Norway-based boxship owner MPC Container Ships concluded the first half of 2017 ended June 30 with a loss of 0.4 million.

The company, which was incorporated in January 2017, said that its gross profit from vessel operations was at USD 0.1 million and operating cash flow was USD 0.5 million.

For the first six months of 2017, the company’s time charter revenues reached USD 1.2 million.

MPC Container Ship said that its present financial performance “is impacted by initial costs and limited charter activity,” as the company is in the start-up phase of its operation.

By June 30, 2017, the company operated 12 container vessels, whereof 7 are fully consolidated and 5 are operated in a joint venture. The group’s vessels are chartered out on time charter contracts to global and regional liner shipping companies.

“The year 2016 was characterized by very challenging container shipping market conditions due to significant tonnage overcapacity, but improving fundamentals in late 2016 and early 2017 lay the groundwork for a robust market recovery at the end of Q1 2017 and a stabilization of charter and asset markets at above crisis levels in Q2 2017,” MPC Container Ships said.

Charter rates started at historically low levels at the beginning of 2017 and experienced a sharp increase in March
this year, on the back of improved supply and demand fundamentals plus a demand enhancement from liner
companies ahead of the launch of new alliances.

Earlier in September, the company completed the issuance of a new senior secured bond issue through its subsidiary MPC Container Ships Invest as part of its fleet expansion efforts.

The bond issue of USD 100 million has a 5 year tenor, carries a floating interest rate of 3m LIBOR + 4.75% and has a borrowing limit of USD 200 million.

Net proceeds from the bond issue would be used to finance acquisitions of additional container vessels and for general corporate purposes.

The company currently has a fleet of 20 vessels, 14 of which are already operated by the MPC Container Ships.