Note 1\tAccounting Principles
1.1\tAccounting Principles for the Consolidated Financial Statements
General information
MPC Container Ships ASA (\u201cthe Company\u201d) is a public limited liability company (Norwegian: allmennaksjeselskap) incorporated and domiciled in Norwaywith registered address at Rusel\u00f8kkveien 34, 0251 Oslo, Norway, and Norwegian registered enterprise number 918494316. The Company was incorporated on January 9, 2017 and commenced operations in April 2017, when the first vessels were acquired. The consolidated financial statements comprise the Company and its subsidiaries (together referred to as \u201cthe Group\u201d). The principal activity of the Group is to invest in and to operate maritime assets in the container shipping segment.
The shares of the Company are listed at the Oslo Stock Exchange under the\u00a0ticker symbol MPCC. MPC Container Ships ASA is the parent company in\u00a0the Group.
The consolidated financial statements were approved by the Company\u2019s Board of Directors on April 9, 2025.
Basis of preparation and measurement
The consolidated financial statements of MPC Container Ships ASA (the \u201cParent Company\u201d), and all its subsidiaries (the \u201cGroup\u201d), are prepared in accordance with IFRS\u00ae Accounting Standards as adopted by the European Union. The consolidated financial statements were prepared on the basis of historical cost, with some exceptions where fair value\u00a0measurement is applied. These exceptions are specifically disclosed in the accounting policies sections in relevant notes:
+Note 7.2Financial Instruments
All assets and liabilities for which fair values are measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
+Level 1: Quoted market prices in active markets for identical assets or liabilities.
+Level 2: Inputs other than quoted market prices included in Level 1 are directly or indirectly observable.
+Level 3: Inputs are unobservable.
The Group has prepared the financial statements on the basis that it will continue to operate as going concern.
Certain amounts in the comparable years have been restated or reclassified to conform to current year presentation. All amounts in the consolidated financial statements are denominated in US dollars (USD), which is the functional currency of the parent company of the Group. All financial information presented in USD has been rounded to the nearest thousand USD, except otherwise indicated.
The Group\u2019s financial year corresponds to the calendar year.
Basis of consolidation
The consolidated financial statements include MPC Container ASA and its subsidiaries in which the Company exercises control. The financial statements of the subsidiaries are prepared for the same reporting period as the Group, using consistent accounting policies. Intercompany transactions, balances and unrealized gains on transactions between group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries
Subsidiaries are all companies where the Group has a controlling interest. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date on which control ceases.
Companies that constitute the Group are listed in Note 6.2Group Companies.
Accounting principles related to joint ventures, associated companies are presented in Note 6.1Investments in Joint Venture and Associate.
Foreign currency translation
In accordance with IAS 21, foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transaction.
Financial reporting principles
The material financial reporting principles are described in the relevant notes in the consolidated financial statements and in the notes in the financial statements of the parent company.
The Group presents assets and liabilities in the statement of financial position based on the current or non-current classification.
The cash flow statement of the Group is prepared using the indirect method. Liquid assets include cash, bank deposits (restricted and unrestricted) and other short-term investments which can be converted within 3 months.
New and amended standards and interpretations
The Group\u2019s intention is to adopt the relevant new and amended standards and interpretations when they become effective, subject to EU approval before the consolidated financial statements are issued. The following amendments became available as at January 1, 2024;
+Amendments to IAS 1 \u2013 Classification of Liabilities as Current or Non-current
+Amendment to IFRS 16 \u2013 Leases on sale and leaseback
+Amendment to IAS 7 and IFRS 7 \u2013 Supplier finance
The above new or amended accounting standards did not have a material impact on the consolidated financial statements or relevant for the Group.
Standards issued but not yet effective
The new and amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Group\u2019s financial statements are disclosed below. The Group intends to adopt these new and amended standards and interpretations, if applicable, when they become effective.
+Amendments to IAS 21 \u2013 Lack of Exchangeability
+Amendment to IFRS 9 and IFRS 7 \u2013 Classification and Measurement of Financial Instruments
+IFRS 18 \u2013 Presentation and Disclosure in Financial Statements
+IFRS 19 \u2013 Subsidiaries without Public Accountability: Disclosures
Management assesses that none of the issued standards (except IFRS 18) and amendments not yet in effect will materially impact the recognition and measurement policies of the Group. The Group has initiated but has not yet completed its analysis of the impact of IFRS 18 on the Group\u2019s financial statement and accompanying notes.
1.2\tSignificant Judgement, Estimates and Assumptions
The preparation of consolidated financial statements conforming to IFRS\u00ae Accounting Standards requires management to make judgments, estimates and assumptions that may affect assets, liabilities, revenues, expenses and information in notes to these financial statements. Estimates are management\u2019s best assessment based on information available at the date the financial statements are authorized for issue. Uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the asset or liability affected in future periods. Estimates and underlying assumptions are reviewed on an on-going basis. The main areas where judgements and estimates have been made are prescribed in each of the following notes:
Accounting policy
Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision makers in the Group. The chief operating decision maker who is responsible for allocating resources and assessing performance of the operating segments has been identified as the Board of Directors of the Company.
Accounting policy
Revenue recognition
The Group derives its revenue from time charters of its vessels. These charters involve placing the specified vessel at charterers\u2018 use of specified rental period of time in return for payment of specified daily hire rates. Most of the charters include options for the charterers to extend the terms. Revenue from the Group\u2019s time charters is accounted for as operating leases, on a straight-line basis, for a shorter period of the vessels\u2019 useful life, over the average fixed rentals over the minimum fixed rental period of the time charter agreements, as service is performed. Charter hire received in advance is recorded under \u201cDeferred revenue\u201d in the Consolidated Statement of Financial Position until charter services are rendered. Invoiced revenue related to an estimated proportion of remaining voyage time and activities at the destination port is deferred. Under a time charter, the daily hire rate includes lease component related to the right of use of the vessel and non-lease components primarily related to the operating expenses of the vessel incurred by the Group such as commissions, vessel operating expenses: crew expenses, lubricants, certain insurance expenses, repair and maintenance, spares, stores etc. and vessel management fees. The lease component of the vessel represents the use of the vessel without any associated performance obligations and is accounted for in accordance with IFRS 16 Leases while revenues from time charter services (non-lease) and other revenues (e.g. bunkers and other services) are accounted for in accordance IFRS 15. The non-lease component from the Group\u2019s time charter contracts are recognized over time, as the performance obligation is satisfied over time. Revenue from bunkers and other goods and services from customers are recognized in the period the goods or services are transferred to the customer, following the \u201cpoint in time principle.
Accounting policy
Voyage expenses are expensed as incurred and primarily consist of port charges, bunker costs (bunker costs are normally covered by the Group\u2019s charterer, except in certain cases such as vessel re-positioning, or under repair and maintenance, or when the vessels have been idle), address commissions, brokerage commissions and emission cost.
Accounting policy
Vessel operating expenses are expensed as incurred and include crew wages and related costs, the cost of insurance, expenses for repairs and maintenance. Operating expenses are related to the cost of spares and consumable stores, tonnage taxes and other miscellaneous expenses. Vessel operating expenditures which are partially compensated by income from reimbursements from the charterer and are being recognized as other revenues.
Accounting policy
Other operating expenses including administrative expenses are expensed as incurred and include, audit fees, bookkeeping fees, legal fees, board remuneration, service cost, executive officers compensation, directors & officers insurance, share option expense and stock exchange fees.
Accounting policy
Vessels and other property, plant and equipments are derecognized upon disposal or when no future economic benefits are expected from their use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the period the asset is derecognized.
Accounting policy
Financial income consists of interest income, currency gain. Interest income are recognised as it accrues using effective rate.
Financial cost consist of interest expenses, currency losses, and other financial expenses. Interest expenses are recognized as they accrue using effective rate. In addition, there are interest expenses on leasing liabilities.
Accounting policy
The Group presents basic and diluted earnings per share data for its ordinary shares.
Basic earnings per share are calculated by dividing the profit for the reporting period attributable to ordinary equity holders of the Company by the weighted average number of ordinary shares outstanding during the reporting period.
Diluted earnings per share are calculated by dividing the profit attributable to ordinary equity holders of the Company by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.
Accounting policy
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the relevant taxation authorities.
The Company is subject to tax on its income in accordance with the general tax rules pertaining to companies that are tax resident in Norway.
