MPC Container Ships (MPCC) is dissolving a long-standing container shipping pool in response to the soaring charter market.
The Oslo-listed company will wind up its high-reefer pool which operates more than 20 sub-panamax container ships.
The pool will be dissolved at the start of next year.
"A pool is good and in a more shaky market," said chief executive Constantin Baack.
"We believe that the pool membership does not add significant value in today's market environment and as a consequence, we have decided to dissolve this pool effective 1 January 2022."
The pool held a niche position with 13 high-reefer vessels of 1,300 teu and eight of 1,500 teu.
Vessel sales net $150m profit
The decision comes as the Hamburg-managed company anticipates netting $150m in profit this year from the sale of smaller container vessels.
Nine vessels acquired for $100m are being sold for a combined sum of $250m.
They include the 2,560-teu AS Palatia (built 2006) and AS Petulia (built 2008), which were sold this week for $35.8m each.
MPCC acquired the two vessels for a total of $21.8m.
Meanwhile, charter rates and lengths of periods for MPCC's fleet of 75 container vessels have nearly doubled this year.
1,296-teu AS Federica (built 2007), bought for $8.5m, sold for $23m
1,296 teu AS Riccarda (built 2012), bought for $10.5m, sold for $26m
1,036-teu Grete Sibum (built 2008) bought for $12.6m, sold $20.1m
1.296-teu AS Faustina (built 2007) bought for $7.4m, sold for $23m
2,566-teu AS Palatia (built 2006) bought $11.5m, sold $35.8m
2,564-teu AS Petulia (built 2008) bought $9.3m, sold for $35.8m
Average charter rates slipped in the fourth quarter, compared to the charter highs earlier in the summer.
But that was because four container ships have been forward fixed from the fourth quarter of 2022, Baack said.
He described the fixtures as a "very strong signal as to the continued stability of the charter market".
The 1,700-teu AS Sabrina, AS Savanna, AS Samanta (all built 2009 ) have been taken at indicative rates of $29,100 for 19 to 20 months.
A fourth vessel, the 2,500-teu AS Petra (built 2004), secured a rate that will work out at $41,100 per day for 15-to-16 months.
All of the vessels in the charter deals — as well as the two ships MPCC has sold — operate on charter to US liner operator Seaboard Marine.
'Strategic decision'
MPCC has been actively buying and selling vessels this year.
Sales of five older ships with an average size of 1,412 teu that MPCC purchased for $42m have been sold for around $91m.
Another six vessels it acquired for $60m are in the process of being sold for a total of $163m.
In August, MPCC rounded off the purchase of 11 container ships from Songa Container for $210.5m.
Three of those vessels have already been sold "at a significant profit", Baack said. The 1,036-teu Anne Sibum (built 2007), Stefan Sibum and Grete Sibum (both built 2008) were sold in October for $63m en bloc to France's CMA CGM.
Baack told an earnings call that the sales are "a strategic decision" that will help refinance the fleet and free up collateral.
The charters signal "that you are able to fix forward at attractive rates and not a significant discount, meaning there's a concern about the scarcity of assets by operators", he said.
MPCC reported a fourfold increase in profits to $46.5m in the third quarter, up from $12m in the previous quarter.
Revenues nearly doubled to $118.5m, up from $68.8m.
The company also upgraded its revenues forecast to between $360m and $365m and expects Ebitda in the range of $305m to $315m.
