MPC Container Ships reports Q3 2022 results

Highlights:

• Significantly improved operating revenues of USD 160.1 million and EBITDA of USD 145.8 million, up by 35% and 98% year-on-year (YOY), respectively
• Adj. EBITDA excl. gains from vessel sales, of USD 115.3 million, up 52% YOY
• Profit for the period of USD 124.5 million, up 168% YOY, resulting in EPS of USD 0.28
• Recurring dividend of USD 0.16 per share declared for Q3 2022
• An event-driven dividend of USD 0.03 per share from the sale of vessel AS Laetitia will be paid alongside the recurring dividend
• Fleet utilization was 96.9% in Q3 2022 (Q3 2021: 97.7%)
• Average TCE of USD 30,476 per day (Q3 2021: USD 19,007 per day)
• FY 2022 guidance increased to revenues of USD 595-605 million and EBITDA of USD 500 million
• Revenue backlog of USD 1.7 billion and projected EBITDA backlog of USD 1.3 billion

Two vessels, AS Serafina and AS Laetitia, were sold in the quarter for USD 34.0 million and USD 16.2 million, respectively, resulting in a reported gain from vessel sales of USD 30.4 million in Q3 2022. As at September 30, 2022, MPC Container Ships owns and operates 63 container vessels, of which 58 are wholly owned and 5 are owned 50% through a joint venture. Furthermore, the Group has four newbuildings on order, all of which have charter contracts attached. Two of the newbuildings are expected delivered in Q1 2024 and two are expected delivered in H2 2024.

“The third quarter was another period of record earnings, supported by our robust backlog and continued high fleet utilization, which were secured during a period of high charter rates and strong demand. We further reduced our leverage and are pleased to announce another solid recurring dividend distribution for the quarter,” said MPC Container Ships CEO, Constantin Baack.

“These positive results reaffirm the value proposition of MPC Container Ships and serve as confirmation of our long-term capital allocation strategy. Year to date we have declared dividends of USD 440 million, standing by our commitment to return capital to our shareholders,” Baack continued.

Over the past months, there has been a softening in the container market amid global economic and geopolitical uncertainties. Commenting on the recent market developments, Baack said:

“The market began to normalize during the quarter, but rates remain elevated compared to pre-pandemic levels. Fixing activity has been low, and most new fixtures are for short-term employment, which shows the trend towards normalization. We are cautiously optimistic with regards to market development over the forthcoming quarters despite our expectation that charter durations will be shorter than in the past year. ”

“At MPC Container Ships, we will continue to place clear emphasis on returning capital to shareholders whilst performing well operationally and commercially, and selectively executing value-accretive portfolio optimization measures. Due to our strong backlog, we have high earnings visibility for the quarters and years ahead. Furthermore, we are in a solid financial state with industry-low leverage and a high number of unencumbered vessels. As a result, we are confident in our ability to continue to create value for our shareholders going forward while utilizing our financial flexibility to act on attractive market opportunities as they arise.”

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

Q3 2022 Earnings Call:
Constantin Baack, CEO of MPC Container Ships, will present the results for Q3 2022 in an earnings call today at 15:00 CET / 09:00 ET, followed by a live Q&A session. The earnings call can be accessed live via webcast or conference call and questions can be submitted orally or in writing.

The Q3 2022 report and presentation materials are attached to this release and available on the Company’s website (https://www.mpc-container.com/en/financial-reports/).

The live webcast can be accessed through the following link:

https://edge.media-server.com/mmc/p/b36hhvqd

To participate via conference call, please register through the following link:

https://register.vevent.com/register/BI242c059e316a4a438f0ec02014549332

After the live event, a recording of the earnings call will be available on demand on the Company’s website.

For optimal viewing:

It is recommended to listen via computer speakers and not to use VPN, but instead connect directly to the internet. Please disable pop-up blockers to view the content in its entirety.

For further inquiries, please 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.