The Company\u2019s vessel-owning subsidiaries are subject to the Norwegian, German or Dutch tonnage tax regime, i.e. taxable income is calculated as a lump sum depending on the net tonnage of the respective vessels, independent of the realized earnings. Income not derived from the operation of the vessels in international waters, such as financial income, is usually taxed according the ordinary taxation rules applicable in the resident country of each respective company. Tonnage taxes are classified as Vessel Operating Expenditures.
Deferred tax liabilities are classified as non-current liabilities and are recognized for all taxable temporary differences. Deferred tax assets are recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which the deductible temporary difference can be utilised.
Accounting policy
Trade and other current assets
Trade receivables and other short-term receivables are measured at transaction price upon initial recognition and subsequently measured at amortised cost less expected credit losses. The Group applies the simplified approach to provide for lifetime expected credit losses in accordance with IFRS 9. Credit loss allowance is recognised based on both historical and forward-looking credit loss assessment. Trade receivables relate to receivables against the charterers for the Group\u2019s time charter contracts while emission allowances are receivables against charterers for the greenhouse gases (GHG) emitted during the voyage. Insurance claims are the Group\u2019s claims covered by insurance agreements where the virtually certain threshold are met.
Accounting policy
Provisions are recognized when the Group has a present obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to any provision is recognized through profit and loss net of any reimbursement.
Deferred revenue constitutes mainly contract liabilities which represent advance payments and billings in excess of revenue recognized.
Accounting policy
Vessels and other property, plant and equipments
Vessels and other property, plant and equipments are stated at historical cost, less subsequent depreciation and impairment. For vessels purchased, these costs include capitalizable expenditures that are directly attributable to the acquisition of the vessels. Upon acquisition, each component of the vessels, with a cost significant to the total acquisition costs, such as dry-docking component, existing charter contract, is separately identified and depreciated over that component\u2019s useful life on a straight-line basis.
The scrubber installations are recognized in the carrying amount of the vessels, and depreciated over the remaining useful life of the vessels.
Depreciation is calculated on a straight-line basis over the useful life of the assets, taking residual values into consideration, and adjusted for impairment charges, if any. Impairment considerations are described in detail in the accounting policy disclosed in Note 5.2Depreciation, Amortisation and Impairment charges.
Ordinary repairs and maintenance expenses are charged to the income statement as incurred. Costs related to dry-docking or other major overhauls are recognized in the carrying amount of the vessels. The recognition is made when the dry-docking has been performed and is depreciated based on estimated time to the next class renewal, i.e.\u00a05\u00a0years. The remaining costs that do not meet the recognition criteria are expensed as repairs and maintenance.
Vessels held for sale
Vessels are classified as \u201cVessels held for sale\u201d when all of the following criteria are met: management has committed to a plan to sell the vessel; the vessel is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of vessels; an active program to locate a buyer and other actions required to complete the plan to sell the vessel have been initiated; the sale of the vessel is probable and transfer of the vessel is expected to qualify for recognition as a completed sale within one year; the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Vessels classified as
held for sale are measured at the lower of their carrying amount or fair value less cost to sell. These vessels are not depreciated once they meet the criteria to be held for sale.
Newbuildings
Instalments on newbuilding contracts are capitalized as \u201cNewbuildings\u201d when they are incurred. Upon delivery, newbuildings are reclassified to vessels and are subject to depreciation. The acquisition cost includes direct investments, cost incurred during the construction period and borrowing cost. Borrowing costs are capitalized during the construction period and based on accumulated expenditures for the applicable project at the Group\u2019s current weighted average rate of borrowing.
Accounting policy
Impairment of vessels
Indicators of impairment of vessels and other property, plant and equipments are assessed at each reporting date. The same applies when events or changes in circumstances that may entail that the vessels\u2019 carrying amount may not be recoverable. Such indicators may include depressed charter rates and lower second-hand vessel values. If impairment indicators are identified, the recoverable amount is estimated; and If the carrying amount exceeds its recoverable amount, an impairment loss is recognized; i.e. the asset is written down to the higher of the fair value less cost of sale and its value -in-use. Assets are grouped at the lowest level where there are separately identifiable independent cash flows, in which we have determined that each vessel is considered to be a separate cash-generating unit. The far value less cost of disposal is the amount obtainable from the sale of an asset in an arm\u2019s length transaction less the costs of sale and the value in use is the present value of estimated future cash flows expected from the continued use of an asset.
The following assumptions have been made when calculating the value in use for container vessels:
+Future cash flows are based on an assessment of expected development in charter rates and estimated level of administrative and operating expenses (including maintenance and repair) and dry-docking over the remaining useful life of the vessel plus any residual value.
+The net present value of future estimated cash flows of each cash-generating unit is based on a discount rate according to a pre-tax weighted average cost of capital. The weighted average cost of capital (WACC) is calculated based on the expected long-term borrowing rate and risk-free USD SOFR rate plus an equity risk premium.
An impairment loss recognized in prior periods for an asset is reversed if there has been a change in the estimates used to determine the asset\u2019s recoverable amount since the last impairment loss was recognized.
Accounting policy
Joint ventures are those entities whereby the Group has joint control and rights to the net assets. Associates are those entities where the Group has significant influence but not control or joint control (usually between twenty and fifty percent of the voting power). The Group\u2019s investments in associate and joint venture are accounted for using equity method. The investments in an associate or a joint venture are initially recognized at cost and thereafter adjusted for Group\u2019s share of post-acquisition profits or losses, movements in other comprehensive income or dividends received.
Accounting policy
The Group may use certain hedging instruments, such as forward contracts or options, to manage foreign exchange or interest rate risk, for instance. Such derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.
At the inception of a hedge relationship, the Group formally documents the relationship between the hedge instrument and the hedged item, including the risk management objectives and strategy in undertaking the hedge transaction and the hedged risk, together with the methods that will be used to assess the effectiveness of the hedging relationship.
The Group makes an assessment at inception and on an ongoing basis according to IFRS 9, of whether the hedging instruments are expected to be effective in offsetting the changes in the fair value or cash flows. For a cash flow hedge of a forecast transaction, the transaction should be highly probable to occur and should present an exposure to variations in cash flows that ultimately could affect profit or loss.
For the purpose of hedge accounting, hedges are classified as:
+fair value hedges when hedging the exposure to changes in the fair value of a recognized asset or liability or an unrecognized firm commitment (except for foreign currency risk); or
+cash flow hedges when hedging exposure to variability in cash flows that is either attributable to a particular risk associated with a recognized asset or liability or a highly probable transactions.
Hedges which meet the criteria for hedge accounting are accounted for as follows:
The effective portion of the gain or loss on the hedging instrument is recognized in other comprehensive income (OCI) in the cash flow hedge reserve, while any ineffective portion is recognized immediately in the statement of profit or loss. Amounts recognized as OCI are transferred to profit or loss when the hedged transaction affects profit or loss, such as when the hedged financial income or financial expense is recognized or when a forecast sale occurs. When the hedged item is the cost of a non-financial asset or non-financial liability, the amounts recognized as OCI are transferred to the initial carrying amount of the non-financial asset or liability.
If the forecast transaction or firm commitment is no longer expected to occur, amounts previously recognized in equity are transferred to profit or loss. If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover, or if its designation as a hedge is revoked, amounts previously recognized in equity remain in equity until the forecast transaction or firm commitment occurs.
Accounting policy
Cash and short-term deposits in the statement of financial position comprise cash at banks, on hand and short-term deposits with a maturity of three months or less. Cash equivalents represent short-term, liquid investments which are readily convertible into known amounts of cash with original maturities of three months or less.
Cash not available for general use by the Group due to minimum liquidity requirements in the loan agreements and required class are classified as restricted cash.
Accounting policy
All loans and borrowings are initially recognized at fair value less directly attributable transaction costs and have not been designated as at fair value through profit or loss. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method. The calculation takes into account any premium or discount on acquisition and includes transaction costs and fees that are an integral part of the effective interest rate.
A financial liability is derecognized when the obligation under the liability is discharged, cancelled or expires.
Debt issuance costs, including debt arrangement fees, are capitalized and amortized using the effective interest method over the term of the relevant loan. Amortization of debt issuance costs is included in interest expense. If a loan is repaid early, any unamortized portion of the related debt issuance costs is expensed in the period in which the loan is repaid. The Group has recorded debt issuance costs as a direct deduction from the carrying amount of the related debt using the effective interest rate method.
