Highlights:
Two vessels, AS Serafina and AS Laetitia, were sold in the quarter for USD 34.0 million and USD 16.2 million, respectively, resulting in a reported gain from vessel sales of USD 30.4 million in Q3 2022. As at September 30, 2022, MPC Container Ships owns and operates 63 container vessels, of which 58 are wholly owned and 5 are owned 50% through a joint venture. Furthermore, the Group has four newbuildings on order, all of which have charter contracts attached. Two of the newbuildings are expected delivered in Q1 2024 and two are expected delivered in H2 2024.
“The third quarter was another period of record earnings, supported by our robust backlog and continued high fleet utilization, which were secured during a period of high charter rates and strong demand. We further reduced our leverage and are pleased to announce another solid recurring dividend distribution for the quarter,” said MPC Container Ships CEO, Constantin Baack.
“These positive results reaffirm the value proposition of MPC Container Ships and serve as confirmation of our long-term capital allocation strategy. Year to date we have declared dividends of USD 440 million, standing by our commitment to return capital to our shareholders,” Baack continued.
Over the past months, there has been a softening in the container market amid global economic and geopolitical uncertainties. Commenting on the recent market developments, Baack said:
“The market began to normalize during the quarter, but rates remain elevated compared to pre-pandemic levels. Fixing activity has been low, and most new fixtures are for short-term employment, which shows the trend towards normalization. We are cautiously optimistic with regards to market development over the forthcoming quarters despite our expectation that charter durations will be shorter than in the past year. ”
“At MPC Container Ships, we will continue to place clear emphasis on returning capital to shareholders whilst performing well operationally and commercially, and selectively executing value-accretive portfolio optimization measures. Due to our strong backlog, we have high earnings visibility for the quarters and years ahead. Furthermore, we are in a solid financial state with industry-low leverage and a high number of unencumbered vessels. As a result, we are confident in our ability to continue to create value for our shareholders going forward while utilizing our financial flexibility to act on attractive market opportunities as they arise.”
