Mpc Container Ships Asa · OSL:MPCC
Mpc Container Ships Asa — Q4 2023 Earnings Presentation
35 slides from Mpc Container Ships Asa's earnings presentation, Feb 27, 2024
Slide 1: Q4 2023 Earnings Call
February 27, 2024 Q4 2023 EARNINGS CALL Constantin Baack, CEO Moritz Fuhrmann, CFO
Slide 2: Agenda
AGENDA 01 Q4 AND FY 2023 IN REVIEW 02 MARKET UPDATE 03 COMPANY OUTLOOK MPC Container Ships | Q4 2023 Earnings Presentation | 2
Slide 3: FY 2023 Highlights
FY 2023 HIGHLIGHTS Operating Revenues Dividends per Share Robust financial and operational performance with 711 0.59 0.57 utilization of 98.1% and strong revenues and EBITDA. 617 0.44 385 USD 293m dividends distributed in 2023, reflecting a dividend yield of 43%. Additional USD 57.7m dividend 0.11 0
Slide 4: Robust Performance in Q4 Rounding Off a Strong 2023
ROBUST PERFORMANCE IN Q4 ROUNDING OFF A STRONG 2023 PROFIT OR LOSS FINANCIAL KPIs Q4 2023 Q4 2022 FY 2023 FY 2022 Q4 2023 Q4 2022 FY 2023 FY 2022 Gross Revenues USD m 152.8 162.1 711.3 616.8 Adj. EPS USD 0.18 0.21 0.76 0.82 Adj. EBITDA 1 USD m 101.5 114.3 428.5 451.5 DPS USD 0.13 0.15 0.64 1.03 Adj.
Slide 5: Strong Operational Performance & Significant Fleet Enhancements
STRONG OPERATIONAL PERFORMANCE & SIGNIFICANT FLEET ENHANCEMENTS » Joint retrofit programs with charterers expanded − Total retrofit investment volume of USD 23m significantly improves fleet WTW GHG EMISSIONS INTENSITY CREW RETENTION efficiency − Measures include hydrodynamic optimization of the hull
Slide 6: Continuous Active Portfolio Management
CONTINOUS ACTIVE PORTFOLIO MANAGEMENT CHARTERING UPDATE 1 # DATE VESSEL TEU CHARTERER CHARTER RATE PERIOD MIN / MAX (USD /D) (MONTHS) 2 1 Jan 2024 AS FLORETTA 1300 grd Crowley 16,800 16 – 18 Mar 26 / May 26 » 11 new fixtures since last reporting, incl. strategic 2 Jan 2024 AS FABRIZIA 3 1300 grd Kin
Slide 7: Cash Flow Bridge FY 2023
CASH FLOW BRIDGE FY 2023 CASH DEVELOPMENT COMMENTS USD million 1) Operating cash flow » Dividend of USD 41m received from Bluewater JV -2.9 » Net Revenues of USD 664m received in 2023 -193.0 2) Investing cash flow 142.0 -167.4 » Class renewals, vessel upgrades and regulatory investments of USD 48.3m
Slide 8: Providing Significant Shareholder Returns
PROVIDING SIGNIFICANT SHAREHOLDER RETURNS DIVIDEND DISTRIBUTIONS RECURRING EVENT-DRIVEN PERIOD TOTAL USD million 790.4 DPS (NOK) DPS (NOK) 57.7 Q4 2021 0.95 0.95 Event-driven Recurring 62.1 Q1 2022 1.30 3.30 4.60 97.6 66.6 31.1 Q2 2022 1.57 0.42 1.98 66.6 Q3 2022 1.58 0.30 1.87 84.3 66.6 13.3 Q4 202
Slide 9: Agenda
AGENDA 01 Q4 AND FY 2023 IN REVIEW 02 MARKET UPDATE 03 COMPANY OUTLOOK MPC Container Ships | Q4 2023 Earnings Presentation | 9
Slide 10: Macroeconomic Outlook Improved but Below Average
MACROECONOMIC OUTLOOK IMPROVED BUT BELOW AVERAGE GDP GROWTH & MACROECONOMIC OUTLOOK WORLD TRADE & CONSUMER PRICES Percent Percent 7 9 World GDP Growth 8.7 World Trade Volume (Goods and Services) 6.3 6 2000-19 Avg. GDP Growth 8 World Consumer Prices 5 7 6.8 4 3.8 Ø 3.8 3.6 3.5 6 5.8 3 3.2 3.1 3.1 3.2
Slide 11: Freight Rates and Charter Rates Experienced an Upward Trend
FREIGHT RATES AND CHARTER RATES EXPERIENCED AND UPWARD TREND CONTAINER TRADE AND FREIGHT RATES CHARTER RATES AND SECOND-HAND PRICES Freight Rate Index Billion TEU-miles HARPEX 2nd Hand Price Index 4,000 Freight Rate Index (CCFI Comp.) 1,100 5,000 140 2nd Hand Price Index Freight Rate Index (CCFI Com
Slide 12: Market Fundamentals Cannot Explain the Rate Situation
