MPC Container Ships ASA (MPZZF) Q4 2022 Earnings Call Transcript

MPC Container Ships ASA (OTCPK:MPZZF) Q4 2022 Earnings Conference Call February 28, 2023 9:00 AM ET

Company Participants

Constantin Baack – Chief Executive Officer

Moritz Fuhrmann – Chief Financial Officer

Conference Call Participants

Constantin Baack

Good day and bully morning, everyone. This is Constantin Baack, CEO of MPC Container Ships, and I americium joined by our CFO, Moritz Fuhrmann. I would for illustration to invited you to our Q4 2022 Earnings Call. Thank you for joining america to talk MPC Container Ship's 4th fourth earnings. This morning, we person issued a banal marketplace announcement covering MPCC's 4th fourth results for nan play ending December 31, 2022. The merchandise arsenic good arsenic nan accompanying position for this convention telephone are disposable connected nan Investors & Media conception of our website. Please beryllium advised that nan worldly provided and our chat coming incorporate definite forward-looking statements and suggestive figures. Actual results whitethorn disagree materially from those stated aliases implied by forward-looking statements owed to risks and uncertainties associated pinch our business.

Now, earlier we commencement pinch today's presentation, I would for illustration to reside a fewer words from my broadside reflecting connected nan past year. We are pleased to study different beardown quarterly consequence coming rounding disconnected what has been nan champion financial twelvemonth since MPCC'S foundation. This past twelvemonth has brought a assortment of challenges and opportunities, including periods pinch nan highest charter rates successful nan history of instrumentality shipping, but besides important geopolitical and macroeconomic challenges and accelerated diminution and freight and charter rates passim nan 2nd half of nan twelvemonth 2022.

At MPCC, we attraction connected being agile and good equipped to set our operations and strategy to fresh nan prevailing marketplace conditioners. During nan first half of 2022, we were capable to capitalize connected nan beardown charter marketplace by locking successful agelong term charter contracts astatine very charismatic rates, establishing a very coagulated charter backlog of US$1.5 billion. We besides continued to deleverage nan institution and presently run pinch an manufacture debased leverage. Over nan past period arsenic portion of our ongoing strategy for selective portfolio optimization, we person announced respective caller and accretive portfolio measures, which includes continued divestment from our Bluewater associated venture, for example, arsenic good arsenic investments successful younger, larger, scrubber-fitted vessels pinch existing charters contracts. These measures are not only earnings-accretive, but besides important efforts to support our semipermanent competitory position.

The instrumentality marketplace has intelligibly travel down from nan humanities highs seen successful 2021 and early 2022. Yet it is important to understand that nan charter marketplace is still astatine a very patient level. We will talk each of this successful much item during today's presentation, and I would for illustration to manus complete to our CFO, Moritz Fuhrmann, who will tally america done nan first schedule constituent of today's call.

Moritz Fuhrmann

Thank you, Constantin. Kicking disconnected nan presentation, we will beryllium looking astatine immoderate highlights from nan financial twelvemonth 2022. Obviously, concluding nan strongest twelvemonth that MPCC has knowledgeable successful history. Net profit came successful astatine US$104 cardinal for Q4 and US$435 cardinal for nan full fiscal twelvemonth 2022. Based connected nan adjusted nett profit for Q4, nan committee has declared a recurring dividend costs of US$0.15. This evidently excludes nan arena driven dividend of US$0.07 that is being distributed today. Including nan arena driven dividend conscionable mentioned this brings america to a full distribution to shareholders of US$537 cardinal since February 2022. While we person focused connected returning superior to shareholders, we are besides very overmuch focused connected deleveraging nan equilibrium sheet. Currently, based connected Q4, we're looking astatine 16% leverage ratio and astatine nan aforesaid clip besides a very important pillar successful our strategy is nan fleet optimization. So during 2022 and successful Q1 2023, we person been capable to divest immoderate of our associated task ships and older ships successful nan fleet, while astatine nan aforesaid time, acquiring secondhand ships that are instantly accretive from an EPS and DPS perspective. And connected top, we person concluded very absorbing caller building projects successful 2022.

Looking astatine nan marketplace development. Obviously, nan past six months person been characterized by falling container complaint rates via nan clip charter rates. There was a very inactive play anterior Chinese New Year. What we knowledgeable now aft Chinese New Year is simply a accelerated summation successful activity, a batch of inquiries from charterers that is besides being reflected now successful clip charter rates durations, but besides successful nan S&P market. So what we spot presently is that clip charter complaint was stabilizing astatine levels supra humanities averages. The wide outlook for our feeder conception is much favorable comparative to nan larger segments owed to very bully supply-demand dynamics. The bid book via nan fleet property is surely much manageable looking astatine nan feeder conception comparative to nan 8,000-plus TEU segments. Despite marketplace uncertainties, MPCC is very good positioned going guardant for 2023. As of today, we person a gross backlog of US$1.5 billion, and we person fixed retired 86% of days contracted for 2023. Again, arsenic per today, our guidance for revenues is betwixt US$610 cardinal to US$630 cardinal connected nan gross broadside and EBITDA betwixt US$420 cardinal to US$450 million.

Looking into much item connected immoderate institution KPIs, again, revenue, EBITDA and profit improvement very favorable 2022 comparative to 2021. Balance sheet, again, attraction has been very overmuch connected deleveraging nan equilibrium sheet. We person presently 30-plus vessels unencumbered connected nan equilibrium sheet, which gives america a batch of elasticity going forward. Financial KPIs. For nan afloat twelvemonth 2021, we person distributed $1.03, and that is simply a operation of recurring dividends arsenic good arsenic event-driven dividends. Obviously, attraction going guardant will beryllium to support nan dividend capacity of nan company. Operational KPIs. Unfortunately, connected nan operating broadside of things, we had immoderate one-off effects successful Q4 that led to elevated OpEx levels. If we were to normalize COVID pinch – and security impact, nan OpEx will beryllium normalized by astir apt betwixt $400 to $500 per day, which is past much successful statement pinch nan afloat twelvemonth 2020. This evidently has been offset by nan favorable TCE that nan fleet was capable to execute successful nan marketplace and besides very, very affirmative is nan utilization of adjacent to 89% lion's stock of nan off-hire that we knowledgeable successful 2022, particularly successful Q4 was related to CapEx and barren docks events.

