MPC Container Ships reports Q4 2022 results

28 Feb 2023 07:00 CET

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.”


Key figures Q4 2022 Q4 2021 FY 2022 FY 2021
(unaudited)(unaudited)(unaudited)(audited)
Operating revenues USD m 162.1 142.5 616.8 384.7
EBITDA USD m 127.0 162.7 522.7 290.4
Adjusted EBITDA USD m 114.3 92.3 451.5 218.3
Profit for
the period USD m 103.6 127.9 435.0 189.9
Adjusted profit
for the period USD m 91.0 57.5 364.3 115.4
Operating cash flow USD m 125.4 98.6 436.5 212.2
EPS USD 0.23 0.29 0.98 0.46
Adjusted EPS USD 0.21 0.13 0.82 0.26
DPS* USD 0.15 0.11 1.03 0.11
Total ownership days 5,336 5,904 21,671 21,942
Total trading days 5,079 5,507 20,590 20,904
Utilization 97.8% 97.6% 97.9% 97.9%
Average TCE per day 31,279 23,103 28,625 16,887
Average OPEX per day 6,937 5,548 6,363 5,379
Leverage ratio 16.1% 22.4% 16.1% 22.4%

*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.

***
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.

More information:
Access the news on Oslo Bors NewsWeb site

583731_MPCC_Q4 2022_Financial_Report.pdf
583731_MPCC Q4 2022 Earnings Call Presentation.pdf