MARKET FUNDAMENTALS CANNOT EXPLAIN THE RATE SITUATION DEMAND/SUPPLY DEVELOPMENT TOTAL MARKET FLEET EXPANSION HEAVILY SKEWED TOWARDS LARGER SEGMENTS % (OB/fleet) % 90 10 High OB/fleet, Supply growth (Net fleet growth) 80 relatively young fleet 8.2 Demand growth (Container trade growth) 8 7.2 70 5.9 0
Slide 13: Red Sea Crisis – Houthi Attacks Drive TEU-Mile Demand
RED SEA CRISIS – HOUTHI ATTACKS DRIVE TEU-MILE DEMAND DIVERSION AROUND THE CAPE OF GOOD HOPE SUEZ CANAL CONTAINERSHIP TRANSITS (OCT 23 – FEB 24) -65% 147 Period of Houthi attacks » Containership transits are down Transits 91% as of mid Feb. vs mid Dec. Rotterdam » 620 containerships are now being re
Slide 14: Agenda
AGENDA 01 Q4 AND FY 2023 IN REVIEW 02 MARKET UPDATE 03 COMPANY OUTLOOK MPC Container Ships | Q4 2023 Earnings Presentation | 14
Slide 15: Balancing Fleet Renewal with Shareholder Returns and Low Leverage
BALANCING FLEET RENEWAL WITH COMMITMENT TO SHAREHOLDER RETURNS A ND LOW LEVERAGE PORTFOLIO & OPERATIONS » Continuation of Fleet Renewal & Optimization » Maintain High Utilization » Focus on Cost Control » Operational Excellence BALANCE SHEET MANAGEMENT » Reduction of the Fleet’s Carbon Footprint » H
Slide 16: Strategic Execution – Continuous Development of the Company
STRATEGIC EXECUTION – CONTINUOUS DEVELOPMENT OF THE COMPANY Q3 2021 Q4 2023 Conventional Eco Conventional Continued portfolio optimization towards younger Conventional Eco 1 Conventional FLEET COMPOSITION 1 66 100% 32% 68% 60 and more fuel-efficient vessels. Extensive retrofit program in process. DI
Slide 17: Fleet Renewal Strategy in Execution
FLEET RENEWAL STRATEGY IN EXECUTION VESSEL SALES VS. ACQUISITIONS 2022 & 2023 FLEET RENEWAL AND OPTIMISATION INVESTMENTS NEWBUILDINGS » 2x 5,500 TEU and 3x methanol DF 1,300 TEU vessels with emission savings potential of up to 95% 2 Sales Acquisitions » Construction CAPEX fully de-risked by contract
Slide 18: Robust Backlog Provides Forward Visibility
ROBUST BACKLOG PROVIDES FORWARD VISIBILITY FIXED OPERATING DAYS AND REVENUE / PROJECTED EBITDA 1, 2, 3 Revenue backlog 2, 3 / Proj. EBITDA 2 ,3, 4 USD 1.0bn / 0.7bn Contracted forward revenues (USD m) 1, 3, 5 428 207 97 259 Contracted forward TCE (USD per day) 1, 3, 5, 6 27,057 28,469 28,710 Availab
Slide 19: Strong Value Proposition with Attractive Implied Yield
STRONG VALUE PROPOSITION WITH ATTRACTIVE IMPLIED YIELD Further Upside Potential CURRENT ENTERPRISE VALUE FULLY COVERED OPEN RATE SENSITIVITY In USDm ~830 In USDm 506 493 235 222 421 388 Recycling Value 5 150 117 241 6 27 37 2024 2025 2024 2025 641 647 657 Operating Revenues 8 Net Profit 9 10y Histor
Slide 20: Outlook & Summary
OUTLOOK & SUMMARY Positive financial and operational performance and continuation of our low leverage strategy. Executing on fleet renewal strategy, enhancing value whilst remaining committed to shareholder returns. Container market improved towards end-2023 and early 2024, driven largely by the Red
Slide 21: Questions & Answers
QUESTIONS & ANSWERS Q4 2023 Earnings Presentation | 21
Slide 22: Appendix
APPENDIX MPC Container Ships | Q4 2023 Earnings Presentation | 22
Slide 23: Operating with Industry-Low Leverage and a Flexible Balance Sheet
OPERATING WITH INDUSTRY-LOW LEVERAGE AND A FLEXIBLE BALANCE SHEET TRADING FLEET NEWBUILDINGS COMMENTS 399 » Continuation of de-levering the balance sheet with further envisaged debt repayments towards the end of 2023 ~292 ~285 259 Unifeeder NB » No significant debt maturities up until 35 233 2027 39
