MPC Container Ships (MPCC) is expanding its order book and ordering new feeder container ships in China. A multi-year charter already provides employment.
The Oslo-listed company, which is part of Hamburg-based MPC Capital AG, today announced an order for two container ships, each with a slot capacity of 1,600 TEU. The ships will be built in China at the Fujian Mawei shipyard. Delivery is scheduled for the second half of 2027.
For MPCC, this is a further step towards expanding its fleet with modern ships. The “NCL Nordland”, a 1,300 TEU ship, was recently christened in Hamburg (with a prominent musical guest). Shortly before this, a quartet of 4,500 TEU newbuilds had been ordered.
The total investment for the order announced today amounts to USD 66 million – but the project could still grow, as MPCC has secured an option for “additional ships”. Revenue has already been secured for the first two contracted units after delivery. This is because a charter for eight years has been agreed with a “leading global liner shipping company” – including an option to extend for two years. “This is expected to generate revenue of around $92 million and an EBITDA contribution of around $54 million over the contracted charter period, ensuring high revenue visibility and risk mitigation,” MPCC announced. The newbuildings are designed for shipping in Northern Europe and its sometimes limited shipping lanes. “A refined hull shape, a shallow draft and high maneuverability ensure efficient operation”.
According to further information, the order is financed “through a balanced mix of equity and debt capital”, which “ensures flexibility and a prudent capital structure”. “We are pleased to take another step in the transformation of our fleet,” said Constantin Baack, Co-CEO of MPCC. “This transaction is part of our long-term fleet renewal strategy, which aims to create sustainable value through modernization and optimization.”At the same time, we have “a strong and flexible balance sheet with significant investment capacity”, which makes it possible to push ahead with the renewal program “while remaining well positioned to respond to opportunities should market conditions weaken.” MPC continues to view the market fundamentals as favorable, as the order book is comparatively small. Only 6% of the fleet is expected to be replaced in the next two to three years, while 24% of the ships are already over 20 years old.
