MPC Container Ships ASA Registered Aktie

Good afternoon, and good morning, everyone. This is Constantin Bark, CEO of MPC Container Ships. I'm joined today by our CFO and Co-CEO, Morris Fuhmann. Thank you for taking the time to join our first quarter 2026 earnings call. Earlier today, we published our financial results for the first quarter ending March 31, 2026. The stock exchange announcement and the accompanying presentation are available in the Investor Relations section of our website.

Before we begin, please note that today's discussion includes forward-looking statements and indicative figures. Actual results may differ materially due to the risks and uncertainties inherent in our business. Before turning to the presentation, I would like to briefly reflect on the first quarter of 2026. We are pleased to report a solid quarter in what continues to be an unusually complex environment.

The opening months of 2026 have been shaped by escalating geopolitical tensions, most notably the closure of the Strait of Hormuz following the Iran conflict, rising energy prices and continued uncertainty around global trade policy. Against this backdrop, our business performed resiliently with high vessel utilization, solid earnings, generating good profits and continued strong chartering activity.

On the commercial side, we concluded a number of attractive forward charter fixtures with top liner companies, further extending our coverage and building on our USD 2 billion revenue backlog. On the fleet side, we agreed the sale of a ship, which Morris will allude to in more detail and made good progress across our newbuilding program, both consistent with our strategy of high-grading the fleet while securing long-term employment on modern tonnage.

On the balance sheet, we closed a revised revolving credit facility with extended maturity through December 2030, further enhancing our financial flexibility and investment capacity. We have deliberately maintained a robust and conservatively leveraged balance sheet, not as a constraint, but as a competitive advantage in volatile markets.

This approach continues to support shareholder returns. We are announcing our 17th consecutive recurring dividend of USD 0.04 per share for Q1 2026, representing 50% of adjusted net profit. On the back of our high contract coverage and the progress made on vessel sales, we are raising our full year EBITDA guidance to USD 260 million to USD 280 million, while revenue guidance remains unchanged at USD 450 million to USD 460 million.

One broader observation before I hand over. Two structural shifts are converging that will increasingly define competitive positioning in this industry. First, persistent disruption and unpredictability are driving a fundamental reorganization of global trade. companies diversifying their value chains. Liners are building more slack into their networks and regional trades are accelerating as a result.

More flexible, smaller tonnage is the natural beneficiary of this shift as trade patterns become less concentrated and more distributed. And second, sharply rising energy costs make modern fuel-efficient tonnage a direct margin contributor for our customers, not just a compliance requirement.

At current fuel price levels, the daily cost gap between a modern eco-design vessel and an older ship runs into thousands of dollars, and that gap falls on the liners bottom line. With our fleet renewal strategy, our modern and growing eco-design portfolio and our long-lasting relationships with the world's leading liner companies, we believe MPCC is very well positioned to benefit from both of these trends. And with that said, I would like to hand over to Moritz.

Good morning and good afternoon also from my side, and welcome to MPCC's First Quarter 2026 Earnings Call. Thank you for your -- for taking the time today to join us. We will walk through the key developments of this first quarter, our view on the container market and last but not least, the outlook for the remainder of 2026 and beyond.

Today's agenda is, as usual, structured along three main blocks. First, we will run through the highlights of the first quarter, both operational and financially. Second, we will share our latest view on the container market and the structural drivers we see. And thirdly, we will close with our company outlook. Q1 '26 was another quarter of solid execution and continued momentum on all our key initiatives.

Operational and commercial momentum, forward fixing activity continued at a very strong pace. As of today, we have effectively closed our 2026 book. We are 99% covered on open days, but we have also significantly extended visibility into the future, close to 70% of open days in '27 and 41% in '28 are already fixed.

All recent fixtures have been concluded with the top 5 liner counterparties on attractive rate levels and also very importantly, meaningful durations, which speaks to MPCC's positioning as a preferred tonnage provider. In the feeder segment and asset values and charter rates remained firm during the quarter, supported by a tight tonnage supply, which we will come back to in the market section.

Financially and capital structure, Q1 operating revenues came in at USD 119 million and adjusted EBITDA at $67 million, fully in line with our expectation and translating into a healthy net profit. In accordance with our distribution policy, the Board has declared a recurring quarterly dividend of $0.04 per share, corresponding to 50% of the adjusted net profit and marking our 18th consecutive recurring dividend payment.

On the balance sheet side, we further improved flexibility by closing a revised and upsized revolving credit facility with Hammer Commercial Bank. And together with our cash position, this gives us a very strong liquidity profile to support both the newbuilding program and shareholder distributions as well as having the needed flexibility when it comes to accretive investment opportunities in the future.

Some market context as well as the slightly revised guidance. Looking at the broader market backdrop, geopolitical shocks and rising oil prices have made volatility a structural feature of the container market. In that environment, obviously, fuel efficiency has become an increasingly important margin driver, and that is something our modernized fleet is well positioned to capture.

And on the back of strong forward coverage and recent asset sales, we are raising our full year '26 EBITDA guidance range to $260 million to $280 million. Revenue guidance remains unchanged at $450 million to $460 million. Looking at subsequent events after the quarter end, we have forward fixed two further vessels at very attractive durations of close to -- or actually 2.5 years with top-tier liner operators. And we sold the vessel ASAlvar, which is a 2008-built 2000 TEU vessel for north of $22 million being subject to successful handover.

This continues our strategy of high-grading our fleet. In short, another quarter of disciplined execution, extended forward visibility and a strengthened balance sheet. And with that overview, let me walk you through the financials in more detail on the next slide.

Looking at the profit and loss, gross revenue amounted to, as mentioned before, $190 million, broadly in line with Q1 '25. The slight softening in revenue reflects mostly a smaller core fleet following our continued portfolio optimization, partially offset by stronger TCE levels on forward fixed levels. Adjusted EBITDA, $67 million, slightly above the $66 million we have reported in Q1 '25, which demonstrates the quality of our forward coverage, but also our continued cost discipline.

Adjusted net profit was around $40 million, translating into an adjusted EPS of $0.09 per share. And the adjusted EPS translates into a dividend per share just declared by the Board of $0.04, again, consistent with our 50% payout policy. Operating cash flow was close to $70 million for this quarter, a very solid level of cash generation that supports both our newbuilding program and continued shareholder distributions, as I will show you in the cash flow bridge in a moment.

From a balance sheet perspective, total assets stood at $1.5 billion, broadly unchanged relative to year-end '25. Net debt was reduced significantly to $108 million, down from $150 million at year-end. And roughly half of the level we reported a year ago. This obviously reflects our continued debt repayments and disciplined free cash flow deployment. Leverage ratio also improved to 30.7%, down from 33% at year-end and clearly demonstrating a conservative capital structure that we have implemented for the company.

Operational KPIs, adjusted OpEx per day came in at $7,660 per day, while adjusted average TCE for our fleet was north of $25,000 per day, essentially stable on very high levels. And obviously, worthwhile to highlight is our very strong fleet utilization of more than 99%, reflecting on the quality of our fleet and our operational platform.

All in all, another very strong quarter of cash generation and further balance sheet strengthening. And before turning to the cash flow bridge and the capital structure, let us share some more color on our recent chartering and S&P activity on the next slide.

The container market remained highly supportive throughout the quarter with sustained strong demand, in particular, for feeder tonnage and an increasing number of forward fixtures. All of our recent fixtures were concluded with top 5 liner companies. The AS Kalotta has been fixed in the very beginning of Q1 for 2 years at $28,500 per day. And most recently, we have been able to fix AS Constantina and AS Patria at identical terms both at rates of $26,500 per day for more or less 2.5 years, which is definitely an uptick in terms of durations what we have seen recently, where we have been fixing similar vessels for 2 years.

The fixtures underlining two key points. First, from our perspective, the depth of demand for our segment continues to enable us extending visibility at attractive rate levels. And secondly, charterers are increasingly willing to commit for longer periods, a trend we obviously very much welcome and actively pursue.

Looking on the status of sold vessels. On the divestment side, we continue to high-grade the portfolio. All of the following three vessels are subject to successful handover in the second quarter of '26. The first one being the Ace Felicia, which we have actually sold already last summer, is being handed over very soon. And in addition, we will hand over soon the Ice Clementina, which we have already reported earlier.

And then as mentioned before, AS Alva is our most recent sale also being delivered very soon. We have sold for 22 -- roughly $22.5 million. And these sales obviously reinforce our strategy to monetize all the tonnage at what we see as attractive levels and recycle the proceeds into a more modern and more efficient fleet that will significantly enhance the long-term value of the company.

On the next slide, let me now walk you through the cash flow bridge for the quarter, which I think is a very illustrative summary of how we deploy capital. Operating cash flow, we started the quarter with a strong cash position and generated solid operating cash flow fully consistent with the EBITDA. And this is obviously the engine that funds everything else you see on the slide.

Investing cash flow, approximately $71 million we have paid for yard installments in relation to our new builds, in particular, 3,700 TEUs and 4,500 TEU as well as the keel laying of our remaining 1,300 TEU fuel methanol unit that is being delivered later this year. In addition, we have invested around $7 million into the vessels that is currently trading on the water, which is primarily upgrades and regulatory items.

When it comes to the financing cash flow, the picture reflects a deliberate balance sheet between deleveraging and shareholder return. We have prepaid roughly $32 million under a HCOP facility plus a voluntarily prepayment of roughly $4 million in relation to a Kasi facility. In addition, we drew under a predelivery loan in relation to our 1,300 TEU dual fuel new build. And finally, we have paid in Q1 MPCC's 17th consecutive recurring dividend.

Net of all of this, the balance sheet remains very liquid, and our financial flexibility continues to expand. And let me take that point one step further on the next slide when we look at the capital structure of MPCC. This slide nicely ties together what we have been doing both on the asset side and the funding side and shows why our balance sheet is in such a strong position to support further growth of the company.

We continue to execute on our fleet renewal program with three vessels sold for a combined $52 million in expected net sales proceeds. In April of this year, we successfully closed a revised revolving credit facility with HCOP, extending the maturity into late 2030 and providing an increased capacity, improving the balance sheet flexibility.

On a pro forma basis, including undrawn capacity under the RCF, we look at a liquidity position of north of $500 million that is at our disposal, which is a significant firepower for future investment while maintaining a comfortable cash cushion. Beyond the liquidity we just talked about, the balance sheet remains conservatively structured with a high degree of flexibility.

30 vessels in our fleet are entirely debt-free with a fair market value of approximately $780 million. That is unencumbered value that we can deploy strategically, for example, to support additional newbuilds or opportunistic acquisitions. Our leverage ratio stands at close to 31%, clearly a conservative level for a company like MPCC.

And we have reduced our debt cost by approximately 40% since 2022, which is also a direct result of our disciplined refinancing and diversification of our funding sources. In summary, we have a balance sheet that is built to be able to exercise when it comes to new interesting and accretive investment opportunities should they arise in the not-too-distant future as well as to absorb volatility when markets turn. And with that, I will hand over to Constantin, who will take you through our view on the market.

Thank you, Moritz. I would like to continue with the next agenda point, the market. From left to right, this slide shows, firstly, the charter rate development; secondly, the asset price development in terms of secondhand values and newbuilding prices; and thirdly, the forward availability of vessels.

Going into 2026, the charter market has continued to perform very strongly. Charter rates have increased only slightly, but as we said before, they are starting from very strong levels. The low availability of tonnage and ongoing demand from charterers aided the continued geopolitical disruptions, which has kept rates at very attractive levels from a nonoperating owner perspective. Driven by this strong tonnage demand, asset prices for container vessels have also remained at very strong levels.

Outside of the pandemic spike, secondhand prices are currently at the highest level since 2011, and major liner companies are still acquiring tonnage at these prices. When we look at the tonnage list with the 6 months going forward, there continues to be only very few ships available. The number has declined by approximately 30% compared to a year ago, which reflects the current market strength. This market strength is supported by several key disruptions at the moment, and I will turn to those on the next slide. Let me take a closer look at these disruptions.

On paper, supply and demand have been diverging since 2023, and the market should be trending towards oversupply. In reality, however, rates have been increasing. And this slide goes a long way in explaining why. What we are observing is a series of distortions that taken together are quietly absorbing a significant share of global fleet capacity. On the demand side, the Red Sea diversions, which began in late 2023 are still in place.

Every ship that reroutes around the Cape of -- good Hope sales longer, ties up tonnage for more days and inflates affected demand. The net effect is that average haul lengths are up roughly 12%. By now, that is a structural extension of the global trade lane, not a temporary detour. On the supply side, 2 forces are working in parallel. First, congestion. Pre-pandemic, congestion absorbed about 2.2% of global capacity.

Between 2023 and 2026, that figure has averaged 5.3%, i.e., more than double the number. Second, slow steaming. With energy prices up sharply in 2026, carriers have throttled back fleet speeds, absorbing a further estimated 2% of effective capacity. Taking all of this together, we have what amounts to a roughly 19% delta and artificial demand boost and supply crunch simultaneously that the market is currently absorbing. The strategic response from carriers is accelerating. Vertical integration, buying terminals, locking in inland logistics, securing schedule reliability.

The implications for counterparty quality and ownership relationships are clear. For us, the takeaway is clear. disruptions has become structural. And structurally, it is tightening the market. The question is no longer how long this will last, it is what will come on top of it. On the next slide, we look at the specific choke points that are currently active and those that could become a threat going forward. We have mapped the key maritime choke points that are currently active or represent a credible near-term risk and it's worth walking through each of them briefly.

Starting with the Middle East, there's no comprehensive Iran deal in sight. And the strait of Holmulus remains de facto close on Iranian terms. Fragiseasefire holds, but both sides maintain incompatible red lines. In our assessment, a durable resolution that would allow a broad return to normal transits is not imminent. Moving to the Panama Canal. El Niño-driven low water levels are expected to persist into 2027, continuing to constrain daily transit capacity. Separately, the geopolitical friction between Panama in both the United States and China is likely to intensify, adding a second layer of risk.

The practical effect is already visible. Spot transit prices are surging and waiting times for unbooked transits are increasing. And in East Asia, there's no signal of risk relaxation. Chinese concerns about any external interference in the region remains serious and publicly stated. The risk of a maritime blockade or quarantine around Taiwan is rising while U.S. strategic interest in the region has become less predictable. More imminently, intensified U.S. enforcement against the Romanian shadow fleet has the potential to directly disrupt China's oil supply with knock-on effects across regional trade flows.

Taken together, these three hotspots illustrate that the disruptions currently supporting the charter market are not isolated events. They are geographically distributed and structurally persistent. This is the environment in which we are operating, and it underscores why contract coverage and balance sheet resilience matter so much right now. Despite all of this, we cannot disregard the supply side, and that is what the next slide addresses. The chart on this slide plots all major vessel size segments along 2 dimensions simultaneously.

The order book to fleet ratio, i.e., how much new tonnage is on order relative to the existing fleet on the water and the share of the fleet already aged 20 years or older, which is a proxy for replacement urgency. The further right and lower segment sits, the older its fleet and the thinner its order book. That is where the structural opportunity lies, and that is precisely our segment because the order book set for delivery over the next years is still immense. -- close to 13 million TEU will hit the water by 2030.

However, the order book remains heavily skewed towards the larger sizes. On the smaller sizes where most of the vintage fleet is active, the order book is not large enough to cover the replacement needs these older ships create. More than 1 in 4 units below 8,000 TEU is already 20 years of age or older, and that is today.

These vessels were ordered in the early 2000s designed for higher speeds and anticipating permanently low fuel prices with little anticipation of the environmental standards that apply today, particularly in European waters. The order book-to-fleet ratios in the small segments remain remarkably contained, approximately 18% in the 1,000 TEU to 3,000 TEU range, 31% in the 3,000 to 6,000 TEU range and just 12% in the EUR 6,000 to EUR 8000 range. By contrast, the order book-to-fleet ratio is highest in the largest segment, where below 1% of the fleet is past 20 years of age.

