Financial Report Q4 2023
Highlights
- Strong operating revenues of USD 152.8 million.
- EBITDA was USD 93.6 million, compared to USD 127.0 million in Q4 2022. Adj. for non-recurring items, EBITDA was USD 101.5 million (Q4 2022: USD 114.3 million).
- Non-recurring impairment charges of USD 34.9 million and USD 6.5 million in loss of disposal recorded in the period (both non-cash effective)
- Profit for the period was USD 35.7 million. Adj. for non-recurring items, the profit for the period was USD 78.5 million compared to USD 91.0 million in Q4 2022.
- Adj. EPS was USD 0.18 (Q4 2022: USD 0.21) and the Board declared a quarterly recurring dividend of USD 0.13 per share.
- Average TCE was USD 27,405 per day in Q4 2023, down from USD 31,279 in Q4 2022
- Fleet utilization was 98.2%, up from 97.8% in Q4 2022
- For 2024, management currently expects, subject to certain assumptions, operating revenues in the range of USD 435-470 million and EBITDA in the range of USD 240-280 million.
- As at December 31, 2023, the Group’s fleet consisted of 59 vessels, with an aggregate capacity of approximately 126,943 TEU. Of these vessels, three were categorized as held for sale.
Commenting on MPCC’s results in the fourth quarter and for the full year of 2023, CEO, Constantin Baack, said:
“As we reflect on the full year of 2023, I am pleased to share MPC Container Ships' continued resilience, progress, and sustained strong financial performance. Throughout the year, we remained committed to delivering value to our shareholders, maintaining operational excellence in a volatile market environment with modest growth and geopolitical challenges.
Our financial performance in the fourth quarter underscores our consistent track record. Utilization remained high at 98.2%, and we continue to adhere to our low leverage-strategy, with our leverage standing at 13.3% at the end of 2023, whilst 38 vessels in our fleet are debt-free. Furthermore, our backlog remains robust, with contracted revenues of USD 1 billion and 78% of available trading days covered for 2024. Our backlog provides us with significant earnings visibility and reinforces our confidence in the year ahead.
A key feature of our performance is our commitment to shareholder returns. Throughout the year, we distributed approximately USD 293 million in dividends, corresponding to a dividend yield of 43% for the year. Including the dividend declared for the fourth quarter, our total dividends distributed and declared over the last twelve months amount to approximately USD 350 million, representing more than 50% of the company’s market cap at the beginning of 2023.”
Throughout 2023, MPCC has emphasized sustainability initiatives, aiming to reduce carbon emissions, and working closely with our charter customers to conclude mutual projects and investments, with an aim ti foster a more environmental maritime landscape.
Speaking to MPCC’s ESG ambitions and collaboration with customers, Constantin Baack added:
“In 2023, MPCC continued to prioritize sustainability as a means to drive forward our overall strategic goals. With investments into efficiency-enhancing retrofits together with our charter customers and several dual-fuel and eco-design newbuildings under construction, we aim to decrease GHG emissions and enhance the long-term competitiveness of our fleet, creating long-term shareholder value.
Furthermore, MPCC recently set new greenhouse gas emissions intensity reduction targets in line with the IMO’s industry carbon intensity targets, demonstrating our dedication to decreasing emissions while we remain strongly committed to our low-leverage strategy and distribution policy.”
| Key figures | Q4 2023 (unaudited) | Q4 2022 (unaudited) | FY 2023 (unaudited) | FY 2022 (audited) | |
| Operating revenues | USD m | 152.8 | 162.1 | 711.3 | 616.8 |
| EBITDA | USD m | 93.6 | 127.0 | 518.4 | 522.3 |
| Adjusted EBITDA | USD m | 101.5 | 114.3 | 428.5 | 451.5 |
| Profit for the period | USD m | 35.7 | 103.6 | 325.1 | 435 |
| Adjusted profit for the period | USD m | 78.5 | 91.0 | 336.7 | 364.3 |
| Operating cash flow | USD m | 96.8 | 125.4 | 484.8 | 136.5 |
| EPS | USD | 0.08 | 0.23 | 0.73 | 0.98 |
| Adjusted EPS | USD | 0.18 | 0.21 | 0.76 | 0.82 |
| DPS* | USD | 0.13 | 0.15 | 0.64 | 1.03 |
| Total ownership days | days | 5,675 | 5,336 | 22,236 | 21,671 |
| Total trading days | days | 5,527 | 5,079 | 21,553 | 20,590 |
| Utilization | 98.2% | 97.8% | 98.1% | 97.9% | |
| Average TCE | per day | 27,405 | 31,279 | 28,816 | 28,625 |
| Average OPEX | per day | 6,808 | 6,937 | 6,751 | 6,363 |
| Leverage ratio | 13.3% | 16.1% | 13.3% | 16.1% |
* Dividends per share (DPS) comprises the recurring dividend per share and any event-driven dividends per share declared for the period.
The above information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
Q4 2023 Earnings Call:
Constantin Baack, CEO, and Moritz Fuhrmann, 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 accessed 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 2023 report and presentation materials are attached to this release and available at the Company’s website at https://www.mpc-container.com/investors/
The webcast can be accessed through the following link: https://channel.royalcast.com/landingpage/hegnarmedia/20240227_3/
Alternatively, participants may dial in using the below information:
NO: +47 21 95 63 42
DE: +49 30 2178 9327
UK: +44 20 3769 6819
US: +1 646 787 0157
DK: +45 78 76 84 90
SE: +46 40 682 06 20
PIN code: 304648
For more information, 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.