Oslo-based MPC Container Ships (MPCC) has seen significant earnings visibility in the third quarter from further increased charter backlog. Its charter backlog increased to $1.2bn with increased contract coverage for 2025 and 2026.
The continued strong market conditions and scarce capacity led to increased backlog with 2024 fully booked, and contract coverage of 85% and 57% of open days in 2025 and 2026, respectively.
The quarter was marked by strong container demand as shippers frontloaded cargo to mitigate risks from economic pressures, port disruptions, and Red Sea security threats, MPCC said, resulting in a strong freight market.
The group reported a profit for the period of $63.7m, versus $68.2m in the same period last year.
Its fleet consisted at the end of September of 56 vessels with an aggregate capacity of approximately 128,044 TEU.
The operating revenues for the third quarter were $132.5m, compared to $184m in the same period of 2023, and Ebitda of $84.8m (Q3 2023: $140.4m).
The average TCE per trading day for the third quarter was 26,334 as compared to the adjusted average TCE per day of $27,531 in the corresponding quarter in 2023.
Reflecting on recent market trends and the outlook, CEO Constantin Baack said: “Throughout the quarter, and 2024, the container market has continued to experience considerable influence from geopolitical disruptions, and the quarter was marked by increased container demand as shippers frontloaded cargo to mitigate risks. This resulted in a strong freight market and limited idle fleet amongst tonnage providers.”
The top management highlighted that MPCC has successfully capitalized on the market situation and enhanced its solid charter backlog to $1.2bn with 2024 fully booked, and contract coverage of 85% and 57% of open days in 2025 and 2026.
This provides great revenue visibility going forward and strengthens our ability to deliver robust results, Constantin Baack says, and dividends over the coming years.