MBCC's strategy is clear, divesting older, less efficient vessels at attractive prices precisely when the cost disadvantage and reinvestment burden peak. And with 7 newbuildings in the pipeline and a EUR 2 billion plus order revenue backlog secured on charters, with several top liner companies, we are very well positioned. Our newbuild vessels are also designed to trade well beyond the initial charter period with low compliance costs, flexible deployment and overall efficiency, overall capacity growth. So where does that leave us in terms of market outlook?

As is so often the case in shipping, it is all connected. There are 5 key forces shaping the market today. Middle East situation. While the closure of the straight of foremost is foremost an energy topic, a continued blockade would also have detrimental impacts on the global economy and by extension on world trade. For container shipping markets, the more pressing issue remains the question of if and when a return to the shorter route through the Red Sea will be possible. The behavior of the involved parties suggest no immediate incredible cease fire that would warrant a widespread reshuffling of liner services.

A return during the summer peak season seems unlikely at this point, and we believe the observable disruptions will continue in the short term. Beyond the straight of foremus, there are 2 other choke points worth monitoring the Panama Canal, as I mentioned, the El Nino-driven low water levels, which are expected into 2027. as well as the geopolitical tensions between Panama and the United States and China. And in East Asia, as I mentioned previously, there is no signal of risk relaxation and the situation around Taiwan remains to be monitored very closely.

The next point is macro economy. The IMF forecasts global GDP growth of just above 3% in 2026 with downside scenarios of 2.5% or 2% under adverse or severe conditions. Consumer sentiment has fallen to record lows, driven by energy prices, depleted household savings and elevated inflation expectations as well as volatile asset markets. This creates downside risk to trade volumes, particularly in main trades. Intra-regional trade resilience.

Intra-regional demand is forecasted to grow at around 3.5% to 4% CAGR through 2030, slightly outpacing mainland trades. The largest market is intra-Asian and trade ex Asia into emerging markets remain key growth drivers, structurally favoring smaller to midsized vessels, which is exactly our fleet focus. Feeder modernization, 1/3 of the feeder fleet is 20 years older, while the order book-to-fleet ratio remains at a moderate 18%.

At oil prices north of $100 per barrel, the daily fuel cost gap between a modern efficient vessel and a non-retrofitted 50-year-old vessel or older easily escalates to thousands of dollars per day, as I mentioned earlier. In addition, tightening regulatory requirements such as fuel, your maritime or EU ATS will only widen that margin over time.

This is why we continue to modernize our fleet on behalf of MPCC. Energy price dynamics is another aspect to consider. Energy prices are up approximately 24% in 2026, the highest level since the start of the Ukraine war. Successive geopolitical shocks have made energy price volatility a permanent feature of the market. Fuel efficiency has become a direct margin driver and MPCC's eco-design fleet and retrofit program position us well on both the cost as well as the commercial side. In summary, to wrap up the market, uncertainty remains elevated. -- but the structural setup in our core segments is supportive.

And with that, let me now turn to the company outlook section of our presentation. Let me start with our charter backlog. Our forward contract coverage has been further enhanced during the first quarter. As of today, we have secured approximately USD 2 billion in forward revenue backlog, translating into around USD 1.2 billion in projected EBITDA based on minimum contract periods and a conservative cost assumption. The contracted forward TCE stands at approximately $23,900 per day across the fixed book.

Contract coverage stands at 99% for 2026, 69% for 2027 and 41% for 2028. These figures include 7 newbuildings under construction, all integrated into our forward employment profile as well as the 3 vessels sold subject to a successful handover in Q2 and Q3 of this year, respectively. To put this in context, since our Q4 earnings call, 2026 coverage has moved from 97% to 99% for '27 coverage from 58% to 69% and our forward revenue visibility for the next 2 years have never been stronger than they are today.

On the right-hand side, the backlog development chart over the past 12 months illustrates the revenues consumed during the period and the additional backlog added arriving at the USD 2 billion I mentioned earlier. This development reflects the quality of our forward fixing strategy and the continued strong demand for tonnage. With that foundation in place, let us turn to our open positions on the next slide. The number of open positions for 2026 remains limited. This is a deliberate outcome of our forward fixing strategy.

Based on minimum periods, we have 9 vessels to refix in full year 2026, reducing to just 1 if you look at maximum periods. This compares very favorably to the 50 minimum period openings we reported at Q4 2025. Looking into 2027, based on minimum periods, we have 15 vessels available. Looking at the current charter market, the table on the slide shows indicative rate levels and periods across our key feeder size clusters. Rates range from approximately $20,000 per day for 1,300 TEU vessels up to around $30,000 -- roughly $30,000 per day for 2,800 TEU tonnage with periods of 18 to 24 months, partly longer as we have also seen and as Moritz reported based on our most recent fixtures.

Modern eco-design vessels continue to command a premium in both rates and period. We are already engaging actively on our open positions. The 3 fixtures Moritz mentioned demonstrate the continued market strength. The distribution across vessel sizes for the remaining 2026 openings is shown at the bottom of the right-hand slide with the majority in the 200 to 2,800 TEU cluster. Let us now turn to our strategic execution and fleet positioning. Our portfolio optimization continues to advance on all fronts.

The ECO share of our fleet by TEU now exceeds 75%. The average year build for our vessel portfolio stands at 2015 compared to 2007 based on 2021 comparison, a gap that reflects both the accelerated fleet renewal we have executed as well as the disciplined management of the conventional tail, including vessel sales, but also upgrade investments. The newbuilding delivery time line runs from Q2 2026 through to Q2 2029 and is illustrated on the right-hand side, basically spanning 5 different vessel classes across 4 shipyards.

All 17 newbuildings carry long-term charter employment. Turning to the financial profile of the newbuilding program. Total newbuilding construction CapEx is approximately $900 million. Against this, we have secured contracted revenues of approximately $1.2 billion and projected EBITDA of approximately USD 0.7 billion across the initial charter periods. The recycling value adds a further approximately USD 110 million to USD 120 million.

Upon charter expiry, the average age of the newbuilding vessels will be approximately 8 years, providing substantial long-term value upside, which has been an important ingredient in our economic decision-making. Let's look forward and our forward focus remains structured and consistent. So let me briefly walk you through the 6 strategic priorities. Firstly, balanced charter alignment with regards to fleet renewal. We reinvest or invest selectively in modern, efficient tonnage where employment visibility supports the investment case. Renewal remains paced, return-driven and aligned with the demand of our customers.

Selective portfolio optimization. We continue to divest older or noncore vessels where market conditions are attractive, recycling capital into assets that strengthen our competitive position. opportunistic deployment of capital in volatile markets. Market dislocations create compelling entry and exit points. Our balance sheet strength allows us to act with speed and discipline when risk-adjusted returns are attractive.

Continued funding diversification and cost discipline. We maintain our focus on broadening the funding base and reducing the average cost of debt, demonstrated in Q1 by closing of the revised RCF, and we are working on further measures as we speak. Deepen strategic customer relationships and partnerships. Long-term relationships, repeat transactions and counterparty reliability are increasingly important differentiators, particularly as liners consolidate further.

Reliable capital stewardship and sustained distributions. We remain committed to combining reinvestment for future growth with attractive recurring returns to shareholders. In summary, our objective is to combine resilience with long-term value creation through disciplined execution across market cycles.

And with that, let me conclude the presentation. Let me close by summarizing the key messages from today. enhanced charter coverage and a strong backlog. With approximately $2 billion in secured revenue, we have achieved contract coverage of 99% for 2026, 69% for 2027 and 41% for 2028. This provides substantial multiyear earnings visibility and underpins cash flow stability. Continued proactive fleet strategy. We have divested 3 older vessels at attractive prices and progressed on our 17 vessel newbuilding program on schedule.

The equal share of our fleet by TEU now exceeds 75% Shareholder value creation. We are declaring a Q1 2026 recurring dividend of USD 0.04 per share, 50% of adjusted net profit and cumulative distributions to shareholders have now exceeded USD 1 billion. Revised full year 2026 financial guidance. We are raising our EBITDA guidance to USD 260 million to USD 280 million. Revenue guidance remains unchanged at USD 450 million to USD 460 million.

This reflects our high contract coverage and improved earnings visibility as well as effects from vessel sales. Navigating an uncertain market with discipline. The Middle East situation, energy prices, macro fragility and trade policy uncertainty are all live variables. But our strategy is clear, focus on what we can control. disciplined execution, fleet transition aligned with customer demand, opportunistic capital deployment and maintaining a robust balance sheet. This disciplined and resilient approach positions MPC Container Ships to navigate volatility while continuing to create long-term value. This concludes our presentation for today. Thank you all for your attention, and we are now happy to take your questions. Thank you.

Turning to the first question here received. Could you provide some color on the daily OpEx increase compared to Q1 '25? Main reason for the increase is the current inflationary environment that we are operating in, which is unfortunately not stopping for shipping. We have seen over the past couple of quarters, quite a strong increase in salary and wages of our seafarers, but also in relation to spare parts and obviously, most recently, travel cost. All this is the main driver for the OpEx increase that we have seen over the past year. Second question is relating to the depreciation. Could you provide some color on the depreciation increase compared to Q1 '25?

Sure. In Q1 '25, we had a bit of an IFRS-related outlay. We have end of '24 acquired 4 modern ships, which we subsequently chartered out on a 3-year time charter. However, when acquiring the ships, the vessels came with a below-market time charter and that below market time charter has been reflected in the depreciation, essentially saying that the usual depreciation you would have expected based on purchase price, et cetera, was significantly lower. That IFRS effect is now being out of the picture, which explains the discrepancy between Q1 '25 and Q1 '26.

On top of that, we have been, as you know, been very active over the past quarters in terms of portfolio optimization. We have been selling a couple of ships, which obviously is also impacting depreciation figures and also being mindful about our order book. First newbuilding is being delivered in August this year, which will also then have an impact on depreciation going forward.

Okay. There is another question. How is MTCC balancing the decision to sell older vessels versus rechartering them? And is the current market environment making rechartering more attractive than selling? -- does MPCC's current leverage level influence these decisions in any meaningful way. As we have also explained during the presentation, we are pursuing a pretty clear portfolio strategy, renewing the fleet, but at the same time, also making use of opportunities to charter out, obviously, existing tonnage to maintain a sizable fleet.

I think we, at this point in time, see that the S&P market, meaning the asset values are slightly higher compared to the charter rates, both on very strong levels and also in historical context. We have, as explained during the presentation, done both recently. So we have sold older vessels to monetize and take the benefit, in particular, of less efficient designs where we also don't see a retrofit case and maybe more unique designs, whereas we have tried to streamline our portfolio and continue to charter them out to our good chartering clients.

So going forward, you can expect us to take decisions that are linked to where is the vessel in the docking cycle. Is it a design that we deem fit for also retrofit case and also, of course, trying to enhance the chartering book because we do believe there is certainly option value at the end of the charter and maintaining a good fleet is very important.

As far as the implication or impact -- potential impact of leverage is concerned, that does not really come into play in our view because we have basically all the more liquid and older ships in -- most of them are unencumbered or that free. So we are free to sell them at any given point in time without any prerepayment penalties or the like.

So we always balance things. So we believe having a sizable portfolio is important, but continue to renew the fleet and sell older vessels at these price levels, which is accretive from an NAV standpoint is something that we definitely pursue. And you can expect that we potentially sell further vessels in the course of this year.

There are no further questions at this stage. We would wait for another minute or so to see whether any further questions come in. That does not seem to be the case. And on that basis, we would conclude today's call. Thank you very much for your interest in the company and in our earnings call today. As articulated throughout the earnings call, we are looking ahead with a very positive mindset, and we believe that at MPCC, we are very well positioned to continue to benefit from the market dynamics, albeit these are challenging at times. Thanks a lot again. All the best, and take good care. Bye-bye.

Good afternoon, and good morning, everyone. This is Constantin Baack, CEO of MPC Container Ships, and I'm joined today by our Co-CEO and CFO, Moritz Fuhrmann. Thank you for taking the time to join us for our fourth quarter and full year 2025 earnings call. Earlier today, we published our financial results for the fourth quarter and the 12 months ending December 31, 2025. The stock exchange announcement and the accompanying presentation are available in the Investors section of our website.

Before we begin, please note that today's discussion includes forward-looking statements and indicative figures. Actual results may differ materially due to risks and uncertainties inherent in our business. Before turning to the presentation, we -- I would like to briefly reflect on the year 2025. We are pleased to report another strong quarter, concluding a year characterized by persistent macroeconomic uncertainty, geopolitical tensions, evolving trade policies and continued volatility in container markets. In this environment, our focus remained firm on disciplined execution. During the years, we have concluded multiple vessel transactions, including multiple strategic transactions with leading liner companies.

We accelerated our charter backlog and fleet renewal, forward fixed vessels at attractive levels to increase earnings visibility and maintain a strong and flexible balance sheet with substantial investment capacity. As a result, we enter 2026 with a more modern fleet significantly enhanced forward coverage and a structurally stronger platform for long-term value creation. We'll explore these themes in more detail during the presentation. And with that, I'm happy to hand over to Moritz.

Good morning and good afternoon, everyone, also from my side, and welcome to MPCC's earnings call for the fourth quarter of 2025. Our agenda for today starts with the review of our Q4 highlights, after which we will spend some time on the current market dynamics as well as a first outlook into 2026. Starting with the highlights on Slide #3. We see a continuation of our very strong quarterly performance based on $126 million in revenue and $75 million in adjusted EBITDA. For the fourth quarter of 2025 full year operating revenue is $518 million and $306 million for adjusted EBITDA. As the result of the continued solid financial performance, the Board has declared the company's 17th consecutive dividend with $0.05 per share, representing 50% of the adjusted net earnings for the fourth quarter also being the upper range of our dividend payout ratio range.

On the asset and fleet transition side, we have continued with an expansion of our [ dividend ] book by adding six 3,700 TEU vessels, bringing the total MPCC newbuilds on order to 17. The latest additions to the book have been contracted against 10-year time charter contracts with a top-tier liner operator.

The total contract price of these additional vessels is around $293 million, which is nicely covered by the projected EBITDA of around $288 million. On general note, what is important to note is that all our newbuildings have been ordered against long-term charter contracts of 3, 7, 8 and 10 years allowing for substantial derisking throughout the fixed time charter period while at the same time, retaining significant upside potential during the remaining lifetime of the vessels.

And these transactions, very importantly, are cementing our position in the market as a leading tonnage provider and feeder segment and also underscoring our strategic importance and the relationships that we have fostered over the last years with the top-tier liner operators. The newbuilding activity is also a very good reflection of the continued resilient container feeder markets. The majority of our fleet is fixed for 2026 with only 3% open days and nonetheless, we continue to discuss forward extensions as we speak with our customers to further lock in good rates and durations that stretch the coverage further into 2028 and 2029 based on the currently available durations of between two to three years.

Our open days coverage has increased to 97% and 58% in 2026 and 2027 with a total revenue backlog of USD 2 billion. Looking ahead into 2026 and as the market remains very dynamic, we don't see, as of now, any negative implications as a result of the most recent Red Sea announcement.

In any case, we will continue focusing on the execution and funding of our newbuilding book as well as remaining opportunistic towards further potential transactions in the space. And as for the 2026, we set our revenue and EBITDA guidance at USD 450 million to USD 460 million and USD 240 million to USD 260 million, respectively.

Turning to the next slide and looking at some of the KPIs for fourth quarter and the full year 2025. Gross revenue and adjusted EBITDA came in above the previous quarter with close to $130 million and around $75 million, respectively. The markets are very supportive and the charter rates and durations remained strong, however, not at levels seen in 2021 and 2022.

