Home Factor company MPC Container Ships ASA Reports Third Quarter and First Nine Months 2021 Results

MPC Container Ships ASA Reports Third Quarter and First Nine Months 2021 Results

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  • Significant improvement in operating income from $ 118.5 million and EBITDA of $ 73.6 million, up 72% and 131%, respectively, from the second quarter of 2021.
  • The continued charter business combined with strategic vessel sales in the third quarter of 2021 brings the EBITDA backlog to over $ 840 million.
  • EBITDA forecasts for fiscal 2021 have increased to 305 USD-315 million.

Oslo, Norway, November 18, 2021 / PRNewswire / –

Q3 and 9 months 2021 results:

MPC Container Ships ASA (“MPCC” or the “Company”, together with its subsidiaries the “Group”) today released its unaudited financial report for the nine month period ended September 30, 2021.

  • Total revenues of $ 118.5 million in Q3 2021 (Q2 2021: $ 68.8 million).
  • EBITDA of $ 73.6 million in Q3 2021 (Q2 2021: $ 31.9 million).
  • Net profit from $ 46.5 million in Q3 2021 (Q2 2021: $ 12.0 million).
  • Earnings per share of $ 0.11 in Q3 2021 (Q2 2021: $ 0.03).
  • Use of 97.7% in Q3 2021 (Q2 2021: 96.9%).
  • Average Time Charter Equivalent (“TCE”) of $ 19,656 per day in Q3 2021 (Q2 2021: $ 13,437 per day).
  • Cash and cash equivalents of $ 76.5 million until September 30, 2021.
  • Equity ratio of 58.4% and leverage ratio of 34.8%.

Like a September 30, 2021, the Group owns and operates 75 container ships, of which 67 are fully owned and 8 are joint ventures.

The Company is revising its forecasts for the 2021 financial year, with expected revenues of around 360 USD-365 million and expected EBITDA of around 305 USD-315 million. The indications are subject to certain assumptions, in particular an estimated gain of $ 99 million related to nine ship sales this year, of which six ship deliveries have yet to be finalized and executed in Q4 2021.

CEO Constantin Baack comments on the announcement: “We continue to see historically strong container markets with strong demand growth and high freight and charter rates. in this single market environment, charterers continue to compete for tonnage as only limited new builds are expected to be delivered over the next two to three years.

In these market conditions, the company has already executed 53 multi-year charter contracts since the start of the year and executed a number of portfolio measures, resulting in a significant increase in charter revenues and an order book of Current EBITDA of over 840 million USD, thus improving profit visibility and cash generation in the future.

“We were further able to arbitrate the disparity between asset and charter values, adding 12 vessels to the fleet in the first nine months of 2021, which were then set at attractive charters or partly sold at a substantial premium. This follows our strategy of focusing on accretive share transactions.

At the same time, we implemented a vast refinancing and balance sheet optimization operation, within the framework of which the Company has also seized since July the opportunity to sell nine vessels at attractive prices. Once we have completed the measures to optimize the balance, which should be finalized during the fourth quarter of 2021, the Company will have reduced its cost of debt, has deleveraged significantly and, above all, will benefit from a great flexibility by having more than 50% of the fleet. not cluttered. It also paves the way for a substantial return of capital to investors in the quarters and years to come.

Strategy and capital allocation for the future

In shipping, which is primarily a capital allocation activity, we firmly believe that discipline and rational decisions are essential. MPCC will have a risk-free balance sheet and abundant liquidity. Going forward, the company will prioritize return of capital to investors by paying 75% of adjusted net income as recurring operating distributions. In addition, event distributions can be expected from proceeds such as ship sales in the form of extraordinary dividends and / or share buybacks. We will continue to adhere to the principles of transparent, active and rational capital allocation, as has been demonstrated since the creation of the Company.

We look forward to returning a substantial portion of our profits to investors and we plan to call an extraordinary general meeting in early 2022 to propose a large distribution in the first quarter of 2022, and we plan to propose to pay dividends on a quarterly basis to the future ”, CEO Constantin Baack added.

The above information is subject to disclosure requirements in accordance with Section 5-12 of the Norwegian Securities Law.

Third quarter and first nine months 2021 results call and webcast:

The Company to Host a Webcast for the Presentation of Third Quarter 2021 Results Starting Thursday November 18, 2021 at 3:00 p.m. CET / 9:00 a.m. EDT. The presentation will be available on the Company’s webpage (https://www.mpc-container.com/en/financial-reports/) before the results are called. There will be a question-and-answer session after the presentation.

The event is broadcast. It is recommended to listen through your computer speakers. Please note that for best viewing it is recommended that you do not use a VPN, but rather connect directly to the internet. Please disable pop-up blockers in order to view the entire content.

The live webcast is accessible via the following link:

https://edge.media-server.com/mmc/p/d7gi5x7g

Participants can also log in to the winnings call using the login details below:

Norwegian local phone number (Oslo): +47 23 96 02 64

Local call in the United States (new York): +1 (631) 510-7495

International telephone number / paying participant: +44 (0) 2071 928000

Conference number: 3596379

After the results are called, a post-call recording of the webcast will be available on the Company’s webpage (https://www.mpc-container.com/en/financial-reports/).

More information and contact:

For more information, please contact [email protected].

About MPC Container Ships ASA:

MPC Container Ships ASA (ticker code “MPCC”) is a leading container tonnage supplier with a focus on the under 5,000 TEU refueling segment. Its main activity is to own and operate a portfolio of container ships serving intra-regional trade routes on fixed rate charters. The Company is registered and has its registered office at Oslo, Norway. For more information, please see our website: 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 plans, strategies, business prospects, changes and trends in its business, the markets in which it operates and its restructuring efforts. These statements are made on the basis of management’s current plans, expectations, assumptions and beliefs regarding future events affecting the Company and therefore involve a number of risks, uncertainties and assumptions that could result in that actual results differ materially from those expressed or implied in forward-looking statements. statements, which speak only as of the date of this press release. Therefore, no forward-looking statement can be guaranteed. When reviewing these forward-looking statements, you should keep in mind the risks described from time to time in the regulatory documents and periodic reports of the Company. The Company assumes no obligation to update forward-looking statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unforeseen events. New factors emerge from time to time, and it is not possible for the Company to predict all of these factors. In addition, the Company cannot assess the impact of each of these factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in a forward-looking statement.

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SOURCE MPC Container ship ASA