MPCC Q2 2024 Results: Backlog Increased to USD 1.1 Billion Creating Significant Earnings Visibility
OSLO, Norway, Aug. 28, 2024 /PRNewswire/ -- MPC Container Ships ("MPCC" or the "Company") delivered another quarter of solid operational and financial results, supported by efficient operations and continued high fleet utilization. During the quarter, MPCC was able to capitalize on favorable market conditions, significantly strengthening its long-term contract coverage and charter backlog, which stood at USD 1.1 billion at the end of the period. Simultaneously, MPCC enhanced its fleet composition by undertaking key initiatives for fleet renewal and optimization. The Company continues to deliver attractive shareholder returns with a quarterly dividend of USD 0.10 per share, totaling approximately USD 44.4 million, marking its 11th consecutive quarterly dividend.
Highlights
- Charter backlog increased to USD 1.1 billion with increased contract coverage for 2025 (76%) and 2026 (42%).
- Quarterly recurring dividend of USD 0.10 per share, bringing aggregated total dividends to USD 893 million declared since February 2022.
- The financial guidance for 2024 increased to operating revenues in the range of USD 510-520 million (previous: USD 475-490 million) and EBITDA in the range of USD 335-350 million (previous: USD 280-305 million).
- Continued strong operations with high fleet utilization of 97.6% (Q2 2023: 97.4%) and average TCE of USD 26,742 per day (Q2 2023: USD 29,668).
- Operating revenues of USD 130.9 million and EBITDA of USD 84.4 million (Q2 2023: USD 142.7 million). EBITDA adjusted for non-recurring items was USD 78.0 million (Q2 2023: USD 110.5 million).
- Profit for the period was USD 64.8 million and USD 58.4 million adj. for non-recurring items (Q2 2023: USD 87.7 million).
- Adj. EPS was USD 0.13 (Q2 2023: USD 0.23).
As at June 30, 2024, the Group's fleet consisted of 55 vessels, with an aggregate capacity of approximately 120,000 TEU.
Commenting on MPCC's second quarter results, Co-CEO and CFO Moritz Fuhrmann, said:
"Our strong second quarter performance highlights the effectiveness of our strategy in navigating a dynamic market environment. By securing long-term contracts and advancing key fleet renewal initiatives, we effectively utilize the short-term market momentum and strengthen MPCC's long-term position. Simultaneously, we are investing in eco-friendly technologies to meet evolving environmental standards and achieve our greenhouse gas emissions targets. We also continue to distribute attractive quarterly dividends, providing shareholders with consistent returns."
Reflecting on market developments and MPCC's strategic outlook, CEO Constantin Baack added:
"Throughout the first half of 2024, the container shipping market benefitted from strong freight and charter rates, largely driven by ongoing geopolitical disruptions and further accelerated by shippers advancing imports. In this environment, we successfully enhanced our robust charter backlog to USD 1.1 billion with 76% of open days in 2025 already covered by existing contracts. This provides us with excellent earnings visibility moving forward and reinforces our ability to deliver sustainable and predictable dividends over the coming years.
Looking ahead, we anticipate more market volatility as new vessels enter the market and geopolitical tensions evolve. In this environment, our strong balance sheet, low leverage, and revenue visibility places us in an excellent position, with the financial strength and flexibility needed to pursue attractive market opportunities that create lasting shareholder value."
The above information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
Q2 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 Q2 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: https://channel.royalcast.com/landingpage/hegnarmedia/20240828_4/
For more information, contact:
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.
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.
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The following files are available for download:
MPCC Q2 2024 Financial Report | |
https://mb.cision.com/Public/17513/4029468/85097e46078bf10a.pdf | MPCC Q2 2024 Earnings Call Presentation |
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