• Full Year Revenue: $524 million USD.
• Q4 Revenue: $72 million USD.
• Full Year Adjusted EBITDA: $325 million USD.
• Q4 Adjusted EBITDA: $72 million USD.
• Backlog: $1.1 billion USD with 92% coverage for 2025 and 64% for 2026.
• Dividend Declared: $0.42 per share for the year, with a $0.09 per share dividend to be paid in March 2025.
• Operational Cash Flow: $77 million USD.
• Leverage Ratio: 28%.
• Fleet Utilization: Over 97%.
• Debt-Free Fleet: Approximately 2/3 of the fleet is debt-free.
• Revenue Guidance for 2025: $515 to $530 million USD.
• EBITDA Guidance for 2025: $290 to $310 million USD.
• Dividend Yield for 2024: 36% if shares were acquired in January 2024.
• Enterprise Value: Approximately $953 million USD.

• Warning! GuruFocus has detected 3 Warning Signs with SEE.

Release Date: February 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• MPC Container Ships ASA (MPZZF) reported a strong financial and operational performance for Q4 2024, with full-year revenue reaching $524 million.
• The company declared its 13th consecutive dividend, totaling $0.42 per share for the year, emphasizing shareholder returns.
• MPC Container Ships ASA (MPZZF) has a robust backlog of $1.1 billion, with 92% and 64% coverage for 2025 and 2026, respectively.
• The company successfully raised sustainable financing, including an ECA covered green loan and an unsecured sustainability bond.
• MPC Container Ships ASA (MPZZF) maintains a strong balance sheet with low leverage, with approximately two-thirds of its fleet being debt-free.

Negative Points

• The company's leverage ratio increased to 28% due to recent financing activities, although it remains at a low level.
• There is uncertainty regarding the impact of geopolitical events, such as the Red Sea crisis and US tariffs, on future container shipping demand.
• The charter market experienced a slowdown in activity ahead of the Chinese New Year, although it picked up afterward.
• The company's fleet age profile has not significantly improved since 2021, remaining between 14.5 and 15 years.
• Potential exposure to new US port fees could impact operations, although the exact effects are uncertain at this time.

Q & A Highlights

Q: Can you give guidance on the expected depreciation for Q1 2025 and full year 2025? A: The lower depreciation seen in Q4 2024 was due to an IFRS effect on the 4,800 EU vessels acquired. We expect these implications to normalize during 2025. - Constantin Baack, CEO

Q: What are you looking for in potential fleet optimization deals? A: We focus on younger, more modern eco vessels for secondhand acquisitions. We may consider slightly larger vessels within the 1,000 to 8,000 TU range, but not beyond 9,000 TU. - Constantin Baack, CEO

Q: How has the age profile of the fleet changed from 2021 to today? A: The fleet's age profile has remained around 14.5 to 15 years, as we have replaced older tonnage with more modern vessels, maintaining a consistent age profile over the last three years. - Moritz Fuhrmann, CFO

Q: Has the trend in charter durations changed after the Israel-Hamas ceasefire? A: There was less chartering activity before Chinese New Year, but it picked up afterward. The ceasefire led to limited activity initially, but we have seen increased charter requirements and slightly higher rates recently. - Constantin Baack, CEO

Q: What is the projected dividend based on the $290 to $310 million EBITDA range? A: The dividend is 75% of the adjusted net profit, not derived from EBITDA. The board resolves the dividend quarterly, considering the company's net profit. - Moritz Fuhrmann, CFO

For the complete transcript of the earnings call, please refer to the full earnings call transcript.