In This Article:
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Adjusted EBITDA: USD 78 million for Q3 2024.
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Charter Backlog: Increased by over 30% since the beginning of the year, now at USD 1.2 billion.
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Net Debt: Approximately USD 60 million.
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Leverage Ratio: 19%.
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Fleet Utilization: Over 97% for the quarter.
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Quarterly Dividend: USD 0.10, marking the 12th consecutive dividend.
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Total Dividends: USD 937 million over less than three years.
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Cash Reduction: Decreased by USD 26 million quarter to quarter.
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Revenue Contract Backlog: USD 1.2 billion as of Q3 2024.
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EBITDA Backlog: USD 0.8 billion.
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Dividend Yield: 36% year to date.
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Charter Rates: Average rate in Q4 north of USD 30,000 per day.
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Fleet Acquisitions: Four modern 3,800 TEU eco-vessels acquired.
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Order Book: Limited forward availability with less than 1% of capacity commercially idle.
Release Date: November 26, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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MPC Container Ships ASA (MPZZF) reported strong financial and operational results for Q3 2024, with an adjusted EBITDA of USD78 million.
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The company has significantly increased its charter backlog by more than 30% since the beginning of the year, now standing at USD1.2 billion.
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MPC Container Ships ASA (MPZZF) successfully issued a heavily oversubscribed USD125 million unsecured sustainability-linked bond, enhancing investment capacity.
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The company acquired four modern 3,800 TEU eco-vessels, securing long-term charters with Hapag-Lloyd, which enhances fleet composition and charter backlog.
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MPC Container Ships ASA (MPZZF) declared its 12th consecutive dividend, reflecting a strong commitment to returning capital to shareholders, with a total of USD937 million distributed over less than three years.
Negative Points
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The long-term market outlook remains uncertain due to supply-side dynamics, despite the current strong charter market.
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Net debt increased to approximately USD60 million due to newbuild deliveries and asset acquisitions, although leverage remains low at 19%.
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Year-on-year revenue and EBITDA have declined due to lower average charter rates compared to the previous year.
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The cash position slightly reduced by USD26 million quarter-to-quarter, impacted by dividend payments and asset acquisitions.
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The company faces potential competition from smaller Chinese players entering the container tonnage provider market, although it believes it is well-positioned to handle this.
Q & A Highlights
Q: Do you believe there will be more scrapping of ships in 2025 to 2026 with the current forecast? A: Constantin Baack, CEO: This year, around 70,000 TEU have been scrapped, which is about 50 ships. Clarksons Research estimates scrapping to increase to 240,000 TEU in 2025 and 480,000 TEU in 2026, driven by an aging fleet and market softening. However, if the market remains strong, these figures might not be reached.