Good morning, everyone, and thank you for joining us for MPC Container Ships' second quarter earnings call. This is Constantin Baack speaking, and I'm joined today by my colleague, co-CEO and CFO, Moritz Fuhrmann.

Before we begin, please note that today's discussion includes forward-looking statements as well as indicative figures. Actual results may differ materially due to risk and uncertainties inherent in our business.

I would like to open today's presentation with a very short reflection. We are pleased to report another solid quarter, both financially and operationally.

What stands out to us is the continued modernization and transformation of our fleet, together with the visibility we now have over our backlog and cash flows for the years ahead. This is not by chance, but by design, the result of a series of deliberate steps we have taken over recent quarters and years.

With a contract revenue backlog of $2.2 billion and coverage extending well into 2029 and beyond, we believe this visibility leaves us very well-positioned for the future. Even as the broader market remains volatile and hard to predict, conditions in our segment have stayed firm.

With that backdrop, let me hand over to Moritz to walk us through the highlights of the quarter.

Thank you, Constantin. Also, good morning from my side, and let's start with the agenda for today.

First, our business update, the quarter's operational highlights, the fleet transaction, and our balance sheet position. Second, the market update.

Thirdly, we'll close with our company outlook. Turning to the executive summary, our forward coverage, as we just heard, remains very strong.

Almost 100% of open days are covered for the rest of 2026, with almost no position open anymore in our fleet; 85% for the following year; already 60% for 2028; and 40% for 2029, which gives us very, very strong visibility into the years ahead. We acquired four 7,000 TEU vessels on three-year time charters, as well as secured a new $375 million senior secured term loan to fund our fleet renewal.

On the disposal side, we sold two vessels and handed over three, with one further handover completed after the quarter close. Subsequent to the quarter end, we completed a highly oversubscribed private placement, raising $107 million US dollars, as well as fixed seven vessels in a package to a top-three liner company on forward positions in Q1, Q2 2027.

The capital raise has equipped us with additional investment capacity as we continue to look for accretive opportunities to expand our well-working platform. The market stayed very firm throughout the quarter: tight supply, solid fundamental demand, near-term tonnage scarcity, and liners fixing further and further forward to secure capacity.

One trend worth flagging, the consolidation in the liner segment, which we have observed over the past decade, is clearly pushing charterers towards more selective partnerships, and it's why close tonnage counterparts matter more than ever. On the numbers, for the second quarter, US dollar $170 million in operating revenues, $65 million in adjusted EBITDA, and 4 cents per share in dividends, which is our 19th consecutive distribution to shareholders, and our revenue backlog remains very firmly and strongly at $2.2 billion.

On the next slide, we cover two things: our forward fixing activity and our fleet renewal progress. The market, as I just mentioned, continues to show real strength from an underlying demand perspective, and our charter activity reflects that resilience.

We're fixing vessels further forward on very attractive terms. We just extended a seven-vessel package with Maersk, all new charters commencing in 2027 and securing between 19 and 33 months of firm coverage at fixed-rate levels.

Alongside that, we have completed the acquisition of four 2023-2024 built 7,000 eco-vessels on three-year charters to a top-five liner company. More on that transaction on the next slide.

Across our recent fixtures, vessels are now being secured on average about 8 to 9 months ahead of expiry, well before they actually come open, underscoring just how tight and active the charter market remains. On the disposal side, again, five vessels are now sold in total, with handovers completing through this year and into early next year.

A bit more color on the aforementioned transactions on the next slide. Strategically, it fits very well and the assets are very complementary to our fleet composition.

Modern 7,000 TEU vessels is in strong demand as the aging Panamax fleet retires. The size is versatile enough to deploy across any trade lane, and it's well-positioned to benefit from the double-digit demand growth we're seeing in the intra-regional trades.

