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1. Company Snapshot

1.a. Company Description

MPC Container Ships ASA owns and operates a portfolio of container vessels.The company focuses on feeder vessels between 1,000 and 5,000 twenty-foot equivalent units (TEU).It operates a fleet of 75 ships with a total capacity of 158,000 TEU.


The company charters out its vessels to liner shipping companies and regional carriers.MPC Container Ships ASA was incorporated in 2017 and is based in Oslo, Norway.

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1.b. Last Insights on MPCC

MPC Container Ships ASA's recent performance was positively driven by strong fundamentals, including a resilient European economy and stable market conditions. Despite trade negotiations and economic indicators pointing to stagnation, the company's solid position in the market allowed it to capitalize on opportunities. With the pan-European STOXX Europe 600 Index showing mixed performances, MPC's robust financials and potential for growth make it an attractive prospect. According to recent news, investors are focusing on companies with strong fundamentals, which could bode well for MPC.

1.c. Company Highlights

2. MPC Container Ships' Strong Q3 2025 Performance and Growth Prospects

MPC Container Ships reported a robust Q3 2025 performance, with revenues reaching $126 million and adjusted EBITDA of $75 million. The company's actual EPS came out at $0.999, significantly beating estimates of $0.086. The Board declared a 16th consecutive dividend of $0.05 per share, representing 50% of adjusted net earnings. The strong financial performance was driven by the company's active fleet modernization efforts, with 10 vessels handed over to new owners this year and 11 new vessels contracted, including 8 x 4,500 TEUs and 2 x 1,600 TEUs, for a total consideration of around $525 million.

Publication Date: Dec -02

📋 Highlights
  • Strong Q3 2025 Performance: Revenues reached $126 million with adjusted EBITDA of $75 million, reflecting robust operational performance.
  • Dividend Commitment: Declared a 16th consecutive dividend of $0.05 per share, representing 50% of adjusted net earnings, signaling financial stability.
  • Fleet Modernization: Contracted 11 new vessels (8 x 4,500 TEUs, 2 x 1,600 TEUs) for $525 million while offloading 10 older vessels, enhancing fleet efficiency.
  • Revenue Backlog & Guidance: Total revenue backlog hit $1.6 billion with 92% 2026 and 55% 2027 coverage, and raised full-year revenue guidance to $500-510 million.
  • Eco-Efficient Fleet: Achieved 75% eco-efficient vessels and reduced CO2 intensity by 43% vs. 2008 baseline, with retrofitted 20-year-old ships showing 20% efficiency gains over peers.

Fleet Modernization and Market Momentum

The newbuilding activity has been driven by positive market momentum, with forward fixed rates between $17,000 and $23,000 per day. The total revenue backlog increased to $1.6 billion, with 92% and 55% coverage for 2026 and 2027, respectively. The company has transitioned its fleet to 75% eco-efficient vessels and reduced CO2 intensity by 43% compared to the 2008 baseline. MPCC's proactive management approach combines recurring distributions with attractive growth opportunities, creating long-term value across cycles.

Valuation and Growth Prospects

Analysts estimate next year's revenue growth at -14.6%. Despite this, the company's strong financial position, with a leverage ratio of 34.6% and a net debt position of $107 million, provides high flexibility and investment capacity. The current valuation metrics indicate a P/E Ratio of 2.98, P/B Ratio of 0.9, and EV/EBITDA of 2.54. The Dividend Yield stands at 13.11%, suggesting an attractive return for investors. The company's focus on executing its strategy, with a clear focus on the intra-regional container shipping market, and its identification of opportunities in regional trades and smaller vessel segments, are expected to drive future growth.

Operational Efficiency and Sustainability

The company has taken measures to enhance its fleet, including investing in eco-tonnage and retrofits. MPCC believes vessel age is becoming less relevant, with retrofits making older vessels more efficient. They have successfully retrofitted 20-year-old ships, making them 20% more efficient than peer vessels. The company expects 18 dry dockings in 2025 and 2026, which presents an operational challenge, but they have experience managing multiple vessels through dry dockings in Europe and the Far East.

Capital Allocation Strategy

The company focuses on a balanced capital allocation strategy, providing returns to shareholders while investing in growth. A dividend policy adjustment in Q2 led to a share price drop, but this was also influenced by market sentiment. The company now prioritizes a mix of dividend payouts and investments, having reallocated funds to support growth and create long-term value. With a strong financial position, they have made strategic investments, including newbuildings and forward fixtures, which are expected to drive future growth.