Full year 2025 gross revenue, again, $518 million and EBITDA on an adjusted basis of $306 million. Looking at the bottom left of the slide, our balance sheet is growing now at USD 1.5 billion while the net debt is down relative to the previous quarters to $150 million, our leverage ratio increased slightly to 33%, which remains very moderate.

As mentioned before, the Board has declared a dividend of $0.05 per share which will be paid out in March 2026, bringing the full year dividend recorded in 2025 to $0.23 per share. Operational cash flow generation remains strong with $302 million for the full year of '25.

Operationally, we booked a high -- a very good utilization with more than 98%, while OpEx has come down relative to the previous quarter, which is partly driven by year-end shifting effects into 2026. Looking at Slide #5, we reflect on what has been an incredibly active year 2025 for us here at MPCC, both operationally, but also investment-wise, which has been driving to a large extent, our fleet renewal.

We concluded 20 fixtures throughout 2025, and year-to-date 2026, we managed to fix our vessels on an average of 2-year durations with rates north of $20,000 per day, and most of our fixtures were done on a forward basis, meaning renewing or extending the charters well ahead of the expiration date.

We have also done package deals, meaning chartering out a number of vessels simultaneously to one client, providing valuable solutions to our customers. And I think importantly to note, our most recent picture for -- as Christiana at more than $27,000 per day for two years with delivery in Q3 '26, again, underlines the continued strength in the chartering market, which we take advantage of and increase our backlog and coverage.

As to making our existing fleet more efficient, we have invested around USD 8 million across 12 retrofits. That includes high dynamic measures, improving vessels, efficiency by up to 25% in certain instances. On the divestment side, we have proactively divested 11 vessels with an average age of around 18, and an average capacity of 1,500 TEU, hence older and smaller vessels. Given the strong secondhand market pricing, we achieved total sales proceeds of more than $150 million, implying an NAV of between NOK 30 to NOK 35 based on our calculations.

Part of the sales proceeds have been reallocated towards our newbuilding program that we have contracted in 2025 worth around $850 million across 16 vessels. The construction cost is almost fully covered by the contracted EBITDA as well as recycling value limiting our downsides while keeping substantial upside potential with vessels that are on average 8 years old at charter exploration.

However, we will zoom in on newbuildings on the following slide being #6. So please turn to the next slide. After having ordered 8, 4,500 TEUs and 2, 1,600 high-cube TEU container vessels in the second half of '26. We have, as I mentioned before, shortly before Christmas announced another newbuilding transaction of 6, 3,700 TEU.

That brings the total number of vessels ordered since the summer of '16, of which all again come with long-term charters. These additional vessels follow our usual and prudent approach as we combine asset investments with cash flow visibility, providing significant derisking throughout the fixed time charter period. As you can see on the left-hand side of the graph, total new building CapEx is around $850 million, which almost fully covered by contracted EBITDA and the recycling value of the ship -- the ships -- the attached time charters provide substantial earnings visibility as well as derisking -- and this essentially enables us to realize the upside value once the vessels are running off the initial charter periods.

The vessels will be, as mentioned before, on average, roughly 8 years of age. And to put things into perspective, the current adjusted value for these vessels is north of $600 million to $650 million or even $700 million, i.e., a great combination of the minimum residual while retaining maximum upside potential.

In general, we have taken and will continue to take a prudent approach to these investment cases, in order to minimize residual risks, the ability to structure and execute these transactions speak for itself and is, I think, a great testament to the importance of MPCC as a strategic partner to top-tier liner operators globally.

And needless to say that these investments are further milestones in our fleet position efforts and wanting to underline that we have confidence that building an enhanced and future-proof asset portfolio will support generating sustainable and long-term shareholder returns for investors.

On Slide 7, we have illustrated the fleet transition we have executed over the past four to five years and what measures were driving these. Firstly, as you can see on the left-hand side, the share of Eco vessels, meaning new builds and more than second-hand vessels as well as retrofitted vessels has substantially increased, standing at 75% today.

Equally important is the fact that at the same time, our fleet has been growing to 68 vessels including the recent newbuildings we ordered and the average age of fleet has been reduced quite significantly over that time period from an average 2007 build to an average 2015 build as of today, and this transition ensures that our asset portfolio remains competitive and attractive to our customers, the line operators in particular, in times where regulatory and sustainability pressure on the industry is increasing.

How did we achieve such a remarkable change in our fleet composition on the right-hand side of the slide, we have quantified our measures since 2021 being 21 newbuilds across multiple transactions worth around $1.1 billion. We have acquired 9 modern secondhand vessels in two distinct transactions for a total consideration of around $300 million and last, but not least, we have undertaken significant retrofit investments into our existing fleet, which, as shown previously, have resulted in substantial savings of up to 25% when it comes to efficiency.

We will, going forward, continue focusing on accretive investments either into existing vessels or acquisitions that will enhance the overall composition of our asset base. Turning to Slide 8, the cash flow in the fourth quarter of '25 was again dominated by a good operating cash flow of around $75 million. On the investment side, we have paid down the first installments in relation to our two 1,600 high TEU container vessels.

We ordered against an 8-year time charter. The overall positive cash generation improved the company's cash position and investment capacity to around $425 million by the end of December 25. In addition to the balance sheet liquidity, we retain further flexibility through our undrawn RCF, which has been renewed and upsized to $130 million. Lastly by paying our 16th consecutive dividend in the amount of $22 million in December, MPCC continues returning capital to shareholders north of $1 billion have been distributed ever since we introduced our recurring dividend. And as the Board has declared the next dividend, it serves as a good testament that we will continue to reward shareholders through capital returns.

Going to the next slide, we see MPCC's balance sheet, which remains conservatively structured. We have in 2025 executed on a number of measures, namely vessel divestments as well as flowing secured and unsecured debt facilities to improve the company's liquidity position and therefore, investment capacity as we face needed fleet renew.

By the end of '25, liquidity stood at $425 million. However, pro forma adjusting for expected yard payments in the first quarter of '26, MPCC has a pro forma liquidity of $477 million, including an undrawn RCF. In view of our fleet renewal efforts and newbuilding CapEx commitments to corresponding investment capacity is certainly essential, and at the same time, we managed to achieve this capacity without compromising the overall robustness of the balance sheet as well as flexibility.

Following the recent prepayment of one of our senior secured facilities, MPCC's conservative leverage ratio stood at 33%. And with 32 debt-free vessels with a fair market value of close to $800 million. While gross debt stands at $472 million net debt, adjusted for pro forma liquidity remains very low and the invested portfolio with the charter-free market value of $1.5 billion provides additional comfort.

Not surprisingly, the current newbuilding commitments will be partly funded through debt, which will be secured and sourced in due course, initial discussions we have had with potential lenders indicate a very healthy appetite for modern feeder tonnage, secured by long-term charters. Once fully delivered, the company's gross debt is expected to grow, however, leverage will be supported by the cash flow visibility attached to those vessels.

Worthwhile to mention is our sustainability performance, in particular, concerning our senior unsecured sustainability-linked bond where our greenhouse gas reduction KPI for the MPCC fleet of 10% by 2029 has already been met now, with a recorded reduction of 16.5%, largely due meaningful retrofits on the existing vessels as well as sales of older, less efficient tonnage.

Going forward, we will ensure to use the investment capacity as prudently as we have done in the past by identifying and executing on shareholder accretive transactions that help building a future-proof fleet. And on that note, I hand over to Constantin for the market update and the outlook section.

Thank you, Moritz. I would like to continue with the next agenda point, the market. Throughout the previous quarters, we have noted that volatility is here to stay. And looking back at the year 2025, this has been indeed a structural theme. Looking ahead, we expect elevated uncertainty to persist well into 2026 and likely beyond. Three major forces shape our current outlook, moderating macroeconomic growth, ongoing geopolitical fragmentation and normalization in container markets after an extended period of elevated earnings.

Starting with the global economy illustrated on the left-hand side, the IMF forecast global GDP growth of approximately 3.3% in 2026 and 3.2% in 2027. World trade growth, which is estimated at around 4.1% in 2025, is expected to moderate to roughly 2.6% to 3% in 2026 before recovering thereafter. Risk remain tilted to the downside. Protectionist policies, fiscal pressure in key economies and the lagged effect of monetary tightening continue to create headwinds. The key dynamic for 2026 is the political bullwhip effect.

During 2025, we observed elevated front-loading activity as importers accelerated shipments ahead of anticipated tariff and policy changes. As the effect unwinds, some normalization in trade volumes should be expected and is already observed today.

Turning to geopolitics. The Global Economic Policy Uncertainty Index shown in the middle of this slide, remains structurally elevated. Unlike previous disruption periods, uncertainties to longer spiking and receding. It remains persistently high. Rising trade tensions and protectionist policies are reshaping global supply chains.

Cargo flows are being rerouted. New trade alliances are forming and strategic bottlenecks such as the Suez Canal and the Red Sea remain pivotal variables for 2026. A sustained return to Suez routing would release effective capacity back into the market with direct implications for freight rates and overall supply and demand balance.

For liner operators, that represents earnings risks. For nonoperators like MPC container ships, forward tonnage availability remains tight, and the majority of our fleet is committed at attractive levels for the 2026 and beyond. The key takeaway is that structural volatility rewards resilience, balance sheet strength and forward contract coverage.

Companies that anticipate and adapt will outperform. That is our clear view. While freight rates softened, and that can be seen on this slide, compared to the peak levels seen in 2024, they remain above long-term historical averages. At the same time, time charter rates have proven notably resilient throughout 2025, holding at historically attractive levels, despite ongoing freight volatility.

The Harper Petersen Time Charter Index that you can see here, moved largely sideways at elevated levels during the year, demonstrating that charter markets have been largely unimpressed by short-term freight swings. Carriers have continued to pursue freight and tonnage simultaneously even as Liners profitability has diverged. Some operators have already reported slightly negative margins in the fourth quarter, while others remained slightly profitable yet overall demand for vessels has continued to be firm.

As I mentioned on the previous slide, forward availability of tonnage continues to be tight. Market data indicates -- and that can be seen on the very right on this slide that roughly 25%, we have 25% lower year-on-year availability and significantly lower availability than historical averages seen in the pre-COVID period.

This is underlining the limited prompt supply. This sustained demand is also reflected in the asset market. Secondhand vessels or vessel prices increased throughout 2025 with the Clarkson secondhand price index reaching levels last observed in 2011, excluding obviously the extraordinary pandemic period.

Meanwhile, new building prices have remained broadly stable as can be seen on this chart. The message is clear, supply discipline, particularly in the smaller vessel segments continues to underpin the charter market. With that context in mind, let us now examine how global trade flows are evolving and looking at the demand side.

Looking at this slide, one of the dominant themes throughout 2025 has clearly been the escalation of U.S. tariff conflicts, where tariff levels in the rest of the world have remained around 3.5%, the effective U.S. tariff rate increased from below 4% at the beginning of 2025 to approximately 18.5%.

This development, as illustrated on the right -- on the left-hand side actually has materially influenced global trade patterns. At the same time, global container trade grew by around 5% in 2025, which has exceeded expectations. However, the composition of their growth shifted significantly.

North American container imports declined despite ongoing economic growth while Far East exports recorded strong expansion. Recent estimates indicate the China's total trade surplus increased by roughly 20% during 2025, reflecting a continued reorientation of trade flows towards China and Asia.

The polarization becomes particularly visible when looking at specific trade lanes. And that can be seen on the left hand side. Despite overall global container demand growth of approximately 5%, the transpacific trade connecting the Far East with North America declined by around 2% to 3% during the year. In the contrast, other shorter trade lanes expanded rapidly, including routes from the Far East to the Middle East and to parts of Africa. In other words, trade volumes are not collapsing. They are being rerouted -- after several recent trade agreements that did not involve the United States, global trade appears to be reorganizing with closer integration among other regions while the U.S .bond volumes soften.

For our business model, the shift is highly relevant. Intra-regional and emerging market trends at trades rely disproportionately on the feeder and midsized vessels, which aligned closely with our fleet focus. With that shift in trading patterns in mind we now turn to the structural composition of the supply side.

When you look at fleet fundamentals on -- in general, what we can observe is a clear structural imbalance in the smaller vessel categories and more broadly, a disconnect between where we think ships are being ordered and where, in our view, they are most needed. In our core segment of 1,000 to 6,000 TEU, there are currently more than 800 vessels above 20 years of age.

The order book in this segment even after the recent increase in contracting activity amounts to roughly 430 units. In other words, the replacement pipeline does not fully offset the aging profile of the existing fleet, and order book-to-fleet ratios remain moderate. In contrast, the ultra large segment above 12,000 TEU shows a very different picture. And all of that can be seen on the graph on this slide.

Basically, looking at the polarization between fleet age and new ordering, this is what makes a structural imbalance increasingly visible. At the same time, emerging markets are expected to deliver a stronger GDP growth in advanced economies and have been driving instrumental container demand in recent quarters.

In the third quarter and in the fourth quarter, global container demand increased by approximately 1.5%. Excluding North America, September growth was close to 9%, underlying the growth in ports of emerging markets. Having said that and having looked at this imbalance in -- on the supply side, let's move on to the supply side and to the market drivers.

As we look ahead, the container shipping market continues to be shaped by a range of uncertainties. At the same time, these challenges also create opportunities. The very forces that are disrupting global shipping are also acting as catalysts for innovation, differentiation and long-term resilience. First, the ongoing back and forth U.S. trade policy announcements continues to create a volatile and largely unpredictable framework for global container markets.

Tariff measures are being introduced, post, escalated, renegotiated at a pace that makes medium-term planning increasingly difficult for importers and carriers alike. The practical consequence is a market characterized by reactive booking patterns, shorter lead times and elevated freight rate volatility.

Second, the Red Sea. The Red Sea remains one of the most consequential variables for container shipping in 2026. While we have seen initial lineup transits through the corridor, the timing of a broader and sustained return remains highly uncertain. Security conditions continue to evolve and liner operators are understandably cautious about committing to routing changes that involve operational risk and additional costs.

It is therefore important to recognize that even a gradual normalization of Red Sea routing would not automatically be positive to the market. A phased return would progressively release effective capacity that has been absorbed by longer voyages around the [ Cape of good Hope ]. This additional capacity could weigh on freight rates and indirectly on harder demand.

We are obviously monitoring these developments closely. Against this backdrop of mainland trade uncertainty intra-regional trades have once again demonstrated resilience. Five exports into emerging markets have recorded consistent growth and intra-regional routes outperformed mainland trades during 2025.

The outlook for 2026 remains constructive. This is structurally important for our fleet positioning. Intra-regional and feeder trades rely disproportionately on smaller vessel sizes, which directly align with our fleet focus.

Finally, despite a record high aggregate order book across the container shipping industry, the feeder segment remains structurally underinvested. The sub-6,000 TEU fleet carries an order book-to-fleet ratio of roughly 15% to 20%, significantly below the levels seen in larger categories.

In summary, uncertainty remains elevated, but the structural setup in our core segment remains constructive and supportive.

With that, let me now turn to the next part of today's presentation our company outlook. Let me start with the charter backlog on our fleet. On the left-hand side, you can see our forward contract coverage which has been significantly enhanced for 2026, 2027 and the years beyond.

As Moritz explained earlier, we have actively utilized the strong charter market, including the conclusion of forward fixtures at attractive levels. Combined with the employment secured for our newbuilding program, this has allowed us to meaningfully increase our backlog.

In total, we have secured approximately USD 2 billion in forward revenue backlog, which translates into around USD 1.2 billion of projected EBITDA based on minimum contracted periods and conservative assumptions. Our contract coverage stands at 97% for 2026, 58% for 2027 and 35% for 2028.

