MPCC Q3 2024 Results: Significant earnings visibility from further increased charter backlog

Highlights

• Charter backlog increased to USD 1.2 billion with increased contract coverage for 2025 (85%) and 2026 (57%)
• Quarterly recurring dividend of USD 0.10 per share, bringing aggregated total dividends to USD 937 million declared since February 2022
• The financial guidance for 2024 increased to operating revenues in the range of USD 525-535 million (previous: USD 510-520 million) and EBITDA in the range of USD 345-355 million (previous: USD 335-350 million).
• Continued robust operations with high fleet utilization of 97.3% (Q3 2023: 98.7%) and average TCE of USD 26,334 per day (Q3 2023: USD 27,531).
• Operating revenues of USD 132.5 million (Q3 2023: USD 184.0 million) and EBITDA of USD 84.8 million (Q3 2023: USD 140.4 million). EBITDA adjusted for non-recurring items was USD 78.7 million (Q2 2023: USD 105.7 million).
• Profit for the period was USD 63.7 million (Q3 2023: USD 68.2 million) and USD 57.5 million adj. for non-recurring items (Q3 2023: USD 81.6 million).
• Adj. EPS was USD 0.13 (Q3 2023: USD 0.18).
• As at September 30, 2024, the Group's fleet consisted of 56 vessels, with an aggregate capacity of approximately 128,000 TEU.

Commenting on MPCC’s results in the third quarter, Co-CEO and CFO Moritz Fuhrmann, said:
“MPCC’s performance in the third quarter demonstrates continued value creation, highlighting our ability to take great advantage of the strong market, seizing opportunities and executing effectively. We are committed to the ongoing fleet renewal with a focus on optimization and sustainability. Our strategic decisions have enabled us to utilize the capital markets efficiently, secure longer revenue visibility and execute key transactions to enhance our fleet composition, strengthening MPCC’s long-term position at the same time as we continue to be an agile player in the dynamic market. We also continue to distribute attractive quarterly dividends, providing shareholders with consistent returns.”

Reflecting on recent market trends and the outlook, CEO Constantin Baack added:
“Throughout the quarter, and 2024, the container market has continued to experience considerable influence from geopolitical disruptions, and the quarter was marked by increased container demand as shippers frontloaded cargo to mitigate risks. This resulted in a strong freight market and limited idle fleet amongst tonnage providers. MPCC has successfully capitalized on the market situation and enhanced our solid charter backlog to USD 1.2 billion with 2024 fully booked, and contract coverage of 85% and 57% of open days in 2025 and 2026, respectively. This provides great revenue visibility going forward and strengthens our ability to deliver robust results and dividends over the coming years.   

As we look forward to 2025 and beyond, we are confident in our ability to continue driving growth and delivering value to our shareholders. We are well positioned to navigate and create value in both favorable and challenging markets, and committed to enhancing our operational capabilities, expanding our market presence, and pursuing sustainable growth initiatives.”

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

Q3 2024 Earnings Call:
Constantin Baack, CEO, and Moritz Fuhrmann, Co-CEO and 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 and questions can be submitted in writing. A recording will be available on demand at the Company's website after the live event has concluded.

The Q3 2024 report and presentation materials are attached to this release and available on the Company’s website: https://www.mpc-container.com/investors/

The webcast can be accessed through the following link: Webcast Q3 2024 

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.