2019 2) Market Update 3) Outlook 4) Appendix 19
Slide 20: Appendix: Financials – Development of Charter Rates and Utilization
APPENDIX: FINANCIALS – DEVELOPMENT OF CHARTER RATES AND UTILIZATION CONSOLIDATED FLEET (61 VESSELS) No. of consolidated vessels 52 58 61 61 61 61 (end of period) Trading ratio 96% 92% 93% 89% 92% 90% 10,230 9,841 9,991 9,911 9,352 9,240 5,238 5,114 5,274 4,927 5,049 4,810 TCE Opex Q1 2018 Q2 2018 Q3
Slide 21: Appendix: Market Update – Favourable Fundamentals for MPCC Fleet
APPENDIX: MARKET UPDATE – FAVOURABLE FUNDAMENTALS FOR MPCC FLEET PROJECTED GROWTH IN 2019 AND DEPLOYMENT OF MPCC FEEDER SIZES 1,000 TEU 1,300 TEU 1,500 TEU 1,700 TEU 2,500 TEU 2,800 TEU (grd/gls) (grd/gls) (gls) (grd/gls) (grd/gls) (grd/gls) Number of ships (total: 68) 4 16 6 12 12 18 Intra-Asia 4,6
Slide 22: Appendix: Share Information
APPENDIX: SHARE INFORMATION SHARE PRICE & VALUATION NOK Shares Number of shares traded Share price (NOK) 60 2,500,000 55 2,000,000 50 45 1,500,000 40 1,000,000 35 500,000 30 25 0 05/2017 07/2017 09/2017 11/2017 01/2018 03/2018 05/2018 07/2018 09/2018 11/2018 01/2019 03/2019 Ticker MPCC Ticker MPCBV0
Slide 23: Appendix: Corporate Structure
APPENDIX: CORPORATE STRUCTURE SIMPLIFIED CORPORATE STRUCTURE 100% 100% 100% 80% 50% Bond financed Bank financed Bank financed JV / Bank financed Unencumbered (recourse) (non-recourse) (non-recourse) (non-recourse) 2 vessels 39 vessels 10 vessels 9 vessels 8 vessels 68 feeder containerships 23 Note:
Slide 24: Appendix: Fleet Employment 1,000 – 1,700 TEU
APPENDIX: FLEET EMPLOYMENT 1,000 – 1,700 TEU VESSEL EMPLOYMENT DETAILS No. Vessel Cluster Charterer Rate ($pd) Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 1 AS LAURETTA 1000 gls Macrocean International Shipping Ltd. 7,500 2 AS LEONA 1000 gls Sinotrans 8,000 3 AS LAETITIA 1000 grd CMA CGM 6,050 4
Slide 25: Appendix: Fleet Employment 2,200 – 2,800 TEU
APPENDIX: FLEET EMPLOYMENT 2,200 – 2,800 TEU VESSEL EMPLOYMENT DETAILS No. Vessel Cluster Charterer Rate ($pd) Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 40 AS PAULINE 2500 gls CMA CGM 10,500 41 AS PENELOPE 2500 gls MCC 8,200 42 AS PATRICIA 2500 grd SM Line 8,700 43 AS PETULIA 2500 grd Seaboard