Under a sale and leaseback transaction, when the transfer of vessels does not qualify as a sale under IFRS 15, the seller-lessee does not de-recognise the transferred asset, and it accounts for the cash received as a financial liability.
Accounting policy
Profit distribution includes dividends approved by the Board of Directors\u2019 Meeting. The distribution of profits proposed by the Board of Directors is recognized as a liability and a deduction of equity once the distribution is approved by the Group\u2019 shareholders at the Board of Directors\u2019 Meeting. Costs related to share issuances are recognized directly in equity.
Total equity consists of share capital, share premium, fair value reserves, reserve for invested unrestricted equity, retained earnings and non-controlling interest. Share premium includes the amount exceeding the accounting par value of shares received by the Company in connection with share subscriptions. Fair value reserve includes hedge accounted component of fair value changes of derivatives under hedge accounting. Retained earnings include profit for the period and previous periods. Paid dividends approved in the General Meeting are first deducted from share premium before charging against retained earnings.
", "dimensions": { "concept": "ifrs-full:DisclosureOfMaterialAccountingPolicyInformationExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__6-1": { "value": "General information
MPC Container Ships ASA (\u201cthe Company\u201d) is a public limited liability company (Norwegian: allmennaksjeselskap) incorporated and domiciled in Norwaywith registered address at Rusel\u00f8kkveien 34, 0251 Oslo, Norway, and Norwegian registered enterprise number 918494316. The Company was incorporated on January 9, 2017 and commenced operations in April 2017, when the first vessels were acquired. The consolidated financial statements comprise the Company and its subsidiaries (together referred to as \u201cthe Group\u201d). The principal activity of the Group is to invest in and to operate maritime assets in the container shipping segment.
The shares of the Company are listed at the Oslo Stock Exchange under the\u00a0ticker symbol MPCC. MPC Container Ships ASA is the parent company in\u00a0the Group.
The consolidated financial statements were approved by the Company\u2019s Board of Directors on April 9, 2025.
Financial reporting principles
The material financial reporting principles are described in the relevant notes in the consolidated financial statements and in the notes in the financial statements of the parent company.
The Group presents assets and liabilities in the statement of financial position based on the current or non-current classification.
The cash flow statement of the Group is prepared using the indirect method. Liquid assets include cash, bank deposits (restricted and unrestricted) and other short-term investments which can be converted within 3 months.
Note 2\tFinancial Performance
2.1\tSegment Information
Accounting policy
Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision makers in the Group. The chief operating decision maker who is responsible for allocating resources and assessing performance of the operating segments has been identified as the Board of Directors of the Company.
All of the Group\u2019s vessels earn revenue from a single market, which is the seaborne container transportation. The vessels exhibit similar economic, trading and financial characteristics. The Group is organized in one reportable operating segment, i.e. the container shipping segment. Our vessels operate globally and therefore managment does not evaluate performance by geographical region, and is therefore considered to be only one operating segment. The Group,neverthelss, provides geographical data on revenue for disclosure purposes only. The table below shows time charter revenues per geographical region.
in USDthousands | 2024 | 2023 |
Intra-Asia | 154,742 | 156,789 |
South America | 136,776 | 216,364 |
Europe | 25,677 | 37,762 |
Middle East | 115,561 | 190,633 |
Africa | 31,131 | 30,904 |
Other geographical locations (worldwide trades) | 64,547 | 68,258 |
Total time charter and pool revenue | 528,434 | 700,710 |
For the year ended December 31, 2024, the Group had four customers (2023: three) who each accounted for 10% or more for our consolidated revenues in the amount of USD 52.3 million, USD 53.3 million, USD 53.8 million and USD 151.6 million respectively (2023: USD 75.6 million, USD 91.9 million and USD 127.9 million respectively). These four customers accounted for 42% of the total revenues for 2024 (2023: 42%).
2.2\tRevenues and Other Revenues
Accounting policy
Revenue recognition
The Group derives its revenue from time charters of its vessels. These charters involve placing the specified vessel at charterers\u2018 use of specified rental period of time in return for payment of specified daily hire rates. Most of the charters include options for the charterers to extend the terms. Revenue from the Group\u2019s time charters is accounted for as operating leases, on a straight-line basis, for a shorter period of the vessels\u2019 useful life, over the average fixed rentals over the minimum fixed rental period of the time charter agreements, as service is performed. Charter hire received in advance is recorded under \u201cDeferred revenue\u201d in the Consolidated Statement of Financial Position until charter services are rendered. Invoiced revenue related to an estimated proportion of remaining voyage time and activities at the destination port is deferred. Under a time charter, the daily hire rate includes lease component related to the right of use of the vessel and non-lease components primarily related to the operating expenses of the vessel incurred by the Group such as commissions, vessel operating expenses: crew expenses, lubricants, certain insurance expenses, repair and maintenance, spares, stores etc. and vessel management fees. The lease component of the vessel represents the use of the vessel without any associated performance obligations and is accounted for in accordance with IFRS 16 Leases while revenues from time charter services (non-lease) and other revenues (e.g. bunkers and other services) are accounted for in accordance IFRS 15. The non-lease component from the Group\u2019s time charter contracts are recognized over time, as the performance obligation is satisfied over time. Revenue from bunkers and other goods and services from customers are recognized in the period the goods or services are transferred to the customer, following the \u201cpoint in time principle.
From January 1, 2024 and onwards, the Group is subject to the EU ETS, a cap-and-trade system to reduce emissions via a carbon market. Implementation of EU ETS requires the Group to purchase EU allowances (EUAs) representing the right to emit a specific amount of greenhouse gases. The Groups time charter contracts may include ETS clauses which give the right to receive the cost of EUAs to the charterer. The revenue relating to EUAs is recorded as time charter revenue, while the cost for EUAs is expensed as vessel voyage expenses.
in USD thousands | 2024 | 2023 |
Time charter revenues | 522,424 | 700,710 |
Emission revenues | 6,009 | - |
Total Charter revenues | 528,434 | 700,710 |
Amortization of time charter contracts | 1,012 | 2,716 |
Other revenues | 11,414 | 7,855 |
Total operating revenues | 540,860 | 711,282 |
When a time charter contract is linked to an index, we recognize revenue for the applicable period based on the actual index for that period. In 2024, seven vessel was index-linked (2023: four) and four vessels were on variable rate time charter (2023: four).
The lease and non-lease components of our revenues in the year ended December 31, 2024 and December 31, 2023 were as follows:
in USD thousands | 2024 | 2023 |
Service element | 151,665 | 152,897 |
Other revenues | 11,414 | 7,855 |
Total revenue from customer contracts | 163,079 | 160,752 |
Lease elements | 376,769 | 547,813 |
Amortization of time charter contracts | 1,012 | 2,716 |
Total operating revenues | 540,860 | 711,282 |
Contracted revenues based on fixed time charter contracts as at December 31, 2024 are set out below, based on minimum contract periods of vessels held in subsidiaries:
in USD thousands | < 1 year | 1\u20133 years | 4\u20135 years | > 5 years | Total |
TCE | 438,536 | 383,277 | 70,071 | 157,825 | 1,049,709 |
Contracted revenues based on fixed time charter contracts as at December 31, 2023 are set out below, based on minimum contract periods of vessels held in subsidiaries:
in USD thousands | < 1 year | 1\u20133 years | 4\u20135 years | > 5 years | Total |
TCE | 436,899 | 346,844 | 56,837 | 155,274 | 995,853 |
2.3\tVessel Voyage Expenditures
Accounting policy
Voyage expenses are expensed as incurred and primarily consist of port charges, bunker costs (bunker costs are normally covered by the Group\u2019s charterer, except in certain cases such as vessel re-positioning, or under repair and maintenance, or when the vessels have been idle), address commissions, brokerage commissions and emission cost.
in USD thousands | 2024 | 2023 |
Bunker consumption | (9,967) | (7,715) |
Other voyage expenses | (3,132) | (2,183) |
Emission cost | (6,096) | - |
Total vessel voyage expenditures | (19,195) | (9,898) |
Commission | (14,433) | (20,000) |
2.4\tVessel Operating Expenditures
Accounting policy
Vessel operating expenses are expensed as incurred and include crew wages and related costs, the cost of insurance, expenses for repairs and maintenance. Operating expenses are related to the cost of spares and consumable stores, tonnage taxes and other miscellaneous expenses. Vessel operating expenditures which are partially compensated by income from reimbursements from the charterer and are being recognized as other revenues.
in USD thousands | 2024 | 2023 |
Crew | (72,686) | (74,769) |
Lube oil | (7,609) | (9,189) |
Maintenance and repair | (56,721) | (48,670) |
Insurances | (13,761) | (15,983) |
Operating expenditures | (5,068) | (4,780) |
Total Vessel operation expenditures | (155,844) | (153,390) |
2.5\tOther Operating Expenses
Accounting policy
Other operating expenses including administrative expenses are expensed as incurred and include, audit fees, bookkeeping fees, legal fees, board remuneration, service cost, executive officers compensation, directors & officers insurance, share option expense and stock exchange fees.
