MPC Container Ships ASA · OSL:MPCC

MPC Container Ships ASA — Corporate Update (October 2021)

19 slides from MPC Container Ships ASA's corporate update, Oct 20, 2021

  1. Slide 1: Market & Operational Update

    Market & Operational Update 20th October 2021

  2. Slide 2: Disclaimer

    DISCLAIMER THIS PRESENTATION (THE “PRESENTATION”) HAS BEEN PREPARED BY MPC CONTAINER SHIPS ASA (THE “COMPANY”) FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY OF THE SECURITIES DESCRIBED HEREIN. TO THE BEST KNOWLEDGE OF THE COMPANY, ITS

  3. Slide 3: Executive Summary

    Market & Operational Update EXECUTIVE SUMMARY SIGNIFICANT PROGRESS ON A SERIES OF KEY MEASURES Historically strong freight & charter market Additional multi-year fixtures concluded 477% HARPEX-increase YTD Significant EBITDA backlog > $700m EBITDA backlog (1) (2) Strategic sale of six vessels betwee

  4. Slide 4: Execution of chartering strategy in historically strong market

    Market & Operational Update EXECUTION OF CHARTERING STRATEGY IN HISTORICALLY STRONG MARKET Macroeconomic outlook  Global GDP and trade growth revised upwards due to good vaccination progress (GDP: 5.9% in 2021 and 4.9% in 2022) (1) Container market  Proper market fundamentals with low orderbook-to

  5. Slide 5: Portfolio and balance sheet optimization measures implemented

    Market & Operational Update PORTFOLIO AND BALANCE SHEET OPTIMIZATION MEASURES IMPLEMENTED Ongoing fleet optimisation  Divested six smaller vessels with an average capacity of ~1,200 TEU sold for USD 135m  Implied sales price shows a significant premium to current share price  Following successful

  6. Slide 6: Operating days & fixed revenue - increased charter backlog and visibility

    Market & Operational Update OPERATING DAYS & FIXED REVENUE (1) - INCREASED CHARTER BACKLOG AND VISIBILITY FIXED OPERATING DAYS (CONSOLIDATED VESSELS) COMMENTS (2) Operating days (open) Fixed 349 396 227 119 Consolidated vessels Operating days (fixed) Revenues  Assumed available days 2022 – 2024: 22

  7. Slide 7: Significantly de-risking the enterprise value

    Market & Operational Update SIGNIFICANTLY DE-RISKING THE ENTERPRISE VALUE ENTERPRISE VALUE RISK (4) MPCC FLEET – EV RISK (4) 111 1.348 152 A EBITDA backlog fixed and planned USDm 774 215 717 Average # of vessels # 65 Fixed period Days 44,000 1.022 Fixed TCE USD/day 24,700 A B Risk to be Covered from

  8. Slide 8: Outlook: measures and capital allocation priority

    Market & Operational Update OUTLOOK: MEASURES AND CAPITAL ALLOCATION PRIORITY CAPITAL ALLOCATION MEASURES UNTIL YEAR END 2021 PRIORITY 1 Execution and drawdown of new credit facility Distribute capital 2 Handover of sold vessels to shareholders by way of dividends and/or 3 Repay bond and DNB financi

  9. Slide 9: Appendix

    Market & Operational Update CONTENT Appendix 9

  10. Slide 10: Historical strong market momentum

    Appendix: Market & Operational Update HISTORICAL STRONG MARKET MOMENTUM HISTORIC HIGH BOX VOLUMES AND FREIGHT RATES RECORD HIGH CHARTER RATES AND LOW IDLE STATS Index M TEU TC Rate Index No of Idle Vessels 5.000 300 4.200 3.990 600 Freight Rate Index (SCFI Comprehensive) 4.584 HARPEX (TC Rate Index)

