MPC Container Ships (MPCC) has bucked a sharp fall in its share price to emerge as the highest dividend-yielding company on the Oslo Stock Exchange.
Distributions to shareholders of the container feedership owner in the year to date are NOK 4.2bn ($440m).
That amounts to a 38.3% dividend yield and is the highest this year on the Oslo Stock Exchange Benchmark Index (OSEBX).
MPCC is the only container shipping company listed on the Norwegian bourse. Last year, its stock was the star performer on the exchange after closing up 282% in 2021.
This week, the stock was trading at just NOK 16.4 — nearly half the level to which it spiked in April 2022 — reflecting the sharp fall in container charter rates.
Despite the fall in stock value, the Hamburg-managed group plans to return capital to shareholders in the coming year.
“We continue to place clear emphasis on returning capital to shareholders and will remain dedicated to our ambition of providing significant shareholder distributions in the coming years,” said chief executive Constantin Baack.
“At the same time, we will selectively execute on value accretive portfolio measures, further improving our flexibility and adding to our dividend capacity.”
Further dividend
Baack said market rates remain elevated compared with historical levels.
“Due to our robust backlog and solid financial position, we remain in a very strong competitive position, and we are confident in our continued ability to create value for our shareholders while utilising our financial flexibility to act on attractive market opportunities as they arise,” he said.
The company intends to declare an event-driven distribution of $0.07 per share, payable in February 2023.
That is related to “portfolio optimization measures” involving the early redelivery or sale of three feeder vessels that will net the company $49.8m.
Those deals involve the 2,742-teu AS Carlotta and AS Cleopatra (both built 2006) and the 2,824-teu Carpathia (built 2003).
