MPCC Orders $228M New Ships, Sells Old Vessels, & Locks In Long-Term Charters

MPC Container Ships (MPCC) has placed an order worth USD 228 million for four container vessels, sold off older ships, signed new charter deals, and secured over USD 100 million in financing to modernise its fleet.

MPCC has signed a contract with Chinese shipbuilder Taizhou Sanfu Ship Engineering to build four container ships, each with a capacity of 4,500 TEU. These vessels are scheduled to be delivered starting from the second half of 2027.

Each of these four new ships has already been chartered out for three years to a top global liner company. These contracts are expected to bring in about USD 140 million in total revenue and generate around USD 100 million in EBITDA during the charter period.

The new vessels will use the latest energy-efficient technology, which is expected to cut slot costs by roughly 50% compared to many older ships currently in service. They will also be dual-fuel ready, meaning they can be converted in the future to use methanol or ammonia.

According to MPCC, this investment will help reduce regulatory and environmental risks and will support its goal of operating a younger, cleaner, and more efficient fleet. The company plans to fund the project with a combination of debt and equity to maintain financial flexibility.

The company has recently secured two more debt facilities.

One is a USD 52 million facility from KFW-IPEX, and the other is a USD 50 million facility from Deutsche Bank. The Deutsche Bank facility also includes a USD 250 million accordion option, giving MPCC the ability to increase the loan size if needed in the future. These loans are secured by modern ECO-design vessels.

The company stated that these new facilities will improve its financial flexibility. MPCC is continuing to follow a moderate leverage approach, and currently, 27 vessels in its fleet remain completely debt-free.

It is also selling three older vessels that are not part of its long-term strategy. These are 1,300 TEU ships with an average age of 18 years. The vessels are being sold with their current charters still attached for a total price of USD 31.5 million.

MPCC has secured 2-year charter agreements for four of its current vessels: AS Serena, AS Sophia, AS Angelina, and AS Penelope. These contracts have been signed with two top-tier liner companies.

Updated Charter Coverage & 2025 Guidance

With these new agreements and changes, MPCC has updated its contract coverage figures:

• 100% of its fleet is now covered for 2025,
• 88% is covered for 2026,
• 34% is covered for 2027.

Following this, MPCC has revised its 2025 financial guidance. The company is maintaining its revenue outlook at USD 485–500 million but has increased its EBITDA estimate to USD 320–335 million (previously USD 305–325 million).

The company believes the new ships will positively impact both earnings per share (EPS) and dividends per share (DPS) once they are delivered.

Reference: MPCC

Source: Maritime Shipping News