Q2 2026 MPC Container Ships ASA Earnings Call

August 26, 2026

Speaker #1: Thank you for joining us for the MPC Container Ships Q2 earnings call. This is Consignee Mark speaking, and I'm joined today by my colleague and co-CEO and CFO, Moritz Fuhrmann.

Constantin Baack: Thank you for joining us for MPC Container Ships' second quarter earnings call. This is Constantin Baack speaking, and I am joined today by my colleague and Co-CEO and CFO, Moritz Fuhrmann. Before we begin, please note that today's discussion includes forward-looking statements as well as indicative figures. Actual results may differ materially due to risks and uncertainties inherent in our business. I would like to open today's presentation with a very short reflection. We are pleased to report another solid quarter, both financially and operationally. What stands out to us is the continued modernization and transformation of our fleet, together with the visibility we now have over our backlog and cash flows for the years ahead. This is not by chance, but by design, the result of a series of deliberate steps we have taken over recent quarters and years.

Speaker #1: Before we begin, please note that today’s discussion includes forward-looking statements as well as indicative figures. Actual results may differ materially due to risks and uncertainties inherent in our business.

Speaker #1: I would like to open today's presentation with a very short reflection: We are pleased to report another solid quarter, both financially and operationally. What stands out to us is the continued modernization and transformation of our fleet.

Speaker #1: Together with the visibility we now have over our backlog and cash flows for the years ahead, this is not by chance, but by design.

Speaker #1: The result of a series of deliberate steps we have taken over recent quarters and years. With a contract revenue backlog of $2.2 billion and coverage extending well into 2029 and beyond, we believe this visibility leaves us very well positioned for the future.

Constantin Baack: With a contract revenue backlog of USD 2.2 billion and coverage extending well into 2029 and beyond, we believe this visibility leaves us very well-positioned for the future. Even as the broader market remains volatile and hard to predict, conditions in our segment have stayed firm. With that backdrop, let me hand over to Moritz to walk us through the highlights of the quarter.

Constantin Baack: With a contract revenue backlog of $2.2 billion and coverage extending well into 2029 and beyond, we believe this visibility leaves us very well-positioned for the future. Even as the broader market remains volatile and hard to predict, conditions in our segment have stayed firm. With that backdrop, let me hand over to Moritz to walk us through the highlights of the quarter.

Speaker #1: Even as the broader market remains volatile and hard to predict, conditions in our segment have stayed firm. With that backdrop, let me hand over to Moritz to walk us through the highlights of the quarter.

Speaker #2: Thank you, Constantine. Also, good morning from my side, and let's start with the agenda for today. First, our business update: the quarter's operational highlights, the fleet transaction, and our balance sheet position.

Moritz Fuhrmann: Thank you, Constantin. Also, good morning from my side. Let us start with the agenda for today. First, our business update, the quarter's operational highlights, the fleet transaction, and our balance sheet position. Second, the market update, and thirdly, we will close with our company outlook. Turning to the executive summary, our forward coverage, as we just heard, remains very strong. Almost 100% of open days are covered for the rest of 2026, with almost no position open anymore in our fleet. 85% for the following year, already 60% for 2028, and 40% for 2029, which gives us very strong visibility into the years ahead. We acquired four 7,000 TEU vessels on three-year time charters, as well as secured a new USD 375 million senior secured term loan to fund our fleet renewal.

Moritz Fuhrmann: Thank you, Constantin. Also, good morning from my side. Let us start with the agenda for today. First, our business update, the quarter's operational highlights, the fleet transaction, and our balance sheet position. Second, the market update, and thirdly, we will close with our company outlook. Turning to the executive summary, our forward coverage, as we just heard, remains very strong. Almost 100% of open days are covered for the rest of 2026, with almost no position open anymore in our fleet. 85% for the following year, already 60% for 2028, and 40% for 2029, which gives us very strong visibility into the years ahead. We acquired four 7,000 TEU vessels on three-year time charters, as well as secured a new $375 million senior secured term loan to fund our fleet renewal.

Speaker #2: Second, the market update, and thirdly, we'll close with our company outlook. Turning to the executive summary: our forward coverage, as we just heard, remains very strong—almost 100% of open days are covered for the rest of '26.

Speaker #2: With almost no positions open anymore in our fleet—85% for the following year, already 60% for '28, and 40% for '29—this gives us very, very strong visibility into the years ahead.

Speaker #2: We acquired four 7,000 TEU vessels on three-year time charters, as well as secured a new $375 million senior secured term loan to fund our fleet renewal.

Speaker #2: On the disposal side, we sold two vessels and handed over three, with one further handover completed after the quarter close. Subsequent to the quarter end, we completed a highly oversubscribed private placement, raising $107 million, as well as fixed seven vessels in a package to a top-three liner company, on forward positions in Q1, Q2, and Q3 '27.

Moritz Fuhrmann: On the disposal side, we sold two vessels and handed over three, with one further handover completed after the quarter close. Subsequent to the quarter end, we completed a highly oversubscribed private placement, raising USD 107 million, as well as fixed seven vessels in a package to a top three liner company on forward positions in Q1, Q2 2027. The capital raise has equipped us with additional investment capacity as we continue to look for creative opportunities to expand our well-working platform. The market stayed very firm throughout the quarter. Tight supply, solid fundamental demand, near-term tonnage scarcity, and liners fixing further and further forward to secure capacity. One trend worth flagging, the consolidation in the liner segment, which we have observed over the past decade, is clearly pushing charterers towards more selective partnerships, and it is why close tonnage counterparts matter more than ever.

Moritz Fuhrmann: On the disposal side, we sold two vessels and handed over three, with one further handover completed after the quarter close. Subsequent to the quarter end, we completed a highly oversubscribed private placement, raising $107 million, as well as fixed seven vessels in a package to a top three liner company on forward positions in Q1, Q2 2027. The capital raise has equipped us with additional investment capacity as we continue to look for creative opportunities to expand our well-working platform. The market stayed very firm throughout the quarter. Tight supply, solid fundamental demand, near-term tonnage scarcity, and liners fixing further and further forward to secure capacity. One trend worth flagging, the consolidation in the liner segment, which we have observed over the past decade, is clearly pushing charterers towards more selective partnerships, and it is why close tonnage counterparts matter more than ever.