Other administrative expenses include remuneration to the Board of Directors and executive management, and fees paid for corporate management services from MPC Maritime Investments GmbH and MPC M\u00fcnchmeyer Petersen Capital AG which are part of the Group\u2019s related parties. Further information on transactions between related parties can be found in Note 8.2Related party transactions. The average number of full time employees employed by the Group in 2024 was 29 people (2023: 33). The Group has defined contributions plan for all employees in line with established market practices and regulations in Norway, Germany and Netherlands.
in USD thousands | 2024 | 2023 |
Legal and advisory services | (3,192) | (2,869) |
Audit and accounting services | (756) | (1,045) |
Salary and employee expenses | (8,270) | (5,989) |
Other administrative expenses | (5,515) | (4,901) |
Total administrative expenses | (17,732) | (14,805) |
The following table details the administrative expenses incurred in relation to 2024 and 2023 audit and related services:
in USD thousands | 2024 | 2023 |
Audit fee | (703) | (670) |
Attestation services | (12) | (6) |
Total auditor services | (714) | (676) |
2.6\tGain (loss) from Sale of Vessels and Other Property, Plant and Equipments
Accounting policy
Vessels and other property, plant and equipments are derecognized upon disposal or when no future economic benefits are expected from their use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the period the asset is derecognized.
IN USD THOUSANDS | 2024 | 2023 |
Gain(loss) from sale of vessels | 23,359 | (1,208) |
Gain(loss) from disposal of other property, plant and equipments | (2,214) | - |
Total Gain (loss) from sale of vessels and other property, plant and equipments | 21,145 | (1,208) |
In the first quarter of 2024, the Group delivered and completed the sale of its three previously held for sale vessels, AS Petra, AS Paulina and AS Pauline to an unrelated party. The Group recognized a loss on the sale of vessels of USD 0.2 million in the first quarter of 2024.
In April 2024, the Group sold its wholly-owned 2007-built AS Nadia and 2009-built sale and leaseback vessel, AS Ragna collectively to an unrelated party for USD 25.5 million. The Group recorded a gain on the sale of USD 6.4 million.
In July 2024, the Group completed the sale of its wholly-owned 2006-built AS Clarita to an unrelated party for USD 10.3 million. The Group recorded a gain of USD 2.0 million on the sale of vessel.
In August 2024, the Group agreed to sell its sale and leaseback vessel, 2008-built AS Fatima to an unrelated party for USD 11.8 million. The sale of AS Fatima was completed in September 2024. As a result, the Group recorded a gain on the sale of USD 4.2 million.
In December 2024, the Group completed the sale of 2005-built vessel, AS Paola to an unrelated party for USD 20.6 million. The Group recorded a gain of USD 11.0 million on the sale of vessel.
In December 2024, the Group entered into agreement to sell its wholly-owned 2005-built vessel, AS Fenja for USD 8.6 million to an unrelated party. The sale of the vessel was completed in January 2025.
In 2023, the Group sold and delivered six wholly-owned vessels (AS Rosalia, AS Romina, AS Flora, AS Roberta, AS Rafaela and AS Emma) for a total sales price of USD 58.0 million. The Group recorded USD 1.2 million as losses upon the delivery of the vessels. See also Note 5.2Depreciation, Amortization and Impairment Chargesfor information about impairment in 2023.
2.7\tFinancial Items
Accounting policy
Financial income consists of interest income, currency gain. Interest income are recognised as it accrues using effective rate.
Financial cost consist of interest expenses, currency losses, and other financial expenses. Interest expenses are recognized as they accrue using effective rate. In addition, there are interest expenses on leasing liabilities.
in USD thousands | 2024 | 2023 |
Interest income | 4,291 | 2,819 |
Other finance income | 5,131 | 5,022 |
Total finance income | 9,422 | 7,841 |
Interest expenses | (16,365) | (14,648) |
Bank fees on early repayment of debt | (685) | (904) |
Other finance cost | (3,586) | (2,821) |
Total finance cost | (20,636) | (18,373) |
2.8\tEarnings Per Share
Accounting policy
The Group presents basic and diluted earnings per share data for its ordinary shares.
Basic earnings per share are calculated by dividing the profit for the reporting period attributable to ordinary equity holders of the Company by the weighted average number of ordinary shares outstanding during the reporting period.
Diluted earnings per share are calculated by dividing the profit attributable to ordinary equity holders of the Company by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.
The following table sets forth the computation of basic and diluted earnings per share for the year ended December 31:
in USD thousands | 2024 | 2023 |
Profit/(loss) for year attributable to ordinary equity holders \u2013 in USD thousands | 266,683 | 324,961 |
Weighted average number of shares outstanding, basic | 443,700,279 | 443,700,279 |
Weighted average number of shares outstanding, diluted | 443,700,279 | 443,700,279 |
Basic earnings per share \u2013 in USD | 0.60 | 0.73 |
Diluted earnings per share \u2013 in USD | 0.60 | 0.73 |
Basis of preparation and measurement
The consolidated financial statements of MPC Container Ships ASA (the \u201cParent Company\u201d), and all its subsidiaries (the \u201cGroup\u201d), are prepared in accordance with IFRS\u00ae Accounting Standards as adopted by the European Union. The consolidated financial statements were prepared on the basis of historical cost, with some exceptions where fair value\u00a0measurement is applied. These exceptions are specifically disclosed in the accounting policies sections in relevant notes:
+Note 7.2Financial Instruments
All assets and liabilities for which fair values are measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
+Level 1: Quoted market prices in active markets for identical assets or liabilities.
+Level 2: Inputs other than quoted market prices included in Level 1 are directly or indirectly observable.
+Level 3: Inputs are unobservable.
The Group has prepared the financial statements on the basis that it will continue to operate as going concern.
Certain amounts in the comparable years have been restated or reclassified to conform to current year presentation. All amounts in the consolidated financial statements are denominated in US dollars (USD), which is the functional currency of the parent company of the Group. All financial information presented in USD has been rounded to the nearest thousand USD, except otherwise indicated.
The Group\u2019s financial year corresponds to the calendar year.
Basis of consolidation
The consolidated financial statements include MPC Container ASA and its subsidiaries in which the Company exercises control. The financial statements of the subsidiaries are prepared for the same reporting period as the Group, using consistent accounting policies. Intercompany transactions, balances and unrealized gains on transactions between group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries
Subsidiaries are all companies where the Group has a controlling interest. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date on which control ceases.
Companies that constitute the Group are listed in Note 6.2Group Companies.
Accounting principles related to joint ventures, associated companies are presented in Note 6.1Investments in Joint Venture and Associate.
Foreign currency translation
In accordance with IAS 21, foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transaction.
Financial reporting principles
The material financial reporting principles are described in the relevant notes in the consolidated financial statements and in the notes in the financial statements of the parent company.
The Group presents assets and liabilities in the statement of financial position based on the current or non-current classification.
The cash flow statement of the Group is prepared using the indirect method. Liquid assets include cash, bank deposits (restricted and unrestricted) and other short-term investments which can be converted within 3 months.
New and amended standards and interpretations
The Group\u2019s intention is to adopt the relevant new and amended standards and interpretations when they become effective, subject to EU approval before the consolidated financial statements are issued. The following amendments became available as at January 1, 2024;
+Amendments to IAS 1 \u2013 Classification of Liabilities as Current or Non-current
+Amendment to IFRS 16 \u2013 Leases on sale and leaseback
+Amendment to IAS 7 and IFRS 7 \u2013 Supplier finance
The above new or amended accounting standards did not have a material impact on the consolidated financial statements or relevant for the Group.