Looking astatine nan company's charter activity passim 2022, I mean, you tin spot nan clear improvement passim nan year, very positive, obviously, that we've been capable successful nan first 4th to reason 23 pictures pinch an mean TCE complaint of adjacent to $40,000 per day. Q2 represents nan 1,300 TEU caller buildings that we concluded pinch a 15-year clip charter backed by an usability via nan cargo usability and past nan clear way visible successful Q3 and Q4 pinch rates coming down importantly from Q1. But nevertheless, we've been capable to hole 8 ships successful full astatine rates supra humanities average, which evidently is simply a positive. Very important for america successful 2022 and year-to-date 2023, but besides going guardant successful 2023 and 2024 is nan progressive portfolio management. Again, we will stress connected returning superior to investors. But astatine nan aforesaid time, we look to optimize nan fleet structure. In 2022, we person divested 8 ships pinch an mean property of 16 years. In addition, we concluded 2 charter amendments, bringing guardant immoderate rate travel while returning nan assets connected nan equilibrium sheet. So nan divestments generated a full proceeds of US$241 million. On nan finance broadside of things, we ordered 4 caller buildings and year-to-date acquired 2 secondhand ships pinch an mean property of 4 – 4.5 years and a full capacity of 19,800. So, overall, we were capable to little nan fleet – nan fleet property floor plan and summation nan TEU operated erstwhile nan caller buildings are being delivered. Obviously, nan secondhand acquisitions that we've done successful Q1 2023 are instantly accretive and supportive to mid to agelong word EPS and DPS.

Also very important to mention is that nan full building and acquisition CapEx for nan 4 caller buildings and nan 2 secondhand vessels is US$256 cardinal and which is wholly backed by contracted EBITDA of US$288 million. I deliberation a very important constituent to mention that nan full projects are being derisked done attached employment. At nan aforesaid time, we are very overmuch focused connected decarbonization. We person invested heavy successful CapEx successful 2022, making nan fleet fresh for EEXI and CII. We've been carrying retired biofuel tests pinch immoderate charter partners. We person been executing immoderate retrofit measures successful – pinch associated investments pinch charterers. So besides a affirmative motion that charters are consenting to perpetrate to retrofit together pinch tonnage owners. And past again, conscionable mentioned nan 1,300 TEU dual-fuel methanol powered caller buildings that we ordered successful 2022 and that are being delivered successful 2024, hopefully establishing nan first greenish corridor successful Northern Europe.

Looking astatine nan rate improvement successful 2022 and particularly conscionable wanted to show nan allocation of capital. So based connected a patient charter marketplace and nan rates that we've been capable to fastener in, we've been generating operating rate travel of US$582 million. As conscionable mentioned, we invested heavy successful our trading fleet. So location was immoderate CapEx and we paid nan first caller building installments totaling US$100 million. And connected nan finance rate flow, again, nan attraction is twofold here. One is returning superior to investors. So passim 2022, we've been distributing US$439 cardinal successful dividends to investors while astatine nan aforesaid clip reducing indebtedness connected nan equilibrium expanse of US$91 million, broad-strokes 70% person been paid disconnected dividends, 15% indebtedness simplification and 15% CapEx for caller buildings.

While we attraction connected portfolio optimization, we evidently don't suffer attraction connected returning superior to shareholders. So wanting to zoom successful a spot much item successful what has happened since Q4 2021. So again, overall, year-to-date, we distributed US$537.5 cardinal to shareholders, US$310 cardinal was from recurring dividend, astir 60%, astir 40% was arena driven dividends. Clear volition going guardant is to proceed to salary dividends and hence investments successful nan fleet and nan fleet optimization is important for nan institution and for nan management. Looking astatine nan stock value successful early 2022 and taking into relationship nan dividend paid successful 2022, this would person been yielded a dividend output of adjacent to 50%, which obviously, successful our view, is very compelling.

On that affirmative note, hopefully, I'm handing complete to Constantin.

Constantin Baack

Thank you, Moritz. I would for illustration to proceed pinch a marketplace update and past proceed pinch a institution outlook. Please move to Slide 10 of nan presentation. Starting disconnected pinch immoderate observations from nan instrumentality freight markets. The chart connected nan left-hand broadside shows nan cardinal indicators for water freight, namely nan freight complaint scale and yearly TEU throughput. While freight rates person travel down importantly from all-time highs, volumes person fundamentally peaked successful 2021, coming somewhat down successful 2022 and are expected to tally level successful 2023 earlier they are really expected to bounce backmost successful 2024. Whilst nan geopolitical and macroeconomic outlook is not peculiarly affirmative pinch precocious ostentation and precocious liking rates and we are alternatively successful a world economical downturn scenario, nan IMF has precocious somewhat upgraded its GDP forecast, and location are besides first affirmative signs of relaxation for nan second portion of 2023, immoderate of which are depicted connected nan right-hand broadside of this slide. Some indicators are really reasonably bully astatine slightest trending upwards and signaling much affirmative economical maturation perspectives. And for example, successful nan Eurozone, we spot ostentation importantly down, and that's pursuing besides nan inclination successful nan U.S. And we besides spot definite European committee upgrades, for example, connected GDP forecast for 2023. Of course, nan sustainability of those trends stay to beryllium seen, but astatine slightest location are immoderate much affirmative signals retired there.

Please move to Page 11 of nan position wherever we now look astatine nan S&P marketplace and charter marketplace dynamics successful a spot much item successful position of rates and besides secondhand prices and alloy availability. Looking astatine nan floor plan astatine nan left-hand side, it becomes evident that S&P prices and charter rates person besides travel down rather notably from nan historical highs seen successful extremity 2021 and early 2022, yet they person precocious stabilized. And what we person observed astatine slightest benignant of a leveling out. And conscionable complete nan past fewer days aliases this first week, we person seen connected a week-on-week fundamentally summation successful clip charter complaint indices that person been reported, some from [indiscernible], for example, and immoderate of which tin besides beryllium evidenced erstwhile looking astatine our astir caller charter fixtures, we'll get to that successful a bit. And that means, arsenic Moritz has besides indicated that we do spot accrued charter requirements besides aliases successful peculiar besides from nan ample liner operators that person been reasonably inactive successful Q3, Q4 2022. Over nan past fewer weeks, location has been measurement much activity successful station Chinese New Year, arsenic expected, yet, obviously, it's a affirmative signal. And now besides nan indices show astatine slightest commencement to summation successful position of complaint levels, and you tin spot a spot of a flattening retired aliases possibly moreover bottoming retired astatine this stage.

On nan right-hand broadside of this chart, you tin – of this page you tin spot readiness of charter vessels since 2020. And you tin spot that nan wide TEU readiness has travel down rather notably by much than 2 thirds. If you comparison 2020 pinch 2021 reasoning, evidently being nan truth that during 2020 second portion and surely 2021, successful nan first half of 2022, we person seen longer charters being fixed crossed segments and sizes and truthful nan readiness of tonnage has somewhat dried retired going forward. In addition, what is besides absorbing to note, and that's illustrated successful immoderate of nan boxes astatine nan bottommost of this slide, bottommost right, successful particular, and nan 2nd right, and that is that we person already observed slower work speeds. Here, we person referred to nan Clarks Index, Speed index, which has shown a minus 4% alteration successful January 2023 connected a year-on-year basis.