Speaker #2: The capital raise has equipped us with additional investment capacity as we continue to look for creative opportunities to expand our well-working platform. The market stayed very firm throughout the quarter—tight supply, solid fundamental demand, near-term tonnage scarcity, and liners fixing further and further forward to secure capacity.

Speaker #2: One trend worth flagging: the consolidation in the liner segment, which we have observed over the past decade, is clearly pushing charterers toward more selective partnerships, and it's why closed tonnage counterparts matter more than ever.

Speaker #2: On the numbers, for the second quarter, US dollar 170 million in operating revenues, 65 million dollars in adjusted EBITDA, and 0.04 per share in dividends, which is our 19th consecutive distribution to shareholders in our revenue backlog remains very firmly and strongly at 2.2 billion dollars.

Moritz Fuhrmann: On the numbers for the Q2, USD 170 million in operating revenues, USD 65 million in adjusted EBITDA, and USD 0.04 per share in dividends, which is our 19th consecutive distribution to shareholders, and our revenue backlog remains very firmly and strongly at USD 2.2 billion. On the next slide, we cover two things: our forward-fixing activity and our fleet renewal progress. The market, as I just mentioned, continues to show real strength from an underlying demand perspective, and our charter activity reflects that resilience. We are fixing vessels further forward on very attractive terms. We just extended a seven-vessel package with Maersk, all new charters commencing in 2027 and securing between 19 and 33 months of firm coverage at fixed rate levels. Alongside that, we have completed the acquisition of four 2023-2024 build 7,000 eco vessels on three-year charters to a top five liner company.

Moritz Fuhrmann: On the numbers for the Q2, $170 million in operating revenues, $65 million in adjusted EBITDA, and $0.04 per share in dividends, which is our 19th consecutive distribution to shareholders, and our revenue backlog remains very firmly and strongly at $2.2 billion. On the next slide, we cover two things: our forward-fixing activity and our fleet renewal progress. The market, as I just mentioned, continues to show real strength from an underlying demand perspective, and our charter activity reflects that resilience. We are fixing vessels further forward on very attractive terms. We just extended a seven-vessel package with Maersk, all new charters commencing in 2027 and securing between 19 and 33 months of firm coverage at fixed rate levels. Alongside that, we have completed the acquisition of four 2023-2024 build 7,000 eco vessels on three-year charters to a top five liner company.

Speaker #2: On the next slide, we cover two things: our forward fixing activity and our fleet renewal progress. The market, as I just mentioned, continues to show real strength from an underlying demand perspective, and our charter activity reflects that resilience.

Speaker #2: We're fixing vessels further forward on very attractive terms. We just extended a seven-vessel package with Maersk, all new charters commencing in 2027, and securing between 19 and 33 months of firm coverage at fixed rate levels.

Speaker #2: Alongside that, we have completed the acquisition of four 2023–2024-built 7,000 Eco vessels on three-year charters to a top-five liner company. More on that transaction.

Moritz Fuhrmann: More on that transaction on the next slide. Across our recent fixtures, vessels are now being secured on average about eight to nine months ahead of expiry, well before they actually come open, underscoring just how tight and active the charter market remains. On the disposal side, five vessels are now sold in total, with handovers completing through this year and into early next year. A bit more color on the aforementioned transactions on the next slide. Strategically, it fits very well, and the assets are very complementary to our fleet composition. More than 7,000 TEU vessels is in strong demand as the aging Panamax fleet retires. The size is versatile enough to deploy across any trade lane, and it is well-positioned to benefit from the double-digit demand growth we are seeing in the intra-regional trades.

Speaker #2: On the next slide. Across our recent fixtures, vessels are now being secured, on average, about 8 to 9 months ahead of expiry—well before they actually come open—underscoring just how tight and active the charter market remains.

Speaker #2: On the disposal side, again, five vessels are now sold in total, with handovers completing through this year and into early next year. A bit more color on the aforementioned transactions.

Speaker #2: On the next slide, strategically, it fits very well, and the assets are very complementary to our fleet composition. More than 7,000 TEU vessels is a strong demand as the aging Panamax fleet retires.

Speaker #2: The size is versatile enough to deploy across any trade lane, and it's well positioned to benefit from the double-digit demand growth we're seeing in the intra-regional trades.

Speaker #2: It also supports our broader fleet transition toward younger, more fuel-efficient, future-proof tonnage, as well as widening the size offering of MPC C to our customers through liners.

Moritz Fuhrmann: It also supports our broader fleet transition towards younger, more fuel-efficient, future-proof tonnage, as well as widening the size offering of MPCC to our customers, to liners. On the economic side, we acquired the vessels at a significant discount to newbuilding parity or implied discount to newbuilding parity at charter expiration, which is around 30% to 40%, giving us a real downside protection. More than 40% of the purchase price is already covered by the secured EBITDA from the initial three-year time charter. While a significant part of the acquisition cost is covered through the employment cash flow, we retain substantial upside on these assets, which will only be six to seven years old at that point in time.

Speaker #2: On the economic side, we acquired the vessels at a significant discount to newbuilding parity, or an implied discount to newbuilding parity at charter expiration, which is around 30 to 40 percent, giving us real downside protection.

Speaker #2: More than 40% of the purchase price is already covered by the secured EBITDA from the initial three-year time charter. And, while a significant part of the acquisition cost is covered through the employment cash flow, we retain substantial upside on these assets, which will only be six to seven years old at that point in time.

Speaker #2: Turning to our balance sheet, we completed the private placement of more than 44 million new shares and sold two vessels for a total of $40 million.

Moritz Fuhrmann: Turning to our balance sheet, we completed a private placement of more than 44 million new shares and sold two vessels for a total of USD 40 million, both supporting the funding of our fleet renewal. The four 7,000 TEU vessels were acquired at USD 340 million. On our newbuilding program, after the new USD 375 million pre- and post-delivery facility was signed this quarter, the lion's share is now financed on well-advanced financing discussions, giving us good visibility on funding needs going forward. As a result, we have around USD 680 million in pro forma liquidity, including our undrawn RCF capacity. While gross debt comes in at USD 450 million, net debt this quarter is actually closer to zero. 30 of our vessels remain debt-free, worth around USD 770 million at fair market value, and our leverage ratio stands at 28.4%, a very solid position from which we keep further growing.