Standards issued but not yet effective
The new and amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Group\u2019s financial statements are disclosed below. The Group intends to adopt these new and amended standards and interpretations, if applicable, when they become effective.
+Amendments to IAS 21 \u2013 Lack of Exchangeability
+Amendment to IFRS 9 and IFRS 7 \u2013 Classification and Measurement of Financial Instruments
+IFRS 18 \u2013 Presentation and Disclosure in Financial Statements
+IFRS 19 \u2013 Subsidiaries without Public Accountability: Disclosures
Management assesses that none of the issued standards (except IFRS 18) and amendments not yet in effect will materially impact the recognition and measurement policies of the Group. The Group has initiated but has not yet completed its analysis of the impact of IFRS 18 on the Group\u2019s financial statement and accompanying notes.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__17": { "value": "The consolidated financial statements of MPC Container Ships ASA (the \u201cParent Company\u201d), and all its subsidiaries (the \u201cGroup\u201d), are prepared in accordance with IFRS\u00ae Accounting Standards as adopted by the European Union. ", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__18": { "value": "The Group has prepared the financial statements on the basis that it will continue to operate as going concern.", "dimensions": { "concept": "ifrs-full:DisclosureOfGoingConcernExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__19": { "value": "All amounts in the consolidated financial statements are denominated in US dollars (USD), which is the functional currency of the parent company of the Group. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__20": { "value": "Basis of consolidation
The consolidated financial statements include MPC Container ASA and its subsidiaries in which the Company exercises control. The financial statements of the subsidiaries are prepared for the same reporting period as the Group, using consistent accounting policies. Intercompany transactions, balances and unrealized gains on transactions between group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__21-1": { "value": "Subsidiaries
Subsidiaries are all companies where the Group has a controlling interest. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date on which control ceases.
Companies that constitute the Group are listed in Note 6.2Group Companies.
Accounting principles related to joint ventures, associated companies are presented in Note 6.1Investments in Joint Venture and Associate6.2\tGroup Companies
The Group\u2019s consolidated financial statements include the financial statements of the Company and its subsidiaries listed in the table below. The table excludes all general partner companies and non-operating companies.
Company | Country | Principal activity | Ownership |
MPC Container Ships Invest B.V. | Netherlands | Holding company | 100.00% |
\"AS Angelina\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS California\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Carelia\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Clara\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Clementina CV\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Columbia\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Cypria\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Fabiana\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Fabrizia\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Felicia\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Filippa\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Fiorella\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Floretta\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Floriana\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Patria\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Petronia\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
Company | Country | Principal activity | Ownership |
\"AS Sara\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Savanna\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Selina\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Sevillia\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Sicilia\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Sophia\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
MPCC Second Financing GmbH & Co. KG | Germany | Holding company | 100.00% |
\"AS Serena\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Carlotta\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Christiana\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Sabrina\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Samanta\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Susanna\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Svenja\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Anita\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Alexandria\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Pamela\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Pia\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Nora\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Caspria\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
MPCC Fourth Financing GmbH & Co. KG | Germany | Holding company | 100.00% |
\"AS Anne\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Stine\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Silje\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Simone\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Sabine\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
MPCC Third Financing AS | Norway | Holding company | 100.00% |
\"AS Fenja\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Freya\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
Company | Country | Principal activity | Ownership |
\"AS Penelope\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
Zweite \"AS Palina\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Constantina\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
MPCC Alva AS | Norway | Ship-owning entity | 100.00% |
MPCC GREENBOX AS | Norway | Holding company | 90.10% |
MPCC NORDLAND AS | Norway | Ship-owning entity | 90.10% |
MPCC VESTLAND AS | Norway | Ship-owning entity | 90.10% |
MPCC NCL Ammonia AS | Norway | Holding company | 50.00% |
MPC ECOBOX OPCO 5 GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
MPC ECOBOX OPCO 6 GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Carolina\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Franziska\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Nina\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Claudia\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Camellia\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Nuria\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Nara\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Ninette\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Nele\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Nanne\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Natalie\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
AS Shipping OpCo 2 GmbH & Co. KG | Germany | Holding company | 90.00% |
Subsidiaries
Subsidiaries are all companies where the Group has a controlling interest. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date on which control ceases.
Companies that constitute the Group are listed in Note 6.2Group Companies", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSubsidiariesExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__23": { "value": "Foreign currency translation
In accordance with IAS 21, foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transaction.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__25": { "value": "New and amended standards and interpretations
The Group\u2019s intention is to adopt the relevant new and amended standards and interpretations when they become effective, subject to EU approval before the consolidated financial statements are issued. The following amendments became available as at January 1, 2024;
+Amendments to IAS 1 \u2013 Classification of Liabilities as Current or Non-current
+Amendment to IFRS 16 \u2013 Leases on sale and leaseback
+Amendment to IAS 7 and IFRS 7 \u2013 Supplier finance
The above new or amended accounting standards did not have a material impact on the consolidated financial statements or relevant for the Group.
Standards issued but not yet effective
The new and amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Group\u2019s financial statements are disclosed below. The Group intends to adopt these new and amended standards and interpretations, if applicable, when they become effective.
+Amendments to IAS 21 \u2013 Lack of Exchangeability
+Amendment to IFRS 9 and IFRS 7 \u2013 Classification and Measurement of Financial Instruments
+IFRS 18 \u2013 Presentation and Disclosure in Financial Statements
+IFRS 19 \u2013 Subsidiaries without Public Accountability: Disclosures
Management assesses that none of the issued standards (except IFRS 18) and amendments not yet in effect will materially impact the recognition and measurement policies of the Group. The Group has initiated but has not yet completed its analysis of the impact of IFRS 18 on the Group\u2019s financial statement and accompanying notes.
", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__26": { "value": "New and amended standards and interpretations
The Group\u2019s intention is to adopt the relevant new and amended standards and interpretations when they become effective, subject to EU approval before the consolidated financial statements are issued. The following amendments became available as at January 1, 2024;
+Amendments to IAS 1 \u2013 Classification of Liabilities as Current or Non-current
+Amendment to IFRS 16 \u2013 Leases on sale and leaseback
+Amendment to IAS 7 and IFRS 7 \u2013 Supplier finance
The above new or amended accounting standards did not have a material impact on the consolidated financial statements or relevant for the Group.
", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesAccountingEstimatesAndErrorsExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__28": { "value": "1.2\tSignificant Judgement, Estimates and Assumptions
The preparation of consolidated financial statements conforming to IFRS\u00ae Accounting Standards requires management to make judgments, estimates and assumptions that may affect assets, liabilities, revenues, expenses and information in notes to these financial statements. Estimates are management\u2019s best assessment based on information available at the date the financial statements are authorized for issue. Uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the asset or liability affected in future periods. Estimates and underlying assumptions are reviewed on an on-going basis. The main areas where judgements and estimates have been made are prescribed in each of the following notes:
+Note 5.1Vessels and Newbuildings
+Note 5.2Depreciation, Amortization and Impairment Charges
Judgement and estimates
+Vessels useful lives: Management estimates the average useful life of our vessels to be 25 years. The actual life of a vessel may be different, and the useful lives of the vessels are reviewed at fiscal year-end. New regulations, market deterioration or other future events could reduce the economic lives assigned to our vessels and result in higher depreciation expense and impairment losses in future periods (climate related risks further disclosed in Note 5.2Depreciation, Amortisation and Impairment charges). Any change in the estimated useful lives and/or residual values impact the deprecation of our vessels prospectively.
As at December 31, 2024, Management did not identify any indicators or circumstances which resulted in requiring changes to our vessel useful lives.
Judgement and estimates
+The carrying amounts of our vessels are reviewed for potential impairment charges whenever events or changes in circumstances indicate that the carrying amount of a particular vessel may not accurately reflect the recoverable amount. Management continuously monitors both external and internal factors to determine if there are indicators that the vessels may be impaired or, in case of previously recognized impairment, that there are indicators that this may be reversed. The factors evaluated in the assessment include both external and internal sources of information. External sources include a significant decline in market value that is not the result of the passage of time, normal use of the assets, depressed charter rates or increase in market interest rates. Internal sources of information include, among others, evidence of obsolescence of, or physical damage to the vessels.
