MPC Container Ships ASA

Earnings Release • Nov 18, 2021

MPC Container Ships ASA reports Q3 and nine-month 2021 results

MPC Container Ships ASA reports Q3 and nine-month 2021 results

· Significantly improved operating revenues of USD 118.5 million and EBITDA of

USD 73.6 million, up by 72% and 131%, respectively, compared to Q2 2021.

· Continued chartering activity combined with strategic vessel sales in Q3

2021 bring the EBITDA backlog to more than USD 840 million.

· The FY 2021 EBITDA guidance increased to USD 305-315 million.

Oslo, 18 November 2021

Q3 and nine-month 2021 results:

MPC Container Ships ASA ("MPCC" or the "Company", together with its subsidiaries

the "Group") today published its unaudited financial report for the nine-month

period ended 30 September 2021.

· Total revenues of USD 118.5 million in Q3 2021 (Q2 2021: USD 68.8 million).

· EBITDA of USD 73.6 million in Q3 2021 (Q2 2021: USD 31.9 million).

· Net profit of USD 46.5 million in Q3 2021 (Q2 2021: USD 12.0 million).

· Earnings per share of USD 0.11 in Q3 2021 (Q2 2021: USD 0.03).

· Utilization of 97.7% in Q3 2021 (Q2 2021: 96.9%).

· Average time charter equivalent ("TCE") of USD 19,656 per day in Q3 2021 (Q2

2021: USD 13,437 per day).

· Cash and cash equivalents of USD 76.5 million as at 30 September 2021.

· Equity ratio of 58.4% and leverage ratio of 34.8%.

As at 30 September 2021, the Group owns and operates 75 container vessels,

whereof 67 are fully owned and 8 are operated in a joint venture.

The Company revises its guidance for FY 2021, with expected revenues in the

range of USD 360-365 million and expected EBITDA in the range of USD 305-315

million. The guidance is subject to certain assumptions, including an estimated

gain of USD 99 million related to nine vessel sales this year of which six

vessel handovers still have to be finalized and executed in Q4 2021.

CEO Constantin Baack comments in relation to the announcement: "We continue to

witness historically strong container markets with significant demand growth and

high freight and charter rates. This is further amplified by global supply chain

disruptions, a situation that we believe is unlikely to ease anytime soon. In

this unique market environment charterers continue to compete for tonnage whilst

only limited newbuilds are anticipated to be delivered during the next two to

three years. We expect the favourable conditions for a tight containership

market to continue going forward."

In these market conditions, the Company has already executed 53 multi-year

charter fixtures YTD and has executed on a number of portfolio measures, leading

to a significant increase in charter revenues and a current EBITDA backlog of

more than USD 840 million, thus improving the earnings visibility and cash

generation going forward.

"We have further been able to arbitrage the disparity between asset and charter

values, by adding 12 vessels to the fleet during the first nine months of 2021,

which were subsequently fixed at attractive charters or partly sold at a

substantial premium. This follows our strategy of focusing on transactions that

are accretive on a per share basis.

Simultaneously, we have executed a comprehensive refinancing and balance sheet

optimization measures, as part of which the Company since July has also taken

the opportunity to divest nine vessels at attractive prices. Once we have

completed the balance optimization measures, which are expected finalized during

Q4 2021, the Company will have reduced its cost of debt, deleveraged

significantly and, most importantly, will enjoy a high degree of flexibility by

having more than 50% of the fleet unencumbered. This also paves the way for

substantial return of capital to investors in the quarters and years ahead.

Strategy and capital allocation going forward

In shipping, which is primarily a capital allocation business, we firmly believe

that discipline and rational decisions are essential. MPCC will have a de-risked

balance sheet and ample liquidity. Going forward the Company will be

prioritizing returning capital to investors by paying out 75% of adjusted net

profit as recurring distributions from operations. Additionally, event-driven

distributions may be expected from proceeds such as vessel sales in form

of extraordinary dividends and/or share buybacks. We will continue to adhere to

the principles of transparent, active and rational capital allocation, as

demonstrated since the inception of the Company.

We look forward to returning substantial parts of our earnings to investors

and we expect to convene an Extraordinary General Meeting for early 2022 to

propose a significant distribution in Q1 2022, and we expect to propose to pay

dividends on a quarterly basis going forward", CEO Constantin Baack added.

The above information is subject to the disclosure requirements pursuant to

section 5-12 of the Norwegian Securities Trading Act.

Q3 and nine-month 2021 earnings call and webcast:

The Company will host a webcast for the presentation of the Q3 2021 results

commencing on Thursday 18 November 2021 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/d7gi5x7g

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

dial-in information:

Norwegian LocalCall Dial-In (Oslo): +47 23 96 02 64

US LocalCall Dial-In (New York): +1 (631) 510-7495

International/Toll Attendee Dial-In: +44 (0) 2071 928000

Conference ID: 3596379

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 the feeder segment below 5,000 TEU. 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.