The backlog includes 17 newbuildings under construction, all integrated into our forward employment profile. This level of coverage provides strong multiyear earnings visibility in what remains a volatile market environment. In fact, our forward revenue visibility for the next couple of years has never been stronger than it is today. On the right-hand side of the slide, you can see how the backlog has developed over the past 12 months, illustrating both the revenue consumed during the year and the additional backlog added bringing us to the approximately USD 2 billion today.

Discipline and rational decision-making has been central to how we -- we navigate MPCC through changing market conditions and we will continue to act in the best interest of both our customers and our shareholders.

With that foundation of earnings visibility in place, let us now turn to our open positions and then discuss how we continue to enhance our fleet and position the company strategically going forward.

Looking at Slide 18, the number of days for 2026 available days, open days is limited, when viewed against our total available days for the year and overall contract coverage. This is a deliberate outcome of our forward liking strategy and reflects our focus on earnings stability. The exact number of upcoming open positions depends on whether the charter customers really win the vessels within the agreed redelivery window.

The chart on the right -- sorry, on the left takes a conservative view and considers the minimum period, i.e., the earliest possible delivery date. In total, this would translate into 15 vessels being up for charter renewals in 2026. Applying the maximum period, this number will reduce to only 7 vessels in 2026, which is represented by the gray column.

The graph on the bottom right of the slide also shows the distribution across vessel sizes this in 2026 based on minimum periods. Now putting the open charter positions into perspective with the current market, please refer to the table at the top right, where the current market rates and the periods are shown for standard feeder vessel sizes, modern Eco designs would likely get premium rates and/or even longer periods.

What I can say is that on our very own fleet, we are already entertaining a number of discussions on charter forward fixtures -- we are, for example, presently we have a ship on subs on a Q4 2026 redelivery position for a 2-year period in line with the range as far as the rate is concerned, is here at the top right.

So overall, we continue to see a firm charter market, both for prompt as well as forward positions and let us now turn to our strategic execution and how we are positioning the company for the years ahead.

Taking a step back, over the past periods, we have executed what we would describe as a transformational yet disciplined fleet renewal. Importantly, this has not been growth for growth's sake. Every transaction has been assessed against return threshold, balance sheet impact and very importantly, long-term strategic fit and relevance.

A central pillar of this renewal has been our focus on charter-backed newbuildings and strong partnerships with our charter customers who have become very selective in whom they partner with, in particular for longer-term strategic charter transactions -- by securing employment in parallel with our investments, we have materially derisked our capital expenditure program and protected the forward cash flows.

This approach has allowed us to modernize the fleet while maintaining earnings visibility and financial stability. At the same time, and as Moritz has explained in detail, we have actively captured market opportunities on both the sale as well as the purchase side. We have divested older tonnage at attractive levels and reinvested selectively into modern vessels, strengthening our relationship with top-tier liner companies.

On the financing side, we have continued to diversify our funding base, enhance our financial flexibility and reduce our average cost of debt. This has strengthened our balance sheet resilience and expanded our strategic room to maneuver. In total, we have executed over the years to more than 100 vessel transactions.

Simultaneously, we have distributed more than USD 1 billion to shareholders demonstrating free to renewal growth and shareholder returns are not mutually exclusive, but can we deliver the parallel through disciplined capital allocation.

Today, we stand with significantly modernized fleet, approximately $2 billion in secured revenue backlog and a strong flexible balance sheet with the potential liquidity at hand. This combination defines our structural position as we enter the next phase of the market cycle.

Looking ahead, our priorities remain clear and consistent. Now looking ahead at 2026, our forward focus remains structured and consistent with our strategy. First, we will continue pursuing balanced charter line fleet renewal. This means investing selectively in modern, efficient tonnage where employment visibility supports the investment case while avoiding speculative exposure. Renewal will remain paced, return-driven and aligns with our customers' demand.

Second, we will continue to optimize our portfolio through active high grading of the fleet, where attractive opportunities arise, we will divest older on noncore vessels and recycle capital into assets that strengthen our competitive position, improve efficiency and enhance our earnings quality.

And third, we will remain prepared to deploy capital opportunistically in volatile markets. Market dislocations often create compelling entry or access points and our balance sheet strength allows us to act with speed and disciplined when risk-adjusted returns are attractive.

At the same time, we will continue to diversify our funding sources and maintain strict cost discipline, preserving financial stability, flexibility and maintaining the competitive cost of capital, which we believe is essential to navigate in this uncertain market environment. We also intend to further deepen our strategic partnerships with leading liner customers, long-term relationship is very important in the container market. Finally, we remain committed to a reliable capital stewardship and sustained shareholder distributions balancing reinvestments for future growth with attractive returns to our investors.

In summary, our objective remains clear to combine resilience with long-term value creation through disciplined execution across cycles.

With that, let me conclude. So let me close by summarizing-- by summarizing the key messages. First, we have further enhanced our charter coverage and built a strong backlog. With approximately $2 billion in secured revenue, we have achieved contract coverage 97% for 2026, 58% for 2027 and 35% for 2028.

This provides substantial earnings visibility and clearly underpins cash flow stability over the coming years. Second, we continue to execute a proactive fleet strategy. We have divested older vessels at attractive levels and revested into modern efficient tonnage, strengthening our strategic positioning and ensuring long-term competitiveness in our core segments.

Third, we remain focused on shareholder value creation. Our approach combines recurring distributions with disciplined reinvestment into attractive growth opportunities. This balanced capital allocation model is designed to generate sustainable long-term value across midcycles.

For full year 2026, we guide revenues in the range of USD 450 million to USD 460 million and EBITDA between USD 240 million and USD 260 million. This guidance reflects our high level of contract coverage and current market visibility. Finally, while the market outlook remains uncertain, our strategy is clear. We focus on what we can control. Disciplined execution, opportunistic capital deployment, fleet transition aligned with customer demand and maintaining a robust balance sheet.

This disciplined and resilient approach positions MPC container ships to navigate volatility while continuing to create value.

This concludes the presentation for today. Thank you for your attention, and we're now happy to take your questions.

And I would start with the first one, which is regarding dividend policy. And the question is, under what conditions would you consider a return to your earlier more generous dividend policy.

As I alluded to in the presentation also over the last couple of quarters, we have revised the dividend policy early last year in order to ensure we maintain a balance between ensuring to invest into long-term value for the company and long-term competitiveness of the company by also investing into fleet renewal versus still maintaining a sustainable and thorough dividends and hence, rewarding investors and shareholders accordingly.

And that is obviously also a bit subject to the market environment. That's also why we have now included a range of 30% to 50%. We believe. And for last year, we have paid still a double-digit dividend yield, which we still deem very competitive, in particular, comparing to the market that we operate in, where we, at all times, also want to make sure we maintain the right fleet, a modern fleet that creates long-term value for the company.

So if we obviously were to see a very extraordinary market environment, we would, of course, consider to also possibly adjusting returning capital investors to the higher end. Having said that, in a normal market environment, we believe that the dividend policy as we have established it allows us to balance developing the company further, creating long-term value, staying competitive also vis-a-vis our customers as a good partner and at the same time, rewarding shareholders.

So I think for the time being, we believe this is a very balanced distribution policy and capital allocation strategy that we pursue. And that we have, in fact, in particular, last year, created a lot of long-term value for the company and its shareholders.

Coming to the second question, which is somewhat balance sheet related. Last year, net debt decreased about USD 60 million, which is value creation for shareholders. Can we expect an equivalent reduction in net debt this year?

I would say, generally speaking, as long as we are cash generative from an operating perspective, which we are -- and we will be able to serve the contractually debt obligation in terms of contractual repayment profile, yes. The net debt is expected to decrease over the course of 2026. You have somewhat an offsetting factor being the next newbuilding installments that are due in '26. However, the lion's share of the newbuilding installments will be due during '27 and '28.

All right. Then there is another question. Congratulations on a solid year and outlook. You commented on asset sales and the related implied NAV per share. Currently, would you explain what you mean by the implied NAV per share and how it is calculated.

So what we basically do is we reverse engineer the vessel values from the company's equity market valuation. Effectively, we translate the prevailing share price into an implied value per vessel. And the allocation across vessels is based on their relative weight derived from external broker valuations or internal assessments. In other words, at the prevailing share price, each vessel carries a market-implied value as reflected in the company's enterprise value or market cap for that matter. And when a vessel is then sold off, we compare the achieved sales price with this equity implied vessel value.

Any difference then represents value creation or dilution relative to what the market had priced in, and this translates into a corresponding NAV per share impact. Obviously, certain balance sheet items such as cash and outstanding debt are considered as well. And just as an example, in case of [indiscernible], which is the latest sale that we have announced the achieved tail price corresponds to approximately mid NOK 30 per share and this is based on this kind of reverse engineered equity market framework.

So this is the way we approach it. I think it's not uncommon in the industry. And this is how we arrive at basically creating value by selling certain assets at an implied significant premium to current trading.

Next question is, will or have MPCC considered to change currency from U.S. dollar to euros in the accounts in the close future.

First of all, shipping is a U.S. dollar-denominated business, which is the functional currency. So to answer the question, we have not and will also very unlikely consider going forward, in particular, as our income, but also most of our expenses are in U.S. dollar.

And by using euros in the accounts, we would also expose ourselves to the core and very volatile financial markets, in particular, when it comes to U.S. dollar and euros, which is obviously something that we also want to avoid.

Next question is market related to what extent would a return to Red Sea, Suez transits affect the small midsized markets, there are potential pressures from larger vessels cascading down from such a capacity supply shock.

I think, first of all, the potential reopening of the Red Sea and Suez Canal contrary to the most recent announcement by a few of the big liner companies remain very uncertain. There was mixed messages from [indiscernible] but also from CMA, who has been particularly outspoken about not using the Red Sea at the same time, seemingly stable rattling between the U.S. and Iran is increasing.

So from our perspective, it is very unlikely that we see a meaningful reversal in the foreseeable future. But to your particular question, looking in isolation at the small to midsized market, none of these vessels is actually transiting the Suez Canal. So there's no direct impact once the Red Sea is opening, but there's an indirect impact, obviously. So all the vessels, whether small or large, part of the same supply chain.

So there will be a trickle-down effect if a meaningful portion of the additional demand that has been derived from the rerouting around the [indiscernible], there will be a trickle-down effect also to the smaller sizes. The only difference to what we have seen in the past.

Now is that -- we have a very interesting constellation in particular on the feeder segment, meaning we have a very old fleet on the water. There's seemingly a lot of vessels going forward being pushed out of the market. You have an order book that is too small to replace those vessels leaving the market potentially in the future. And at the same time, you have a very, very healthy underlying demand, in particular for feeder trades being the intra-regional trades.

So from that perspective, in a scenario where the Red Sea is opening again and you see pressure from larger vessels. We believe that the magnitude of that impact is not as severe as some people might expect.

All right. Then there is another question regarding focus and that is over the past year, you have focused on newbuild ordering to renew the fleet. Could you talk a bit about whether you see any modern secondhand opportunities as well? Or is pricing too steep.

We are -- and the year before, so 2024, we have actually acquired some equal secondhand ships last year. In 2025 the opportunities were quite rare.

Most of the Eco vessels are either on long-term charters and not for sale or quite a number have actually been acquired by liner companies at quite see prices. So we would be quite interested in also buying some more modern secondhand vessels, because we do believe they have technically and also from a valuation standpoint, at the right price, a solid future.

Having said that, price levels are fairly large and the derisking of that large price or high price level is, in our view, not necessarily justifiable. And in addition, as I said, very few vessels available, if any, at this stage, there might be going forward, some resale opportunities. I wouldn't rule that out. But for the time being, we do not see us as a buyer in the secondhand market, we have, as we have shown rather been on the selling side recently.

Next question relates to our recently announced joint venture that would it be possible to provide some additional information on which vessels it relates to. Also, will you be reporting that you'll be using the equity method as the vessels are delivered.

The vessels and questions are #2 and #4 of that series that we have contracted in the summer of 2025. And given it's a 50-50 joint venture, vessels will be nonconsolidated from a P&L perspective, the vessels will be reported through profit in investments, as we have seen in the past when we had a joint ventures previously. We have also seen the results of those joint ventures coming into our P&L through profits in investments.

There is another question regarding vessel acquisitions. As you think about incremental vessel acquisitions or orders, is there any appetite to go for tonnage above 5,500 TEU. I would take a step back and say there's appetite to buy the right assets in terms of entry price, derisking and also future proof of the ship, we would think of vessel sizes that we look at anything that is related to intra-regional trades and intra-regional trades develop.

So we would also look at ships up to 8, maybe even 10,000 TEU if the value proposition and the derisking is appropriate. Anything above that is at least at this stage, certainly not intra-regional tonnage, and we would not look at. Having said that, the bear fact that we haven't bought any ships of that size also shows where we see value, and that has been more in the -- in the midsized vessel sizes. But I wouldn't rule out that we go also larger than 5,500 TEU -- to the extent the same metrics and the same parameters apply that we deem attractive, similar to the ones that we have done over the last couple of years.

Then there's a question relating to the coverage that we have reported of 97% for 2026. Is that percentage dependent on when your customers redeliver the currently leased vessels. Yes, it is. Luckily, we are operating in an environment where the redelivery windows are relatively tight. We have seen different scenarios in the past.

In terms of reported coverage, we're rather conservative in using the mid to midpoint of those redelivery windows. So from that perspective, if the market holds up firm, and the liner companies are using the maximum redelivery rate. There is some upsides. There's certainly some upside to the coverage.

The next question is relating to our guidance. Your full year 2016 EBITDA guidance implies a 22% year-on-year decline versus a mere 5% -- 4% top line drop. Do you expect inflated operating expenses in 2026. The reason for the discrepancy is a bit unique. So in fact, our revenue is inflated to a certain extent. So purely looking at the time charter equivalent, we have seen or we see a drop in revenues relative to last year. The revenues under IFRS looking at gross revenues is inflated due to an increasing compliance cost in particular, EU ETS and fuel and maritime. That's why the drop in top line is not at the same extent you see as to the compliance cost that is from a bottom line perspective, it's a zero-sum game, so you have inflated top line, but you have also inflated voyage expenses.

So bottom line, there is 0 implication on the EBITDA, explaining why you have a steeper drop in EBITDA. Needless to say that on the cost side, we have seen some inflation impact, but certainly not to the extent explaining a big discrepancy, as you pointed out, between revenue and EBITDA. So the main reason for that is that the top line actually is inflated by compliance costs.

Then there's one more question regarding new buildings. Are you going to order more newbuilding vessels as all ordered newbuildings are already chartered out? I would say that's not the way we look at it. The way we look at it is to find the right ships and the right transactions that meet our criteria of also creating long-term value for the company. It could well be that we're exploring further newbuildings going forward.

And to the extent that you know the parameters, and that means, in particular, a solid derisking, a solid let's say, fairly low cash breakeven after the initial charter. Those are, for example, parameters that we look at. And of course, the counterparty and the partnership.

We have also been able around new buildings to also extend certain secondhand ships that we have on charter. So it's also more a strategic perspective on newbuilding transactions -- but I would certainly not rule it out, but I think we have done a pretty good job in our view, at least as far as fleet renewal is concerned, bringing down the average building year or bring -- actually up the average building year of our fleet from 2007 in 2022, now 2015.

So a significant modern vessel, not just vessel fleet, not only in terms of age, but also in terms of design and specification and future proof of the fleet. So the long answer to your question, short answer is yes, we would still consider to add some new buildings here and there. But we also think that we have already taken some key steps in renewing the fleet and having a very modern and attractive fee creating long-term value for the company.

Then question on the costs, OpEx, G&A and net interest were all down quarter-on-quarter. Do you expect this level to continue going forward? I would wish it were to continue. Unfortunately, on the OpEx side, in particular, you had some shifting effects certain items into '26. Hence, the OpEx are bit lower than expected going forward, at least on the budget, we expect similar cost -- similar costs relative to '25.

