MPC Container Ships ASA reports Q3 and nine-month 2019 results

  • Q3 2019 operating revenue USD 46.0 million. Q3 YTD 2019 operating revenue USD 140.5 million.
  • Q3 2019 EBITDA USD 4.5 million. Q3 YTD 2019 EBITDA USD 17.3 million.
  • Q3 2019 net loss USD 11.4 million. Q3 YTD 2019 net loss USD 25.6 million.
  • Equity ratio 59.3% as of 30 September 2019.

Oslo, 29 November 2019

Q3 and nine-month 2019 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 2019. The Group reports a net loss of USD 11.4 million for Q3 2019.

  • Total revenue was USD 46.0 million in Q3 2019 (Q2 2019: USD 47.8 million).
  • EBITDA was USD 4.5 million in Q3 2019 (Q2 2019: USD 8.1 million).
  • Utilization was 92.9% in Q3 2019 (Q2 2019: 93.0%). Considering off-hire related to retrofitting works, repositioning of these vessels and other technical off-hire, Q3 2019 utilization was 85.1% (Q2 2019: 90.9%).
  • Average time charter equivalent (“TCE”) was USD 8,718 per day in Q3 2019 (Q2 2019: USD 9,071 per day).
  • Cash and cash equivalents stood at USD 43.5 million as of 30 September 2019. As of the same date, the Group has an equity ratio of 59.3% and a leverage ratio of 38.2%.

As of 30 September 2019, the Group owns 68 container vessels, whereof 60 are fully owned and 8 are operated in a joint venture.

CEO Constantin Baack comments in relation to the announcement: “Despite a continuously challenging market environment burdened by a panoptic slowdown in world economic activity, the container shipping charter rate environment has stabilised in recent months. The feeder segment witnessed a moderate supply-demand rebalancing in Q3 2019, albeit with a more hesitant growth trajectory compared to larger vessel segments.

MPC Container Ships is well-prepared for IMO 2020. The fuel-changeover programme is nearing completion and the scrubber installations are in execution in H2 2019, as is evident from the impact on the company’s utilization and results. Six out of ten vessels selected for exhaust gas cleaning system installation have been successfully retrofitted. We expect remaining four vessels to be equipped with scrubbers by end-of 2019 in accordance with the planned project schedule.

We foresee attractive opportunities and charter rate recovery potential in a IMO 2020 environment. Prominent factors supporting improved market conditions are scrubber programme delays reaching well into 2020, increased ship recycling due to both the sulphur emissions cap regulations and ballast water management system code, and a continued low supply growth. In such a scenario, MPC Container Ships is well-positioned to capture the expected benefits”.

Q3 and nine-month 2019 earnings call and webcast:

The Company will host a webcast for the presentation of the Q3 2019 results commencing on 2 December 2019 at 16:00 hours CET / 10:00 hours EST. The presentation will be made available on the Company’s webpage (www.mpc-container.com/#IR) from 12:00 hours CET / 06:00 EST. 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://digital.vevent.com/rt/mpc-container/index.jsp?seid=34

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

Norwegian LocalCall Dial-In (Oslo): +4723960264

US LocalCall Dial-In (New York): +16315107495

International/Toll Attendee Dial-In: +44(0)2071928000

Conference ID: 2375359

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/).

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

Further information and contact:

ir@mpc-container.com

About MPC Container Ships ASA:

MPC Container Ships ASA (ticker code “MPCC”) was formed in April 2017. Its main activity is to own and operate a portfolio of container ships with a focus on the feeder segment between 1,000 and 3,000 TEU. The Company is registered and has its business office in Oslo, Norway. For more information, please see our webpage: www.mpc-container.com