MPC Container Ships has announced a series of strategic measures aimed at further optimizing its portfolio and enhancing its fleet composition. These measures include:
Acquisition of five modern eco-design vessels for USD 136.3 million
Term sheet signed for USD 50 million acquisition financing
Secured USD 75 million lease financing with BoComm for existing fleet
Commercial agreement for early redelivery of AS Nadia for a cash compensation
Agreement on sale of AS Emma for USD 22 million with handover in November 2023
As a result of the aforementioned measures, MPC Container Ships raises its financial guidance for FY 2023 to operating revenues of USD 650-670 million (old: USD 610-630 million) and EBITDA of USD 450-475 million (old: USD 420-450 million).
MPC Container Ships has finalized the acquisition of five modern eco-design vessels for a total price of USD 136.4 million. These vessels have existing charter contracts with top-tier counterparties, further strengthening the Company's revenue-generating capabilities.
The newly acquired vessels are 30% more efficient than conventional designs and are among the top 25% of all vessels in their segment. They have an average age of 4.6 years and will add approximately 9,250 TEU to the existing fleet. Following the acquisition, MPCC’s fleet will comprise of 70 vessels, including four newbuildings, with an aggregate capacity of 153,294 TEU, excl. AS Emma.
The acquisition enhances MPCC's leading position in the container shipping industry, enabling the company to seize market opportunities, increase profitability, and deliver sustainable shareholder value. The new vessels are also accretive to earnings per share (EPS) and dividends per share (DPS).
Under the existing charters, the new vessels are expected to generate EBITDA between USD 30-41 million depending on when the vessels are redelivered.
In conjunction with the acquisition, MPCC has signed a term sheet at attractive terms with a European bank for a USD 50 million senior secured facility to support the transaction. In addition, The company has secured a competitive lease financing with Bank of Communications (Hong Kong) Limited (“BoComm”) in the amount of USD 75 million, which is secured by 12 previously unencumbered vessels.
MPC Container Ships ASA is a 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.