Also G&A, we at least for now, don't foresee meaningful increases, so also rather expecting similar cost to the year before. And as to the net interest at year-end, we had a very, very high liquidity position, which obviously is invested in short-term money markets. Hence, we've been earning quite good interest income.

The interest environment is still good, depending on the new Chairman of the Fed in the U.S. depending a bit on what the U.S. dollar treasury rates and interest rate will do expectations in the short term that interest will go down, hence, also having a potential impact on our interest income.

So -- from our perspective, we would rather expect the net interest to increase going forward again.

Yes, there are, at least at this stage, no further questions. So we think we -- we call it a day then. Thank you very much for the questions, for your interest in the company. And as far as we and MPC Container Ships is concerned, we are looking forward to 2026.

We have -- we're sure it will be an interesting year. We have good backlog, and we are excited about the year ahead. And again, thanks for your interest and looking forward to continuing the journey with you. All the best. Take care. Bye-bye.

Good afternoon and good morning, everyone. This is Constantin Baack, CEO of MPC Container Ships, and I'm joined by our CFO and Co-CEO, Moritz Fuhrmann. Welcome to our Q3 2025 earnings call. Thank you for joining us today to review MPC Containership's third quarter and 9 months results for 2025.

Earlier today, we issued stock market announcement covering our Q3 results for the period ending September 30, 2025. Both the release and this presentation are available in the Investors section of our website.

Please note that today's discussion includes forward-looking statements and indicative figures. Actual results may differ materially due to risks and uncertainties inherent in our business.

Before diving into Q3, let's briefly reflect on the first 9 months of the year. We are pleased to report another strong quarter, underscoring the resilience of our business amid ongoing macroeconomic and geopolitical uncertainties. Despite regulatory shifts and unpredictable trade policies, the container charter market and asset values remain firm. Time charter rates held up well, secondhand demand stayed strong and idle capacity remained low.

While the global order book is elevated, constrained supply in the small to midsize segment and aging fleet as well as shifting trade patterns support a favorable balance. Volatility remains so we do not expect smooth sailings ahead.

We focus on what we can control. Continued disciplined fleet modernization, forward fixing at attractive rates and periods, increasing coverage, maintaining a strong and flexible balance sheet as well as strong investment capacity. Our disciplined capital allocation approach has delivered strong returns and dividends, and we remain committed to sustainable shareholder value. Looking forward, we see opportunities to selectively divest, invest and grow, leveraging favorable market conditions while staying agile and focused on long-term value generation. We'll explore these themes in more detail during the presentation.

And with that, I would like to hand over to Moritz.

Good morning, everyone, and also welcome from my side to MPCC's earnings call for the third quarter of 2025. Our agenda for today starts with a review of Q3 highlights, after which we will spend some time on the current market dynamics and the outlook for the remainder of 2025.

Starting with the highlights on Slide #3. We continue to see a very strong quarterly performance based on revenues $126 million and adjusted EBITDA for the third quarter of 2025 of USD 75 million. As a result of the very good financial performance, the Board has declared the company's 16th consecutive dividend with $0.05 per share, basically representing 50% of the adjusted net earnings for the third quarter of 2025 and also being the upper end of our dividend payout ratio range.

On the asset side and the fleet transition side, we continue to be very active as we handed over 3 previously sold vessels to the new respective owners, bringing the total to 10 vessels this year. And on the flip side, we have been equally busy on new building sites, and we're able to reinvest the sales proceeds by contracting so far this year, eight 4,500 TEUs and two 1,600 TEUs for a total consideration of around $525 million, bringing the total order book today to 11 vessels.

The deliveries of the newly contracted vessels will start from the second half of 2027. And what is important to note, I think, is that all our new buildings have been ordered against very attractive long-term charters with durations of 3, 7, 8 and 10 years, allowing for very meaningful derisking throughout the fixed time charter period. While -- and I think that is important, at the same time, retaining significant upside potential during the remaining lifetime of the vessels.

These transactions, we believe, are cementing our position in the market as the leading tonnage provider in the feeder segment and also underscoring our strategic importance and our relationships with the top-tier liner operators. Our newbuilding activity is also a result of the current positive market momentum, mostly reflected in our most recent chartering activity, we have forward fixed in total, 11 vessels through 2 distinct on blocked deals for durations between 1.5 and 2 years, and at rates between $17,000 and $23,000 per day, obviously, depending on the vessel size and forward delivery window, adding significant average -- a significant coverage into 2028. And the total revenue backlog increased quite sharply, now standing at USD 1.6 billion.

And also as a consequence, our open days coverage has increased quite meaningful. So we are now 92% and 55% covered for '26 and '27, respectively. Needless to say that 2025 is fully covered at 100%.

Looking ahead into the remainder of 2025, and as the market remains very dynamic. We don't see, as of now, at least, any negative implication as a result of the most recent Red Sea announcement. In any case, we will continue focusing on further driving our fleet transition as well as retrofit program to improve the fleet composition and enhance long-term shareholder value. Based on the current market, we increased the revenue guidance to $500 million to $510 million and our EBITDA guidance to $330 million to $340 million.

Turning to the next slide and looking at some of the KPIs for the third quarter, gross revenue and adjusted EBITDA came in slightly below previous quarter as a result of the remaining legacy contracts are running off now. The markets are very supportive and charter rates and durations are very strong. However, not at levels we have seen in 2021 and 2022.

From a balance sheet perspective and despite having drawn under new senior secured facilities, the leverage ratio with 34.6% is only slightly up relative to last quarter, while the net debt position has decreased to USD 107 million, underlining the conservative balance sheet structure that we have today.

And as mentioned before, on the right -- top right-hand side, the Board has declared a dividend of $0.05 per share, which will be paid in December this year. And the operational cash flow generation remains very strong with more than $225 million year-to-date. While the fleet utilization at the bottom right was unchanged at 97.6%, the actual OpEx increased slightly due to one-off nonrecurring items, and we expect a normalization trend for the next quarter.

Looking at Slide #5. And I think, very importantly, focusing on the current chartering market as well, in particular, our activity. They recently were clearly evidencing a very strong whatsoever in activity by the line operators. In particular, we see very strong demand for feeder vessels. So actually, to the contrary, we see increased demand for forward fixtures at very strong levels. So contrary to the most recent noise that we have heard and seen around the container market.

So looking at the left-hand side and going into the third quarter, we have had 32 open positions stretching into the first quarter of 2027. And in the last few weeks, we have proactively 2 distinct charter package deals fixed 11 of those vessels substantially reducing the open days going forward as we can see it. And the average forward picture that we've done on those transactions is around 12 months, with the longest forward position that we fixed being 14 months out. And the average duration is around 2 years, with very strong rates that are adding around $110 million to our revenue backlog through those transactions. And I think also important to mention all fixtures have been done with top-tier line operators.

As the market remains elevated, we still have upside potential through 21 remaining open position starting from Q1, Q2 next year. However, we are already, as we speak, we're already being approached by charters on some of these positions and in line with our chartering strategy, meaning being conservative, we will try to fix also those vessels if we believe, of course, the offered rates and durations are a fair reflection of the current market.

In any case, of the future chartering activity, our P&L has great earnings visibility and with a limited number of open vessels in the not-too-distant future, we are very much shielded from any adverse market development.

And on the asset side, on the S&P side, we haven't concluded on any further asset -- vessel sales, but we see equally strong liquidity and demand on the S&P side. And we are currently contemplating further asset disposals as we have done in the past, and that would potentially mean materializing very firm asset values that are at least according to our numbers, implying NAV figures of north of NOK 35.

On the next slide, we spend a bit more time on the investment side and in particular, our efforts on the fleet transition, where we have been very active ever since the summer this year. So after having ordered four 4,500 TEU vessels over the summer against the 3-year contract, we have recently announced 2 more newbuilding deals for 6 vessels, namely two 1,600 TEUs and another batch of four 4,500 TEUs against 8 and 10-year contracts with top-tier line operators, growing our total order book to 11 vessels.

The additional investments follow our usual approach that we have also done in the past as we combine asset investment with cash visibility, providing significant derisking throughout the charter period.

As you can see on the left-hand side of the graph, our yet outstanding CapEx commitments of more than $550 million are pretty much covered by the contracted EBITDA, essentially enabling us to realize significant upside value once the vessels are running off their initial charters, sort of vessels that we have contracted. They obviously have a staggered redelivery profile given the different charter durations. But on average, the vessels will be roughly 7 years of age at charter expirations and to put things into perspective, from a value perspective, the current age-adjusted FMV for these vessels is roughly $500 million to $550 million, i.e., a great combination of minimum residual risk while retaining maximum upside potential and what we believe will be a very constructive feeder market into the future.

And in general, we have taken and will continue to take a very prudent approach to these investment cases to minimize residual risk. And I think the ability to structure and execute these transactions speaks for itself and it's, I think, a great testament to the importance of MPCC as a strategic partner to the top-tier liner operators globally.

Needless to say that these investments are further milestones in our fleet transition efforts to which Constantin will speak a little later in the presentation in the outlook section. However, wanting to underline that we are confident that building an enhanced and future proof as a portfolio will support generating sustainable and long-term shareholder returns for our investors in the future.

Turning to Slide #7. The cash flow -- the usual cash flow bridge. So cash flow in Q3, '25 was again dominated by good operating cash flow of $73 million. And on the investment side, we have paid down the first installments under our four 4,500 TEUs that we ordered over the summer against 3-year charters. In addition to the operating cash flow, we had around $50 million cash inflow through newly drawn senior secured debt that is secured against two 3,800 TEUs, and that facility futures a $250 million accordion option that is earmarked to fund further growth in the future.

The overall positive cash generation substantially improved the company's cash position and investment capacity to around $420 million by the end of September. And in addition to the balance sheet liquidity, we retain further flexibility through our undrawn RCF.

And lastly, by paying our 15th consecutive dividend in September in the amount of $22 million, MPCC continues returning capital to shareholders now north of 1 -- or still north of $1 billion has been distributed ever since we introduced our recurring dividend. And as the Board has today declared the next dividend, it serves, I think, is a very good testament that we will continue to reward shareholders through capital returns.

Going to the next slide, we see MPCC's quite conservatively structured balance sheet. We have year-to-date executed on a number of measures, namely vessel divestments as well as drawing secured and unsecured debt facilities to improve the company's liquidity position and therefore, also the investment capacity as we face a, what we believe is needed, fleet-renewal. By the end of the third quarter, liquidity stood at around $470 million. However, pro forma adjusting for expected yard payments in the fourth quarter, MPCC has a pro forma implied liquidity of around $500 million, including a new upsized undrawn RCF that is currently in execution.

In view of our fluid renewal efforts and newbuilding CapEx commitments, the corresponding investment capacity is absolutely essential for us. And at the same time, we managed to achieve this capacity without -- I think that is important without compromising the overall robustness of the balance sheet as well as flexibility of the balance sheet with a conservative leverage ratio of below 35% and with 28 debt-free vessels with a fair market value of close to $700 million. While gross debt stands at $550 million, and net debt adjusted for the pro forma liquidity remains very low, and the vessel portfolio that we have on the water with a charter-free market value of $1.5 billion provides additional comfort.

Not surprisingly, the current newbuilding commitments will partly be funded through debt, which will be sourced in due course. And the initial discussions we have had with potential lenders indicate a very healthy appetite for more than feeder tonnage, secured by long-term charters. So once fully delivered, the company's gross debt is expected to grow. However, the expected additional leverage will be supported by the cash availability attached to our new builds.

Going forward, we will ensure to use the investment capacity as prudently as we have done in the past by identifying and executing shareholder accretive transactions that help building a future-proof fleet. And all in all, MPCC remains very disciplined on the capital allocation side of things, as we have always done.

On that note, I hand over to Constantin for the market update and outlook section.

Thank you, Moritz. I would like to continue with the next agenda point, the market update. Throughout the previous quarters, I noted that volatility is here to stay, and Q3 has confirmed that view. Looking ahead, I expect this environment of heightened uncertainty to persist not only through the remainder of the year, but well into the foreseeable future.

Let me give you a quick overview of the 3 major themes shaping our outlook; geopolitical flash points, macroeconomic trends and regulatory uncertainty. First, trade tensions and protectionist policies are disrupting global supply chains. This means higher costs and longer lead times as companies diversify sourcing. Second, regional conflicts and sanctions are creating route volatility and increasing compliance risk. Sanction screening and due diligence are critical. Finally, strategic bottlenecks like the Suez Canal remain vulnerable to political instability and security threats. A single disruption can ripple across global trade.

Recently, major liner companies have announced plans to cautiously resume Red Sea transits, starting with limited sailings before a full return. Normalization will likely be gradual as carriers balance security, insurance and network adjustments, potentially easing Cape route costs, but introducing short-term rate volatility. How and when this will be fully normalized remains to be seen.

Looking at the macroeconomic picture, global GDP growth is projected to grow 3.2% in 2025, easing slightly to 3.1% in 2026. Growth is uneven, emerging. Asia remains the engine while developed markets slowdown. On trade flows, U.S. container imports are declining, but strong Asian export growth offsets this. Expect East West flows to remain robust, though rate volatility will persist.

The IMO net zero framework has hit implementation setbacks, creating uncertainty around decarbonization pathways. We may see fragmented regional schemes emerge, adding complexity and compliance costs. So the big picture, geopolitical risk, macro shifts and regulatory uncertainties are converging, successfully depend on resilience, compliance and strategic agility.

Let's move to the -- from the macro picture to the container markets in more detail. Please have a look at Slide 11. The chart on the left shows forward availability of vessels for the next 6 months. What can be observed is a tight supply environment with limited open tonnage in the short term. This reflects strong charter coverage and cautious fleet deployment by owners. The implication is that securing tonnage will remain competitive for liner companies supporting firm charter rates.

The chart in the middle compares charter rates and freight rates over time. Charter rates have softened slightly from peak levels, but remain historically elevated due to constrained supply. Freight rates, while volatile, are trending above prepandemic averages, driven by network disruptions and lingering demand imbalances. Importantly, freight and charter rates have never been as decoupled as they are present, highlighting a structural disconnect between lineup profitability and vessel earnings. The key takeaway here is that we believe margins for operators remain under pressure, but owners still benefit from strong time charter earnings.

The graph on the right tracks secondhand and newbuilding prices for container vessels. Secondhand prices have stabilized at high levels, reflecting scarcity of modern tonnage and strong residual values. Newbuilding prices remain firm, supported by full order books and higher input costs. Asset values are resilient, but prices for newbuildings remain elevated.

Now that we've covered the container market, let's take a closer look at the carriers, the liner operators and how they are positioning themselves for the future. Over the past years, and that can be seen on the left-hand side in the graph, carriers have made a significant financial shift. They've moved from historically high leverage ratios to a position of strong capitalization. The stronger balance sheets give them resilience in a volatile market and the flexibility to invest strategically going forward.

What we are seeing now is a clear emphasis in terms of focus of the liner strategy on terminal access as a key competitive advantage, ownership or long-term partnerships are key to ensuring reliability and cost efficiency. Market share still matters, but reliability and service quality have become just as important for customers. Integrated terminal and line operations help carriers maintain schedule control and deliver a better customer experience.

On the fleet side, carriers remain opportunistic in the secondhand market, where we see a number of transactions driven by liners, i.e., they are taking advantage of attractive pricing when it appears. At the same time, they're advancing their newbuilding programs, and we now see this taking more and more shape in the small and midsized segments as we have anticipated during the last couple of quarters. Often, this involves partnering with owners and tender processes or bilateral deals to secure competitive positions, but liners are very selective with only a few owners being invited to these processes.