  11. Slide 11: High charter rates at prolonged periods support rising asset values

    Appendix: Market & Operational Update HIGH CHARTER RATES AT PROLONGED PERIODS SUPPORT RISING ASSET VALUES RECORD HIGH TIME-CHARTER RATES 15 YEAR-OLD 2ND HAND PRICES AND S&P DEALS 01 Oct. USDm USDk / day 1.7k TEU (grd) 3.4k TEU 6.6k TEU 1.7k TEU grd 3.5k TEU 6.8k TEU (% since Jun 20) 100 2.8k TEU 4.5

  12. Slide 12: Longer periods and tighter redelivery windows wipe out availability

    Appendix: Market & Operational Update LONGER PERIODS AND TIGHTER REDELIVERY WINDOWS WIPE OUT AVAILABILITY AVG. PERIOD AND REDELIVERY SPREAD (1-5.1k TEU) 30 DAYS FORWARD AVAILABILITY Months Period Redelivery spread No of Vessels 30.0 <1k TEU 2-3k TEU >5k TEU 30 800 1-2k TEU 3-5k TEU 671 25 600 20 15

  13. Slide 13: Significant excess demand on intra-regional trades expected

    Appendix: Market & Operational Update SIGNIFICANT EXCESS DEMAND ON INTRA-REGIONAL TRADES EXPECTED SUPPLY / DEMAND DEVELOPMENT (TOTAL) SUPPLY / DEMAND (INTRA-REGIONAL TRADES) % % 12 12 Supply growth (TEU capacity) Supply growth (TEU capacity <5.2k TEU) 10 Demand growth (TEU throughput) 10 Demand grow

  14. Slide 14: Intra-regional trades an integral part of seaborne trading

    Appendix: Market & Operational Update INTRA-REGIONAL TRADES AN INTEGRAL PART OF SEABORNE TRADING TEU DEMAND GROWTH (TOTAL) COMMENTS TOTAL DEMAND TEUm  Strong seaborne container demand growth is expected for the coming 220 years. 6.1% 215 215 210 207  TEU trade is expected to increase from 191m TEU

  15. Slide 15: Orderbook has increased recently but dominated by larger sizes

    Appendix: Market & Operational Update ORDERBOOK HAS INCREASED RECENTLY BUT DOMINATED BY LARGER SIZES ORDER BOOK DEVELOPMENT TEU ON ORDER PER SEGMENT (OCTOBER 2021) TEUk 2.910 TEUm % Total fleet Orderbook-to-Fleet ratio (rhs) 3.000 (51,7%) 35 Orderbook 40 24.436 2.500 30 35 30 2.000 25 23.0 25 1.302

  16. Slide 16: Fleet employment overview

    Appendix: Fleet & Employment Update (1/4) FLEET EMPLOYMENT OVERVIEW MPCC Current Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Post Oct-22 No. Vessel Cluster Charterer Fixture (USD/day) 21 21 21 22 22 22 22 22 22 22 22 22 22 (min. / max.) 1 CORDELIA(1, 3) 2800 gls Sold 2 ANNE SIBU

  17. Slide 17: Fleet employment overview

    Appendix: Fleet & Employment Update (2/4) FLEET EMPLOYMENT OVERVIEW MPCC Current Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Post Oct-22 No. Vessel Cluster Charterer Fixture (USD/day) 21 21 21 22 ´22 22 22 22 22 22 22 22 22 (min. / max.) 26 CIMBRIA(2) 2800 gls GSL / ZISS 17,750

  18. Slide 18: Fleet employment overview

    Appendix: Fleet & Employment Update (3/4) FLEET EMPLOYMENT OVERVIEW MPCC Current Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Post Oct-22 No. Vessel Cluster Charterer Fixture (USD/day) 21 21 21 22 ´22 22 22 22 22 22 22 22 22 (min. / max.) 49 AS SICILIA 1700 grd Feedertech 30,000

  19. Slide 19: Fleet employment overview

    Appendix: Fleet & Employment Update (4/4) FLEET EMPLOYMENT OVERVIEW MPCC Current Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- No. Vessel Cluster Charterer Fixture (USD/day) 21 21 21 22 ´22 22 22 22 22 22 22 22 22 1 AS FEDERICA(1) 1300 grd Pool / SOLD Pool Rate 2 AS FAUSTINA(1) 13

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