MPC CONTAINER SHIPS ASA Highlights o Strong operating revenues ofUSD 184.0 million (+14.9% YOY) including non-recurring items ofUSD 22.0 million from a commercial agreement for the early redelivery of AS Anne inJuly 2023 o EBITDA wasUSD 140.4 million , compared toUSD 145.8 million in Q3 2022. Adj. for non-recurring items, EBITDA wasUSD 105.7 million (Q2 2022:USD 115.3 million ) o Following the sale of eight vessels in September andOctober 2023 , non-cash effective Held for Sale Losses and Impairments ofUSD 26 million were recognized o Profit for the period wasUSD 68.2 million . Adj. for non-recurring items, the profit for the period wasUSD 81.9 million compared toUSD 94.0 million in Q3 2022 o Adj. EPS wasUSD 0.18 (Q3 2022:USD 0.21 ) o Quarterly recurring dividend ofUSD 0.14 per share was declared o Average TCE wasUSD 27,531 per day in Q3 2023, down fromUSD 30,476 in Q3 2022 o Fleet utilization was 98.7% (Q3 2022: 96.9%) o Revenue backlog as atSeptember 30, 2023 wasUSD 1.0 billion with an average remaining contract period of 1.7 years o Subject to certain assumptions, FY 2023 financial guidance is increased to operating revenues ofUSD 690-700 million (old:USD 675-690 million ) and EBITDA ofUSD 500-515 million (old:USD 490-510 million ) As atSeptember 30, 2023 , the Group's fleet consisted of 65 vessels, with an aggregate capacity of approximately 138,302 TEU. Of these vessels, a total of nine were categorized as held for sale. Commenting on the results, CEO ofMPC Container Ships ,Constantin Baack said: "We are pleased to present our strong third-quarter financial results, achieved during a period characterized by a continued softening of the market with declining charter rates and asset values. These results highlight our well-established market position, backed by a very strong balance sheet and robust charter backlog. Furthermore, we are pleased to note that our strategic actions addressing regulatory requirements have earned positive feedback from customers, and contributed to securing forward employment, thus reinforcing our balance sheet. We continue to operate with a low leverage of 17% and with 67% of operating days fixed for 2024 we have considerable earnings visibility, despite market fluctuations. Importantly, our commitment to delivering strong shareholder returns remains steadfast, and for Q3 2023 the Board has declared a recurring dividend ofUSD 0.14 per share, totalingUSD 62.1 million . This distribution will bring dividends year-to-date toUSD 293 million , reflecting a compelling dividend yield of 43%." Regarding the strategic development of MPCC, Baack added: "Our proactive strategic measures continue to align with our mission for fleet optimization to meet regulatory changes and enhance the efficiency of our vessels. In recent months, we have completed the sale of eight older, less efficient vessels. Combined with the acquisition of five eco-design vessels announced in the second quarter, these measures mark a decisive step forward in revitalizing our fleet. In our active fleet management, we carefully consider regulatory and operational aspects, such as CII-ratings and dry-docking schedules, and our recent initiatives underscore our commitment to ensuring continued operational excellence while further strengthening our financial position. Moving forward, our focus remains on operating at a low financial leverage whilst balancing strategic initiatives with consistent shareholder returns, and fortifying shareholder value and long-term distribution capacity. We will continue to navigate the prevailing market thoughtfully, maintaining operational excellence and leveraging our strong competitive position to deliver enduring shareholder value." Key figures Q3 2023 Q2 2023 Q3 2022 (unaudited) (unaudited) (unaudited) Operating revenues USD m 184.0 194.4 160.1 EBITDA USD m 140.4 142.7 145.8 Adjusted EBITDA USD m 105.7 110.5 115.3 Profit for the period USD m 68.2 101.5 124.5 Adjusted profit for the period USD m 81.8 87.7 94.0 Operating cash flow USD m 111.8 130.7 124.2 EPSUSD 0.15 0.23 0.28 Adjusted EPSUSD 0.18 0.20 0.21 DPS*USD 0.14 0.15 0.19 Total ownership days 5,857 5,460 5,466 Total trading days 5,778 5,320 5,098 Utilization 98.7% 97.4% 96.9% Average TCE per day 27,531 29,668 30,476 Average OPEX per day 6,986 6,798 6,321 Leverage ratio 17.0% 13.3% 18.2% *Dividends per share (DPS) for Q3 2022 consisted of a recurring dividend ofUSD 0.16 per share and an event-driven dividend ofUSD 0.03 per share. OnNovember 20, 2023 , the Board of Directors declared a recurring dividend ofUSD 0.14 per share for Q3 2023. The above information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act. Q3 2023 Earnings Call:Constantin Baack , CEO, andMoritz Fuhrmann , CFO, will present the results in an earnings call today at15:00 CET /09:00 ET , followed by a Q&A session. The earnings call can be followed 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. The Q3 2023 report and presentation materials are attached to this release and available at the Company's website at https://www.mpc-container.com/en/financial-reports/ The webcast can be accessed through the following link: https://channel.royalcast.com/landingpage/hegnarmedia/20231121_3/ Alternatively, participants may dial in using the below information: Pin code: 304648 Dial-in numbers: NO: +47-21-956342 DK: +45 78768490 SE: +46-4-0682-0620 UK: +44-203-7696819 US: +1 646-787-0157 Toll-free number: +44 (0) 800-090-3361 For more information, contact: ir@mpc-container.com AboutMPC 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 inOslo, 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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