Feedership owner MPC Container Ships (MPCC) has upgraded its earnings forecast for a second time this year “as a consequence of persistently strong container market dynamics”.
The Oslo-listed, Hamburg-managed tonnage provider anticipates revenues to rise as much as 50% this financial year.
The increase is expected at between $230m and $260m, which is up from $170m in the previous year.
Ebitda is forecast to soar to between $120m and $140m, up from just $16.1m compared to the previous corresponding year.
'Ideal market'
The bullish forecast comes two months after the company massively upgraded its earnings expectations on the back of what its chief executive Constantin Baack described as “ideal market dynamics”.
In February, MPCC forecast an Ebitda of between $90m and $120m and revenues of between $200m and $240m for the current financial year.
But the company is continuing to benefit from ongoing strong trade volumes, rates and prices, according to a market update issued on Monday.
That is a result of market disruptions caused by Covid-19 and the blockage of the Suez Canal.
MPCC has renewed charters on vessels in its fleet at higher rates and for longer periods.
The company has concluded 25 fixtures in the year to date, of which 18 vessels were under 2,000 teu.
The average charter rate was $16,650 per day and average duration was 16 months.
Strengthening market
Some of MPCC’s recent fixtures have been much higher than that in a reflection of the continually strengthening charter market.
In March, the company chartered out the 2,800-teu AS Carinthia (built 2003) for up to two years at $24,750 per day.
The vessel will join an intra-Asian service operated by Regional Container Lines of Thailand on 24 April.
The improving market has enabled MPCC to lock-in secured revenue of $193m for the current financial year, as well as $88m for financial year 2022.
It expects to renew charters on another 14 vessels in the second quarter of 2021 and a further 23 in the second half of the year.
"Longer charters have enabled tonnage providers to take cover during this rally," said investment bank Fearnley Securities.
"Importantly, MPCC has covered 80% of 2021 already. We also expect that 40% to 50% of 2022 will be covered by the end of June," it said.
MPCC has offloaded three vessels this year with an average age of 16 years — the 996-teu AS Laguna (built 2008), and 1,200-teu AS Fiona and AS Frida (both built 2003) — which changed hands for a combined $12.7m.
The shipowner also paid $10m to acquire the 3,586-teu AS Nadia (ex-Nordspring, built 2007), which is now its biggest ship.