MPC Container Ships reports Q2 and first-half 2023 results

Second quarter highlights

• Strong operating revenues of USD 194.4 million (+28.1% YOY) including non-recurring items of USD 32.4 million from the commercial agreement for the early redelivery of AS Nadia in June 2023
• EBITDA was USD 142.7 million, up from USD 111.8 million in Q2 2022. Adj. for non-recurring, EBITDA was USD 110.5 million (Q2 2022: USD 111.8 million)
• Average TCE was USD 29,668 per day in Q2 2023, up from USD 28,071 in Q2 2022
• Profit for the period was USD 101.5 million. Adj. for non-recurring items, the profit for the period was USD 87.7 million compared to USD 90.1. million in Q2 2022
• EPS was USD 0.23 and Adj. EPS was USD 0.20 (Q2 2022: USD 0.20)
• Quarterly recurring dividend declared of USD 0.15 per share
• Fleet utilization was 97.4% (Q2 2022: 98.2%)
• Revenue backlog of USD 1.2 billion and contract coverage for 94% of remaining operating days in 2023
• MPCC continued its fleet optimization efforts including the acquisition of five econ-design vessels, sale of its final joint venture-owned vessels and sale of wholly-owned vessel, AS Emma
• Upwards revision of financial guidance for 2023 to operating revenues of USD 675-690 million and EBITDA of USD 490-510 million

As at June 30, 2023, the Group’s fleet consisted of 63 vessels, with an aggregate capacity of approximately 136,890 TEU.

Subject to certain assumptions, management has increased its 2023 financial guidance to operating revenues in the range of USD 675-690 million (old: USD 610-630 million) and EBITDA in the range of USD 490-510 million (old: USD 420-450 million).

Commenting on the results, CEO of MPC Container Ships, Constantin Baack said:

“We are pleased to present our strong second quarter financial results. Our consistent positive performance, despite a gradual decline in the container market, is a testament to our robust backlog, successful chartering activity, and sustained good operational performance. It also underscores the effectiveness of our continuous prudent capital allocation strategy. Utilization levels remain high, and we continue to operate with low leverage and substantial visibility into contracted cash flows.

We continue to distribute dividends to our shareholders in line with our distribution policy. For the second quarter, the Board declared a dividend of USD 0.15 per share, totaling USD 66.6 million. This brings dividends paid year to date to USD 231 million, reflecting a dividend yield of 34% for the year so far.

Our agile operations and portfolio management, supported by our flexible balance sheet, have also enabled us to capitalize on attractive market opportunities. In June, we announced the acquisition of five modern eco-vessels, adding younger and highly efficient tonnage to our fleet with premium earning capabilities. We also completed the sale of our final two joint venture-owned vessels, Cardonia and Cimbria and signed an agreement for the sale of the AS Emma, with handover planned for November this year. These strategic efforts are aligned with our fleet renewal and optimization strategy, aimed at enhancing shareholder value and supporting long-term distribution capacity whilst continuing to with low financial leverage.

We have also successfully secured financing for the 5,500 TEU eco-design newbuilding project and recent eco-vessel acquisitions at attractive terms, preserving our strong liquidity position and ensuring continued balance sheet flexibility.”

Regarding the strategic outlook for MPCC, Baack added:

“Given the prevailing uncertainty in the container market outlook, our focus remains on maintaining prudent capital allocation and enhancing long-term shareholder value. We remain committed to our distribution policy and with our strong market position and robust financial situation, we are in an ideal position to take advantage of the prevailing market and to balance strategic and selective fleet optimization efforts with continued attractive shareholder returns.

In addition to maintaining an operationally and commercially well performing fleet, our priority in the coming months is to preserve our balance sheet flexibility while continuing to invest into efficiency improvements. Additionally, we will evaluate potential sales and selectively also acquisitions that are accretive to future earnings and distribution capacity.”

*Dividends per share (DPS) consists of the recurring dividends per share and any event-driven dividends per share declared for the period. A recurring dividend of USD 0.15 per share for Q2 2023 was resolved by the Board of Directors on August 21, 2023.

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

Q2 2023 Earnings Call:
Constantin Baack, CEO, and Moritz Fuhrmann, CFO, will present the results in an earnings call today at 15:00 CEST / 09:00 EST, followed by a Q&A session. The earnings call can be followed live via webcast or conference call and questions can be submitted orally or in writing.

A recording of the earnings call will be available on demand at the Company's website after the live event.

The Q1 2023 report and presentation materials are attached to this release and available at the Company’s website at https://www.mpc-container.com/en/financial-reports/

The webcast can be accessed through the following link: https://edge.media-server.com/mmc/p/xanuzhuj

To participate via conference call, please register through the following link: https://register.vevent.com/register/BId5b4dd1da9d74d6db43a8338e2be3bb6

For more information, contact:
ir@mpc-container.com

About MPC Container Ships

MPC Container Ships ASA (ticker code "MPCC") is a leading container tonnage provider focusing on small to mid-size container ships. 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 visit 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.