Moritz Fuhrmann: Turning to our balance sheet, we completed a private placement of more than 44 million new shares and sold two vessels for a total of $40 million, both supporting the funding of our fleet renewal. The four 7,000 TEU vessels were acquired at $340 million. On our newbuilding program, after the new $375 million pre- and post-delivery facility was signed this quarter, the lion's share is now financed on well-advanced financing discussions, giving us good visibility on funding needs going forward.

Speaker #2: Both supporting the funding of our fleet renewal. The four 7,000 TEU vessels were acquired at $340 million. On and on our newbuilding program, after the new $375 million pre-imposed delivery facility was signed this quarter, the lion's share is now financed or in well-advanced financing discussions, giving us good visibility on funding needs going forward.

Speaker #2: As a result, we have around $3,680 million in pro forma liquidity, including our undrawn RCF capacity. While gross debt comes in at $450 million, net debt this quarter is actually closer to zero.

Moritz Fuhrmann: As a result, we have around $680 million in pro forma liquidity, including our undrawn RCF capacity. While gross debt comes in at $450 million, net debt this quarter is actually closer to zero. 30 of our vessels remain debt-free, worth around $770 million at fair market value, and our leverage ratio stands at 28.4%, a very solid position from which we keep further growing.

Speaker #2: Thirty of our vessels remain debt-free, worth around $770 million at fair market value, and our leverage ratio stands at 28.4%, a very solid position from which we can keep further growing.

Speaker #2: And with that, we're turning to our market update.

Moritz Fuhrmann: With that, we are turning to our market update.

Speaker #1: Yeah, thank you, Moritz. Let's turn to the market section. Slide 8 shows charter rates and asset values on the left-hand side, and forward vessel availability on the right.

Constantin Baack: Yeah. Thank you, Moritz. Let's turn to the market section. Slide 8 shows charter rates, asset values on the left-hand side, and forward vessel availability on the right. Charter and asset markets have stayed firm throughout the quarter, as explained by Moritz as well. The Harpex is near its highest level outside the pandemic spike, and basically up 7% year-on-year, and secondhand and newbuilding prices remain at multi-year highs. Newbuilding prices are, in fact, at their strongest since 2008, though it is worth noting ultra-large vessels actually saw prices soften while small to mid-size tonnage kept rising. Vessel availability over the next 6 months is down 11% versus last year, and the average vessel is now being fixed around 6 months ahead of expiry, which is basically a record even against the 2021 and 2022 peak.

Speaker #1: Charter and asset markets have stayed firm throughout the quarter. As explained by Moritz as well, the HAPEX is near its highest level outside the pandemic spike and is up 7% year on year. Secondhand and newbuilding prices remain at multi-year highs.

Speaker #1: Newbuilding prices are, in fact, at their strongest since 2008, though it's worth noting ultra-large vessels actually saw prices soften, while small to mid-sized tonnage kept rising.

Speaker #1: Vessel availability over the next six months is down 11% versus last year, and the average vessel is now being fixed around six months ahead of expiry, which is basically a record—even compared to the 2021 and 2022 peaks.

Speaker #1: With forward fixing, even for very small units extending out to 2027, charterers are locking in scarce tonnage well in advance. Moving from the charter and asset market to the wider market, the near-term market is no longer driven by the classic supply and demand dynamics.

Constantin Baack: With forward fixing, even for very small units, extending out to 2027 as charterers lock in scarce tonnage well in advance. Moving from the charter and asset market to the wider market, the near-term market is no longer driven by the classic supply and demand dynamics. It is being shaped also by structural distortions. On the demand side, we are seeing frontloading and tariff-related buying on top of solid underlying growth of 3.5% to 4%. On the supply side, longer trade routes from the Red Sea and Hormuz disruptions are adding roughly 12% in TEU miles, and port congestion is tying up about 1.7 million TEU or 5% of capacity. That congestion is now 17% above the pandemic peak. In absolute terms, though relative to today's larger fleet, it is still below 2022 levels. A third choke point is the Panama Canal.

Speaker #1: It's being shaped also by structural distortions. On the demand side, we're seeing front-loading and tariff-related buying on top of solid underlying growth of 3.5% to 4%.

Speaker #1: On the supply side, longer trade routes from the Red Sea and Hormuz disruptions are adding roughly 12% in TEU miles, and port congestion is tying up about 1.7 million TEU, or 5% of capacity.

Speaker #1: That congestion is now 17% above the pandemic peak in absolute terms, though relative to today's larger fleet, it's still below 2022 levels. A third choke point is the Panama Canal. El Niño-driven low water levels are prompting draft cuts and surcharges, and we expect that to persist throughout the second half of the year.

Constantin Baack: El Niño-driven low water levels are prompting draft cuts and surcharges, and we expect that to persist throughout the H2 of the year. So even with net fleet growth of more than 1,300 vessels over the past 5 years, these distortions continue to support upward pressure on rates. The macro backdrop remains broadly stable. Global growth of 3% in 2026, rising to 3.4% in 2027, with the Iran conflict the key downside risk. Within that, fleet growth is increasingly concentrated in the 6,000 to 8,000 TEU segment, where the order book share has roughly tripled this year to over 30%, directly relevant to our own recent fleet additions. That plays well into intra-regional trade, which is projected to grow at 3.6% CAGR through 2030, ahead of the mainland trades with ex-Asia flows into emerging markets, structurally supporting demand for small to mid-size vessels like ours.

Speaker #1: So even with net fleet growth of more than 1,300 vessels over the past five years, these distortions continue to support upward pressure on rates.

Speaker #1: The macro backdrop remains broadly stable. Global growth of 3% in 2026, rising to 3.4% in 2027, with the Iran conflict the key downside risk.

Speaker #1: Within that, fleet growth is increasingly concentrated in the 6,000 to 8,000 TEU segment, where the order book share has roughly tripled this year to over 30%, directly relevant to our own recent fleet additions.

