On September 25, Norwegian Container ship owner MPC Container Ships (“MPCC” or the “Company”) announced its strategic measures aimed at further optimizing its portfolio and enhancing its fleet composition.
With reference to the stock exchange announcement on 23 September 2024, the Company will acquire four 3,800 TEU wide beam eco-design vessels at a total price of USD 180 million.The vessels are expected to be handed over from their current owner in the fourth quarter of 2024, and will continue to run under their current charter agreements until Q2 2025.
Thereafter, the vessels will enter into a new pre-agreed 35-month time charter contracts, plus 12 months option, with a top-tier liner company. These vessels are anticipated to generate aggregate revenues of approximately USD 150 million over the firm charter period. Under the agreed charters, the new vessels are expected to generate EBITDA between USD 110-120 million. Subject to successful completion of the transactions, the acquisition is intended to be funded through a conservative mix of equity and debt, where the debt shall be covered by the associated EBITDA backlog.
Separately, the Company has agreed on new 24-26-month charter contracts for AS Anne and AS Pamela. These contracts are fixed approximately 3 months forward on average, and the vessels will be delivered into their new charters during the fourth quarter of 2024 and the first quarter of 2025.
In total, the new charter agreements, including the newly acquired vessels, are expected to add approximately USD 200 million to the Company’s revenue backlog and increase contract coverage to 99% of open days remaining in 2024, 81% in 2025, and 50% in 2026.
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 as the new vessels are also accretive to earnings per share (EPS) and dividends per share (DPS) from handover.
“The acquisition of the four 3,800 TEU wide-beam eco-design vessels is a continuation of our selective fleet renewal strategy.” said MPCC’s CEO, Constantin Baack. “The transaction underscores our strong competitive position and our ability to acquire attractive vessels and secure long-term employment with top-tier liner companies. This not only strengthens our partnership with a leading industry player, but it also enhances our revenue visibility, contributing to our long-term growth and shareholder value creation.”