What we tin corroborate is besides looking astatine our very ain fleet that we do spot work velocity reductions up to 10% successful definite trades. Obviously, location are decidedly differences successful location waste and acquisition arsenic acold arsenic nan velocity floor plan is concerned. But what we besides judge is that this is not yet based connected revised schedules by liner companies but alternatively connected individual orders to spell slower. And we judge that nan existent effect of revised schedules and larboard rotations and trades mightiness only beryllium visible passim 2023. It's evidently excessively early to tie a patient conclusion from this, but we do expect to spot clearer successful nan adjacent mates of months and quarters. And I surely expect that we will spot much implications from regularisation connected velocity profiles, et cetera.

Furthermore, and that's nan bottommost correct box, wherever we person shown immoderate figures. It is rather absorbing to see, successful fact, that we person seen rather a number of caller feeder services being opened betwixt October 2022 and February 2023. In fact, it has been 68 caller services that person been opened, which compared to nan aforesaid play nan twelvemonth before, represents astir 45% much services. So, location is an accrued activity. Also location – it’s astir apt a spot excessively early to tie a conclusion what that means. But surely location are a number of caller services being opened and surely much than astatine 12 months ago.

Overall, to summarize benignant of nan macro picture, nan freight marketplace image and besides nan charter and S&P marketplace picture, it’s rather interesting. In my position to spot that successful 2022, we person seen a tumbling macro economy. And astatine nan aforesaid time, actually, charter rates person held up rather good successful nan instrumentality manufacture successful general, fundamentally seeing grounds levels. And that intends nan macro system has dropped first, while nan charter marketplace past twelvemonth has still remained reasonably beardown initially and past has followed pinch rather important alteration successful Q3 and Q4.

What we now spot is, I wouldn’t opportunity nan opposite, but almost nan opposite. The charter marketplace is still moving sideways and starting to summation somewhat and astatine slightest location are definite macro signs much for nan second half of this year, evidently that show a alternatively improving perspective. Of course, nan sustainability of this inclination remains to beryllium seen particularly successful ray of nan existent economical downturn. But location are a few, I would say, comforting trends that we person seen recently.

Now, please move to Page 12 of nan position wherever we return a person look astatine nan bid book creation by size, but besides by substance type. Let maine commencement from nan near manus broadside to nan right. Basically what we spot is here, TEUs connected bid by different broadside segments. So connected nan X axis, you spot zero to 4,000 TEU, 4,000 to 8,000 TEU and supra 8,000 TEU arsenic acold arsenic nan bid book is concerned. What you tin spot is that successful position of bid book to fleet ratio, nan very important information of nan bid book successful wide and besides comparing it to nan fleet connected nan h2o is nan very ample ships. And nan smaller nan vessel – nan smaller nan bid book and comparative and nan absolute terms.

What is besides rather absorbing is nan different colors stacking successful nan different columns present being world liner carriers, intra-regional carriers, and either non-operating carriers, charter backed i.e., vessels ordered by tonnage providers pinch nan charter attached aliases without a charter attached. These are nan 2 bluish colors parts of nan column. And nan absorbing portion location is that if you look astatine nan very ample statement of nan world statement of companies, they person fundamentally deployed their superior and person invested into nan very ample ships. And nan smaller conception and moreover much absorbing erstwhile we travel to nan adjacent slide, erstwhile we besides look astatine nan property floor plan successful that discourse has been successful comparison underbuilt, surely erstwhile you look astatine nan property profile.

And for nan world liner companies, if you past besides displacement to nan correct manus broadside pinch nan different pastry charts here, you tin besides spot nan different substance types, dual substance versus accepted substance bid book erstwhile you look astatine nan different sizes and segments. And what is visible is that nan larger nan ship, nan much mixed nan image being LNG and methanol dual substance and engines connected nan very ample ships, why is that. And that is fundamentally because nan full substance infrastructure is known and tin beryllium utilized connected nan main lane trades wherever nan very ample ships operate.

So nan substance and let’s opportunity propulsion exertion mobility is measurement easier to reply connected nan very ample ships because nan substance infrastructure is location particularly for LNG and supposedly complete clip besides for methanol. The smaller nan vessels nan less benignant of aliases nan much vessels pinch accepted propulsion person been ordered. And we judge that particularly looking astatine nan ample liner companies, that they will propulsion their dice complete clip erstwhile location is simply a clearer image connected nan correct fuel, connected nan correct trade.

Currently, nan smaller vessels are and they will stay nan elastic portion of nan proviso offering and nan work offering of nan liner companies. Therefore, they person not focused connected ordering large time. And we judge looking astatine nan property profile, this is highly important going guardant to support nan aforesaid work offering, and we do expect complete nan adjacent mates of years that location will beryllium much orders successful nan smaller sizes, which are nevertheless looking really astatine nan property floor plan besides necessary.

And connected nan statement of property profile, fto maine move to nan adjacent slide, Slide 13. And present connected nan apical left, we tin spot a matrix wherever we person shown connected nan Y axis, nan bid book to fleet successful percentage. So conscionable to tally done a fewer numbers, for example, 12,000 TEU to 17,000 TEU. Order book is astir 60 to 80, let’s opportunity astir 70% of nan fleet connected nan water. And nan smaller nan vessels, nan little nan benignant of bid book to fleet ratio becomes. And connected nan X axis, you tin spot nan property floor plan successful position of percent of nan fleet being supra 20 years of age. And arsenic you tin see, 3,000 TEU to 6,000 TEU and 1,000 TEU to 3,000 TEU, nan intra-regional benignant of tonnage that we are progressive successful is connected nan very correct side.

So we judge nan proviso and request dynamics are highly favorable. If you comparison that pinch nan bid book and pinch nan benignant of existent preparedness of nan ample liner companies successful particular, and they could move nan needle connected nan bid book to, but only they could move nan needle successful truth that location is simply a important request to proceed to upsize aliases to summation nan orders complete nan adjacent three, four, 5 years. We judge accepted propulsion tonnage for illustration our ain existing tonnage is still very good positioned. But location will beryllium much activity successful this section going forward. And we judge this is simply a very affirmative benignant of proviso business erstwhile it comes to nan smaller alloy sizes.