Speaker #1: That plays well into intra-regional trade, which is projected to grow at 3.6% CAGR through 2030, ahead of the mainland trades, with ex-Asia flows into emerging markets structurally supporting demand for small to mid-sized vessels like ours.

Speaker #1: Together, these dynamics continue to underpin a market backdrop that remains volatile overall, but certainly constructive for MPC C. So, what does that mean for us at MPC C specifically?

Constantin Baack: Together, these dynamics continue to underpin a market backdrop that remains volatile overall, but certainly constructive for MPC Container Ships. So what does that mean for us at MPC Container Ships specifically? Let's move to the company outlook section. As of August 2026, our forward charter backlog stands at USD 2.2 billion, translating into roughly USD 1.4 billion of projected EBITDA. Based on minimum periods under the charters, coverage stands at 99% for 2026, as illustrated here, 85% for 2027, 60% for 2028, and 39% for 2029. A high degree of earnings visibility for multiple years ahead. Contracted forward TCE is running in the mid-USD 25,000 per day and rising slightly throughout the curve. What's unique is the degree of forward visibility. By far the longest and strongest we have seen since we established MPC Container Ships in 2017. This doesn't stop at the year shown on the chart.

Constantin Baack: Together, these dynamics continue to underpin a market backdrop that remains volatile overall, but certainly constructive for MPC Container Ships. So what does that mean for us at MPC Container Ships specifically? Let's move to the company outlook section. As of August 2026, our forward charter backlog stands at $2.2 billion, translating into roughly $1.4 billion of projected EBITDA. Based on minimum periods under the charters, coverage stands at 99% for 2026, as illustrated here, 85% for 2027, 60% for 2028, and 39% for 2029. A high degree of earnings visibility for multiple years ahead. Contracted forward TCE is running in the mid-USD 25,000 per day and rising slightly throughout the curve. What's unique is the degree of forward visibility. By far the longest and strongest we have seen since we established MPC Container Ships in 2017. This doesn't stop at the year shown on the chart.

Speaker #1: Let's move to the company outlook section. As of August 2026, our forward charter backlog stands at $2.2 billion, translating into roughly $1.4 billion of projected EBITDA.

Speaker #1: Based on minimum periods under the charters, coverage stands at 99% for 2026, as illustrated here, at 85% for 2027, 60% for 2028, and 39% for 2029.

Speaker #1: A high degree of earnings visibility for multiple years ahead. Contracted forward TC is running in the mid-$25,000 per day range and is rising slightly throughout the curve.

Speaker #1: What's unique is the degree of forward visibility—by far the longest and strongest we have seen since we established MPC C in 2017. This doesn't stop at the year shown on the chart.

Speaker #1: We already have more than 25% of available days covered through our newbuilding program for 2030 and beyond, which is basically backed by our fleet renewal activities.

Constantin Baack: We already have more than 25% of available days covered through our newbuilding program for 2030 and beyond, which is basically backed by our fleet renewal activities. Looking at what's coming open in the quarters ahead, as you can see here on this slide, relatively few vessels roll of charter through the rest of this year. It's basically one more ship, and also into 2027. Quite a development compared to the previous quarter, as Moritz has alluded to, secured a number of charters, including a larger package deal. This is reflecting exactly the scarcity dynamic we have described on the market slides and also in the highlight section.

Speaker #1: Looking at what's coming open in the quarters ahead, as you can see here on this slide, relatively few vessels roll off charter through the rest of this year.

Speaker #1: It's basically one more ship, and also into 2027. Quite a development compared to the previous quarter, as we have, as Moritz has alluded to, secured a number of charters, including a larger package deal.

Speaker #1: And this is reflecting exactly the scarcity dynamic we have described on the market slides and also in the highlights section. Current charter market levels remain firm across our size segments, and they're ranging, as you can see on the right-hand side, from roughly $21,000 per day for the smaller 1,300 TEU units up to around $32,000 per day for the 3,500 TEU tonnage.

Constantin Baack: Current charter market levels remain firm across our size segments, and they're ranging, as you can see on the right-hand side, from roughly USD 21,000 per day for the smaller 1,300 TEU units, up to around USD 32,000 per day for the 3,500 TEU tonnage, with periods typically somewhere between 18 months for the smaller sizes and stretching out to around 30 months for the largest. Again, as mentioned by Moritz Fuhrmann, we have extended the number of vessels on 2027 forward positions already, and we are entertaining some further discussions on the remaining 2027 charter positions, which also underpins the tightness of the market and the interest of liner companies to secure tonnage on forward positions. Let me now explain our balanced approach when it comes to fleet strategy. We have divided this section in newbuilding, secondhand vessels, and retrofits. Let me start with the newbuildings.

Constantin Baack: Current charter market levels remain firm across our size segments, and they're ranging, as you can see on the right-hand side, from roughly $21,000 per day for the smaller 1,300 TEU units, up to around $32,000 per day for the 3,500 TEU tonnage, with periods typically somewhere between 18 months for the smaller sizes and stretching out to around 30 months for the largest. Again, as mentioned by Moritz Fuhrmann, we have extended the number of vessels on 2027 forward positions already, and we are entertaining some further discussions on the remaining 2027 charter positions, which also underpins the tightness of the market and the interest of liner companies to secure tonnage on forward positions. Let me now explain our balanced approach when it comes to fleet strategy. We have divided this section in newbuilding, secondhand vessels, and retrofits. Let me start with the newbuildings.

Speaker #1: Periods are typically somewhere between 18 months for the smaller sizes and stretch out to around 30 months for the largest. Again, as mentioned by Moritz, we have extended the number of vessels on 2027 forward positions already, and we are entertaining some further discussions on the remaining 2027 charter positions. This also underpins the tightness of the markets and the interest of liner companies to secure tonnage on forward positions.

Speaker #1: Let me now explain our balanced approach when it comes to fleet strategy. We have divided this section into newbuildings, second-hand vessels, and retrofits.

Speaker #1: Let me start with the newbuildings. We stay actively engaged in newbuilding projects to lock in long-term earnings visibility and modern, fuel-efficient tonnage. This increases earnings visibility and enhances tail-end value and optionality for our fleets and for us as a company.

