Revenue grew in 2023 despite a weak freight market, but operating profit (EBITDA) declined for container ship owner MPC Container Ships, which expects a significant decline this year.

According to the Q4 results, the weak market was clearly evident in the fourth quarter of 2023, which gave MPC Container Ships an operating profit (EBITDA) of just under USD 94m compared to USD 127m in the fourth quarter of 2022.

MPC CEO Constantin Baack expects the weakening in earnings to continue into 2024.

”For 2024, management currently expects, subject to certain assumptions, operating revenues in the range of USD 435-470 million and EBITDA in the range of USD 240-280m,” the report reads.

This is significantly weaker than the 2023 revenue of USD 711m, which resulted in an operating profit (EBITDA) of USD 518m.

On the other hand, MPC Container Ships, which has German roots but is listed on the Oslo Stock Exchange, came through 2023 relatively well, with both weak demand and growing overcapacity hitting many container shipping companies’ earnings hard after record years in 2021 and 2022.

”As we reflect on the full year of 2023, I am pleased to share MPC Container Ships’ continued resilience, progress, and sustained strong financial performance,” says Contantin Baack in the press release. 

High fleet utilization

He points out that MPC had a fleet utilization of 98% in the fourth quarter and is otherwise financially sound with 38 debt-free vessels in a fleet of 59 small and medium-sized container ships.

Profit in 2023 was USD 325m compared to USD 435m in 2022.

Recent years have been a financial rollercoaster ride for MPC Container Ships. The ship owner almost went bankrupt in 2020 after several years of crisis in the container shipping industry.

MPC survived thanks to a crisis plan and an agreement with lenders.

However, heavy losses were turned into dramatically improved earnings the following year, which was the ship owner’s best year to date, and the earnings party continued in 2022 thanks to major supply chain bottlenecks caused by the coronavirus pandemic.

(Translated using DeepL with additional editing by Katrine Gøthler)