MPC Container Ships reports Q4 2022 results

Highlights

• Strong operating revenues of USD 162.1 million (+14% YOY) and EBITDA of USD 127.0 million
• Adj. EBITDA excl. non-recurring items of USD 114.3 million, up 24% YOY
• Profit for the period of USD 103.6 million resulting in EPS of USD 0.23
• Quarterly recurring dividend of USD 0.15 per share
• Fleet utilization was 97.8% (Q4 2021: 97.6%)
• Average TCE of USD 31,279 per day in Q4 2022 (Q4 2021: USD 23,103 per day)
• FY 2023 financial guidance for revenues of USD 610-630 million and EBITDA of USD 420-450 million
• Revenue backlog of USD 1.5 billion and contract coverage for 86% of operating days in 2023

As at December 31, 2022, the Group’s fleet consisted of 62 vessels, with an aggregate capacity of approximately 134,270 TEU.

For 2023, management currently expects, subject to certain assumptions, operating revenues in the range of USD 610-630 million and EBITDA in the range of USD 420-450 million, including expected gain from the sale of AS Cleopatra and AS Carinthia, announced in December 2022 and January 2023, and the settlement received for the early redelivery of AS Carlotta in January 2023.

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

“We are pleased to report another strong quarterly result, rounding off the best financial year in MPCC’s history. This past year has brought a variety of challenges and opportunities, including a period with the highest charter rates in the history of container shipping as well as a rapid decline in freight- and charter rates throughout the second half of the year.

At MPCC, we focus on being agile and well-equipped to adjust our operations and strategy to fit with the prevailing market conditions. During the first half of 2022, we were able to capitalize on the strong markets by locking in long-term time charter contracts at very attractive rates, and at the end of the year we had contract coverage for 86% of operating days in 2023 and a charter backlog of USD 1.5 billion. We also continued to deleverage the company and currently operate with a low leverage of 16.1%.

Over the last few months, as part of our ongoing strategy for selective portfolio optimization, we have announced several new and accretive portfolio measures, which include continued divestments from our Bluewater joint venture and investments in younger, larger, scrubber-fitted vessels with existing charters contracts. These measures are not only earnings-accretive but also important efforts to maintain the long-term competitive position of MPCC.”

Commenting on the outlook for MPCC and the container shipping industry, Baack added:

“Vessel availability in the market is significantly reduced compared to historical averages. In addition, general improvements in the outlook for the global economy over recent months give reason for optimism in the medium-term outlook for container markets, in particular for intra-regional trades, for which the supply-demand balance appears considerably more encouraging than for the long-haul market.

With industry-low leverage and a robust charter backlog providing high earnings visibility for the coming year and beyond, MPCC remains in a very strong competitive position. In 2023, we will utilize our agile business model and financial flexibility to seize opportunities as they arise and will continue our focus on continuous fleet optimization while remaining highly committed to our policy for returning capital to our shareholders.”

*DPS for FY 2022 is comprised of recurring dividends per share and event-driven dividends per share declared during the period and excludes event-driven dividends of USD 0.07/share declared in January 2023 and paid out in February 2023.

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

Q4 2022 Earnings Call:

Constantin Baack, CEO, and Moritz Fuhrman, 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 has concluded.

The Q4 2022 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 live webcast can be accessed via the following link:
https://edge.media-server.com/mmc/p/tryrx9dn

For optimal viewing it is recommended to listen via computer speakers and to avoid the use of VPN. Please disable pop-up blockers to view the content in its entirety.

To participate via conference call, please register via the following link:
https://register.vevent.com/register/BI012e870359b641aca8f3c58b4556c1ed

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.