Constantin Baack: We stay actively engaged in newbuilding projects to lock in long-term earnings visibility and modern fuel-efficient tonnage. This increases earnings visibility and enhances tail-end value and optionality for our fleets and for us as a company. On secondhand vessels, we basically act opportunistically as both a buyer and a seller. On the buy side, we acquire modern tonnage at a discount to newbuilding parity, which means immediate deployment of capital and instant EPS accretion. On the sell side, we dispose of less efficient tonnage, where we do not see a viable retrofit path or where class renewals are approaching, provided we can achieve an attractive sales price.

Speaker #1: On second-hand vessels, we basically act opportunistically. As both a buyer and a seller, on the buy side, we acquire modern tonnage at a discount to newbuilding parity, which means immediate deployment of capital and instant EPS accretion. On the sell side, we dispose of less efficient tonnage where we do not see a viable retrofit path or where class renewals are approaching, provided we can achieve an attractive sales price.

Speaker #1: Moritz already touched on good examples of both earlier: the disposal of several less efficient vessels at attractive prices, and, on the acquisition side, our recent purchase of the four modern 7,000 TEU vessels at a substantial discount to newbuilding parity.

Constantin Baack: Moritz already touched on good examples of both earlier, the disposal of several less efficient vessels at attractive prices, and on the acquisition side, our recent purchase of the four modern 7,000 TEU vessels at a substantial discount to newbuilding parity. When it comes to retrofits, we do upgrade existing tonnage to extend economic life and make them commercially more attractive, often in cooperation with our charter partners. This allows us to extend charters. It improves efficiency and makes vessels more appealing in the charter market. Put together, that's a balanced strategy across the cycle. Duration and efficiency from newbuilding and retrofits, and optionality from acting opportunistically and rationally on secondhand vessels, both as a buyer and a seller. That enables us to immediately deploy capital, but also free up capital from sale efforts. Now, let's look at the development of the fleet over time.

Speaker #1: When it comes to retrofits, we do upgrade existing tonnage to extend economic life and make them commercially more attractive, often in cooperation with our charter partners.

Speaker #1: This allows us to extend charters and improve efficiency, making vessels more appealing in the charter market. So, put together, that's kind of a balanced strategy across the cycle—duration and efficiency from newbuilding and retrofits, and optionality from acting opportunistically and rationally on secondhand vessels, both as a buyer and a seller.

Speaker #1: And that enables us to immediately deploy capital, but also free up capital from sale efforts. Now, let's look at the development of the fleet over time.

Speaker #1: Since 2021, we have meaningfully modernized the fleet, and the results show that our strategy is delivering. The average build year across the fleet has moved from 2007 to 2016 from 2021 to today.

Constantin Baack: Since 2021, we have meaningfully modernized the fleet, and the results show that strategy is delivering. The average build year across the fleet has moved from 2007 builds to 2016 builds from 2021 to today. Basically, a decade younger on average, whereas, five years have passed. At the same time, we've grown the fleet's average size from around 2,100 TEU to roughly 3,100 TEU. That combination reflects a broader shift in composition. Our vessel count has moved up, and is on a pro forma basis, 67 today, with the eco share of that fleet rising from basically a standing start to 78% of vessels or 83% on a TEU graded basis. The larger, newer tonnage is disproportionately eco. That transformation has been value accretive, funded through a mix of internally generated cash and prudent use of leverage, and the results are visible across every metric that matters.

Speaker #1: Basically, a decade younger on average, whereas five years have passed. And at the same time, we've grown the fleet's average size from around 2,100 TEU to roughly 3,100 TEU.

Speaker #1: That combination reflects a broader shift in composition. Our vessel count has moved up and is, on a per-former basis, 67 today, with the equal share of that fleet rising from basically a standing start to 78% of vessels, or 83% on a TEU-graded basis.

Speaker #1: So the larger and newer tonnage is disproportionately equal. That transformation has been value accretive, funded through a mix of internally generated cash and prudent use of leverage, and the results are visible across every metric that matters.

Speaker #1: Since Q3 2021, we have deployed roughly $1.8 billion of fleet renewal capex, taking debt-free vessels from basically zero to 30 today. Over the same period, our revenue backlog has roughly doubled.

Constantin Baack: Since Q3 2021, we have deployed roughly $1.8 billion of fleet renewal CapEx, taking debt-free vessels from basically zero to 30 today. Over the same period, our revenue backlog has roughly doubled from about $1.1 billion to $2.2 billion, whilst at the same time, distributions to shareholders have grown from zero to around $1.1 billion. In short, a modern, larger fleet funded on a sound financial footing, delivering strong backlog and stronger returns. We are pleased to see this as evidence that our strategy is working as intended. To wrap up today's presentation, what ties all of this together is a simple idea. We've deliberately built the business to perform well regardless of where the market goes next. The backlog and forward fixing gives us earnings visibility further out, than we have had ever before. The fleet renewal is compounding that visibility with modern, more efficient tonnage.

Speaker #1: From about $1.1 billion to $2.2 billion. While at the same time, distributions to shareholders have grown from zero to around $1.1 billion. In short, a modern, larger fleet funded on a sound financial footing, delivering strong backlog and stronger returns. We are pleased to see this as evidence that our strategy is working as intended.

Speaker #1: To wrap up today's presentation, what ties all of this together is a simple idea. We've deliberately built the business to perform well regardless of where the market goes next.

Speaker #1: The backlog and forward fixing give us earnings visibility further out than we have ever had before. The fleet renewal is compounding that visibility with modern, more efficient tonnage.

Speaker #1: And the balance sheet gives us the flexibility to keep acting on opportunities as they come, rather than being dictated to by the cycle that we're in.

Constantin Baack: The balance sheet gives us the flexibility to keep acting on opportunities as they come, rather than being dictated to by this cycle that we're in. Put simply, we've built resilience into the business by design, and that's exactly what positions us well in a container market that remains as volatile as it is today. With that, we're happy to take your questions.

Speaker #1: Put simply, we've built resilience into the business by design—and that's exactly what positions us well in a container market that remains as volatile as it is today.