Slide 24: Overview of Financing Facilities
OVERVIEW OF FINANCING FACILITIES Facility Type Outstanding 31/12/23 Total capacity Interest rate # Repayment profile Maturity HCOB RCF USD 0m USD 100m 295bps + SOFR 14 Commitment will be reduced starting in Mar 2024 – Dec 2027 Dec. 2027 Pre- & Post- 48x USD 1.1m + 8x USD 2.4m, 4x USD 1.4m, followed
Slide 25: Calculation of Recurring Dividend for Q4 2023
CALCULATION OF RECURRING DIVIDEND FOR Q4 2023 USD million Q4 2023 (unaudited) 1 Operating revenue 152.8 EBITDA 93.6 Profit for the period 35.7 Adjustments Loss from vessel sales (1.2) CAPEX disposal loss (6.6) Impairment (34.9) Adjusted profit for the period 78.5 No. of shares outstanding 443.7 Adju
Slide 26: Condensed Consolidated Statement of Profit or Loss
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS In USD thousands Q4 2023 Q4 2022 FY 2023 FY 2022 (unaudited) (unaudited) (unaudited) (audited) Operating revenues 152,830 162,059 711,282 616,768 Commissions (4,364) (4,819) (20,000) (17,127) Vessel voyage expenditures (1,303) (3,648) (9,898) (13,76
Slide 27: Consolidated Statement of Financial Position
CONSOLIDATED STATEMENT OF FINANCIAL POSITION Dec 31, 2023 Dec. 31, 2022 in USD thousands Dec. 31, 2023 Dec. 31, 2022 in USD thousands (unaudited) (audited) (unaudited) (audited) ASSETS EQUITY AND LIABILITIES Non-current Assets Equity Vessels 691,291 745,873 Share capital 48,589 48,589 Newbuildings 7
Slide 28: Condensed Consolidated Statement of Cash Flow
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW in USD thousands Q4 2023 Q4 2022 FY 2023 FY 2022 in USD thousands Q4 2023 Q4 2022 FY 2023 FY 2022 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Profit (loss) before income tax 36,179 104,299 325,754 436,1
Slide 29: Charter Backlog and Counterparties
CHARTER BACKLOG AND COUNTERPARTIES REGIONAL 6% TOP 10 » 84% of revenue backlog with top 10 liners and cargo-backed 1 CARGO-BACKED 21% 63% » 1.7 years average remaining contract duration TOP 20 10% 1 Ranking based on list of 100 largest container/liner operators by Alphaliner MPC Container Ships | Q4
Slide 30: Fleet Employment Overview
FLEET EMPLOYMENT OVERVIEW 5 MPCC Current No Vessel Cluster Charterer Remark Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Min / Max Fixture (USD/day) 1 AS PETRA(1) 2500 HR grd Seaboard 28,800(2) Feb-24 / Mar-24 2 AS ALEXANDRIA 2000 gls Global Feede
Slide 31: Fleet Employment Overview
FLEET EMPLOYMENT OVERVIEW 6 MPCC Current No Vessel Cluster Charterer Remark Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Min / Max Fixture (USD/day) 26 AS CALIFORNIA 2800 gls MSC 17,750 Sep-24 / Nov-24 27 AS ANNE 2200 grd eco CMA CGM ECO 17,250 Se
Slide 32: Fleet Employment Overview
FLEET EMPLOYMENT OVERVIEW 5 MPCC Current No Vessel Cluster Charterer Remark Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Min / Max Fixture (USD/day) 51 AS FLORETTA 1300 grd Crowley 16,800 Mar-26 / May-26 52 AS FELICIA 1300 grd ZISS 24,000 Mar-26 /
Slide 33: References Slide
REFERENCES SLIDE SLIDE 17: FLEET RENEWAL STRATEGY IN EXECUTION 1. Total days are defined as the cumulative number of days until the end of the useful life of the vessels based on 25 years. Thus, due to the younger age of vessels acquired than sold, the total cumulative days until the end of the usef
Slide 34: 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 35: MPC Container Ships
MPC —_ CONTAINER SHIPS
Mpc Container Ships As — Q4 2023 Earnings Presentation on 6ix