MPC Container Ships is set to buy four 3,800-teu wide-beam eco-design vessels for $180m.
The Hamburg-based owner said it has taken “strategic measures aimed at further optimising its portfolio and enhancing its fleet composition, thereby strengthening the company’s backlog and improving earnings visibility”.
Chief executive Constantin Baack said: “The acquisition of the four 3,800-teu wide-beam eco-design vessels is a continuation of our selective fleet renewal strategy.”
The vessels, which have an average age of about 10 years, are expected to be handed over in the fourth quarter of this year.
They will continue their current charters until the second quarter of next year.
Thereafter, the vessels will enter into a new pre-agreed 35-month time charter contracts, plus 12 months options, with a major liner company.
“The transaction underscores our strong competitive position and our ability to acquire attractive vessels and secure long-term employment with top-tier liner companies,” Baack added.
The vessels are anticipated to generate aggregate revenues of about $150m over the firm charter period.
The expected Ebitda will be between $110m and $120m under the agreed charters.
“This not only strengthens our partnership with a leading industry player, but it also enhances our revenue visibility, contributing to our long-term growth and shareholder value creation,” Baack said.
Subject to the completion of the transactions, the acquisition will be funded through a “conservative mix” of equity and debt, with the debt being supported by the associated Ebitda backlog.
Last week, MPC Container hired Arctic Securities and Pareto Securities for a potential $100m bond issue.
The Oslo-listed company has also agreed on new 24 to 26-month charter contracts for the 2,194-teu AS Anne (built 2016) and 2,578-teu AS Pamela (built 2009).
These contracts are fixed for about three months on average.
The two vessels will be delivered into their new charters during the fourth quarter of 2024 and the first quarter of 2025.
In total, the new charter agreements, including the newly acquired vessels, are expected to add about $200m to the company’s revenue backlog.
It will increase the contract coverage to 99% of open days remaining in 2024, 81% in 2025 and 50% in 2026.
MPC Container said the acquisition enhances its “leading position in the container shipping industry, enabling the company to seize market opportunities, increase profitability and deliver sustainable shareholder value as the new vessels are also accretive to earnings per share and dividends per share from handover”.