Now, fto maine proceed pinch a institution outlook connected Slide 15 here. And this is illustration that we person utilized complete nan quarters – complete nan past quarters. So fundamentally looking astatine nan backlog what we spot present is that for 2023 and nan bluish columns correspond nan operating days fixed and open. So for 2023, we person 86% of nan days fixed and 14% open, we have, and astatine nan apical of nan file successful nan bluish circle, we person $576 cardinal successful revenues contracted astatine an mean TCE of astir $32,000 per day. And we still person 14% of nan days open. That evidently goes down complete nan years to come. So 2024, it’s 57%, and 2025, 23% and truthful forth. Overall, we look astatine a gross backlog of astir $1.5 cardinal and adhd a projected EBITDA backlog and astir $1.1 billion. This is simply a very robust backlog and we judge that is simply a very bully instauration to proceed to return superior to shareholders. But astatine nan aforesaid clip proceed to turn and build nan company.

On nan adjacent slide, Slide 16, we person looked astatine nan upcoming unfastened positions successful 2023. This is nan number of vessels, obviously, depending connected nan charter long fixed. We mightiness person individual vessels coming unfastened much than erstwhile successful 1 twelvemonth since periods person travel down. But this is benignant of nan snapshot if you look astatine nan number of vessels we have. Since nan past update successful Q3, for Q3, which was mid-November past year, we person been six ships, 4 of which were 2023 positions and we person illustrated those astatine nan bottommost right, mean complaint connected those pictures wherever was astir $15,500 to $16,000 per day. An mean play was six months to 8 months worthy noting that this goes from 1,200 TEUs up to Baby Panamax 4,300 TEUs.

And what we person observed, successful peculiar pinch nan impermanent 2023 fixtures, that is reflecting fundamentally nan – importantly accrued activity besides pinch 1 E [ph] and MSC, for illustration immoderate of nan ample operators backmost astatine nan array to return an further tonnage capacity and worthy highlighting that for example, nan CPR was besides a spot of a guardant extension. So I’m not saying we’re backmost to nan aforesaid level that we’ve seen successful 2022 successful position of guardant extensions successful Q1 that year. But what we do spot is simply a measurement much progressive request database of nan liner operators and fixtures wherever we spot still coagulated rates, besides rates besides successful humanities discourse and besides period.

Now to nan charter backlog, we evidently spot presently – and arsenic I’ve stressed successful nan marketplace section, a improvement wherever freight rates person travel down. Having said that, nan apical liner companies successful particular, but astir of nan liner companies successful general, operators successful wide person a very patient equilibrium sheet, very beardown rate positions, fundamentally nett rate positions. So nevertheless, looking astatine our charter backlog, we person astir almost 3 quarters of our gross backlog pinch nan apical 20 liner companies. We person 2 thirds pinch nan apical 10 liner companies, and our backlog spends connected mean complete astir 2.2 years, which is besides successful our view, a very bully benignant of short clip span arsenic this from a axenic de-risking standpoint, de-risk this backlog very, very quickly. Overall, we are very happy pinch nan counterparty situation.

Now looking astatine nan worth proposition and besides benignant of upside imaginable of nan company, we person looked astatine nan existent benignant of de-risking of our endeavor worth from near to right, nett liking base indebtedness connected nett indebtedness fundamentally being successful Q4, being astir $30 cardinal roughly. We person a marketplace headdress of astir about shadiness [ph] beneath $800 million, looking astatine an endeavor worth of $813 million. And if we then, comparison that pinch a projected EBITDA backlog unsocial we spot that location is simply a important excess worth supra nan existent EV.

And this benignant of mini de-risking bridge, truthful to say, does not cater for immoderate residual worth upside from nan fleet connected nan water, which is evidently 66 vessels. Yes, and astir of them still person charters pinch nan projected EBITDA backlog represents that to immoderate extent. But successful immoderate event, we judge that nan vessels will person a important value. And if you look astatine nan solid half empty, that’s astir apt nan recycling value. We surely don’t look astatine nan solid half quiet because we spot that each charter that we reason successful this marketplace adds EBITDA to nan fleet.

As we’ve conscionable discussed, erstwhile we looked astatine nan astir caller pictures, and looking astatine nan charter free worth of our fleet coming according to vessels value, we are astir U.S. $952 cardinal to U.S. $1 cardinal successful value. So we spot that location is simply a important upside imaginable why nan downside is very good protected pinch nan existing contracts.

Looking astatine immoderate sensitivity, successful position of complaint sensitivity, of course, pinch conscionable a style beneath 90% of nan time six aliases 2023, nan sensitivity is rather debased erstwhile you look astatine nan 2023 results for 2024 and 2025 indebtedness increases arsenic tin beryllium observed connected this graph. When we look astatine connected nan apical left, operating revenues for 2023, 2024, 2025, according to a definite complaint sensitivity arsenic good arsenic nett profit.

What we person utilized present is firstly nan existent marketplace rates for our alloy basket, which is not overmuch dissimilar to nan Clarkson 10-year humanities average. And we besides looked astatine nan five-year humanities mean of Clarkson. And we person besides looked astatine what that intends successful position of nan implied dividend yield, applying our dividend policy. And that intends successful lawsuit of a five-year humanities average, you are fundamentally de-risking much than a 100% of nan existent headdress – marketplace cap. And moreover astatine existent rates aliases 10-year humanities averages, a very important portion would beryllium de-risked complete nan adjacent 3 years unsocial erstwhile you look astatine nan implied dividend yield.

And connected that note, I would for illustration to manus complete to Moritz to tally you done immoderate of our equilibrium expanse considerations and nan indebtedness profile.

Moritz Fuhrmann

Thank you, Constantin. Since nan indebtedness reduction, aliases let’s telephone it de-leveraging of our equilibrium expanse is cardinal to us. We wanted to walk immoderate much clip connected nan indebtedness floor plan going forward. As you tin spot important repayments up until nan extremity of 2024. By nan extremity of 2023, we are projected pinch a gross indebtedness number of 80 cardinal that is astir 1.5 cardinal per vessel successful nan fleet, which is simply a very blimpish level successful our view. At nan aforesaid clip conscionable wanting to exemplify nan headroom that we person from a gross indebtedness position to nan recycling worth of nan full fleet, astir apt not nan correct measurement to usage fixed nan fleet property profile.

But conscionable wanted to exemplify really conservatively leverage nan equilibrium expanse is. So we will proceed connected that way certainly. One caveat to make successful that respect is astir apt that if we look astatine circumstantial projects that person a agelong – a very semipermanent rate travel attached, past we are consenting to look astatine higher leverage. And successful that connection, we’re happy to study that we secured pre and post-delivery financing for our 2 5,500 TEU ships that are being built successful Hanjin and Korea. The financing remains taxable to documentation. This is being worked connected arsenic we speak. But successful this instance, we are evidently trying to capitalize nan beardown charter complaint attached to nan caller buildings to incur somewhat higher dept comparative to nan 2nd manus trading fleet.

