MPC Container Ships ASA (MPCC) has announced the acquisition of two 3,500 TEU vessels and a charter agreement package for 10 vessels, including the new acquisitions.
The Norwegian ship owner bought two 3,500 TEU vessels for US$47.25 million.
The vessels are expected to be handed over from their current owner in the third quarter of 2024 and will be delivered into pre-agreed firm 36-month time charter contracts with a top-tier liner company.
These vessels are anticipated to generate aggregate revenues of approximately US$55 million over the charter period, ensuring the acquisition price is fully covered by the corresponding Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and recycling value at the end of the charters.
In addition, MPCC has entered into an agreement to charter out five 1,700 TEU and three 2,800 TEU vessels on 24-26-month contracts to the same ocean carrier.
These contracts are fixed approximately six months forward on average and will be delivered into their new charters during the fourth quarter of 2024 and the first quarter of 2025.
In total, the new charter deals, including the newly acquired vessels, will add US$155-195 million to the company’s backlog and increase contract coverage to 90% of open days remaining in 2024, 64% in 2025, and 34% in 2026.
MPCC’s co-CEO and CFO, Moritz Fuhrmann commented, “While our strategy remains focused on fleet renewal and optimization, we are pleased to announce new value-enhancing strategic measures, taking advantage of the current strong and dynamic market. The acquisition of two 3,500 TEU vessels built in 2009 is a strategic move that comes with pre-agreed charters, effectively de-risking the investment. Together with a comprehensive charter package on existing vessels, this underscores our strong competitive position and our ability to secure attractive agreements with top-tier liner companies. This not only enhances our revenue visibility but also strengthens our partnership with a leading industry player, contributing to our long-term growth and shareholder value creation.”