Speaker #1: And with that, we're happy to take your questions.

Speaker #2: We will begin by welcoming questions from the analysts we have on the line. The first question is from Evan Coltsgood.

[Company Representative] (MPC Container Ships): We will begin by welcoming questions from analysts that we have on the line. First question is from Evan Kalos.

Operator: We will begin by welcoming questions from analysts that we have on the line. First question is from Evan Kalos.

Speaker #3: Thank you. So, just on the acquisition and the equity raise—what was your thought process around the cost of raising equity versus the debt capacity, compared to the price you actually paid for the vessels?

Evan Kalos: Thank you. So just on the acquisition and the equity raise. What was your thought process around the cost of raising equity versus the debt capacity and compared to the price you actually paid for the vessels?

[Analyst 1]: Thank you. So just on the acquisition and the equity raise. What was your thought process around the cost of raising equity versus the debt capacity and compared to the price you actually paid for the vessels?

Speaker #1: Yeah, it's constantly near high, Evan. Thanks for the question. Let me start with the dynamics around the acquisition. Moritz alluded to it, but I'm happy to dig into that in a bit more detail.

Constantin Baack: Yeah, it's Constantin here. Hi, Evan. Thanks for the question. Let me start with the dynamics around the acquisition and Moritz alluded to it, but happy to dig into that in a bit more detail. We believe, looking at the discount to newbuilding parity at the expiry of the charter, that this is a very attractive acquisition to start with and a very good deployment of our capital. We are effectively buying into six-year-old ships at the expiry of the charter at a discount of 40% to 45% to newbuilding parity, which basically is not dissimilar to 2017, 2018 levels where we acquired at a lower point in the cycle as far as asset prices are concerned, but at a similar discount to newbuilding parity. However, the ships back then were basically much older.

Speaker #1: We believe that, looking at the discount to newbuilding parity at the expiry of the charter, this is a very attractive acquisition to start with and a very good deployment of our capital.

Speaker #1: We are effectively buying into six-year-old ships, at expiry of the charter, at a discount of 40 to 45% to newbuilding parity. This is basically not dissimilar to 2017–2018 levels, where we acquired at a lower point in the cycle, as far as asset prices are concerned, but at a similar discount to newbuilding parity. However, the ships back then were basically much older, right?

Speaker #1: So, we believe this is a way to acquire assets, and again, this is not an off-the-shelf acquisition, but a way to attract assets that immediately create cash flow and also allow us to tap into this slightly larger segment, which we believe, as the intra-regional trades grow, will also be a sector that is super interesting for us as well.

Constantin Baack: We believe this is a way to acquire assets, and again, this is not an off-the-shelf acquisition. But the way to attract assets that immediately create cash flow, that also allow us to tap into the slightly larger segment. Which we believe as the intra-regional trades grow, that also is a factor that is super interesting for us as well. It's a continuation and extension of our strategy, and certainly the entry point in our view is very attractive. Now, this is the rationale behind the acquisition. To tie that in with the capital raise, we believe that the timing of the raise coincided obviously with this, or is also linked to the asset acquisition.

Speaker #1: It's kind of a continuation and extension of our strategy, and certainly the entry point, in our view, is very attractive. Now, this is kind of the rationale behind the acquisition.

Speaker #1: To tie that in with the capital raise, we believe that the timing of the raise coincided, obviously, with this, or is also linked to the asset acquisition.

Speaker #1: We feel that there are more attractive deals to be done at similar metrics as far as risk and reward are concerned. And we believe that we need a certain level of liquidity in order to act opportunistically in the market.

Constantin Baack: We feel that there is more attractive deals to be done at a similar metrics as far as risk and reward is concerned. We believe that we need a certain liquidity in order to act opportunistically in the market. This deal alone was, for example, roughly USD 340 million. Very few parties in the market can actually lift a deal like this in a very short time window. You need to have the right capitalization, and that relates to both equity and credit lines and debt. This is why we have tied the two together, basically did the asset acquisition and then refilled our investment capacity.

Constantin Baack: We feel that there is more attractive deals to be done at a similar metrics as far as risk and reward is concerned. We believe that we need a certain liquidity in order to act opportunistically in the market. This deal alone was, for example, roughly $340 million. Very few parties in the market can actually lift a deal like this in a very short time window. You need to have the right capitalization, and that relates to both equity and credit lines and debt. This is why we have tied the two together, basically did the asset acquisition and then refilled our investment capacity.

Speaker #1: This deal alone was, for example, roughly $340 million. Very few parties in the market can actually lift a deal like this in a very short time window.

Speaker #1: And you need to have the right capitalization, and that relates to both equity and credit-like lines and debt. And this is why we have tied the two together—basically did the asset acquisition and then refilled our investment capacity.

Speaker #2: Next, we have a question from Eirik Håvaldsen. Please go ahead.

[Company Representative] (MPC Container Ships): Next we have a question from Eirik Haavaldsen. Please go ahead.

Operator: Next we have a question from Eirik Haavaldsen. Please go ahead.

Speaker #3: Yeah, just a couple of questions, actually. But first, I mean, you don't seem to be guiding this quarter. Is there a reason for that?

Eirik Haavaldsen: Yeah, just a couple of questions, actually. First, you do not seem to be guiding this quarter. Is there a reason for that, or updating the guidance?

Speaker #3: Updating the guidance?

Speaker #1: Hi, good morning. The guidance that we have updated throughout the summer remains unchanged, because the coverage, as we talked about in 2026, is essentially maxed out and we are essentially taking out any volatility on the top-line guidance.

Constantin Baack: Hi. Good morning. The guidance that we have updated throughout the summer remains unchanged because the coverage, as we talked about in 2026, is essentially maxed out. We essentially taking out any volatility on the top-line guidance, and same for the EBITDA guidance. The only potential swing factor on the EBITDA side is further vessel sales, where we potentially might see book gains that might require us to change the guidance. For this quarter, the guidance both on the top line and the EBITDA remains unchanged.

Speaker #1: And the same for the EBITDA guidance. The only potential swing factor on the EBITDA side is further vessel sales, where we potentially might see book gains that could require us to change the guidance.

