MPC Container Ships to benefit from intra-regional trade growth as it reports 1Q revenue decline
- Average time charter equivalent rates at MPCC dropped year on year to $25,441 per day, falling from $27,452 per day
- Small newbuilding orderbook for MPCC’s key small- to mid-sized segment presents a favourable supply-demand dynamic, says chief executive
Oslo-listed containership tonnage provider reports a profit of $59.7m for the first three months of 2025, down from $76.5m year on year
BOXSHIP tonnage provider MPC Container Ships reported a downturn in earnings for the first quarter as reduced time charter equivalent rates weighed on its revenue and profit.
“Despite the current geopolitical, macro-economic and regulatory environment, the container market continues to show resilience, supported by strong secondhand demand, firm time charter rates as well as durations, and basically no idle capacity,” said MPCC chief executive Constantin Baack.
He said while the overall newbuilding orderbook remained significant, limited new supply in MPCC’s key small- to mid-sized segment, combined with an ageing fleet and shifting trade patterns, presented a favourable supply-demand dynamic.
Baack added that this environment presents opportunities for fleet modernisation and vessel acquisitions.
He noted that robust growth was expected in intra-regional trade container demand, which is principally served by the small- to mid-sized containership segments, which Baack considered to be underinvested in terms of newbuildings.
“We see a lot of potential going forward. Strong investment capacity is more important than ever, ensuring that we can act decisively when attractive opportunities arise,” said Baack.
The Oslo-listed company reported a profit of $59.7m for the first quarter, down from $76.5m in the corresponding period in 2024.
Year-on-year revenues declined by 13% to $127.1m, down from $147.5m in 1Q24.
Earnings before interest, tax, depreciation and amortisation for 1Q25 fell to $77.8m, compared with $96.1m in the same period in 2024.
Meanwhile, MPCC’s average time charter equivalent rates dropped from $27,452 per day in 1Q24 to $25,441 per day.
MPCC arranged the sale of seven of its oldest vessels in the first quarter and took delivery of the methanol dual-fuel, 1,300 teu NCL Vestland (IMO: 9981790) during the period.
The company has reaffirmed its 2025 guidance of operating revenues in the range of $485m-$500m and ebitda in the range of $305m-$325m.
