MPC Container Ships ASA reports Q3 and nine-month 2021 results

• Significantly improved operating revenues of USD 118.5 million and EBITDA of USD 73.6 million, up by 72% and 131%, respectively, compared to Q2 2021.
• Continued chartering activity combined with strategic vessel sales in Q3 2021 bring the EBITDA backlog to more than USD 840 million.
• The FY 2021 EBITDA guidance increased to USD 305-315 million.

Oslo, 18 November 2021

Q3 and nine-month 2021 results:

MPC Container Ships ASA ("MPCC" or the "Company", together with its subsidiaries the "Group") today published its unaudited financial report for the nine-month period ended 30 September 2021.

• Total revenues of USD 118.5 million in Q3 2021 (Q2 2021: USD 68.8 million).
• EBITDA of USD 73.6 million in Q3 2021 (Q2 2021: USD 31.9 million).
• Net profit of USD 46.5 million in Q3 2021 (Q2 2021: USD 12.0 million).
• Earnings per share of USD 0.11 in Q3 2021 (Q2 2021: USD 0.03).
• Utilization of 97.7% in Q3 2021 (Q2 2021: 96.9%).
• Average time charter equivalent ("TCE") of USD 19,656 per day in Q3 2021 (Q2 2021: USD 13,437 per day).
• Cash and cash equivalents of USD 76.5 million as at 30 September 2021.
• Equity ratio of 58.4% and leverage ratio of 34.8%.

As at 30 September 2021, the Group owns and operates 75 container vessels, whereof 67 are fully owned and 8 are operated in a joint venture.

The Company revises its guidance for FY 2021, with expected revenues in the range of USD 360-365 million and expected EBITDA in the range of USD 305-315 million. The guidance is subject to certain assumptions, including an estimated gain of USD 99 million related to nine vessel sales this year of which six vessel handovers still have to be finalized and executed in Q4 2021.

CEO Constantin Baack comments in relation to the announcement: “We continue to witness historically strong container markets with significant demand growth and high freight and charter rates. This is further amplified by global supply chain disruptions, a situation that we believe is unlikely to ease anytime soon. In this unique market environment charterers continue to compete for tonnage whilst only limited newbuilds are anticipated to be delivered during the next two to three years. We expect the favourable conditions for a tight containership market to continue going forward.”

In these market conditions, the Company has already executed 53 multi-year charter fixtures YTD and has executed on a number of portfolio measures, leading to a significant increase in charter revenues and a current EBITDA backlog of more than USD 840 million, thus improving the earnings visibility and cash generation going forward. 

“We have further been able to arbitrage the disparity between asset and charter values, by adding 12 vessels to the fleet during the first nine months of 2021, which were subsequently fixed at attractive charters or partly sold at a substantial premium. This follows our strategy of focusing on transactions that are accretive on a per share basis.

Simultaneously, we have executed a comprehensive refinancing and balance sheet optimization measures, as part of which the Company since July has also taken the opportunity to divest nine vessels at attractive prices. Once we have completed the balance optimization measures, which are expected finalized during Q4 2021, the Company will have reduced its cost of debt, deleveraged significantly and, most importantly, will enjoy a high degree of flexibility by having more than 50% of the fleet unencumbered. This also paves the way for substantial return of capital to investors in the quarters and years ahead.

Strategy and capital allocation going forward

In shipping, which is primarily a capital allocation business, we firmly believe that discipline and rational decisions are essential. MPCC will have a de-risked balance sheet and ample liquidity. Going forward the Company will be prioritizing returning capital to investors by paying out 75% of adjusted net profit as recurring distributions from operations. Additionally, event-driven distributions may be expected from proceeds such as vessel sales in form of extraordinary dividends and/or share buybacks. We will continue to adhere to the principles of transparent, active and rational capital allocation, as demonstrated since the inception of the Company.

We look forward to returning substantial parts of our earnings to investors and we expect to convene an Extraordinary General Meeting for early 2022 to propose a significant distribution in Q1 2022, and we expect to propose to pay dividends on a quarterly basis going forward”, CEO Constantin Baack added.

The above information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Q3 and nine-month 2021 earnings call and webcast:

The Company will host a webcast for the presentation of the Q3 2021 results commencing on Thursday 18 November 2021 at 15:00 hours CET / 09:00 hours EDT. The presentation will be made available on the Company’s webpage (https://www.mpc-container.com/en/financial-reports/) prior to the earnings call. There will be a Q&A session after the presentation.

The event is being streamed. It is recommended that you listen via your computer speakers. Please note that for optimal viewing, it is recommended not to use VPN, but instead to connect directly to the internet. Please disable pop-up blockers in order to view the content in its entirety.

The live webcast can be accessed through the following link:

https://edge.media-server.com/mmc/p/d7gi5x7g

Alternatively, participants may dial in to the earnings call using the below dial-in information:

Norwegian LocalCall Dial-In (Oslo): +47 23 96 02 64

US LocalCall Dial-In (New York): +1 (631) 510-7495

International/Toll Attendee Dial-In: +44 (0) 2071 928000

Conference ID: 3596379

Following the earnings call, a post-call recording of the webcast will be made available on the Company’s webpage (https://www.mpc-container.com/en/financial-reports/).

Further information and contact:

For further information, please contact ir@mpc-container.com.

About MPC Container Ships ASA:

MPC Container Ships ASA (ticker code "MPCC") is a leading container tonnage provider with a focus on the feeder segment below 5,000 TEU. Its main activity is to own and operate a portfolio of container ships serving intra-regional trade lanes on fixed-rate charters. The Company is registered and has its business office in Oslo, Norway. For more information, please see our website: www.mpc-container.com.

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Forward-looking statements:

This announcement includes forward-looking statements. Such statements are generally not historical in nature, and specifically include statements about the Company's plans, strategies, business prospects, changes and trends in its business, the markets in which it operates and its restructuring efforts. These statements are made based upon management's current plans, expectations, assumptions and beliefs concerning future events impacting the Company and therefore involve a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, which speak only as of the date of this news release. Consequently, no forward-looking statement can be guaranteed. When considering these forward-looking statements, you should keep in mind the risks described from time to time in the Company's regulatory filings and periodical reporting. The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for the Company to predict all of these factors. Further, the Company cannot assess the impact of each such factor on its business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement.