MPC Container Ships Reports Profit in Q1

Although still being in the start-up phase of its operation, Norway-based boxship owner and operator MPC Container Ships (MPCC) closed the first quarter of this year with profits.

The company posted a net profit of USD 0.5 million in Q1 2018, compared to a loss of USD 2.2 million seen in Q4 2017.

In addition, EBITDA was USD 7.6 million in the first quarter of 2018, against USD 0.3 million recorded in the previous quarter.

Total revenues in the three-month period ended March 31, 2018, were USD 28.3 million, compared to USD 13.2 million in Q4 2017.

Average time charter equivalent (TCE) per vessel increased to USD 9,352 per day in Q1 2018 from USD 7,901 in Q4 2017.

“During 2017 and Q1 2018, the operating result of the group is impacted by frequent vessel take-overs as well as one-off costs for the start-up phase associated with the establishment and development of the company,” the company explained in its Q1 2018 financial update.

Focusing on feeder vessels, mainly between 1,000 and 3,000 TEU, MPCC acquired 30 vessels in the first quarter of 2018 — the latest being MV Victoria Schulte, MV Welle and MV Woge.

In February 2018, MPCC completed a tap issue of USD 100 million in senior secured bonds. Also in February 2018, the company issued 11,750,000 new shares at a subscription price of NOK 50.00 per share in a fourth private placement, resulting in gross proceeds of USD 75 million. The shares were admitted to trading on Oslo Axess on April 19, 2018.

As of March 31, 2018, MPCC has acquired 64 container vessels. Of these, 59 vessels have been taken over by the balance sheet date, whereof 52 are fully consolidated and seven are operated in a joint venture.