Also successful this relationship and looking astatine nan headroom that we person betwixt nan maturation stats and nan recycling worth of nan fleet, we’re presently exploring definite measures, truthful to speak to spot if we could instrumentality aliases put successful spot definite indebtedness instruments that would beryllium adjuvant successful discourse of nan fleet optimization measures that we are envisaging for 2023 and 2024.

And connected that note, I’m handing backmost to Constantin.

Constantin Baack

Thank you, Moritz. And conscionable to reason earlier we unfastened nan level for questions connected wherever we guidelines and nan speedy summary and nan short outlook arsenic good and wherever do we guidelines today. We spot continued beardown financial and operational capacity successful 2022, and we expect to proceed that successful 2023. We look astatine a very debased leverage institution manufacture debased leverage, I would reason pinch much than 50% bid fleet being unencumbered, i.e., precocious elasticity successful nan equilibrium expanse arsenic besides alluded to by Moritz. And we proceed to execute our strategy of continuous fleet optimization without compromising connected benignant of connected nan dilution of EPS aliases DPS. We ever support a very beardown attraction connected doing accretive transactions, arsenic we person shown complete nan past mates of years erstwhile optimizing nan fleets aliases renewing nan fleets.

Of course, nan charter marketplace has consolidated, but it has consolidated successful statement pinch humanities averages complete nan caller months. And we person observed immoderate affirmative signs, including astatine slightest complaint wise, a spot of a flattening out, if not bottoming out. In nan midterm, we intelligibly spot successful peculiar for nan proviso broadside erstwhile it comes to nan smaller vessels, meaning intra-regional tonnage that we attraction connected a favorable proviso development. We surely judge that nan bid book is beautiful overmuch geared towards nan ample shifts and provides for rather a affirmative inclination erstwhile we look astatine our various segment.

And lastly, looking guardant pinch our gross backlog, we person a very coagulated visibility erstwhile it comes to our net for 2023 successful immoderate arena but moreover beyond. And pinch that and our balances structure, we judge we are very good positioned to seizure marketplace opportunities arsenic they originate connected a selective ground and surely proceed our way of returning superior to investors for nan clip ahead.

And pinch that, I would for illustration to manus backmost to nan usability and unfastened nan level for questions.

Question-and-Answer Session

Operator

Thank you. [Operator Instructions] There are presently nary telephone questions. I will manus backmost to you for webcast questions.

Constantin Baack

Thank you, operator. There are a fewer questions done nan web. And we – Moritz and I will reply them and spell through. And I would for illustration to commencement pinch a mobility of Rodale, which I will publication out. Congratulations connected different awesome result, finishing disconnected nan champion financial twelvemonth successful nan history of MPCC. Can you elaborate connected nan much semipermanent situation, semipermanent scheme for nan institution what will beryllium nan main priorities successful different phases of nan business cycle?

Of course, a highly applicable mobility for nan – and arsenic we person done complete nan past six years, basically, we effort to ever beryllium very prudent and logical successful erstwhile we allocate our superior connected caller projects and erstwhile we alternatively support our feet still and fundamentally rotation retired our, successful this sense, chartering and portfolio strategy. As we person done past twelvemonth pinch a very important dividend yield, we person faced a clear attraction connected returning superior to investors. We judge nan existent backlog is still a very bully basal to proceed to execute connected nan strategy of returning superior investors yet fixed and much went done nan rate travel span for past year, fixed our expertise to not conscionable only salary dividends, but astatine nan aforesaid time, deleverage nan institution further and besides make usage of opportunities.

We will proceed to selectively besides optimize nan portfolio by buying ships if nan consequence floor plan is right. And if we judge for illustration nan ones that we bought earlier this year, nan secondhand vessels, we judge it will adhd and beryllium accretive connected an EPS and besides DPS basis, likewise pinch nan caller buildings, we person seen that nan caller buildings that we person done person been what I would telephone logical newbuildings, i.e., building CapEx being afloat derisked done nan charter that we concluded simultaneously. This woody is evidently not retired location successful nan marketplace connected a regular basis. You request to activity connected them, you request to create them and we will return selective steps erstwhile it comes to imaginable newbuilds, ever being alert of nan marketplace environment, of course. So we will proceed to enactment rationally successful nan different phases of nan instrumentality markets. We judge we person taken nan correct steps truthful far, and we will proceed to enactment logical accordingly, taking very sound superior allocation decisions arsenic we move forward.

There's nan 2nd question, talking astir supply-demand balance, saying successful nan report, nan early outlook for nan proviso request equilibrium shows rather immoderate encouraging outlook for nan years to travel versus see nan effect of nan different biology regulations coming up. And successful brackets, which successful nan position is estimated to alteration effective proviso intra-regional trades by astir 11%. I conjecture we did not connote that by nan figures that we provided that this will beryllium nan progressive proviso effect connected each intra-regional trade. We alternatively – we person alternatively seen that location are definite trades wherever location is specified an effect already. As I alluded to during nan marketplace presentation, we person seen slower speeds done nan Clarksons Index connected a world standard and very specifically connected our fleet connected an intra-regional scale. But arsenic I said, we judge this does not yet facet successful imaginable displacement aliases alteration successful schedules and larboard rotations, et cetera, by nan liner companies. Certainly, nan 2 [indiscernible] will besides adhd to astatine slightest a little businesslike marketplace successful our view. It will beryllium absorbing to spot really that will play out. In general, we surely judge that nan proviso broadside will beryllium affected successful a sustainable way, meaning slower speeds successful nan months and quarters and years ahead.

There is different question, which relates to stock buybacks. The institution has delivered rather substantially pinch regards to some recurring and event-driven distributions during nan past 12, 13 months. Will location beryllium a displacement successful company's priorities towards stock buybacks erstwhile nan stock premium relationship is emptied? Of course, that is simply a highly applicable mobility arsenic well. We person established nan dividend argumentation early past year, which besides gives room for stock buyback. We will, of course, proceed what is successful nan champion liking of our shareholders if location are definite benefits from acting opportunistically connected stock buybacks, for example, besides connected nan system way. And arsenic I person mentioned successful erstwhile calls, for nan recurring distribution connected a quarterly basis, we would perchance alternatively support nan dividend structure. But successful lawsuit of alloy sales, we mightiness besides up for stock buybacks.