It also supports our broader fleet transition towards younger, more fuel-efficient, future-proof tonnage, as well as widening the size offering of MPCC to our customers, the liners. On the economic side, we acquired the vessels at a significant discount to newbuilding parity, or implied discount to newbuilding parity at charter expiration, which is around 30% to 40%, giving us a real downside protection.

More than 40% of the purchase price is already covered by the secured EBITDA from the initial three-year time charter. While a significant part of the acquisition cost is covered through the employment cash flow, we retain substantial upside on these assets, which will only be 6 to 7 years old at that point in time.

Turning to our balance sheet, we completed a private placement of more than 44 million new shares and sold two vessels for a total $40 million, both supporting the funding of our fleet renewal. The four 7,000 TEU vessels were acquired at $340 million, and on our newbuilding program, after the new $375 million pre- and post-delivery facility was signed this quarter, the lion's share is now financed or in well-advanced financing discussions, giving us good visibility on funding needs going forward.

As a result, we have around $680 million in pro forma liquidity, including our undrawn RCF capacity. While gross debt comes in at $450 million, net debt this quarter is actually closer to zero.

30 of our vessels remain debt-free, worth around $770 million at fair market value, and our leverage ratio stands at 28.4%, a very solid position from which we keep further growing. With that, we're turning to our market update.

Thank you, Moritz. Let's turn to the market section.

Slide 8 shows charter rates, asset values on the left-hand side and forward vessel availability on the right. Charter and asset markets have stayed firm throughout the quarter, as explained by Moritz as well.

The Harpex is near its highest level outside the pandemic spike and basically up 7% year on year, and second-hand and newbuilding prices remain at multi-year highs. Newbuilding prices are, in fact, at their strongest since 2008, though it's worth noting ultra-large vessels actually saw prices soften, while small- to mid-size tonnage kept rising.

Vessel availability over the next 6 months is down 11% versus last year, and the average vessel is now being fixed around 6 months ahead of expiry, which is basically a record even against the 2021 and 2022 peak, with forward fixing even for very small units extending out to 2027 as charterers lock in scarce tonnage well in advance. Moving from the charter and asset market to the wider market, the near-term market is no longer driven by the classic supply and demand dynamics.

It's being shaped also by structural distortions. On the demand side, we're seeing front-loading and tariff-related buying on top of solid underlying growth of 3.5% to 4%.

On the supply side, longer trade routes from the Red Sea and Hormuz disruptions are adding roughly 12% in TEU-miles, and port congestion is tying up about 1.7 million TEU or 5% of capacity. That congestion is now 70% above the pandemic peak in absolute terms, though relative to today's larger fleet, it's still below 2022 levels.

A third choke point is the Panama Canal. El Niño-driven low water levels are prompting draft cuts and surcharges, and we expect that to persist throughout the second half of the year.

Even with net fleet growth of more than 1,300 vessels over the past 5 years, these distortions continue to support upward pressure on rates. The macro backdrop remains broadly stable: global growth of 3% in 2026, rising to 3.4% in 2027, with the Iran conflict the key downside risk.

Within that, fleet growth is increasingly concentrated in the 6,000 to 8,000 TEU segment, where the order book share has roughly tripled this year to over 30%, directly relevant to our own recent fleet additions. That plays well into intra-regional trade, which is projected to grow at 3.6% CAGR through 2030, ahead of the mainline trades, with ex-Asia flows into emerging markets structurally supporting demand for small- to mid-size vessels like ours.

Together, these dynamics continue to underpin a market backdrop that remains volatile overall, but certainly constructive for MPCC. What does that mean for us at MPCC specifically?

Let's move to the company outlook section. As of August 2026, our forward charter backlog stands at $2.2 billion, translating into roughly $1.4 billion of projected EBITDA based on minimum periods under the charters.

Coverage stands at 99% for 2026, as illustrated here, 85% for 2027, 60% for 2028, and 39% for 2029, a high degree of earnings visibility for multiple years ahead. Contracted forward TCE is running in the mid-$25,000 per day and rising slightly throughout the curve.