3. NewsRoom

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MPC Container Ships ASA (MPZZF) Q3 2025 Earnings Call Highlights: Strong Financial Performance ...

Nov -27

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Senior Executives in Dry Bulk, Container, Crude Tanker, Product Tanker, LNG, LPG Shipping to Present in Capital Link Webinar Series

Nov -24

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Exploring 3 Promising European Small Caps with Strong Potential

Nov -20

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Capital Link Shipping Sectors Webinar Series - December 2025

Nov -19

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Discovering Europe's Hidden Stock Gems October 2025

Oct -20

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Navigating What’s Ahead: Executive Shipping Insights – Q3 2025

Oct -13

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Exploring 3 Undiscovered Gems in Europe for Potential Growth

Aug -07

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Undiscovered Gems In Europe Backed By Strong Fundamentals

Jul -08

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.83%)

6. Segments

Time Charter

Expected Growth: 4.83%

The 4.83% growth in Time Charter from MPC Container Ships ASA is driven by increasing demand for container shipping, improved fleet utilization, and a rise in charter rates. Additionally, the company's strategic expansion into new markets, cost-saving initiatives, and a strong balance sheet have contributed to this growth.

Other

Expected Growth: 4.83%

MPC Container Ships ASA's 4.83% growth is driven by increasing demand for container shipping, fueled by global trade growth, e-commerce expansion, and supply chain resilience. Additionally, the company's strategic fleet expansion, cost-saving initiatives, and improving operational efficiency contribute to its growth momentum.

Amortisation of Time Charter Contracts

Expected Growth: 4.83%

The 4.83% growth in Amortisation of Time Charter Contracts from MPC Container Ships ASA is driven by increasing container shipping demand, fleet expansion, and higher charter rates. Additionally, the company's strategic focus on acquiring and operating a modern fleet of container vessels has contributed to the growth. Furthermore, the rise in global trade and e-commerce has led to increased demand for container shipping services, supporting the growth in amortisation of time charter contracts.

7. Detailed Products

Container Shipping

MPC Container Ships ASA provides container shipping services, offering a range of container vessels for charter to shipping lines, freight forwarders, and cargo owners.

Vessel Management

The company offers vessel management services, including technical management, crew management, and commercial management.

Chartering

MPC Container Ships ASA provides chartering services, connecting cargo owners with available vessel capacity.

Vessel Acquisition and Sales

The company buys and sells container vessels, providing a range of options for customers looking to expand or divest their fleets.

Ship Management

MPC Container Ships ASA offers ship management services, including technical management, crew management, and operational management.

8. MPC Container Ships ASA's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes is moderate for MPC Container Ships ASA, as there are alternative modes of transportation available, but they are not as efficient or cost-effective as container shipping.

Bargaining Power Of Customers

The bargaining power of customers is low for MPC Container Ships ASA, as the company operates in a niche market with limited alternatives, giving customers limited bargaining power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate for MPC Container Ships ASA, as the company relies on a few large suppliers for its container vessels, giving them some bargaining power.

Threat Of New Entrants

The threat of new entrants is low for MPC Container Ships ASA, as the barriers to entry are high, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high for MPC Container Ships ASA, as the container shipping industry is highly competitive, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 14.44%
Debt Cost 10.38%
Equity Weight 85.56%
Equity Cost 10.38%
WACC 10.38%
Leverage 16.88%

11. Quality Control: MPC Container Ships ASA passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Danaos

A-Score: 7.1/10

Value: 8.5

Growth: 6.4

Quality: 7.6

Yield: 6.9

Momentum: 5.5

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Euroseas

A-Score: 7.0/10

Value: 7.6

Growth: 8.2

Quality: 7.8

Yield: 8.1

Momentum: 8.5

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
Ernst Russ

A-Score: 6.2/10

Value: 8.4

Growth: 9.6

Quality: 8.8

Yield: 3.1

Momentum: 5.5

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
MPC Container Ships

A-Score: 6.2/10

Value: 8.6

Growth: 6.9

Quality: 7.8

Yield: 10.0

Momentum: 1.5

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
d'Amico Shipping

A-Score: 5.8/10

Value: 7.8

Growth: 7.9

Quality: 6.7

Yield: 9.4

Momentum: 0.5

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Höegh Autoliners

A-Score: 5.1/10

Value: 8.4

Growth: 2.0

Quality: 7.3

Yield: 10.0

Momentum: 1.0

Volatility: 2.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

18.21$

Current Price

18.21$

Potential

-0.00%

Expected Cash-Flows