So overall, carriers are entering this next phase with stronger balance sheets, a sharper strategic focus and a disciplined approach to fleet renewal, positioning themselves well for operational reliability, the energy transition and importantly, for us, as owners, building slack into their network to better absorb disruptions. With that in mind, let's move on to the next slide.

Now that we have looked at the carriers positioning, let's turn to supply and demand fundamentals, starting with the supply side and then the trade growth outlook. The first graph on the left shows the order book and what stands out is that it's heavily geared towards the larger vessel sizes. In contrast, with the 1,000 to 6,000 TEU segment, the segment in which we are active, more than 800 vessels are over 20 years of age. This aging fleet means we expect the need for additional tonnage in the smaller sizes going forward, especially to serve regional and niche trades.

The second graph on the right-hand side highlights the trade growth outlook. There are 3 key drivers here. First, stronger GDP growth in emerging markets compared to advanced economies will underpin demand. Second, the diversification of sourcing strategies, companies spreading productions across multiple regions will continue to drive robust volume growth. And third, intra-regional trades remain critical. In fact, 98% of vessels deployed in these trades are smaller than 5,100 TEU, reinforcing the need for smaller ships in the global fleet mix.

So when we look at supply and demand together, the picture is clear. While the order book is concentrated in larger vessels, the aging smaller fleet and strong intra-regional demand point to a structural need for renewal in the midsize and smaller sectors.

As we look ahead on Slide 14, the market continues to be shaped by a range of uncertainties. But these challenges also present opportunities, the very forces disrupting global shipping are acting as catalysts for innovation, differentiation and also long-term resilience. Looking at U.S. policy, firstly, they continue to create a volatile container market environment and a volatile global economic environment in total. Ongoing uncertainties around tariff announcements mean trade flows and demand outlooks could be impacted at short notice.

Secondly, the Red Sea situation. This remains fluid. Recent statements suggest carriers may resume transits, but timing is still uncertain. A safe passage becomes viable, carriers are expected to gradually leverage this route to cut transit times and costs, which could lead to periods of excess capacity.

Third, the intra-regional trades continue to show resilience. Container trades into emerging markets have recorded consistent volume increases in recent years. Looking forward, these trades are forecast to outperform mainland routes, driven by regional consumption and sourcing diversification.

And finally, the fleet picture. Despite an uptick in newbuild orders for smaller sizes, feeder vessels remain an underinvested category. There simply isn't enough replacement tonnage to keep pace with the aging fleet currently on the water. So while uncertainty persists, these dynamics highlight where opportunities lie, particularly in regional trades and particularly in smaller vessel segments. And with that said, let me turn to the next part of today's presentation, the company outlook.

And I would like to start with Slide 16 with our charter backlog. On the left-hand side, where you can find some details on MPCC's forward coverage illustrating that we've advanced the coverage significantly for '26 and '27 and beyond, as also alluded to by Moritz. As furthermore explained in detail by Moritz, we have utilized the strong charter market during the past few weeks and months, in particular, also concluding forward pictures. On the back of this, in combination with our newbuilding program, we have added additional volume to our backlog and we now have a revenue backlog of $1.6 billion and a projected EBITDA backlog, which stands at around USD 1 billion.

In terms of charter coverage, the year 2025 has been covered already months ago, and we are now also well covered for 2026 with 92% and 2027 with 55% in terms of operating days. The degree of forward revenue visibility for the next years has, in fact, never been better than it is today. On the right-hand side, you can see how the revenue backlog has developed over the last 12 months in terms of backlog consumed and backlog added to the now USD 1.6 billion.

Taking rational and prudent decisions has been the backbone of how we navigate MPCC's fleet in the market, and we will continue to do so in the best interest of our customers and our shareholders. Let's look at some measures that we have taken in terms of enhancing our fleet and also let's spend some time on how we will move forward strategically.

In the current market environment, global developments from geopolitical attention to economic uncertainty and regulatory changes, they continue to shape the industry. While these external factors remain significant, our priority is clear: to execute on our strategy and focus relentlessly on the areas within our control, doing so with discipline and precision.

This slide illustrates the results of executing that strategy over the past couple of years. We do believe that having an efficient modern fleet that is commercially attractive to our customers, the liner companies is the foundation for long-term success at MPCC. Consequently, over the past few years, we have taken a number of measures to enhance and renew our fleet.

As explained by Moritz earlier, our approach to fleet renewal is strategic and multifaceted. Investing in our existing fleet on the water, including substantial retrofit measures, acquiring eco-tonnage in the secondhand market and contracting newbuildings with attractive charters to top-tier liner operators attached ensuring prudent derisking of our CapEx.

On the top left of the slide, you can see how our fleet has transitioned from a purely conventional fleet to one where 75% is now of eco nature. But fleet renewal is only one part of the story. We have also placed a strong emphasis on other aspects of the business. On the right-hand side of the slide, you will see some KPIs that reflect the execution of our balanced strategy. Revenue backlog has grown from $1.1 billion to $1.6 billion from '21 to '25.

At the same time, during that period, we have distributed more than USD 1.1 billion in dividends. We have freed up collateral ensuring high balance sheet flexibility and investment capacity. And as mentioned, we have invested USD 1.2 billion in retrofits, eco tonnage and newbuildings, improving the average age of our fleet significantly from a 2007, built year on average in 2021, to 2014 today. And last but not least, we have also reduced the CO2 intensity by 43% compared to the 2008 baseline. These results -- all of these results actually demonstrate how disciplined execution and strategic investments have strengthened MPCC's position for the long term.

Moving on to Slide 18. At MPCC, proactive management is not just an operational principle. It's embedded in our strategy and it drives long-term value creation across cycles. Let me explain our thinking in that respect on how we approach things. Firstly, we maintain a clear strategic focus on the intra-regional container shipping market where we see structural resilience and attractive fundamentals. Our approach to asset acquisitions is cycle aware and risk-adjusted, ensuring we act decisively when opportunities align with our return profile.

Fleet transformation has been accelerating through strategic newbuild projects and targeted retrofits, positioning us for efficiency and compliance. Today, 75% of our fleet on a TEU basis consists of eco-efficient vessels, including newbuilds, eco vessels and retrofits, this, we believe, will be a key differentiator in the years ahead. Our proactive chartering strategy with extensive forward fixings provides strong financial and commercial visibility, reducing volatility.

We have built a broad funding base at lower cost of debt, supported by debt-free vessels and moderate leverage. This preserves investment capacity, allowing us to continue fleet transformation and seize opportunistic acquisitions when markets present value. This proactive approach is anchored in our strategy centered around MPCC and our people onshore and at sea and designed to be a good partner to our key stakeholders. As you can see on the right-hand side, we have identified a number of key stakeholders, including our customers, to which we want to be and we will be a reliable and strategic partner and having executed and offered various strategic transactions and structures for top line operators recently. We believe we are on a good track.

To financing partners, we are conservative, yet agile partner, maintaining moderate leverage while tapping diverse funding sources, innovative, but disciplined. To shareholders, we are a good steward of capital across cycles with deep market insight and a prudent adaptable capital allocation strategy. We focus on what we can control, executing rational transactions with attractive risk return profiles, maintaining balance sheet flexibility. In short, proactive management is how we translate strategy into action, delivering reliability, sustainability and value across all stakeholders.

Before we open the floor for questions, let me summarize the key takeaways from today's call. Firstly, Q3 2025 has been another strong quarter for MPCC driven by high fleet utilization and solid operational execution. We have secured $1.6 billion in charter backlog, ensuring full coverage for '25 and 92% and 55% coverage for 2026 and 2027, respectively. This provides a very good visibility and stability in an otherwise uncertain market.

We continue to divest all the vessels and renew the fleet, reinforcing our long-term competitiveness and sustainability profile. Our approach combines recurring distributions with attractive growth opportunities, creating long-term value across cycles.

While the market outlook remains uncertain, MPCC focuses on what we can control, leveraging opportunities, driving fleet transition and maintaining a robust balance sheet. In short, we remain committed to delivering value for all stakeholders throughout disciplined execution of strategic agility.

With that said, let's open the floor for questions.

So for the Q&A, we have the first questions trickling in as we speak. We'll take them one by one.

The first question is of operational nature. Can you provide some color on the increased vessel OpEx compared to the third quarter of '24?

Looking back at the third quarter of '24, it was a bit of a seasonal out layer, meaning the OpEx was quite low. Going back even further one quarter -- second quarter of '24, the OpEx was around $7,500. So a bit more in line with what we see today. It is true that the OpEx this quarter has been a bit elevated. That is for insurance reasons. There has been some deductible, so to speak, one-off items that we expect to normalize in the remainder of the year.

Then there is a question related to the Red Sea and what will be the impact of Red Sea reopening on feeders specifically in your estimation?

Yes, thank you for your question. We touched on this to some extent in the presentation, but I'm, of course, happy to elaborate in a bit more detail on the Red Sea situation. Maybe starting from a high-level perspective, potential Red Sea reopening would primarily affect Mainlane container services and larger vessels on Asia-Europe routes, while the direct impact on smaller container ships is likely limited. So that's the direct impact, and that's basically linked to the type of vessels that go through the Suez Canal usually.

Indirect efforts, however, could obviously arise through changes in transshipment hubs, in feeder schedules, in networks and regional connectivity as carriers then obviously adjust their networks back to a Red Sea passage open mode. However, our expectation is that normalization may lead to periods of overcapacity, of course, and then that will influence the overall market and also the smaller sizes as well.

Having said that, the situation remains quite fluid. And whilst major liners have communicated that they have plans to cautiously resume Red Sea transits. We think this will take a couple of quarters to gradually unwind the rerouting of the Cape, which obviously is on the cards for '26 in our view as well. But kind of -- it's about balancing security, insurance, network adjustments, potential congestions, et cetera. So there are various factors to be taken into consideration.

And I think just to put a few numbers to it, the rerouting, as I said, has predominantly tied up the larger vessels. And according to Clarksons, around 720 vessels with an average size of 14,000 TEU are still diverting via the Cape. So smaller vessels have really seen negligible impact to that effect. So that's kind of our assessment when it comes to the impact of potential Red Sea reopening.

Then we have 2 similar questions on the asset disposal side. Is the sale of the Felicia still expected to go forward for USD 12.3 million. Could you talk a bit about what went wrong with the sale?

So shortly before handing over the vessel to the respective buyers, a legacy case has resurfaced prompting official authorities putting a maritime lean on the vessel, which essentially means prohibiting us from handing over the vessel to the buyers. Luckily, the sales contract is structured in a way that we have a relatively wide delivery window stretching into -- stretching well into 2026. So as we speak, we're working together with the official authorities to get rid of that lean and then parallel also obviously with the buyers trying to deliver the vessel to them at some point in the future.

For the time being, the vessel is on time charter and us still being the owners, obviously, we benefit from that locked in cash flow on that specific vessel.

Then there is a question regarding the newbuilds. Could you talk about the purchase options for additional newbuilds? When do they expire? Do you think they are likely to be exercised?

First of all, there are some of the options that we held -- have already expired, in particular related to the earlier newbuilding orders earlier this year, whilst others run until early 2026. So we are in active discussions on further newbuildings, including related to the options. We believe the deals that we have done this year are attractive. And we are, hence, considering to possibly do more. But that's kind of where we are on the options.

Then there's, I would say, a related question and more on the fleet, and that is should we expect additional sales over the coming quarters? Or do you view rechartering as a more attractive proposition? I think it's -- as always, a bit of a balancing in the end, the mix of a mathematical calculation and also strategic consideration when it comes to the fleet profile. We are and we have done a number of forward fixtures. We are, at the same time, also in discussions to do more forward fixtures, but there's also a pretty healthy secondhand market with vessels actually not just being chartered out on forward positions, but also being possibly sold on forward positions, and we are exploring both.

What I would say as a general comment is that looking at the charter coverage for next year, 92% and '27, 55%, we do believe that in the coming weeks and months, unless you know the market completely goes sour, which again, we don't expect that we would see through a mix of vessel sales potentially, but also some additional forward fixes that we will be able to increase the coverage certainly for '27 as a result of that. And therefore, we do believe -- and again, these decisions about chartering or selling are linked to condition of the vessel, design of the vessel, attach charter of the vessel also, to some extent, dry dock cycles, et cetera.

So there are a number of factors that we always consider. And as you have seen over the last years, sometimes the decision is then to charter the vessel out and maintain the optional value at the end of the charter with more upside and sometimes the decision is to sell. I think currently, we are in a market where we're both depending on the specific vessel, options are available. And I would not rule out that we will also be a seller of ships in the near future, but I will definitely also think that we will see more forward fixtures from us in the weeks and months ahead.

Then we have a question on the vessel and the lifetime of vessels. Do you think old vessels will keep getting new classification as long as the market is good or could future environmental demand force scrapping earlier even if the market is good. Could a 30-year-old ship get a new classification if the environment is not an issue and the market is good?

I mean theoretically speaking, even a 40- or 50-year-old ship can get a new classification. It obviously is an economical and a financial decision, as you say, if the market is good and the income justifies paying a high price, which it is today, bringing a vessel through the fourth, fifth or even sixth dry-docking cycle. We believe that age becomes less and less relevant. So looking at the environmental impact becomes more important. And why do we think that? Because we have, in our own fleet, for example, retrofitted 20-year-old vessels, making them 20% or even more than 20% efficient relative to peer vessels, and that sort of age bracket.

So age becomes less relevant. And with those retrofits, we are making sure that these vessels, despite of the age will be in compliance with the regulatory pressure going forward. So it's a bit of a mix of financial view on the vessel and also the vessel itself being eligible for a retrofit. There are certainly vessels where a retrofit will not achieve the efficiency gains that we have seen on our vessels. So yes, we have retrofitted 20-year-old ships, and can they trade up until 30, 35 years? Yes, certainly. But there will also be obviously a financial element to that calculation.

Then there is another question, which is reserving some parts of dividend payout for investment has been a reason for share price drop in Q2. Does it mean that at some point, MPCC will return to pay high dividends again? Or this will be followed as a strategic approach to reinvest more and add value to the company instead of being a sole dividend payer in future?

Okay. So it's basically a capital allocation question here, the way I take it. And let me say that I think share price dropped in Q2, I would not solely attribute that to the adjustment of dividend policy. I think a lot is also sentiment driven. I mean Q2 was obviously the hey days of the initial period of the Trump administration with a number of curveballs and uncertainty on global trade, et cetera.

As far as the capital allocation question is concerned in terms of high dividends versus investments, the way we see it is that we have introduced now a balanced capital allocation or payout strategy, which provides return to shareholders, return of capital to shareholders, but at the same time, allows the company to continue to develop and continue to create long-term value, which is in the best interest of the company, its stakeholders and its shareholders. And therefore, we have reallocated and have decided that earlier in the year to reallocate some of the otherwise, dividend amounts to also grow and invest.

Had we just continued to pay out dividends, we would basically be unwinding a company that, in our view, has a very good value, has a very good value proposition. And I think, in particular, also the transaction that we have concluded this quarter are a reflection of this. And that applies to both the forward fixing as well as the newbuildings and the fleet renewal. And as we have discussed throughout the presentation, having a 75% kind of equal fleet on the water now whilst operating on a moderate to low leverage scenario, we believe this is a very good basis for a continuation of adding value and creating long-term value to shareholders.

So never say never on dividends, but I think we now have a balanced dividend policy out there. And for the time being, we see significant opportunities in the market. We believe the newbuildings that we have done are very attractive and we believe this is also attractive going forward to possibly conclude on a few more on that route.

Then we have a CapEx-related question. Can you add some color on the dry docking schedule for '26, '27 relative to '25?

Only speaking for the coming year, we expect of having 18 dry dockings next year, which is a relatively strong increase from the number of dry dockings that we have had this year, although it is slightly below the year before. So 2024, we had around 20 dry dockings.