Speaker #1: But for this quarter, the guidance both on the top line and the EBITDA remains unchanged.

Speaker #3: Perfect. And just on capital allocation as we go forward here, because as you say, you have record-high visibility and an exceptional balance sheet, really, when it comes to unencumbered assets and so on.

Eirik Haavaldsen: Perfect. Just on the capital allocation as we go forward here, because as you say, you have kind of record high visibility. You have an exceptional balance sheet, really, when it comes to unencumbered assets and so on. So, should we expect at some point that the dividend policy is up for discussion again? Or will this still the kind of key priority be to invest further in attractive opportunities?

Speaker #3: So, should we expect at some point that the dividend policy is up for discussion again, or will this still be kind of key priority B—to invest further in attractive opportunities?

Speaker #1: I mean, as I mentioned, we have also executed the equity raise in order to be in a position to deliver on both our growth goals and, certainly, also the ability to act opportunistically in the market.

Constantin Baack: As I mentioned, we have also executed the equity raise in order to be in a position to deliver on both our growth goals and certainly also the ability to act opportunistically in the market and build the company further. I related to that when I spoke to the balanced approach in the presentation, the different compartments that we would want to fill. But that should not mean that this comes at the expense of returning capital to investors. So we have adjusted our dividend policy a while ago. We still stick to this. We have adjusted it to stay here for the long run, and we have provided a range.

Speaker #1: And build the company further. I related to that when I spoke to the balanced approach in the presentation—the different compartments that we would want to fill.

Speaker #1: But that should not mean that this comes at the expense of returning capital to investors. So, we have adjusted our dividend policy a while ago, and we still stick to this. We have adjusted it to stay here for the long run.

Speaker #1: And we have provided a range. We have always been in the upper part of the range over the last couple of quarters, and I think we definitely believe that part of the capital allocation strategy is also a solid and stable return of capital to investors.

Constantin Baack: We have always been in the upper part of the range over the last couple of quarters, and I think we definitely believe that part of the capital allocation strategy is also a solid and stable return of capital to investors.

Speaker #3: Justin, and finally, just on the market, because of course, it's quite exceptional really what's going on with the forward fixing, and liners appear to be a little desperate for tonnage, and so on.

Eirik Haavaldsen: Finally, just on the market, because of course it is quite exceptional, really, what is going on with the forward fixing and liners appear to be a little desperate for tonnage and so on. How is the tone when you discuss with your clients, really, or the main operators? Do you think this can just continue? Should we expect the forward fixture window to just increase? Or do we need to see a lot of newbuilds here? Do you see any reason for kind of big newbuild programs initiated by the liners or? Because it is a bit, from the outside at least, the situation here is just accelerating, it appears.

Speaker #3: So, can you—how is the tone when you discuss with your clients, really, or the main operators? I mean, do you think this can just continue?

Speaker #3: Should we expect the forward fixture window to just increase, or do we need to see a lot of new builds here? Do you see any reason for kind of big new build programs initiated by the liners?

Speaker #3: Or because it's a bit—yeah, from the outside at least, the situation here is just accelerating, it appears.

Speaker #1: Yeah, maybe I'll start and Moritz can chip in, but as I indicated in the market section, I think the normal or usual approach of just looking at demand and supply assessment is certainly not applicable anymore.

Constantin Baack: Yeah. Maybe I start and Moritz can chip in. As I have indicated in the market section, I think the normal or usual, just looking at demand and supply assessment is certainly not applicable anymore and has not been applicable for the last couple of years. Obviously, also due to extraordinary events, but also due to the fact that the infrastructure part of things, in particular land infrastructure, has also become quite a bottleneck on various trades. With all this disruption, there is quite a degree of slack in the system and the liners cater for that. As I said, we have 1,300 more ships or ships more on the water than 5 years ago. Yet, the system is pumping on all cylinders, in particular if you look at congestions, which are up compared to the highest levels during COVID.

Speaker #1: And it hasn't been applicable for the last couple of years, obviously also due to extraordinary events, but also due to the fact that the infrastructure part of things, in particular land infrastructure, has also become quite a bottleneck on various trades.

Speaker #1: And with all this disruption, there is quite a degree of slack in the system. And the liners cater for that. So we have, as I said, we have 1,300 more ships or ships more on the water than five years ago.

Speaker #1: And yet, the system is firing on all cylinders. In particular, if you look at congestion, it's up compared to the highest levels during COVID.

Speaker #1: So there is a level of stress in the system, and that is not only caused by the Red Sea; that is also caused by other structural constraints.

Constantin Baack: There is a level of stress in the system, and that is not only caused by the Red Sea. That is caused also by other structural constraints. We see that that has led to an also different strategic approach when it comes to fleet strategy from some of the liners. In addition, the charter market is drying out, and to your point earlier, we have been fixing the smallest vessels in our fleet on mid-2027 positions. The larger you go, you can easily fix 2028 positions. I think there is a scarcity of assets. There is obviously a bit of a thinking process on the liner side, will this continue or not? If it does continue and I do not secure assets, I am probably holding the short end of the stick. I think there is a bit of a dynamic about uncertainty where the market is heading.

Speaker #1: And we see that that has also led to a different strategic approach when it comes to fleet strategy from some of the liners. In addition, the charter market is drying out.

Speaker #1: And to your point earlier, we have been fixing the smallest vessels in our fleet on mid-2027 positions. I mean, the larger you go, you can easily fix 28 positions.

Speaker #1: So, I think there is a scarcity of assets. There is obviously a bit of a thinking process on the liner side—will this continue or not?

Speaker #1: If it does continue and I don't secure assets, I'm probably holding the short end of the stick. So I think there is a bit of a dynamic around uncertainty about where the market is heading.

Speaker #1: At the same time, and very importantly, fundamental demand is much better than everyone had expected. And that is also the read-across if you speak to the various liner companies or even shippers.

Constantin Baack: At the same time, and very importantly, fundamental demand is way better than everyone had expected. That is also the read-across if you speak to the various liner companies or even shippers. I think the fundamental demand is growing, and at the same time, we are also seeing new arteries of trade developing, in particular linked to Asia, the Indian subcontinent, sub-Saharan Africa. Not the biggest of all trades, but trades that require a number of additional ships as well. It is a long answer to your question, but I think overall the market dynamics are a tad more complex than they used to be, where you just looked at supply and demand. I think this is the important read-across.

