MPC Container Ships Reports Q3 2023 Results

Highlights

• Strong operating revenues of USD 184.0 million (+14.9% YOY) including non-recurring items of USD 22.0 million from a commercial agreement for the early redelivery of AS Anne in July 2023
• EBITDA was USD 140.4 million, compared to USD 145.8 million in Q3 2022. Adj. for non-recurring items, EBITDA was USD 105.7 million (Q2 2022: USD 115.3 million)
• Following the sale of eight vessels in September and October 2023, non-cash effective Held for Sale Losses and Impairments of USD 26 million were recognized
• Profit for the period was USD 68.2 million. Adj. for non-recurring items, the profit for the period was USD 81.9 million compared to USD 94.0 million in Q3 2022
• Adj. EPS was USD 0.18 (Q3 2022: USD 0.21)
• Quarterly recurring dividend of USD 0.14 per share was declared
• Average TCE was USD 27,531 per day in Q3 2023, down from USD 30,476 in Q3 2022
• Fleet utilization was 98.7% (Q3 2022: 96.9%)
• Revenue backlog as at September 30, 2023 was USD 1.0 billion with an average remaining contract period of 1.7 years
• Subject to certain assumptions, FY 2023 financial guidance is increased to operating revenues of USD 690-700 million (old: USD 675-690 million) and EBITDA of USD 500-515 million (old: USD 490-510 million)

As at September 30, 2023, the Group’s fleet consisted of 65 vessels, with an aggregate capacity of approximately 138,302 TEU. Of these vessels, a total of nine were categorized as held for sale.

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

“We are pleased to present our strong third-quarter financial results, achieved during a period characterized by a continued softening of the market with declining charter rates and asset values. These results highlight our well-established market position, backed by a very strong balance sheet and robust charter backlog. Furthermore, we are pleased to note that our strategic actions addressing regulatory requirements have earned positive feedback from customers, and contributed to securing forward employment, thus reinforcing our balance sheet.

We continue to operate with a low leverage of 17% and with 67% of operating days fixed for 2024 we have considerable earnings visibility, despite market fluctuations. Importantly, our commitment to delivering strong shareholder returns remains steadfast, and for Q3 2023 the Board has declared a recurring dividend of USD 0.14 per share, totaling USD 62.1 million. This distribution will bring dividends year-to-date to USD 293 million, reflecting a compelling dividend yield of 43%.”

Regarding the strategic development of MPCC, Baack added:

“Our proactive strategic measures continue to align with our mission for fleet optimization to meet regulatory changes and enhance the efficiency of our vessels. In recent months, we have completed the sale of eight older, less efficient vessels. Combined with the acquisition of five eco-design vessels announced in the second quarter, these measures mark a decisive step forward in revitalizing our fleet. In our active fleet management, we carefully consider regulatory and operational aspects, such as CII-ratings and dry-docking schedules, and our recent initiatives underscore our commitment to ensuring continued operational excellence while further strengthening our financial position.

Moving forward, our focus remains on operating at a low financial leverage whilst balancing strategic initiatives with consistent shareholder returns, and fortifying shareholder value and long-term distribution capacity. We will continue to navigate the prevailing market thoughtfully, maintaining operational excellence and leveraging our strong competitive position to deliver enduring shareholder value.”

*Dividends per share (DPS) for Q3 2022 consisted of a recurring dividend of USD 0.16 per share and an event-driven dividend of USD 0.03 per share. On November 20, 2023, the Board of Directors declared a recurring dividend of USD 0.14 per share for Q3 2023.

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

Q3 2023 Earnings Call:

Constantin Baack, CEO, and Moritz Fuhrmann, CFO, will present the results in an earnings call today at 15:00 CET / 09:00 ET, 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 Q3 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://channel.royalcast.com/landingpage/hegnarmedia/20231121_3/

Alternatively, participants may dial in using the below information:

Pin code: 304648

Dial-in numbers:

NO: +47-21-956342
DK: +45 78768490
SE: +46-4-0682-0620
UK: +44-203-7696819
US: +1 646-787-0157

Toll-free number:

+44 (0) 800-090-3361

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.