Now for '26, we expect to have 18 dry docks. So it's quite an operational challenge, making sure all the vessels are being docked properly. But we've been there before. So we have a fair share of experience of managing as many vessels going through dry docks in Europe and in the Far East.

At least for the time being, there are no further questions, we would hold up the line for a bit. But since there have been a number of questions raised and we don't see anything coming up. We would conclude the call at this stage.

Thank you, everyone, for your interest and for the questions and the engagement. We -- just to sum it up, we believe it has been a very good quarter in many aspects, in financial and operational performance, but certainly also in adding value for the future, providing the forward fixtures, some additional newbuildings, and we are excited about the next quarters ahead and looking forward to staying in touch.

All the best. Take care. Bye-bye.

Good morning, everyone. This is Constantin Baack, CEO of MPC Container Ships, and I'm joined by our CFO and co-CEO, Moritz Fuhrmann. I would like to welcome you to our Q2 2025 earnings call. Thank you for joining us to discuss MPC Container Ships Q2 and Half-year 2025 earnings.

This morning, we issued a stock market announcement covering MPCC's second quarter results for the period ending June 30, 2025. The release as well as the accompanying presentation for this conference call are available on the Investors section of our website. Please be advised that the material provided and our discussion today contain certain forward-looking statements and indicative figures. Actual results may differ materially from those stated or implied by forward-looking statements due to the risks and uncertainties associated with our business.

Before we dive into the Q2 2025 presentation, let me briefly reflect on the first half of the year. We're pleased to report another strong quarter for MPCC, continuing the momentum from Q1 and highlighting the resilience of our business amidst ongoing macroeconomic and geopolitical uncertainty. Despite a challenging external environment, including regulatory shifts and unpredictable trade policies, the container market remains firm.

Time charter rates held up well. The demand in the secondhand market stayed strong and idle capacity remained low. While the global order book's elevated constrained supply in the small to midsize segment and aging fleet and shifting trade patterns support a favorable supply/demand balance. That said, volatility remains as a factor, and we do not expect smooth sailing going forward, and we continue to approach fleet modernization, with discipline and foresight.

Maintaining strong investment capacity is critical. Earlier this year, we refined our capital allocation strategy to ensure flexibility for strategic growth. Our disciplined approach has consistently developed strong returns and dividends, and we remain committed to sustainable shareholder value.

Looking ahead, we see opportunities to selectively divest, invest and grow leveraging favorable market conditions while staying agile and focused on long-term value creation. We will delve deeper into these themes during the presentation.

And with that said, I will now hand over to Moritz to start the first section.

Good morning, everyone, also from my side, and welcome to MPCC's earnings call for the second quarter of 2025. We will follow our usual agenda today, and we'll start with a review of the Q2 highlights, after which we will spend some time on the current market and market developments and then also the outlook for the remainder of 2025.

Kicking off with the highlights. There is obviously a continuation of our very strong quarterly performance as we have posted close to $140 million in revenue and around $81 million in adjusted EBITDA for the second quarter. As the very strong container market performance more or less uninterrupted with both charter rates and durations remaining at what we see elevated levels. We have followed our conservative chartering strategy and locking in as long period as available and consequently, our revenue backlog has increased relative to the previous quarter to USD 1.2 billion with 100% of open days covered for the remainder of '25. But perhaps more importantly, we have further improved the company's coverage for 2026, standing now close to 90% of open days already fixed and hence, providing a fantastic earnings visibility into the next year. And as a result of the good financial performance, the Board has declared the company's 15th consecutive dividend was $0.05 per share, representing 50% of the adjusted net earnings for the second quarter of '25.

On the asset and fleet optimization side, we have been fairly active, having taken delivery of our second dual-fuel methanol newbuilding vessel in April this year, while at the same time, having sold 10 vessels since the beginning of 2025, of which 8 vessels have already been successfully handed over to its new owners and with the remaining two being expected, hand it over and in the coming months.

Part of the sales proceeds have been recycled into our recently announced newbuilding transaction, namely ordering 4,000, 4,500 TEU vessels for a total transaction volume of close to $230 million. The deal features a 3-year time charter to a top 5 line operator, providing a very good cash flow visibility via the derisking of the project and the deal marks a very important continuation of our fleet renewal efforts that we have been emphasizing on for the past year, and it's obviously also a great testament to the company's ability to structure and to execute such deals.

On the debt financing side, we have been equally busy arranging two distinct senior secured facilities in the tune of around $100 million at very attractive terms with both existing relationship banks as well as new relationship banks. And one of the aforementioned facilities features a $250 million accordion option which gives us great flexibility going forward in our fleet renewal efforts and also underlines the support MPCC receives from its lenders and further developing and further developing the company.

Looking ahead into the remainder of 2025, and as the market remains very supportive, we will continue focusing on further driving our fleet optimization and retrofit program to improve the fleet composition and enhance long-term shareholder value. And in addition, and based on the current markets, we reconfirm the revenue guidance and the EBITDA guidance, which has recently been adjusted.

Turning to the next slide, looking at some KPIs for the quarter, gross revenue and adjusted EBITDA have been improved relative to the previous quarter as a result of the continuously supported markets and also more trading days available than actually expected from a balance sheet perspective, and despite having gone under new senior secured facilities, the leverage ratio with 33.6% remained in line with the previous quarter or the net debt position actually decreased to around $130 million, underlining the overall conservative balance sheet structure. As mentioned before, the Board has declared a dividend of $0.05 per share. Which will be paid in September '25, and operational cash flow generation remains strong and slightly above the first quarter at $78 million.

While fleet utilization improved to 97.6%, the actual OpEx increased due to catch-up effects from the first quarter as well as one-off nonrecurring items that have been booked in the second quarter.

Looking at Slide #5 and spending some time on our recent chartering activity. It is evident that the previously mentioned positive market results in very supportive fixtures for us as a company. The second quarter was generally marked by continued macro uncertainty around tariffs. However, the chartering market remained relatively unaffected. And we certainly continue seeing strong demand from top-tier liner companies, especially for feeder tonnage as a result of the overall scarcity of available tonnage in the market. And both charter rates and durations holding up strongly, as can be seen by the 4 fixtures concluded since our last reporting, the only remaining open vessels in our fleet for '25 were all between 1,700 and 2,500 TEU and we managed to fix all of them, including some forward positions for around 2 years at levels between $21,000 and $26,000 per day. And with such strong coverage, the company's P&L is pretty much shielded from any adverse market movement, if any.

On the asset side, we have already successfully delivered 8 of the 10 vessels sold to new owners. The total gross proceeds are close to $130 million and all sales are very much in line with our fleet optimization strategy, meaning that we continue to divest older nonefficient vessels, while the sales proceeds are intended to be reinvested into our fleet renewal and building a future-proof fleet.

In addition to the divestments, we have continued to invest and strengthen the fleet's composition and therefore, acquired a 50% share in our 1,300 TEU dual-fuel methanol newbuilding to be delivered in '26 from our joint venture partner streamlining the corporate structure, which means that the vessel is now fully owned by MPCC.

On the next slide, we spend a bit more time on the investment side and the recently announced newbuilding order by MPCC, which marks the largest transaction on the newbuilding side to date. MPCC has ordered 4,000 4,500 TEU vessels at Taizhou Sanfu, a yard well known to us for a total consideration $230 million. The vessels are scheduled for delivery in the second half of '27 and first half of '28. In addition to the firm order, we hold options for further vessel orders, potentially scaling the total investment.

Most importantly and from an investment perspective, we have in parallel to firming up the order lined up a 3-year time charter with a top-tier liner company for all four vessels. And the corresponding contracted revenue is around $140 million and the projected EBITDA is around $100 million, which not only improves the company's backlog. It also provides good earnings visibility on a project level as well as derisking. And at the same time, allowing us to retain upside potential on this respective transaction.

And generally, we see a relative strong dislocation within the container market as well as the order book to fleet structure, especially in the feeder segment is, in our view, very compelling and requires substantial fleet renewal in the coming years, but the Constantin will speak to it later in the market section.

Obviously, needless to say, these vessels, these are the latest energy-efficient technologies and will be amongst the most efficient vessels in the respective size bracket was delivered, being estimated to operate around 50% more efficient compared to existing vessels on the water. And although being conventional, there is a very clear path to methanol or ammonia retrofit in the future if we decide to invest in such retrofit.

This investment marks another very, very important milestone for us as a company, and it's a very clear continuation of our fleet renewal efforts that have started a few years ago, and this becomes more and more important as regulatory pressure increases over time and in the foreseeable future, but also to build a long-term vessel portfolio that will generate a sustainable shareholder returns in the foreseeable future.

Turning to Slide #7. The cash flow in the second quarter of '25 was dominated by the good operating cash flow of $78 million as well as sales proceeds from vessel sales generating a net amount of around $46 million, that's one, and two, by $71 million in additional debt drawdowns throughout the quarter. All those measures substantially improved the company's cash position as well as the, obviously, investment capacity to around $360 million by the end of June. And in addition to the balance sheet liquidity, we retain further flexibility through $75 million in undrawn RCF capacity as well as in accordion option together with the recently drawn senior secured financing.

The positive cash generation was slightly offset by investments into our fleet and regular debt repayments. And last but not least, MPCC continues to reward shareholders, having paid its 14th consecutive dividend in the amount of $36 million at the end of June and more than USD 1 billion in dividends have been paid over the past 36 months, which we think it's a very strong testament for the company's emphasis on prudent capital allocation as well as sustainable shareholder return.

Today, the Board has declared the next dividend, which is 50% of the adjusted net earnings to be distributed to shareholders, basically representing the upper end of the new dividend policy range being 30% to 50%. And going forward, we will continue to emphasize on shareholder return as it has -- as we have in the past, which will be either through cash distributions or a combination of cash and share buybacks. However, always within the policy range of 30% to 50% of adjusted net earnings.

Also importantly, with the adjusted distribution policy, we will continue to optimize MPCC's fleet composition, building a future-proof fleet that will benefit shareholders from a long-term perspective while continuing to keep a sustainable -- a sustainable dividend.

Skipping to Slide #8. We see MPCC's quite conservatively structured balance sheet. We have year-to-date executed on a number of measures, namely vessel divestments and secured and unsecured debt facilities to improve the company's liquidity position and therefore, MPCC's investment capacity. By the second quarter, liquidity stood at $360 million. However, on a pro forma basis or pro forma adjusting for subsequent events or measures that are in execution, MPCC has a pro forma and slight liquidity of $485 million, including undrawn RCF capacity.

RCF capacity, in our view, or in view of fleet renewal efforts and the corresponding investment capacity is absolutely essential. However, MPCC managed to achieve this capacity without compromising on the overall robustness as well as flexibility of the balance sheet. We have a conservative leverage ratio of 33.6%. And in addition, very importantly, we have 27 debt-free vessels with a fair market value of around $600 million and while gross debt has increased on a pro forma basis to $535 million. The net debt remains quite low and the vessel portfolio with a charter-free market value of around $1.5 billion, $1.6 billion provides additional comfort.

The company obviously will ensure to use the investment capacity as prudently as it has done in the past by identifying and executing on shareholder accretive transactions that will help building a future-proof fleet. And clearly speaking, all in all, we remain very disciplined on the capital allocation side of things, as we have always done. And on that note, I hand over to Constantin for the market update and the outlook section.

Yes. Thank you, Moritz. I would like to continue with the next agenda point, the market. Back in the first quarter, I noted that volatility is here to stay in Q2 has certainly confirmed that view. Looking ahead, we expect this environment of heightened uncertainty to persist, not only through the remainder of the year, but well into the foreseeable future.

The second quarter was quite eventful, and some of the events are listed here on this slide. Multiple headwinds have further deepened the volatility, building on the challenges already evident in Q1. Geopolitical tensions in the Middle East intensified culminating in the sinking of two vessels in the Red Sea with security risks persisting, there remains no clear time line for a resumption of traffic through the Suez Canal.

In parallel, evolving U.S. trade policy, particularly shifting tariff announcements added further uncertainty impacting trade flows and also demand expectations. Against this backdrop freight rates saw a temporary spike in early June, but quickly retreated as demand softened. Charter rates remained notably resilient throughout the second quarter, holding at elevated levels despite broader market volatility. The strength was underpinned by limited vessel availability and consistent fixture activity. Having said that, July brought a noticeable slowdown with fixing activity declining by approximately 40% compared to the average of the first half of the year.

Encouragingly, due to the lack of available prompt positions, forward fixing has gained momentum, following a subdued first quarter with vessels now being secured further in advance. The number of ships expected to be opened within the next 6 months is 43% lower than during the same period last year. Notably, availability is particularly constrained in the larger sizes with very few units remaining open for the remainder of 2025.

Looking at the container market more broadly, sentiment remains constructive despite ongoing economic and geopolitical uncertainties. So far, tariff threats, regional tensions and congestion at major European ports have not negatively impacted the container market. On the contrary, geopolitical disruptions have supported demand for tonnage at the time when supply remains tight. This resilience in the charter market is also reflected in asset values which I will address in more detail on the next slide.

Turning to the S&P market activity in the container sector remained steady and in line with the previous quarter. despite the traditionally quieter summer period, we observed a consistent flow of transactions and ongoing demand for tonnage. In total, approximately 60 asset transactions were recorded during the reporting quarter. Reflecting a similar level of liquidity as seen in Q1. Eco tonnage in the feeder segment continues to attract high interest. Though the limited pool of available candidates has led to increased competition among buyers.

According to Alphaliner, some owners remain undecided between locking in attractive charter rates or capitalizing on historically high second-hand prices through asset sales. The sustained interest in vessels has driven further appreciation in asset values. The Clarksons secondhand price index rose from 76 points at the end of Q1 to 79 points by the close of Q2, representing a 4% increase quarter-over-quarter.

Looking at the newbuilding market contracting activity in the Container segment remains elevated, particularly when compared to other shipping sectors. The increased sophistication of newly ordered vessels, combined with strong forward coverage at shipyards and ongoing cost inflation has kept newbuilding price indices hovering near historical highs. Speaking of the new building markets and turning to the next page, you can see that the order book itself has also hit an all-time high at the start of the second quarter with 9.5 million TEU corresponding to an order book-to-fleet ratio of 30% at that time.

When considering the order book itself, as shown on this slide, it appears logical that a relative slowdown could be observed during the second quarter. However, another 1 million TEU has been ordered during Q2 2025. This brings total contracting for container ships for the first half of the year to 218 vessels and 2.2 million TEU.

In contrast to previous quarters feeder tonnage accounted for a slightly higher share in terms of numbers, 36 out of the total of 98 units or over 1/3 of all vessels ordered in Q2 2025 were attributable to container ships with the capacity below 3,000 TEU. As the in-service feeder fleet is aging and needs to be replaced, tonnage provider -- tonnage buyers are opting for vessels with less than 6,000 TEU the order book-to-fleet ratio in the smaller sizes is still fairly low. And for the segment below 8,000 TEU. The order book does not cover the replacement needs that is expected to arise in the next years.

European tonnage providers have been busy commissioning ships. Such orders are often letters of intent, so-called LOIs in speculatively without charters attached and often not confirmed yet. MB Shipbrokers, for example, noted that various buyers. We're working to secure slots for feeders and midsize ships for Chinese yards. Most of the recent orders are however, for conventional dual-fuel ready vessels. Given the fact that 58% of the vessels below 6,000 TEU are 15 years, newbuilding investments in the feeder and mid-sized segment is still a bright spot at present with inquires and interest still coming from liner operators. Recently, they have also been firm newbuilding orders with charter cover attached and as our 4500 TEU newbuilding with 1 of the top 5 liner companies confirmed.