+As we obtain information from various industry and other sources, our estimates of charter-free market value of our vessels are inherently uncertain. In addition, vessel values are highly volatile; as such, our estimates may not be indicative of the current or future charter-free market value of our vessels or prices that we could achieve if we were to sell them.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__36": { "value": "2.1\tSegment Information
Accounting policy
Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision makers in the Group. The chief operating decision maker who is responsible for allocating resources and assessing performance of the operating segments has been identified as the Board of Directors of the Company.
All of the Group\u2019s vessels earn revenue from a single market, which is the seaborne container transportation. The vessels exhibit similar economic, trading and financial characteristics. The Group is organized in one reportable operating segment, i.e. the container shipping segment. Our vessels operate globally and therefore managment does not evaluate performance by geographical region, and is therefore considered to be only one operating segment. The Group,neverthelss, provides geographical data on revenue for disclosure purposes only. The table below shows time charter revenues per geographical region.
in USDthousands | 2024 | 2023 |
Intra-Asia | 154,742 | 156,789 |
South America | 136,776 | 216,364 |
Europe | 25,677 | 37,762 |
Middle East | 115,561 | 190,633 |
Africa | 31,131 | 30,904 |
Other geographical locations (worldwide trades) | 64,547 | 68,258 |
Total time charter and pool revenue | 528,434 | 700,710 |
For the year ended December 31, 2024, the Group had four customers (2023: three) who each accounted for 10% or more for our consolidated revenues in the amount of USD 52.3 million, USD 53.3 million, USD 53.8 million and USD 151.6 million respectively (2023: USD 75.6 million, USD 91.9 million and USD 127.9 million respectively). These four customers accounted for 42% of the total revenues for 2024 (2023: 42%).
", "dimensions": { "concept": "ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__31": { "value": "Accounting policy
Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision makers in the Group. The chief operating decision maker who is responsible for allocating resources and assessing performance of the operating segments has been identified as the Board of Directors of the Company.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSegmentReportingExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__34": { "value": "2.2\tRevenues and Other Revenues
Accounting policy
Revenue recognition
The Group derives its revenue from time charters of its vessels. These charters involve placing the specified vessel at charterers\u2018 use of specified rental period of time in return for payment of specified daily hire rates. Most of the charters include options for the charterers to extend the terms. Revenue from the Group\u2019s time charters is accounted for as operating leases, on a straight-line basis, for a shorter period of the vessels\u2019 useful life, over the average fixed rentals over the minimum fixed rental period of the time charter agreements, as service is performed. Charter hire received in advance is recorded under \u201cDeferred revenue\u201d in the Consolidated Statement of Financial Position until charter services are rendered. Invoiced revenue related to an estimated proportion of remaining voyage time and activities at the destination port is deferred. Under a time charter, the daily hire rate includes lease component related to the right of use of the vessel and non-lease components primarily related to the operating expenses of the vessel incurred by the Group such as commissions, vessel operating expenses: crew expenses, lubricants, certain insurance expenses, repair and maintenance, spares, stores etc. and vessel management fees. The lease component of the vessel represents the use of the vessel without any associated performance obligations and is accounted for in accordance with IFRS 16 Leases while revenues from time charter services (non-lease) and other revenues (e.g. bunkers and other services) are accounted for in accordance IFRS 15. The non-lease component from the Group\u2019s time charter contracts are recognized over time, as the performance obligation is satisfied over time. Revenue from bunkers and other goods and services from customers are recognized in the period the goods or services are transferred to the customer, following the \u201cpoint in time principle.
From January 1, 2024 and onwards, the Group is subject to the EU ETS, a cap-and-trade system to reduce emissions via a carbon market. Implementation of EU ETS requires the Group to purchase EU allowances (EUAs) representing the right to emit a specific amount of greenhouse gases. The Groups time charter contracts may include ETS clauses which give the right to receive the cost of EUAs to the charterer. The revenue relating to EUAs is recorded as time charter revenue, while the cost for EUAs is expensed as vessel voyage expenses.
in USD thousands | 2024 | 2023 |
Time charter revenues | 522,424 | 700,710 |
Emission revenues | 6,009 | - |
Total Charter revenues | 528,434 | 700,710 |
Amortization of time charter contracts | 1,012 | 2,716 |
Other revenues | 11,414 | 7,855 |
Total operating revenues | 540,860 | 711,282 |
When a time charter contract is linked to an index, we recognize revenue for the applicable period based on the actual index for that period. In 2024, seven vessel was index-linked (2023: four) and four vessels were on variable rate time charter (2023: four).
The lease and non-lease components of our revenues in the year ended December 31, 2024 and December 31, 2023 were as follows:
in USD thousands | 2024 | 2023 |
Service element | 151,665 | 152,897 |
Other revenues | 11,414 | 7,855 |
Total revenue from customer contracts | 163,079 | 160,752 |
Lease elements | 376,769 | 547,813 |
Amortization of time charter contracts | 1,012 | 2,716 |
Total operating revenues | 540,860 | 711,282 |
Contracted revenues based on fixed time charter contracts as at December 31, 2024 are set out below, based on minimum contract periods of vessels held in subsidiaries:
in USD thousands | < 1 year | 1\u20133 years | 4\u20135 years | > 5 years | Total |
TCE | 438,536 | 383,277 | 70,071 | 157,825 | 1,049,709 |
Contracted revenues based on fixed time charter contracts as at December 31, 2023 are set out below, based on minimum contract periods of vessels held in subsidiaries:
in USD thousands | < 1 year | 1\u20133 years | 4\u20135 years | > 5 years | Total |
TCE | 436,899 | 346,844 | 56,837 | 155,274 | 995,853 |
2.2\tRevenues and Other Revenues
Accounting policy
Revenue recognition
The Group derives its revenue from time charters of its vessels. These charters involve placing the specified vessel at charterers\u2018 use of specified rental period of time in return for payment of specified daily hire rates. Most of the charters include options for the charterers to extend the terms. Revenue from the Group\u2019s time charters is accounted for as operating leases, on a straight-line basis, for a shorter period of the vessels\u2019 useful life, over the average fixed rentals over the minimum fixed rental period of the time charter agreements, as service is performed. Charter hire received in advance is recorded under \u201cDeferred revenue\u201d in the Consolidated Statement of Financial Position until charter services are rendered. Invoiced revenue related to an estimated proportion of remaining voyage time and activities at the destination port is deferred. Under a time charter, the daily hire rate includes lease component related to the right of use of the vessel and non-lease components primarily related to the operating expenses of the vessel incurred by the Group such as commissions, vessel operating expenses: crew expenses, lubricants, certain insurance expenses, repair and maintenance, spares, stores etc. and vessel management fees. The lease component of the vessel represents the use of the vessel without any associated performance obligations and is accounted for in accordance with IFRS 16 Leases while revenues from time charter services (non-lease) and other revenues (e.g. bunkers and other services) are accounted for in accordance IFRS 15. The non-lease component from the Group\u2019s time charter contracts are recognized over time, as the performance obligation is satisfied over time. Revenue from bunkers and other goods and services from customers are recognized in the period the goods or services are transferred to the customer, following the \u201cpoint in time principle.
From January 1, 2024 and onwards, the Group is subject to the EU ETS, a cap-and-trade system to reduce emissions via a carbon market. Implementation of EU ETS requires the Group to purchase EU allowances (EUAs) representing the right to emit a specific amount of greenhouse gases. The Groups time charter contracts may include ETS clauses which give the right to receive the cost of EUAs to the charterer. The revenue relating to EUAs is recorded as time charter revenue, while the cost for EUAs is expensed as vessel voyage expenses.
in USD thousands | 2024 | 2023 |
Time charter revenues | 522,424 | 700,710 |
Emission revenues | 6,009 | - |
Total Charter revenues | 528,434 | 700,710 |
Amortization of time charter contracts | 1,012 | 2,716 |
Other revenues | 11,414 | 7,855 |
Total operating revenues | 540,860 | 711,282 |
When a time charter contract is linked to an index, we recognize revenue for the applicable period based on the actual index for that period. In 2024, seven vessel was index-linked (2023: four) and four vessels were on variable rate time charter (2023: four).
