MPC Container Ships orders two 5,500 TEU green methanol-ready vessels

Norwegian container tonnage provider MPC Container Ships has ordered two 5,500 TEU wide beam eco-design vessels to improve the environmental footprint of its fleet.

Illustration. Image by MPC Container Ships

The company has contracted Korean-based shipyard HJ Shipbuilding & Construction for the newbuilds that will be ready to be converted for a carbon-neutral operation based on green methanol.

The vessels, ordered at the contract price of $72,2 million each, are due to be delivered in early 2024.

As disclosed, the vessels will be chartered to ZIM Integrated Shipping Services and the expected cash flow from the initial charter of seven years will cover the contract price.

Commenting on the order, the company’s CEO Constantin Baack, said: “… we have ordered two eco-design newbuilding with attractive charters attached, which fully mitigates residual value risk over its initial charter period, and thereafter provides for significant upside potential. This transaction increases the distribution potential in 2024 and onwards, without any impact on the expected distributions from our existing fleet.

“This transaction demonstrates the company’s capability to identify and execute transactions that are both accretive in terms of earnings and environmental footprint in line with upcoming decarbonisation regulations. We will continue to execute on our distribution policy to shareholders whilst creating value by seizing selective growth opportunities as they arise.”

Additionally, over the past few weeks, MPC has concluded five additional fixtures, including four multi-year charters “at very favourable rates securing employment up to 2027”.

Recently, the company signed a project support agreement with the Mærsk Mc-Kinney Møller Centre for Zero Carbon Shipping, underlining its commitment to the centre’s mission and vision.

Under the agreement, MPC will contribute to the centre’s work with market analysis capabilities building industry insights and policy recommendations with a focus on the maritime sector decarbonisation.

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