What's unique is the degree of forward visibility, by far the longest and strongest we have seen since we established MPCC in 2017. This doesn't stop at the year shown on the chart.

We already have more than 25% of available days covered through our newbuilding program for 2030 and beyond, which is basically backed by our fleet renewal activities. Looking at what's coming open in the quarters ahead, as you can see here on the slide, relatively few vessels roll off charter through the rest of this year, it's basically one more ship, and also into 2027, quite a development compared to the previous quarter, as we have, as Moritz has alluded to, secured a number of charters, including a larger package deal.

This is reflecting exactly the scarcity dynamic we have described on the market slides and also in the highlights section. Current charter market levels remain firm across our size segments, and they're ranging, that you can see on the right-hand side, from roughly $21,000 per day for the smaller 1,300 TEU units up to around $32,000 per day for the 3,500 TEU tonnage, with periods typically somewhere between 18 months for the smaller sizes and stretching out to around 30 months for the largest.

Again, as mentioned by Moritz, we have extended the number of vessels on 2027 forward positions already, and we are entertaining some further discussions on the remaining 2027 charter positions, which also underpins the tightness of the market and the interest of liner companies to secure tonnage on forward positions. Let me now explain our balanced approach when it comes to fleet strategy, and we have divided this section in newbuildings, secondhand vessels, and retrofits.

Let me start with the newbuildings. We stay actively engaged in newbuilding projects to lock in long-term earnings visibility and modern, fuel-efficient tonnage.

This increases earnings visibility and enhances tail-end value and optionality for our fleet and for us as a company. On secondhand vessels, we basically act opportunistically as both a buyer and a seller.

On the buy side, we acquire modern tonnage at a discount to newbuilding parity, which means immediate deployment of capital and instant EPS accretion. On the sell side, we dispose of less-efficient tonnage where we do not see a viable retrofit path or where class renewals are approaching, provided we can achieve an attractive sales price.

Moritz already touched on good examples of both earlier: the disposal of several less-efficient vessels at attractive prices, and on the acquisition side, our recent purchase of the four modern 7,000 TEU vessels at a substantial discount to newbuilding parity. When it comes to retrofits, we do upgrade existing tonnage to extend economic life and make them commercially more attractive, often in cooperation with our charter partners.

This allows us to extend charters. It improves efficiency and makes vessels more appealing in the charter market.

Put together, that's kind of a balanced strategy across the cycle: duration and efficiency from newbuilding and retrofits, and optionality from acting opportunistically and rationally on secondhand vessels, both as a buyer and a seller, and that enables us to immediately deploy capital, but also free up capital from sale efforts. Now let's look at the development of the fleet over time.

Since 2021, we have meaningfully modernized the fleet, and the results show that strategy is delivering. The average build year across the fleet has moved from 2007 build to 2016 build from 2021 to today, basically a decade younger on average whereas 5 years have passed.

At the same time, we've grown the fleet's average size from around 2,100 TEU to roughly 3,100 TEU. That combination reflects a broader shift in composition.

Our vessel count has moved up and is, on a pro forma basis, 67 today, with the eco-share of that fleet rising from basically a standing start to 78% of vessels or 83% on a TEU-weighted basis, the larger, newer tonnage is disproportionately eco. That transformation has been value-accretive, funded through a mix of internally generated cash and prudent use of leverage, and the results are visible across every metric that matters.

Since Q3 2021, we have deployed roughly $1.8 billion US dollars of fleet renewal capex, taking debt-free vessels from basically zero to 30 today. Over the same period, our revenue backlog has roughly doubled from about $1.1 billion to $2.2 billion, whilst at the same time, distributions to shareholders have grown from zero to around $1.1 billion.

In short, a modern, larger fleet funded on a sound financial footing, delivering strong backlog and stronger returns. We are pleased to see this as evidence that our strategy is working as intended.