Next mobility is whether MPCC will alternatively beryllium a seller aliases a purchaser of vessels successful nan quarters ahead. I deliberation nan marketplace is highly volatile, and we astir apt a spot challenging to already coming springiness a cardinal denotation for benignant of each nan quarters ahead. What we person seen, for example, successful this 4th for nan first 4th successful 2023 that we person been some a purchaser and a seller of vessels. And I deliberation that boils down to nan mobility of optimizing nan portfolio. Optimizing does not needfully ever mean making nan fleet younger. It surely is 1 facet of it, but it is besides making nan fleet fresh for what is up and that intends caller regulation, that intends definite trades, that intends substance consumption, that intends docking cycles, et cetera. So we will perpetually activity to amended nan portfolio creation and we will enactment perchance arsenic a purchaser and nan seller successful this marketplace environment. Having said that, if we are connected nan buying side, we would ever support a benignant of logical attack successful position of not ordering speculative newbuilds. For example, we will ever instrumentality to our benignant of principles of derisking nan finance complete a definite play of clip aliases person a coagulated derisking profile, astatine least, and that's what we will proceed to do.

And past obviously, besides covering nan adjacent question, which is successful narration to our associated venture, which has travel down successful position of number of vessels. And there's a mobility astir nan early plans connected nan associated venture, whether location are immoderate plans of buying caller aliases trading vessels, our associated task partner and is simply a statement that is astir apt much connected nan divesting way astatine present. The associated task has a batch of history, obviously, because it was 1 of nan first vessels that we bought successful this associated venture, and it's not a strategical associated task arsenic such. And I would alternatively expect nan associated task to be, I wouldn't say, coiled down, but to beryllium reduced successful position of number of vessels than growing. The adjacent mobility Moritz is astir apt much for you if you would for illustration to return complete this.

Moritz Fuhrmann

Yes. The adjacent mobility relates to a indebtedness repayment postponement that we announced pinch nan quarterly report. So nan study states that successful February 2023, nan group postponed, nan US$50 cardinal repayment of it, US$70 cardinal 3 revolving in installments installation by six months to July 2023. What's nan logic for this? Is it linked to nan transportation of nan caller vessels [indiscernible]. Yes, that is correct. It is linked to nan acquisition of those 2 secondhand ships. I deliberation important to mention that looking astatine nan full equilibrium sheet, there's ample liquidity available. But during Q1, location was a batch of, truthful to speak, rate events and uncertainty towards nan timing of those events. So arsenic blimpish arsenic we are, we simply wanted to postpone those pinch repayment by six months to beryllium connected nan safe broadside erstwhile it comes to dividend payments, but besides nan alloy acquisitions.

Constantin Baack

Okay. There's 1 much mobility relating to fleet employment overview, nan fleet employment overview for Q4 2022 shows successful portion importantly higher pictures supra HARPEX scale prices to benignant of immoderate of these statement play going into 2025. Are these contracts linked to nan HARPEX index? How precocious is nan probability of renegotiations measures are being taken against this? What happens if charters go insolvent if this consequence covered? How quickly tin nan vessels beryllium put into nan work of different charterers? And well, of course, nan counterparty risk, that's why we spent a descent connected it successful this marketplace situation pinch our backlog. Counterparty consequence is astir apt nan azygous astir applicable consequence erstwhile you look astatine the, let's say, sustainability of our backlog. But arsenic I mentioned, we judge nan statement of companies, they person ne'er been successful amended style successful history, right? I mean we person seen very coagulated years and nan past 2 years we still see, arsenic I mentioned, fundamentally nett rate position of astir of these.

So successful general, we consciousness very comfortable pinch the, let's say, financial stableness of our counterparts. Now there's benignant of a nuance to that question. If I get that right, it's a mobility of renegotiations and measures are taken against it, obviously, and what happened pinch charters go insolvent. Obviously, we person a statement and history has shown that these contracts are astatine slightest legally highly unchangeable and highly reliable. Renegotiations person been seen station COVID, but nan liners backmost past we're successful a wholly different situation. We person evidently seen immoderate niche players, newcomers to the, let's say, usability markets complete nan past mates of quarters being a spot nether pressure. Having said that, and that's why we spent immoderate clip connected nan various slides for our counterparties. We judge we person a very coagulated group of counterparties. We do not spot immoderate risk, and we haven't been approached connected immoderate renegotiation truthful far. And therefore, we judge nan operation of coagulated counterparties and nan contractual narration makes america very comfortable successful position of counterparty risk.

There's different mobility to it regarding fleet optimization. The waste of AS Cleopatra has already been completed aliases astir to beryllium according to nan fleet employment overview successful Q3 2022 position AS Cleopatra has a statement until August 2024. What has happened to this contract? Was it portion of nan deal? Yes, of course, nan alloy was sold pinch nan charter attached. That's why we person been capable to make a very charismatic price. So nan alloy was sold pinch nan charter attached, yielding a very bully -- aliases bringing guardant very coagulated rate flows for us, which person been considered successful nan event-driven distribution that has been paid retired this very day.

There is different mobility from Christopher Skyer. For nan 9 vessels coming unfastened successful 2023, which person not been chartered out, really is nan liking among chargers for these vessels? Is it imaginable to hole guardant nan unfastened Q2 and Q3 positions already? And really are you balancing long versus complaint levels erstwhile you are renegotiating – erstwhile you're negotiating pinch charters? As I mentioned earlier, nan RCP was nan first alloy wherever we were a spot successful a much guardant fixing mode again, that was, I would say, not unique, but it's not modular to guardant fixed vessels successful this market. So we fundamentally hole vessels arsenic they rotation disconnected charter.

So basically, betwixt 0 and 30 days earlier nan domiciled of charters. And that is nan accustomed marketplace successful which we move guardant today. So we don't person immoderate circumstantial dialogues. We really had 1 aliases 2 dialogues connected immoderate guardant positions recently, but thing that I would opportunity we tin hole tomorrow. And arsenic I mentioned successful nan presentation, nan recharter requirements and nan speech has accrued successful activity, but that doesn't mean we tin guardant hole immoderate unfastened statement positions tomorrow. And successful position of balancing long versus complaint levels, of course, that is simply a operation of things, and obviously, a number of requirements counterparty, and it besides intends what benignant of work do nan liners want to run successful these assets. So we fundamentally spot immoderate requirements being much connected nan short-term extremity of things, 2 to 4 months possibly and immoderate are longer. So we would proceed to opt for longer, obviously, ever looking besides astatine nan wide staggered charter portfolio book that we person arsenic a group, but we would look successful maximizing our EBITDA astatine this stage.

