MPCC fast-tracks newbuild orders with long-term charters attached | Container news

Oslo-based MPC Container Ships (MPCC)is stepping up its fleet rejuvenation with newbuild orders. The shipowner of small to mid-size container ships has placed an order for two container vessels in combination with 8-year charters to a liner operator.

MPCC has signed contracts for two 1,600 teu high cube container vessels with Chinese Fujian Mawei Shipyard with deliveries scheduled in the second half of 2027.

The total investment amounts to $66m, MPCC said, and the shipowner holds options for additional vessels.

As stated, each vessel has been fixed on 8-year time charter (plus a 2-year optional period) with a global liner company, expected to generate approximately $92m in revenue and contribute around $54m in EBITDA over the contracted charter period. According to MPCC, this provides substantial earnings visibility as well as derisking.

The vessel features a fuel-efficient design optimized for the Northern Europe trade and its restricted channels.

The project will be financed through a balanced mix of equity and debt. The newbuildings are expected to be accretive to both earnings per share (EPS) and dividends per share (DPS) upon delivery.

Constantin Baack, Co-CEO of MPCC, said: “This transaction is part of our long-term fleet renewal strategy, designed to generate sustainable value through modernization and optimization.

“It underscores our strong strategic position and proven ability to execute value-enhancing deals that secure long-term charters with leading liner companies, reinforcing strategic partnerships, enhancing earnings visibility, and supporting disciplined growth.

“At the same time, we maintain a strong and flexible balance sheet with significant investment capacity, enabling us to advance our renewal program while remaining well-positioned to act on market opportunities should conditions soften.

“We continue to view the supply fundamentals in our core segments as favorable, due to the comparably low orderbook – where only 6% of the fleet is expected to be replaced in the next 2–3 years, while 24% of vessels are already over 20 years old.”