The lease and non-lease components of our revenues in the year ended December 31, 2024 and December 31, 2023 were as follows:
in USD thousands | 2024 | 2023 |
Service element | 151,665 | 152,897 |
Other revenues | 11,414 | 7,855 |
Total revenue from customer contracts | 163,079 | 160,752 |
Lease elements | 376,769 | 547,813 |
Amortization of time charter contracts | 1,012 | 2,716 |
Total operating revenues | 540,860 | 711,282 |
Contracted revenues based on fixed time charter contracts as at December 31, 2024 are set out below, based on minimum contract periods of vessels held in subsidiaries:
in USD thousands | < 1 year | 1\u20133 years | 4\u20135 years | > 5 years | Total |
TCE | 438,536 | 383,277 | 70,071 | 157,825 | 1,049,709 |
Contracted revenues based on fixed time charter contracts as at December 31, 2023 are set out below, based on minimum contract periods of vessels held in subsidiaries:
in USD thousands | < 1 year | 1\u20133 years | 4\u20135 years | > 5 years | Total |
TCE | 436,899 | 346,844 | 56,837 | 155,274 | 995,853 |
Accounting policy
Revenue recognition
The Group derives its revenue from time charters of its vessels. These charters involve placing the specified vessel at charterers\u2018 use of specified rental period of time in return for payment of specified daily hire rates. Most of the charters include options for the charterers to extend the terms. Revenue from the Group\u2019s time charters is accounted for as operating leases, on a straight-line basis, for a shorter period of the vessels\u2019 useful life, over the average fixed rentals over the minimum fixed rental period of the time charter agreements, as service is performed. Charter hire received in advance is recorded under \u201cDeferred revenue\u201d in the Consolidated Statement of Financial Position until charter services are rendered. Invoiced revenue related to an estimated proportion of remaining voyage time and activities at the destination port is deferred. Under a time charter, the daily hire rate includes lease component related to the right of use of the vessel and non-lease components primarily related to the operating expenses of the vessel incurred by the Group such as commissions, vessel operating expenses: crew expenses, lubricants, certain insurance expenses, repair and maintenance, spares, stores etc. and vessel management fees. The lease component of the vessel represents the use of the vessel without any associated performance obligations and is accounted for in accordance with IFRS 16 Leases while revenues from time charter services (non-lease) and other revenues (e.g. bunkers and other services) are accounted for in accordance IFRS 15. The non-lease component from the Group\u2019s time charter contracts are recognized over time, as the performance obligation is satisfied over time. Revenue from bunkers and other goods and services from customers are recognized in the period the goods or services are transferred to the customer, following the \u201cpoint in time principle.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__33": { "value": "Accounting policy
Revenue recognition
The Group derives its revenue from time charters of its vessels. These charters involve placing the specified vessel at charterers\u2018 use of specified rental period of time in return for payment of specified daily hire rates. Most of the charters include options for the charterers to extend the terms. Revenue from the Group\u2019s time charters is accounted for as operating leases, on a straight-line basis, for a shorter period of the vessels\u2019 useful life, over the average fixed rentals over the minimum fixed rental period of the time charter agreements, as service is performed. Charter hire received in advance is recorded under \u201cDeferred revenue\u201d in the Consolidated Statement of Financial Position until charter services are rendered. Invoiced revenue related to an estimated proportion of remaining voyage time and activities at the destination port is deferred. Under a time charter, the daily hire rate includes lease component related to the right of use of the vessel and non-lease components primarily related to the operating expenses of the vessel incurred by the Group such as commissions, vessel operating expenses: crew expenses, lubricants, certain insurance expenses, repair and maintenance, spares, stores etc. and vessel management fees. The lease component of the vessel represents the use of the vessel without any associated performance obligations and is accounted for in accordance with IFRS 16 Leases while revenues from time charter services (non-lease) and other revenues (e.g. bunkers and other services) are accounted for in accordance IFRS 15. The non-lease component from the Group\u2019s time charter contracts are recognized over time, as the performance obligation is satisfied over time. Revenue from bunkers and other goods and services from customers are recognized in the period the goods or services are transferred to the customer, following the \u201cpoint in time principle.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__37-1": { "value": "2.3\tVessel Voyage Expenditures
Accounting policy
Voyage expenses are expensed as incurred and primarily consist of port charges, bunker costs (bunker costs are normally covered by the Group\u2019s charterer, except in certain cases such as vessel re-positioning, or under repair and maintenance, or when the vessels have been idle), address commissions, brokerage commissions and emission cost.
in USD thousands | 2024 | 2023 |
Bunker consumption | (9,967) | (7,715) |
Other voyage expenses | (3,132) | (2,183) |
Emission cost | (6,096) | - |
Total vessel voyage expenditures | (19,195) | (9,898) |
Commission | (14,433) | (20,000) |
2.4\tVessel Operating Expenditures
Accounting policy
Vessel operating expenses are expensed as incurred and include crew wages and related costs, the cost of insurance, expenses for repairs and maintenance. Operating expenses are related to the cost of spares and consumable stores, tonnage taxes and other miscellaneous expenses. Vessel operating expenditures which are partially compensated by income from reimbursements from the charterer and are being recognized as other revenues.
in USD thousands | 2024 | 2023 |
Crew | (72,686) | (74,769) |
Lube oil | (7,609) | (9,189) |
Maintenance and repair | (56,721) | (48,670) |
Insurances | (13,761) | (15,983) |
Operating expenditures | (5,068) | (4,780) |
Total Vessel operation expenditures | (155,844) | (153,390) |
2.5\tOther Operating Expenses
Accounting policy
Other operating expenses including administrative expenses are expensed as incurred and include, audit fees, bookkeeping fees, legal fees, board remuneration, service cost, executive officers compensation, directors & officers insurance, share option expense and stock exchange fees.
Other administrative expenses include remuneration to the Board of Directors and executive management, and fees paid for corporate management services from MPC Maritime Investments GmbH and MPC M\u00fcnchmeyer Petersen Capital AG which are part of the Group\u2019s related parties. Further information on transactions between related parties can be found in Note 8.2Related party transactions. The average number of full time employees employed by the Group in 2024 was 29 people (2023: 33). The Group has defined contributions plan for all employees in line with established market practices and regulations in Norway, Germany and Netherlands.
in USD thousands | 2024 | 2023 |
Legal and advisory services | (3,192) | (2,869) |
Audit and accounting services | (756) | (1,045) |
Salary and employee expenses | (8,270) | (5,989) |
Other administrative expenses | (5,515) | (4,901) |
Total administrative expenses | (17,732) | (14,805) |
The following table details the administrative expenses incurred in relation to 2024 and 2023 audit and related services:
in USD thousands | 2024 | 2023 |
Audit fee | (703) | (670) |
Attestation services | (12) | (6) |
Total auditor services | (714) | (676) |
5.1\tVessels and Newbuildings
Accounting policy
Vessels and other property, plant and equipments
Vessels and other property, plant and equipments are stated at historical cost, less subsequent depreciation and impairment. For vessels purchased, these costs include capitalizable expenditures that are directly attributable to the acquisition of the vessels. Upon acquisition, each component of the vessels, with a cost significant to the total acquisition costs, such as dry-docking component, existing charter contract, is separately identified and depreciated over that component\u2019s useful life on a straight-line basis.
The scrubber installations are recognized in the carrying amount of the vessels, and depreciated over the remaining useful life of the vessels.
Depreciation is calculated on a straight-line basis over the useful life of the assets, taking residual values into consideration, and adjusted for impairment charges, if any. Impairment considerations are described in detail in the accounting policy disclosed in Note 5.2Depreciation, Amortisation and Impairment charges.
Ordinary repairs and maintenance expenses are charged to the income statement as incurred. Costs related to dry-docking or other major overhauls are recognized in the carrying amount of the vessels. The recognition is made when the dry-docking has been performed and is depreciated based on estimated time to the next class renewal, i.e.\u00a05\u00a0years. The remaining costs that do not meet the recognition criteria are expensed as repairs and maintenance.
Vessels held for sale
Vessels are classified as \u201cVessels held for sale\u201d when all of the following criteria are met: management has committed to a plan to sell the vessel; the vessel is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of vessels; an active program to locate a buyer and other actions required to complete the plan to sell the vessel have been initiated; the sale of the vessel is probable and transfer of the vessel is expected to qualify for recognition as a completed sale within one year; the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Vessels classified as
held for sale are measured at the lower of their carrying amount or fair value less cost to sell. These vessels are not depreciated once they meet the criteria to be held for sale.
