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MPC Container Ships declares event driven dividend and carries out new portfolio optimisation measures

  • Board of Directors declares event-driven dividend of USD 0.07 per share following successful conclusion of portfolio measures communicated in December 2022
  • Sale of 2003-built joint venture vessel AS Carinthia
  • Acquisition of two vessels, Rio Centaurus and TRF Kaya

MPC Container Ships announced further measures for portfolio optimisation and capital allocation.

Event-driven dividend
Following the successful execution of the portfolio measures communicated on December 13, 2022, the Board of Directors has resolved to declare an event-driven dividend of USD 0.07 per share, to be paid out on February 28, 2023.

Following this distribution, MPCC will have declared over USD 470 million in dividends over the past 12 months, which equals more than NOK 10 per share.

Portfolio optimisation
Together with its joint venture partner, MPCC has agreed to sell AS Carinthia (2003-built, 2,800 TEU) ahead of the vessels 20-year class renewal scheduled for Q1 2023, for USD 7.6 million. The vessel was acquired in 2017 for USD 5.2 million and has since generated free cash flow from operations of USD 11.2 million. Upon completion of the sale, MPCC has reduced the number of joint venture vessels from 8 to 2 since Q4 2021. The completion of the transaction is subject to the successful handover of the vessel.

Moreover, MPCC has acquired Rio Centaurus (2010-built 3,400 TEU) and TRF Kaya (2007-built 2,800 TEU) for in total USD 33.9 million. Both vessels are scrubber-fitted, benefitting from the current high fuel price spread. Moreover, both vessels come with existing charters attached with renewal in Q4 2023 and Q1 2024, respectively. The acquisitions will be funded via bank financing and cash at hand.

Commenting on the dividend and portfolio measures, CEO Constantin Baack said:
“Following the successful execution of the portfolio measures communicated in December, we are happy to declare another event-driven dividend, confirming our ongoing commitment to return capital to our investors.”

“We are also pleased to announce a new set of accretive measures in line with our strategy for portfolio optimization and rational capital allocation. With these transactions we further simplify and strengthen our corporate structure and improve our fleet composition in terms of vessel size, age and design. The acquisitions increase the earnings and distribution potential of the company already in 2023 and onwards, without any impact on the expected distributions from our existing fleet.”

“MPC Container Ships is in a favorable position given the strong charter backlog and a very healthy balance sheet. Under the current market conditions, we will continue to optimize our fleet through potential vessel sales, accretive acquisitions, or retrofit investments. At the same time, we will remain committed to our ambition for reliable shareholder distributions.”

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