When talking about smaller vessels, we should also look towards the trades they're usually deployed in and that brings me to the next slide, basically running to intra-regional markets and non-mainlane trades where our feeder and mid-sized vessels are primarily deployed. We continue to see strong and resilient market fundamentals. Unlike the mainlane trades, which are projected to grow at a modest 0.6% compound annual growth rate. Intra-regional container trade, a core focus for the MPCC fleet is expected to grow at significantly stronger pace of 3.5% annually over the coming years. This outperformance is driven by several key factors.

Firstly, emerging markets are expected to deliver higher GDP growth and advanced economies translating into increased container volumes on regional trade lanes. Secondly, intra-regional trade volumes exceed -- or already exceed those of mainlane trades, underscoring the scale and strategic relevance of these markets. The continued diversification of supply chains is another aspect, which includes near shoring and regionalization, which will further support robust volume growth in these segment. While regional demand remains a clear growth engine. We are also mindful of the headwinds facing in the industry, including regulatory developments, macroeconomic uncertainty and environmental changes.

As we look ahead, the market continues to be shaped by a range of uncertainties as we've shown on this slide. However, these challenges also present opportunities. The very forces disrupting global shipping are acting as catalysts for innovation, differentiation and also long-term resilience.

And as such on this slide, we have illustrated four key factors shaping the future trajectory of the market. Firstly, U.S. trade policy. Trade policy out of Washington remains a major source of uncertainty. The potential escalation of tariffs could deepen fragmentation and global trade patterns impacting volumes and routing decisions. Secondly, geopolitical tensions, ongoing conflicts and security risk in the Middle East, particularly along the Suez route, are expected to prolong rerouting and reshape global freight force. These dynamics will continue to influence shipping demand and capacity deployed.

Thirdly, fleet development, contracting momentum is shifting towards smaller and midsized vessels. As of July 2025, the order book-to-fleet ratio reached 30.2%, 2.2 million TEU as mentioned earlier, orders in the first half of the year. Deliveries are projected to accelerate in '27 and '28 with an estimated 3 million TEU entering the market. And lastly, feeder fleet renewal. Despite recent interest in feeder newbuild replacement tonnage for the aging feeder fleet remains insufficient. We have talked about it throughout the last quarterly presentation, and we will talk to that in our outlook section again. But with regional trade forecast to outpace mainlane growth, demand for modern feeder capacity is expected to strengthen significantly. This is the opportunity that we identified and acted on with our latest newbuilding order which positions us to capture growth in high-performing segments.

And with that, let me turn to the next part of today's presentation, the company outlook. Starting with our charter backlog. On the left, you can find some details on MPCC's forward coverage, illustrating that we are well covered for the quarters ahead. As explained in detail by Moritz, we have continued to utilize the strong charter market during the first half of 2025 and also further building out the backlog with our latest newbuilding projects. On the back of this, and in combination with our recent newbuilding order, we have added additional value to our backlog, even increasing our backlog figure compared to the status at the end of the previous quarter. And we now have a revenue contract backlog of around $1.2 billion and the projected EBITDA backlog was USD 0.7 billion.

In terms of coverage, we are now at 100% of all operating days covered. And for '26, we have further increased our coverage to around 89% up from 77% shown in the Q1 update and a figure of around 34% for 2027 in terms of operating days covered. The degree of forward revenue visibility for the next 2 years has, in fact, never been better than it is today since we established MPC Container Ships.

On the right-hand side, we show the upcoming and fixed charter positions of our fleet in '25 and '26. We have only four possible open positions until the end of the year '25 left. This relates to vessels with a flexible redelivery window based on the present rate environment and our expectation is these are very likely '26 positions. For '26, we have 25 charter positions open and the distribution of the open positions for '26 by quarter are also shown in the overview on this slide. As you can see, almost half of the position are Q4 2026 positions. And on a few of these forward positions we are presently already in dialogue with some of our charter clients regarding early extensions.

Let's look at some measures that we have taken and how we will move forward strategically on the next slide. As discussed in the market section, global developments ranging from geopolitical tensions to economic uncertainty and regulatory shifts continue to shape the landscape. And while it's important to keep these factors in mind and take them into account for our decisions, our operational focus remains on executing the strategy of things that are within our control with discipline and precision.

Doing what is within our control means focus on ensuring safe and reliable operations of our fleet. Invest in our fleet on the water, that for example, means retrofit, continue to build strong relationships and be a good partner to our charter clients, executing charter package deals or strategic new buildings with our partners. Maintain high balance sheet flexibility. That is a moderate leverage. As Moritz has alluded to, keep a significant part of the fleet unencumbered, maintain sufficient investment capacity, et cetera.

Carefully weigh up risk and rewards in particular in growth investment decisions as we have done with our newbuilding order, but not stand still and do not be afraid to take decisions to roll the business. And having said that, fleet renewal is in our firm opinion a very important element in order to create long-term value for shareholders. And now on this slide, you can see how we developed the company over the past years. You can see the status of some more financial KPIs and some more fleet related KPIs end of Q3 2021 and today.

Looking at the upper three elements, which is the more financial part, we have rebuilt the revenue backlog, which as I explained, now stands at $1.2 billion. compared to roughly $1.1 billion in Q3 2021. And in the meantime, we have distributed more than $1 billion in dividends. So we have rewarded investors and will continue to do so. We have further freed up collateral and further strengthen the balance sheet and the investment capacity of the company, as alluded to by Moritz and not shown on the slide, but we have also been able to bring down the cost of debt of the company quite significantly.

Looking at the fleet, the lower part of the lower three items of the debt here. We have divested a number of vessels and also invested significantly in modernizing the fleet or on this I will explain on the next slide. Furthermore, compared to 4 years ago, we have been able to bring down the average age of the fleet from 15 years to 13 years today, which is 4 years later. So we have been able to significantly reduce the average age. And yes, that's at the very bottom left of the slide, part of the fleet has aged like the global container in general. And hence, we strongly believe that we further need to renew the fleet in order to continue to create sustainable long-term value for the company and our shareholders.

That brings me to the next slide, where I would like to talk a bit more details to our fleet renewal efforts and how we intend to continue to modernize the fleet and create long-term value. On the top left, you can see an overview of the largest tonnage providers on nonoperating owners in the sub 6,000 TEU segment. Looking at our fleet, as briefly mentioned on the previous slide, we have substantially invested into our fleet. Breaking down our portfolio in 4 categories, you can see that we have now around 53% equal share based on number of vessels and actually closer to 60% if we would look at it the same figure weighted by TEU. And we have invested more than USD 800 million to renew the fleet by carrying out a number of measures. And that includes the following as illustrated right-hand side.

We have invested around $500 million in nine newbuildings, including three dual fuel methanol vessels. We've acquired over the last couple of years, nine modern secondhand eco vessels for more than $300 million. And we have carried out substantial hydrodynamic and energy efficiency measures on more than 20 vessels for more than $30 million and there is more to come on that part.

This we have done in most cases, in close partnership with our charter clients, for example, against charter extensions, creating win-win situations. And then lastly, we have the conventional pool of vessels, for which we constantly analyze the options, carry out retrofits, continue to trade the vessels and charter them out and to generate cash flows or a combination of the two or certainly, at all times, consider divestments if the prices rise and attractive.

And going forward, you can expect us to generally continue that trajectory. Always looking at geopolitical macroeconomic and market developments, of course, and adjusting the cost if required. And certainly, we will continue to also seek attractive opportunities from value dislocations should they arise.

As explained in the past and as also shown on this slide, we firmly believe MPCC has a strong value proposition with significant upside. Let me explain why. As you can see on the left-hand side, the current enterprise value is fully covered by the projected EBITDA backlog of around USD 0.7 billion and the recycling value. further significant upside potential from the existing fleet of 55 vessels, which are, as I explained earlier, by now significantly younger on average than they have been 4 years ago. And earnings capacity, the future earnings capacity linked to those ships.

In addition, we have run an indicative sensitivity analysis on open rates based on the charter coverage and open days of the MPCC fleet in two scenarios, and that is illustrated on the right-hand side. The current market rates in gray and the 10-year average rate from Clarksons -- sorry, the current market rates in blue actually the 10-year average rate from Clarksons in gray. The outcome, you can see on the right side of this slide, underpinning not only the resilience of our earnings capacity going forward for '26 and '27, but also the earnings upside potential that is significant.

Before we now open the floor for questions, let me summarize some key takeaways from today's call. Q2 has been another strong quarter for MPCC driven by high fleet utilization and solid operational execution. Our strategic fleet extension through the addition of four advanced newbuildings position us for long-term growth and continued competitiveness. We have further enhanced our financial flexibility with $100 million in loan facilities and an up to $250 million accordion option, ensuring we remain well capital to pursue future opportunities. In line with our renewed capital allocation strategy, we are distributing out 50% of adjusted net profit as dividends reaffirming our commitment to delivering robust shareholder returns.

Our disciplined strategy, robust financial position and proven ability to generate value in complex market, positions us MPCC to capitalize on emerging trends and deliver sustainable growth for our shareholders. And finally, despite geopolitical volatility, we remain resilient. We are confident that with our disciplined strategy and strong investment capacity, we will be in a good position to navigate uncertainty and sees emerging opportunity with confidence in order to continue to generate value in complex markets.

Thank you very much for your continued trust support. And with that, I open the floor for the questions.

There are a number of questions that have come in. I would start with the first one, and that is related to the dividends. Why is the dividend declining so sharply compared to the past challenging years. I mean, we discussed the dividend very extensively during the last quarter and this quarter, and we have explained that we continue to be fully committed to a dividend. We have adjusted the dividend policy in the last quarter. And we're now paying out at the high end of the range with 50% payout ratio, which we deem very significant. Obviously, there is a reduction compared to the 75% in the past. But as we've explained throughout the presentation, it is about balancing between creating long-term value for the company and for shareholders, which we do by carrying out strategic investments and still rewarding shareholders with a significant dividend, and that is reflected in the figures.

There is another question by -- for the market, how has the introduction of hub-spoke network, specifically the Gemini Corporation between Maersk and Hapag-Lloyd impacted feeder markets that's part one. And the second one is with the U.S. Trade Representative USTR introduction, new port call fees, particularly targeting Chinese newbuilds and operating vessels. What are the potential implications for Caribbean to U.S. feeder services.

Let me start with the first one on the Gemini corporation. This, in fact, and we have discussed that in previous quarters has had an impact of, in particular, those two names securing certain tonnage a few quarters back ahead of the implementation and rollout of the Gemini Alliance. It has obviously changed, to some extent, the hub-spoke network in certain regions of the world. I would argue there it has more slack in the system, meaning they -- the Gemini Alliance operates more ships, utilizes more ships, which is obviously good because it also means utilizing more feeder ships. And we have actually seen quite some additional demand coming from the Gemini Alliance implementation.

And going forward, I do believe that with shift in trading patterns, new hub-spoke networks might surface and might be implemented also by other alliances. And therefore, I think in general, that has a net positive effect on the feeder markets.

On the USTR and the new port call fees specifically targeting a Chinese built and operated vessels, there are certain implications, I guess, they are not yet fully visible given the fact that a lot of the liners are still adjusting their cost for probably -- there's for example, one-liner company who is considering to increase the larger vessels going into Kingston, and then feedering from there. There are other companies taking a slightly different approach. We do believe that it will, in any case, create more feeder demand going forward because there will be fewer port calls and hence, the ports need to be connected by the means of smaller vessels. And the U.S. obviously targets vessels above 4,000 TEU. So the smaller vessels are actually, in our view, a potential net beneficiary of the whole development.

And there's a question on the newbuilding side of things. What are you seeing in terms of similar deals as the four newbuildings with charters derisking part of the investment? Do you believe it is likely you will enter similar deals over the coming months?

I think we have mentioned in the presentation that we do hold options for sister vessels at the same yard at the same pricing which obviously have not been executed yet. We are, as we speak, trying to replicate what we have done on the 4 new builds, basically saying that we're looking for either the same charterer or other high-profile names who would be interested in taking those vessels on a mid- to long-term charter, basically providing a derisking because we will continue walking the talk, meaning speculative orders are not on the agenda in MPCC. So if we were to enter a similar or other new building transactions, we would always try to combine with the longer-term charter. And generally speaking, and as we have emphasized several times throughout the presentation, we do see continued investment need from an MPCC perspective because parts or a larger part of the fleet has been aging to a degree that we deem it necessary to replace those ships in the foreseeable future. So yes, speculative orders are not on the agenda, so we're trying to continue combining a newbuilding order with the long-term charter.

Then there is another question regarding contracts that has been established, for example, '25 and '26 are there risks of contract cancellations I think that is obviously a question around the counterparty consolidation or the contractual constellation. I mean, in general, these contracts cannot be canceled. These are firm time charter contracts legally governed and safe. Of course, there has been times where our contracts have been renegotiated. We do not foresee that in '25 and '26, given that the container liner operators that are our counterparties have the strongest balance sheet they have had in history.

Most of them have a net cash position, so very strong counterparties, and we do not see any risk of contract renegotiations or cancellations. What we have seen and what we have also done is strategically to maybe consider an extension of the charter against the balancing out of the rate. Even that we haven't seen over the last couple of years in -- on many occasions, we have seen that once or twice potentially. But we would only do that if it's in the benefit of MPC Container Ships. And we do not see any risk neither on the, let's say, contractual side of contracts being able to be canceled nor a renegotiation of the rates.

As the second question on that part. And this is related to the replacement need that we alluded to on Page 12. And the question is what do you mean by the order book does not cover the replacement need that will arise over the next years in MPCC's core segments. What we mean specifically on Slide 12, where we show the age structure of the order book as well as the order book-to-fleet ratio that we presently have around 4,000 vessels in our segment between 1,000 and 8,000 TEU of these around 1/4 is above 20 years of age and will require to be renewed in the next 5 years potentially.

The order book in contrast is only single digit, compared to the fleet on the water. So there's a structural need to replace these vessels by virtue of age of the fleet. We'll also see given the latest geopolitical developments that they will also be shifting trading pattern, possibly or likely in our view, benefiting more flexible ships, which is the smaller ships.

So we also see a structural demand growth that we might foresee in the next 3 to 5 years when you look at the slightly smaller vessels. So both from the demand side, but certainly from the age structure and supply side, and the age of the fleet on the water as well as the order book for the specific segment where we involved that there is not sufficient orders being placed at the moment. We have expected that to come over the last couple of quarters and years actually. And now we actually see more activity there, but I'm not overly concerned at this stage that this is too much. To the contrary I think it's desperately needed. And what we see in terms of orders is yet insufficient to cover the replacement needs for the specific sector.

There's one seems to be a final question on capital allocation, a usual one that we get almost on a quarterly basis, will share buyback be part of the distribution equation is the first question. And the second question is what shareholders can expect in terms of distribution or recurring distribution, whether 30% or 50% going forward.

I think to start with the second question, that obviously will be assessed. The new distribution policy has been put in place to see. We'll make sure to obviously to continue doing that going forward. This quarter, we have distributed as mentioned, the sort of the upper part of the range, meaning 50% the adjusted net earnings. And I think it's fair to say that as long as the market is performing as it is now, we'll try to continue distributing in that range. And on the first part of the question in terms of share buyback, and that's also, as previously mentioned and communicated investors.

We have a quarterly discussion with the Board, and it is being discussed whether there will be cash distribution share buyback. We have done share buybacks in the past. It is always part of the equation. It will also be assessed going forward. However, I think it's important to say that if there should be potentially also combination of cash distribution and share buybacks will always be within the communicated range of 30% to 50% of adjusted net earnings.

Since there's no further questions raised, we would like to thank you for your interest and for the participation in this call. We are looking forward for to the second half of this year to 2026, and we are confident that we will see a couple of more interesting times ahead. Yet we feel very well prepared for that and we are confident to be able to deliver further value and create MPCC as a valuable long-term and sustainable company in the market.

Thank you very much for your attention and all the best. Bye-bye.