Speaker #1: So, I think the fundamental demand is growing. And at the same time, we're also seeing new arteries of trade developing, in particular those linked to Asia–the Sub-Indian continent and Sub-Saharan Africa. Not the biggest of all trades, but trades that require a number of additional ships as well.

Speaker #1: So it's a long answer to your question, but I think overall the market dynamics are a tad more complex than they used to be, when you just looked at supply and demand.

Speaker #1: And I think this is the important read-across.

Speaker #3: Thank you.

Eirik Haavaldsen: Thank you.

Speaker #2: And then we have a question from Christopher Batshaye. Please go ahead.

[Company Representative] (MPC Container Ships): And then we have a question from Christopher Vatsaya. Please go ahead.

Operator: And then we have a question from Christopher Vatsaya. Please go ahead.

Speaker #3: Hello. So, on the congestion side, can you talk a bit about the main drivers here? We see other liners discussing underinvestment on the terminal side.

Christopher Vatsaya: Hello. On the congestion side, can you talk a bit on the main drivers here? We see other liners are discussing underinvestments on the terminal side. Do you agree with that take? If it's a terminal issue, how long could this potentially last?

[Analyst 2]: Hello. On the congestion side, can you talk a bit on the main drivers here? We see other liners are discussing underinvestments on the terminal side. Do you agree with that take? If it's a terminal issue, how long could this potentially last?

Speaker #3: Do you agree with that take? And if it's a terminal issue, how long could it potentially last?

Speaker #1: Yeah, it's a very good question. And certainly, the terminal side, or land infrastructure I should say, is one key aspect of it. Then obviously, constant disruptions of certain trade routes and adjusting to that is another factor, right?

Constantin Baack: Yeah, it's a very good question, and certainly the terminal side or land infrastructure, I should say, is one key aspect of it. Then obviously, constant disruptions of certain trade routes and adjusting to that is another factor, right? The Strait of Hormuz is not directly a significant impact on the container trade flows, yet it is a disruption. Ships are being trapped, boxes are being trapped, logistic chains, because it's not only about a ship to go from A to B, it's also about the boxes. The boxes, as we have also seen after COVID, they tend to not always be where you need them. That creates a lot of logistical hassle as well.

Speaker #1: I mean, the Strait of Hormuz does not directly have a significant impact on container trade flows, yet it is a disruption. And ships are being trapped.

Speaker #1: Boxes are being trapped. Logistic chains—because it's not only about a ship going from A to B—it's also about the boxes. And the boxes, as we have also seen after COVID, tend to not always be where you need them.

Speaker #1: And that creates a lot of logistical hassle as well. So I think it's really certainly the terminal side, certainly the land infrastructure side, but also the question of schedule reliability, and rescheduling services, and also ensuring the empty boxes are where they are needed.

Constantin Baack: I think it's really certainly the terminal side, certainly the land infrastructure side, but also the question of schedule reliability and rescheduling services, and also ensuring the empty boxes are where they are needed.

Speaker #3: Thank you.

Christopher Vatsaya: Thank you.

[Analyst 2]: Thank you.

Speaker #2: And with no more questions from the analysts, we say thank you for participating. Constantine will now move on to the written questions that have come in.

[Company Representative] (MPC Container Ships): With no more questions from the analysts, we say thank you for participating. Constantin will move on to the written questions that have come in.

Operator: With no more questions from the analysts, we say thank you for participating. Constantin will move on to the written questions that have come in.

Speaker #1: Yes, thanks everyone for the questions so far. There's another question here through the web, and that is: By increasing your fleet as other companies do, do you expect many challenges, in particular regarding captains?

Constantin Baack: Yes. Thanks everyone for the questions so far. There is another question here through the web, and that is, "By increasing your fleet as other companies do you expect manning challenges, in particular regarding captains? How is your company regarded as employer?" First of all, I think the crews on this planet have a tough and very challenging job these days with everything that is going on. Indeed, I think on the crewing side, there is potentially a bottleneck. There are already constraints. We try to address that by working very professionally and openly with our crews, and offering them as much as we can in terms of additional benefits. But for sure, this is an industry-wide phenomenon, and the crews on this planet are very important for maintaining the ecosystem or the system of global trade in particular.

Speaker #1: How is your company regarded as an employer? I mean, first of all, I think the crews on this planet have a tough and very challenging job these days with everything that is going on.

Speaker #1: And indeed, I think on the crewing side, there is potentially a bottleneck. There are already constraints. We try to address that by working very professionally and openly with our crews.

Speaker #1: And we are offering them as much as we can in terms of additional benefits. But for sure, this is an industry-wide phenomenon. The crews on this planet are very important for maintaining the ecosystem, or the system, of global trade in particular.

Speaker #1: So, I think we as a company are regarded positively by our crews. We have a dedicated crew pool, and our goal and our intention is to continue to invest in that as well.

Constantin Baack: I think we as a company are regarded positively by our crews. We have a dedicated crew pool, and our goal and our intention is to continue to invest in that as well. But it is a fair question, and I can just say that, or repeat myself by saying it is a very important backbone of our industry and also of our activities going forward. Okay. We are looking at the web. Were there any further questions? I do not see any further questions. On that note, many thanks for everyone's interest and contribution. As I said, and as Moritz Fuhrmann alluded to as well, we believe we are well-positioned for whatever lies ahead, despite some volatility in the market. We look forward to reporting again next quarter. All the best, and take care. Bye-bye.

Speaker #1: But it is a fair question, and I can just say that—or repeat myself by saying—it is a very important backbone of our industry and also of our activities going forward.

Speaker #1: Okay, we're looking at the web to see whether there are any further questions. I don't see any further questions. So, on that note, many thanks for everyone's interest and contribution.

Speaker #1: And as I said, and as Moritz alluded to as well, we believe we're well positioned for whatever lies ahead, despite some volatility in the market.

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Q2 2026 MPC Container Ships ASA Earnings Call

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