To wrap up today's presentation, what ties all of this together is a simple idea: we've deliberately built a business to perform well regardless of where the market goes next. The backlog and forward fixing gives us earnings visibility further out than we have had ever before.

The fleet renewal is compounding that visibility with modern, more efficient tonnage, and the balance sheet gives us the flexibility to keep acting on opportunities as they come, rather than being dictated to by the cycle that we're in. Put simply, we've built resilience into the business by design, and that's exactly what positions us well in a container market that remains as volatile as it is today.

With that, we're happy to take your questions.

Thank you. Just on the acquisition and the equity raise, what was your thought process around the cost of raising equity versus the debt capacity and compared to the price you actually paid for the vessels?

It's Constantin here. Hi Even.

Thanks for the question. Let me start with kind of the dynamics around the acquisition, and Moritz alluded to it, but happy to dig into that in a bit more detail.

We believe looking at the discount to newbuilding parity at expiry of the charter, that this is a very attractive acquisition to start with and a very good deployment of our capital. We are effectively buying into 6-year-old ships at expiry of the charter at a discount of 40% to 45% to newbuilding parity, which basically is not dissimilar to 2017, 2018 levels where we acquired at a lower point in the cycle as far as asset prices are concerned, but at a similar discount to newbuilding parity.

However, the ships back then were basically much older, right? We believe this is a way to acquire assets, and again, this is not an off-the-shelf acquisition, but the way to attract assets that immediately create cash flow, that also allow us to tap into the slightly larger segment, which we believe, as the intra-regional trades grow, that also is a sector that is super interesting for us as well.

It's kind of a continuation and extension of our strategy, and certainly the entry point, in our view, is very attractive. Now, this is kind of the rationale behind the acquisition.

To tie that in with the capital raise, we believe that the timing of the raise coincided obviously with this, or it's also linked to the asset acquisition. We feel that there's more attractive deals to be done at a similar metrics as far as risk and reward is concerned, and we believe that we need a certain liquidity in order to act opportunistically in the market.

This deal alone was, for example, roughly $340 million. Very few parties in the market can actually lift a deal like this in a very short time window, and you need to have the right capitalization, and that relates to both equity and kind of lines, credit lines and debt.

This is why we have tied the two together, basically did the asset acquisition and then refilled our investment capacity.

Just a couple of questions actually. First, you don't seem to be guiding this quarter.

Is there a reason for that, or updating the guidance?

Hi, good morning. The guidance that we have updated throughout the summer remains unchanged because the coverage, as we talked about, in 2026 is essentially maxed out, and we're essentially taking out any volatility on the top-line guidance, and same for the EBITDA guidance.

The only potential swing factor on the EBITDA side is further vessel sales, where we potentially might see book gains that might require us to change the guidance. For this quarter, the guidance both on the top line and the EBITDA remains unchanged.

Perfect. Just on the capital allocation as we go forward here, because, as you say, you have kind of record high visibility, you have exceptional balance sheet really when it comes to unencumbered assets and so on.

Should we expect at some point that the dividend policy is up for discussion again, or will this still the kind of key priority be to invest further in attractive opportunities?

As I mentioned, we have also executed the equity raise in order to be in a position to deliver on both our growth goals and certainly also the ability to act opportunistically in the market and build the company further. I related to that when I spoke to the balance approach in the presentation, the different compartments that we would want to fill.

That should not mean that this comes at the expense of returning capital to investors. We have adjusted our dividend policy a while ago.

We still stick to this. We have adjusted it to stay here for the long run, and we have provided a range.

We have always been in the upper part of the range over the last couple of quarters, and I think we definitely believe that a part of the capital allocation strategy is also a solid and stable return of capital to investors.

Finally, just on the market, because, of course, it's quite exceptional really what's going on with the forward fixing and liners appear to be a little desperate for tonnage and so on. How is the tone when you discuss with your clients really, or the main operators?

Do you think this can just continue? Should we expect the forward fixture window to just increase, or do we need to see a lot of newbuilds here?

