MPC Container Ships ASA reports Q1 and three-month 2022 results

OSLO, Norway, May 19, 2022 /PRNewswire/ --

• Significantly improved operating revenues of USD 142.9 million and EBITDA of USD 137.7 million, up by 160% and 519%, respectively, compared to Q1 2021.
• Quarterly recurring dividend of USD 0.13 per share declared for Q1 2022.
• An additional event driven distribution based on proceeds from sale of AS Patricia as dividend of USD 0.03 per share to be paid alongside the recurring dividend.
• Projected EBITDA backlog now in excess of USD 1.4 billion.

Oslo, 19 May 2022

Q1 and three-month 2022 results:

MPC Container Ships ASA ("MPCC" or the "Company", together with its subsidiaries the "Group") today published its unaudited financial report for the three-month period ended 31 March 2022.

• Total revenues of USD 142.9 million in Q1 2022 (Q1 2021: USD 54.9 million).
• EBITDA of USD 137.7 million in Q1 2022 (Q1 2021: USD 22.3 million).
• Net profit of USD 116.8 million in Q1 2022 (Q1 2021: USD 3.5 million).
• Adjusted EBITDA of USD 97.8 million and adjusted net profit of 76.9 million in Q1 2022.
• Earnings per share of USD 0.26 in Q1 2022 (Q1 2021: USD 0.01).     
• Utilization of 98.8% in Q1 2022 (Q1 2021: 99.2%).       
• Average time charter equivalent ("TCE") of USD 24,845 per day in Q1 2022 (Q1 2021: USD 10,502 per day).      
• Cash and cash equivalents of USD 81.5 million as at 31 March 2022.
• Equity ratio of 70.2% and leverage ratio of 22.9%.

As at 31 March 2022, the Group owns and operates 65 container vessels, whereof 60 are fully owned and 5 are operated in a joint venture. Furthermore, the Group has 2 newbuilds on order expected for delivery in Q1 2024.

CEO Constantin Baack comments in relation to the announcement: "We are pleased to report another strong quarter for MPC Container Ships, in which we have been able to sustainably grow our earnings and profits. Consequently, the Company announces a recurring dividend for the first quarter 2022 which is 18% higher than in the previous quarter.

For Q1 2022 the board has declared a dividend of total USD 71 million, or USD 0.16 per share which includes an event driven dividend of USD 0.03 per share. Year to date, MPCC has declared a total of USD 271 million in dividends, of which USD 200 million have already been paid during the first quarter, emphasizing our commitment to return capital to our shareholders.

On the back of high chartering activity throughout the first quarter we have been able to secure 23 additional, predominantly multi-year charters, including numerous strategic forward fixtures, with coverage into 2026. As a result, our revenue and projected EBITDA backlog has increased to USD 1.7 billion and USD 1.4 billion, respectively.

Following our approach of rational capital allocation and taking a strategic long-term view, we have executed a unique opportunity by ordering two 5,550 TEU wide beam eco-design newbuildings, which are ready to be converted to operate on green methanol once such fuel is widely available. These vessels come with highly attractive charters attached, demonstrating our ability to develop and execute transactions that are both accretive in terms of earnings and environmental footprint in line with upcoming decarbonization regulation. Moreover, it supports our long-term earnings visibility, without compromising on our short- and mid-term dividend capacity.

While the global economy currently faces uncertainties like geopolitical tensions, inflation and China's zero Covid-19 policy, we are also concerned about our seafarers and their families being innocent third party in the tragic situation in the Ukraine, and we are doing our utmost to take care of both Ukrainian and Russian seafarers and their families.

The container charter market continues to be strong with the availability of vessels remaining tight. Yet, due to the uncertainties, freight rates and time-charter rates took a little breather in Q1 but are still at significantly elevated levels. Charter periods are prolonged and most fixtures are concluded months in advance. Congestions and supply chain disruptions continue to be severe and are likely to continue in the foreseeable future. We do not expect that supply chains will be back to normal within this year.

Despite the fact that the industry will face a number of newbuild deliveries in 2023 and 2024, especially in the larger size classes, supply-demand outlook for regional trades, and thus smaller vessels, is continuously promising due to a modest orderbook and relative robust demand growth. In addition, the industry must adopt new environmental regulations as of 2023 that are expected to induce speed and thus capacity reductions, especially in regional niche trades.

Amid the current macro-uncertainty, MPCC is excellent positioned to continue to execute our strategy and follow our approach of rational capital allocation, combined with proven execution capabilities. We will continue to apply our investment principles that aim at generating double-digit full cycle returns on assets while minimizing residual value risk.

Based on our strong earnings prospects and secured cash flows, MPCC has the potential to pay out significant dividends, and at the same time operate with an industry low financial leverage, providing the financial flexibility to capture attractive growth opportunities as they arise."

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

Q1 and three-month 2022 earnings call and webcast:

The Company will host a webcast for the presentation of the Q1 2022 results commencing on Thursday 19 May 2022 at 15:00 hours CET / 09:00 hours EDT. The presentation will be made available on the Company's webpage (https://www.mpc-container.com/en/financial-reports/) prior to the earnings call. There will be a Q&A session after the presentation.

The event is being streamed. It is recommended that you listen via your computer speakers. Please note that for optimal viewing, it is recommended not to use VPN, but instead to connect directly to the internet. Please disable pop-up blockers in order to view the content in its entirety.

The live webcast can be accessed through the following link:

https://edge.media-server.com/mmc/p/p3t8b5gx

Alternatively, participants may dial in to the earnings call using the below dial-in information:

Norwegian LocalCall Dial-In (Oslo): +47 21 56 31 62

US LocalCall Dial-In (New York): +1 (917) 720-0178

International/Toll Attendee Dial-In: +44 (0)20 3009 5710

Conference ID: 9463928

Following the earnings call, a post-call recording of the webcast will be made available on the Company's webpage (https://www.mpc-container.com/en/financial-reports/).

Further information and contact:

For further information, please contact ir@mpc-container.com.

About MPC Container Ships ASA:

MPC Container Ships ASA (ticker code "MPCC") is a leading container tonnage provider with a focus on small to mid-size containerships. 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 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 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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