• Adjusted EBITDA: USD 66 million for Q1 2025.

• Revenue Backlog: USD 1.1 billion with 96% and 77% coverage of open days in 2025 and 2026, respectively.

• Dividend: USD 0.08 per share, marking the 14th consecutive dividend.

• Revenue Guidance: USD 485 million to USD 500 million for the full year.

• EBITDA Guidance: USD 305 million to USD 325 million for the full year.

• Gross Revenue: USD 127 million for Q1 2025.

• Adjusted Profit: USD 48 million for Q1 2025.

• Leverage Ratio: 32% as of Q1 2025.

• Net Debt: Approximately USD 200 million, decreased quarter-over-quarter.

• Operational Cash Flow: USD 75 million for Q1 2025.

• Fleet Utilization: 96% for Q1 2025.

• Gross Sales Proceeds from Vessel Sales: USD 94 million from the sale of seven vessels.

• Cash Position: USD 226 million by the end of March 2025.

• Undrawn RCF Capacity: USD 75 million.

• Total Shareholder Distribution: Surpassed USD 1 billion in dividends over the past three years.

• Warning! GuruFocus has detected 5 Warning Sign with MPZZF.

Release Date: May 22, 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 quarterly result with an adjusted EBITDA of USD66 million for Q1 2025.

• The company has a substantial revenue backlog of USD1.1 billion, with high employment coverage for 2025 and 2026.

• MPC Container Ships ASA (MPZZF) declared its 14th consecutive dividend, amounting to $0.08 per share, contributing to over USD1 billion in dividends paid over the last three years.

• The company successfully executed fleet optimization by selling seven older vessels and taking delivery of two methanol dual-fuel new buildings.

• MPC Container Ships ASA (MPZZF) entered the Japanese lending market and raised USD75 million through a sustainability-linked bond, enhancing financial flexibility.

Negative Points

• The company faces macroeconomic and geopolitical uncertainties, which could impact future performance.

• Despite strong market conditions, there is a need for fleet renewal due to an aging fleet, with many vessels over 20 years old.

• The decision to adjust the dividend payout ratio from 75% to 30%-50% may not be well-received by shareholders expecting higher returns.

• There is a significant discrepancy in the order book for vessels below 8,000 TEU, indicating potential challenges in fleet renewal.

• The company acknowledges the ongoing volatility in the shipping market, driven by geopolitical tensions and regulatory shifts, which could affect strategic planning.

Q & A Highlights

Q: What is the plan for the 33 conventional ships built between 2005 and 2010? Do they all need retrofitting, or is there an option of selling more of them? A: Moritz Fuhrmann, CFO: We have retrofitted around 24 ships with major retrofits and 8 to 10 with smaller retrofits. We consider retrofitting to improve commercial viability and may sell ships with weaker designs that don't have a viable retrofit path.