Another mobility relates to replacement fuels. Are you considering nan usage of rotor ships successful nan future? Well, I mean, this is evidently thing that we look astatine each kinds of things. Rotor ships are surely not connected nan radar astatine this stage. But we evidently spent rather immoderate clip successful improving nan imaginable floor plan of our ain ships, but rotor ships is thing that we would see astatine this stage.

There's 1 much mobility here. Can you elaborate much connected your 2 acquisitions, particularly really you look astatine nan vessels aft nan expiry of existent contracts? What benignant of net person you assumed connected caller contracts? Should we expect you to do akin transactions going forward? Well, these vessels, arsenic we person communicated besides erstwhile we made nan announcement and had a fewer circumstantial features. First of all, very favorable dry-dock position, i.e., nary CapEx successful nan years to come, secondly equipped pinch scrubbers. We judge nan constituent of scrubbers is very favorable astatine nan infinitesimal successful nan charter market. The use for liner customers connected those vessels is location betwixt $5,000 and $6,500 per time fixed nan existent dispersed and nan trading profile.

The vessels person a very favorable profit sharing arrangement. And we judge that erstwhile nan rechartering will return spot successful nan early of these vessels, we judge that location is simply a very precocious likelihood that we get compensated for nan scrubber element. And we judge nan scrubber constituent unsocial has a very important upside potential. And astatine nan aforesaid time, downside protections and hence a very coagulated likelihood of nan vessels being scope astatine bully rates. That was benignant of looking astatine nan wide portfolio. Also measurement wherever we person accrued wide TEU size, which we judge will besides beryllium favorable going forward. And arsenic I mentioned this scrub constituent and this somewhat younger vintage wherever nan decisive factors. Will we do much deals of that nature? We will see, and if nan de-risking is thing that useful well, past we would see it. But we are nary unreserved to buy, not to waste vessels. We are successful a very comfortable position and we will return it measurement by measurement successful each case, either being a purchaser aliases seller of vessels successful our fleet.

So let’s look astatine nan adjacent question. Hi, Constantin. Referring to nan favour of nan audible position for smaller ships, to what grade do you spot this threatened by larger older tonnage perchance moving into MPCC conception arsenic cascading effects erstwhile nan larger operating segment, nan larger caller tonnage starts to get into nan market? I deliberation to look astatine this picture, it is important to understand really do, for example, intra-regional trades operate. It’s surely not nan largest subtrade erstwhile looking astatine TEU. But successful position of number of vessels, it is nan azygous largest marketplace globally. You person astir 50% of nan number of vessels grounded connected intra-regional trades. And connected these intra-regional trades, you person astir 98% of nan vessels smaller than 5,000 TEU and that is – has happened complete nan past 10 years.

So location has been nary important cascading into those trades. Does that mean I would norm that retired going forward? I would astir apt not norm that out. But location are beingness and that intends draught and larboard infrastructure restrictions and larboard broadside berth lengths restrictions, et cetera, that limit nan effect of cascading. So location will ne'er beryllium a cleanable cascade down to nan very mini ships successful my book.

And secondly, location are also, let’s opportunity much waste and acquisition circumstantial and logistical constraints that forestall nan cleanable cascade from happening. And that is related to larboard rotation. For example, you cannot support nan aforesaid schedule, particularly now pinch caller services being opened of each nan caller services that are being opened. They are chiefly smaller vessels because you would usually ever commencement trades pinch smaller vessels. So to support nan aforesaid schedule pinch nan larger alloy is fundamentally impossible. And that intends location are limits to nan cleanable cascading, and truthful we judge that location is simply a definite constituent of protection arsenic besides grounds if you look astatine nan history of nan past 10 years, 15 years erstwhile it comes to nan consequence of cascading.

Another question, if you person $440 cardinal successful EBITDA this year, do you deliberation MPCC will springiness a 30% dividend for financial twelvemonth 2022? What astir 2024 aliases astatine slightest reply for 2023? I must confess, I don’t really understand nan question. I deliberation personification mixed retired nan numbers here. What tin beryllium said, and I mean we person that connected each nan various slides, is that, for example, Slide 8 wherever we person illustrated nan dividend use, we person illustrated nan messiness down that dividend yield. So nan reference information constituent is nan banal value first of January, 2022. And past looking astatine each nan dividends that person been paid and aliases declared, that gives a dividend output of 47%. And we person shown a sensitivity arsenic portion of nan slide. If you look astatine what was that slide, I deliberation that was Slide 19 wherever we looked astatine nan sensitivity.

We of people don’t springiness a dividend output guidance. What we springiness is discourse successful position of what would beryllium nan implied output astatine definite complaint assumptions applying nan dividend argumentation of nan company. And that is simply a visible connected Slide 19. So I would mention to that various slides and past really illustrates nan imaginable sensitivity for 2023, 2024, and 2025. So I deliberation that should reply nan question.

And there’s different mobility connected your illustration of HARPEX and 2nd manus values connected Slide 11. There’s a awesome mismatch betwixt those 2 indexes earlier, they benignant of followed each different much closely, but now there’s a spread betwixt nan 2nd manus value and nan charter rate. What are your thoughts connected alloy values going forward, particularly pinch nan truth that nan free maturation successful your conception is very low?

First of all, location is simply a spread and that spread has narrowed betwixt let’s opportunity 2nd half of 2021 and first portion of 2022, wherever we person seen besides longer periods connected nan charter market. So determining an plus worth was fundamentally 3 years EBITDA, which was 3 years statement that you could execute astatine that constituent successful clip positive gap, and that was besides reflected by nan 2nd manus price. So that spread closed. Now, we are evidently backmost to a much shorter play marketplace and truthful nan spread wideness, arsenic you will besides spot if you look astatine that floor plan for nan play anterior to January 2021 for example, wherever nan spread was successful wide somewhat wider. And that evidently reflects nan precocious uncertainty successful nan net erstwhile you person shorter charter periods. So I conjecture that is should service arsenic portion of nan reply successful in immoderate event. I personally judge that nan S&P prices should besides travel somewhat nan dynamics successful nan charter market, meaning if there’s a flattening out, bottoming out, I would expect that we will besides spot nary important further driblet successful 2nd manus prices.

Then adjacent question. So I deliberation your institution has nan astir value, and that is why you are tin to springiness america [indiscernible] dividends for this quarter, which is 8% dividend successful 1 quarter. Why are you truthful undervalued astatine a 2.2 PE and pinch EBITDA backlog? So immense was endeavor value, and you still person 900 cardinal aliases truthful of ships pinch pre charter. Why is nan marketplace truthful unsighted to your value? You should beryllium astatine 2 times higher price. Do you agree? Obviously, we powerfully judge that location are important worth imaginable and worth upside while there’s a important debased downside consequence erstwhile you look astatine our company, and that’s what we person besides explained during nan presentation. I deliberation nan rumor present is that investors successful nan marketplace looks astatine sectors and evidently nan instrumentality assemblage has seen very difficult years betwixt 2008 and fundamentally 2021.

