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Thursday, July 18, 2024

MPCC Acquires Two Container Ships as Part of 10-Vessel Charter Deal

Maritime Activity Reports, Inc.

June 20, 2024

© kanpisut / Adobe Stock

© kanpisut / Adobe Stock

MPC Container Ships (MPCC) has acquired two 3,500 TEU vessels and secured a charter agreement package for a total of 10 vessels, including the new acquisitions.

The acquisition consists of two 3,500 TEU vessels at a total price of $47.25 million. The vessels are expected to be handed over from their current owner in the third quarter of 2024 and will be delivered into pre-agreed firm 36-month time charter contracts with a top-tier liner company.

These vessels are anticipated to generate aggregate revenues of approximately $55 million over the charter period, ensuring the acquisition price is fully covered by the corresponding EBITDA and recycling value at the end of the charters.

In addition, MPCC has entered into an agreement to charter out five 1,700 TEU and three 2,800 TEU vessels on 24-26-month contracts to the same top-tier liner company at attractive rates.

These contracts are fixed approximately six months forward on average and 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, will add $155-195 million to the company’s backlog and increase contract coverage to 90% of open days remaining in 2024, 64% in 2025, and 34% in 2026.

"While our strategy remains focused on fleet renewal and optimization, we are pleased to announce new value-enhancing strategic measures, taking advantage of the current strong and dynamic market.

"The acquisition of two 3,500 TEU vessels built in 2009 is a strategic move that comes with pre-agreed charters, effectively de-risking the investment.

“Together with a comprehensive charter package on existing vessels, this underscores our strong competitive position and our ability to secure attractive agreements with top-tier liner companies. This not only enhances our revenue visibility but also strengthens our partnership with a leading industry player, contributing to our long-term growth and shareholder value creation," said Moritz Fuhrmann, MPCC’s Co-CEO and CFO.