Do you see any reason for kind of big newbuild programs initiated by the liners, or because it's a bit, from the outside at least, the situation here is just accelerating, it appears?

Maybe I start and Moritz can chip in, but as I indicated in the market section, I think the normal or usual just looking at demand and supply assessment is certainly not applicable anymore, and it hasn't been applicable for the last couple of years, obviously also due to extraordinary events, but also due to the fact that the infrastructure part of things, in particular land infrastructure, has also become quite a bottleneck on various trades. With all this disruption, there is quite a degree of slack in the system, and the liners cater for that.

As I said, we have 1,300 more ships or ships more on the water than 5 years ago, and yet, the system is pumping on all cylinders, in particular if you look at congestions, which are up compared to the highest levels during COVID. There is a level of stress in the system, and that is not only caused by the Red Sea.

That is caused also by other structural constraints, and we see that that has led to a also different strategic approach when it comes to fleet strategy from some of the liners. In addition, the charter market is drying out, and to your point earlier, we have been fixing the smallest vessels in our fleet on mid-2027 positions.

The larger you go, you can easily fix 2028 positions. I think there is a scarcity of assets.

There is, obviously, a bit of a thinking process on the liner side: will this continue or not? If it does continue and I don't secure assets, I'm probably holding the short end of the stick.

I think there is a bit of a dynamic about uncertainty where the market is heading. At the same time, and very importantly, fundamental demand is way better than everyone had expected.

That is also the read-across if you speak to the various liner companies or even shippers. I think the fundamental demand is growing, and at the same time, we are also seeing new arteries of trade developing, in particular linked to Asia, Sub-Indian Continent, Sub-Saharan Africa, not the biggest of all trades, but trades that require a number of additional ships as well.

It's a long answer to your question, but I think overall, the market dynamics are a tad more complex than they used to be where you just looked at supply and demand, and I think this is the important read-across.

Thank you.

Hello. On the congestion side, can you talk a bit on the main drivers here?

We see other liners are discussing underinvestments on the terminal side. Do you agree with that take?

If it's a terminal issue, how long could it potentially last?

It's a very good question, and certainly the terminal side, or land infrastructure, I should say, is one key aspect of it. Then obviously, constant disruptions of certain trade routes and adjusting to that is another factor, right?

The Strait of Hormuz is not directly a significant impact on container trade flows, yet it is a disruption, and ships are being trapped, boxes are being trapped, logistic chains, because it's not only about a ship to go from A to B, it's also about the boxes. The boxes, as we have also seen after COVID, they tend to not always be where you need them, and that creates a lot of logistical hassle as well.

I think it's really certainly the terminal side, certainly the land infrastructure side, but also the question of schedule reliability and rescheduling services and also ensuring the empty boxes are where they are needed.

Thank you.

Yes, thanks everyone for the questions so far. There's another question here through the web, and that is: by increasing your fleet as other companies do, do you expect manning challenges, in particular regarding captains?

How is your company regarded as employer? I think the crews on this planet have a tough and very challenging job these days with everything that is going on.

Indeed, I think on the crewing side, there is potentially a bottleneck. There are already constraints.

We try to address that by working very professionally and openly with our crews and offering them as much as we can in terms of additional benefits. For sure, this is an industry-wide phenomenon, and the crews on this planet are very important for maintaining the ecosystem or the system of global trade in particular.

I think we as a company are regarded positively by our crews. We have a dedicated crew pool, and our goal and our intention is to continue to invest in that as well.

It is a fair question, and I can just say that, or repeat myself by saying, it's a very important backbone of our industry and also of our activities going forward. We're looking at the web whether there are any further questions.

I don't see any further questions. On that note, many thanks for everyone's interest and contribution.

As I said, and as Moritz alluded to as well, we believe we're well-positioned for whatever lies ahead, despite some volatility in the market. We look forward to reporting again next quarter, and all the best and take care.

Bye-bye.