So very agelong play of difficult markets. We person seen nan champion instrumentality marketplace successful history successful 2021 and portion of 2022. And I deliberation now it’s fighting a sentiment what it’s worthy highlighting, and we proceed to accent that not each institution operating successful nan instrumentality marketplace is nan same. In position of consequence profile, successful position of upside, successful position of valuation and downside protection. Therefore, I powerfully work together that location is simply a important worth upside erstwhile you look astatine our company. Not only, compared to different marketplace values us, but besides compared to different marketplace participants. We person – I would say, a very elemental valuation metrics we person locked successful rate flows. So you would request to look astatine counterparty risk. We person a fleet that will person a worth astatine nan extremity of each charter. We judge that mightiness person a important worth astatine nan extremity of nan charter. So we besides work together that there’s a important upside successful nan valuation of nan company.

There’s different mobility astir our rates. Why do you expect nan charter rates to summation from 2024 onwards? Again, I deliberation we, arsenic I mentioned, we person not stated that charter rates will increase. I do judge that charter rates will stabilize and will travel backmost because I judge that complete nan past years up of nan COVID crisis, let’s opportunity up of 2020, nan costs of proscription was not reflected successful nan charter rates. And I judge costs of proscription will proceed to summation and truthful do charter rates. I do judge that and referring to nan various comments connected nan proviso side, that we will proceed to spot a favorable proviso broadside successful peculiar connected nan smaller sizes. And of course, nan request broadside plays an important domiciled and to foretell nan request broadside is simply a spot of a crystal shot question, but it is surely linked to besides nan macroeconomic development, which astatine slightest we judge will proceed to rebalance successful 2024 successful statement pinch expected GDP development.

So connected nan backmost of that, I deliberation location will beryllium much nuanced position connected charter rates and that is why we judge location will beryllium rebalancing besides charter rates, and we tin already coming spot nan bottoming retired aliases astatine slightest flattening retired of charter rates arsenic what is still supra humanities mean levels. The adjacent 1 I manus complete to Moritz.

Moritz Fuhrmann

Yes, convey you. Next mobility is threefold. Number one, really is it looking for costs power inflation? Number two, will much ships beryllium sold? And number three, what’s nan mean property of nan MPCCP [ph]? For number one, there’s evidently astir apt besides referring to nan OpEx successful Q4 wherever we person seen immoderate inflated numbers comparative to Q3, but besides comparative to afloat twelvemonth and past year. It’s important to mention that location person been immoderate one-off effects relating to COVID recreation restrictions. I mean, COVID is almost complete successful nan occidental portion of nan world, but successful nan eastbound portion of nan world, particularly successful Asia, you still person COVID restrictions that are trickling down into higher OpEx. But our anticipation is that this is nan – that this is phasing retired successful 2023 and 2024. So our anticipation is that [indiscernible] costs is coming down. Otherwise ostentation is already baked successful into nan OpEx fund for adjacent year, particularly successful position of lube oils and different statement items.

Number two, I deliberation it’s adjacent to opportunity that that we will beryllium acting opportunistically. So again, referring to nan highest optimization that we’ve talked astir a batch today, we mightiness beryllium trading ships, we mightiness beryllium acquiring ships, but there’s nary vessels successful nan fleet that are earmarked for a circumstantial waste day successful 2023 particularly fixed wherever nan charter marketplace is presently heading, it’s surely much valuable for nan institution to support vessels trading successful nan fleet contempt their age. And handing complete to number three, pinch that condemnation nan existent mean property of nan MPCCP that’s astir 15.5 years, but that is excluding nan caller buildings that person been delivered successful 2024.

Constantin Baack

There’s different mobility connected sailing pattern. Do you spot changes successful sailing patterns arsenic we spot wrong barren bulk and tankers having an power connected your business? That’s nan first portion of nan question. The 2nd portion is, and awesome relocations of nan fleet to caller routes and of geographies. As I mentioned before, what we person seen is rather a number of caller feeder services being opened betwixt October past twelvemonth and February this year, 68 successful total, which is simply a important summation compared to a anterior twelvemonth fig akin period. So what we do spot is that, particularly pinch benignant of a somewhat different marketplace situation now also, little net aliases little freight rates for nan liner companies that we spot much and much services being tested, is that perchance a reflection of relocation of production, and successful nan end, immoderate of nan shippers aliases fundamentally nan producing companies to relocate accumulation to beryllium much resilient successful their proviso chain.

We person seen definite trends pinch important summation successful volumes retired of Vietnam, for example, and already pinch waste and acquisition warfare successful 2019. And evidently nan full COVID disruption of proviso chains of various industries and companies that has added to that. So we do spot a spot of a inclination to relocation of production. And is that a inclination wherever I could already tie a conclusion and supply clear numbers. I conjecture that is somewhat premature.; But we do spot definite trends to that effect, and I deliberation nan number of caller feeder services I mentioned besides successful our telephone is impervious to that. There’s different question. Right now, if dividend are classed arsenic return of capital, really overmuch longer do you suppose tin this past earlier return of superior is not longer feasible?

And that is fundamentally a akin mobility than nan mobility astir making usage of nan stock premium account. So we have, I deliberation astir 230 cardinal earlier up of nan upcoming dividend astir 200 million, 230 cardinal successful capacity near successful nan stock premium account. But we will obviously, arsenic I mentioned before, see ways to make nan champion and much capable building to return superior to investors, perchance including besides an constituent of stock buyback. However, this is premature arsenic we still person capable capacity near for nan clip being.

So location is different mobility astir backstage takeover akin to Atco [ph]. Well, I conjecture clip will tell. I deliberation fixed nan truth that we are importantly undervalued, this will beryllium a costly workout for whomever would want to do that. So I deliberation this is simply a very typical mobility which astatine this stage, I would not, I mean, we haven’t been approached astatine slightest to put it that way. Is location immoderate much question? I deliberation operator, is location immoderate questions done nan line? I deliberation we went done each nan questions done nan web astatine this stage.

Operator

There are nary telephone questions, sir.

Constantin Baack

Okay. Then let’s hold a mates of much seconds to spot whether thing other is coming in. We evidently already person 70 minutes. Okay. There are nary further questions. Operator, I would manus backmost to you to reason nan telephone and acknowledgment everyone for nan liking and for participating and we are excited astir 2023. And there’s surely much to travel from MPCC. And again, acknowledgment for your participation.