Newbuildings
Instalments on newbuilding contracts are capitalized as \u201cNewbuildings\u201d when they are incurred. Upon delivery, newbuildings are reclassified to vessels and are subject to depreciation. The acquisition cost includes direct investments, cost incurred during the construction period and borrowing cost. Borrowing costs are capitalized during the construction period and based on accumulated expenditures for the applicable project at the Group\u2019s current weighted average rate of borrowing.
Judgement and estimates
+Vessels useful lives: Management estimates the average useful life of our vessels to be 25 years. The actual life of a vessel may be different, and the useful lives of the vessels are reviewed at fiscal year-end. New regulations, market deterioration or other future events could reduce the economic lives assigned to our vessels and result in higher depreciation expense and impairment losses in future periods (climate related risks further disclosed in Note 5.2Depreciation, Amortisation and Impairment charges). Any change in the estimated useful lives and/or residual values impact the deprecation of our vessels prospectively.
As at December 31, 2024, Management did not identify any indicators or circumstances which resulted in requiring changes to our vessel useful lives.
in USD thousands | Vessels | Newbuildings, additions | Total Vessels and Newbuildings | Vessels held-for-sale | Total |
Cost: | |||||
January 1, 2024 | 1,028,642 | 78,980 | 1,107,622 | 48,618 | 1,156,240 |
Acquisitions of vessels | 227,296 | - | 227,296 | - | 227,296 |
Capitalized dry-docking, progress payments, expenditures | 56,227 | 113,553 | 169,780 | - | 169,780 |
Disposal of vessels and other property, plant and equipments | (68,943) | - | (68,943) | (48,618) | (117,561) |
Transfers of vessels | 148,189 | (148,189) | - | - | - |
December 31, 2024 | 1,391,411 | 44,344 | 1,435,755 | - | 1,435,755 |
Accumulated depreciation and impairment: | |||||
January 1, 2024 | (337,351) | - | (337,351) | (23,453) | (360,804) |
Depreciation for the period | (70,946) | - | (70,946) | - | (70,946) |
Disposals of vessels and other other property, plant and equipments | 20,347 | - | 20,347 | 23,453 | 43,800 |
December 31, 2024 | (387,950) | - | (387,950) | - | (387,950) |
Net book value: | |||||
December 31, 2024 | 1,003,460 | 44,344 | 1,047,804 | - | 1,047,804 |
in USD thousands | Vessels | Newbuildings, additions | |||
Total Vessels and Newbuildings | Vessels held-for-sale | Total | |||
Cost: | |||||
January 1, 2023 | 976,170 | 32,770 | 1,008,940 | - | 1,008,940 |
Acquisitions of vessels | 169,376 | - | 169,376 | - | 169,376 |
Capitalized dry-docking, progress payments, expenditures | 48,254 | 46,210 | 94,464 | - | 94,464 |
Disposal of vessels and other property, plant and equipments | (116,540) | - | (116,540) | - | (116,540) |
Transfers to Vessel held for sale | (48,618) | - | (48,618) | 48,618 | - |
December 31, 2023 | 1,028,642 | 78,980 | 1,107,622 | 48,618 | 1,156,240 |
Accumulated depreciation and impairment: | |||||
January 1, 2023 | (230,297) | - | (230,297) | - | (230,297) |
Depreciation for the period | (102,504) | - | (102,504) | - | (102,504) |
Impairments | (79,378) | - | (79,378) | - | (79,378) |
Disposals of vessels and other property, plant and equipments | 51,375 | - | 51,375 | - | 51,375 |
Transfers to Vessels held for sale | 23,453 | - | 23,453 | (23,453) | - |
December 31, 2023 | (337,351) | - | (337,351) | (23,453) | (360,804) |
Net book value: | |||||
December 31, 2023 | 691,291 | 78,980 | 770,271 | 25,165 | 795,436 |
Fleet changes | 2024 | 2023 |
Number of container vessels at the start of the period\u200c1 | 59 | 58 |
Aquisition of vessels\u200c2 | 6 | 7 |
Newbuildings deliveries\u200c3 | 2 | - |
Disposal of vessels\u200c4 | (5) | (6) |
Vessels held for sale\u200c5 | (3) | - |
Number of container vessels at the end of the period\u200c1 | 59 | 59 |
1 Number of vessels does not include vessels owned by joint ventures
2 In July 2024, the Group took delivery of the two 3,500 TEU, 2009-built vessels, AS Nara and AS Nuria for USD 24.9 million and USD 22.4 million respectively. Consequent to the order of transaction, where the Group purchased the two shelf companies owned by our related party, MPC M\u00fcnchmeyer Petersen Capital AG, which also entered the MoA with the seller of the vessels, the transaction was classified as related party transaction.
In October and November 2024, the Group took delivery of four 3,800 TEU wide beam eco-design vessels, AS Nele, AS Nanne, AS Natalie and AS Ninette for a total price of USD 180.0 million. All vessels were acquired with existing charter agreements until the second quarter of 2025.
In March 2023, the Group took delivery of a 2010-built scrubber fitted vessel AS Nina and 2007-built scrubber fitted vessel, AS Caludia for USD 33.7 million. Both vessels were acquired with existing charters with renewals in the third quarter of 2023 and the first quarter of 2024.
In June and July 2023, the Group took delivery of five vessels, AS Anne, AS Silje, AS Simone, AS Stine and AS Sabine. AS Anne included an existing 36-month time charter agreement and was subsequently terminated in July 2023 upon delivery. The group received a cash compensation of USD 22.0 million for the early termination. As such, the Group depreciated the time charter component of the vessel of USD 22.0 million to reflect the cost of the contract.
3 In May and July 2024, the Group took delivery of two 5,550 TEU eco-design vessels, Mackenzie and Colorado from its newbuilding programs respectively.
4 Refer to Note 2.6Gain (loss) from sale of vessels and other property, plant and equipmentsfor further information
5 As at December 31, 2023 the Group had three vessels (AS Petra, AS Paulina and AS Pauline) classified as Vessel held for sale. The sale and delivery of the three vessels was completed in 2024.
As at December 31, 2024, the group have committed to retrofit eight vessels (2023: 13) for USD 2.4 million (2023:\u00a0USD 15.6 million), which is due in 2025.
Newbuildings:
As at December 31, 2024 the Group\u2019s newbuilding program consisted of two 1,300 TEU container vessels with a contract price of USD 39.0 million per vessel. The first newbuilding was delivered in the first quarter of 2025 while the second newbuilding is expected to be delivered in the second quarter of 2025. As at December 31, 2024, total additions to Group\u2019s newbuilding program was USD 44.3 million, including capitalized borrowing costs of USD 2.6 million ( 2023: USD 0.1 million ) , compared to USD 79.0 million as of December 31, 2023. The capitalization rate used for the borrowing cost in 2024 was 8.69%. The remaining commitments as at December 31, 2024 was USD 38.9 million (2023: USD 156.1 million) , of which USD 19.5 million was due in the first quarter of 2025 and USD 19.5 million in the first half of 2025.
In January 2024, the Group partnered with Unifeeder A/S (Unifeeder) in a joint investment for the construction of a 1,300 TEU container vessel, with a dual fuel engine, for a contract price of USD 39.0 million. The equity in the joint venture will be contributed 50% by the Group and the remaining half by Unifeeder. The newbuilding shall be scheduled for delivery in late 2026. As at December 31, 2024, the joint venture had paid installments of USD 7.8 million to the yard. The remaining commitments of USD 31.2 million are due with USD 3.9 million in 2025 and USD 27.3 million in 2026.
5.2\tDepreciation, Amortization and Impairment Charges
Accounting policy
Impairment of vessels
Indicators of impairment of vessels and other property, plant and equipments are assessed at each reporting date. The same applies when events or changes in circumstances that may entail that the vessels\u2019 carrying amount may not be recoverable. Such indicators may include depressed charter rates and lower second-hand vessel values. If impairment indicators are identified, the recoverable amount is estimated; and If the carrying amount exceeds its recoverable amount, an impairment loss is recognized; i.e. the asset is written down to the higher of the fair value less cost of sale and its value -in-use. Assets are grouped at the lowest level where there are separately identifiable independent cash flows, in which we have determined that each vessel is considered to be a separate cash-generating unit. The far value less cost of disposal is the amount obtainable from the sale of an asset in an arm\u2019s length transaction less the costs of sale and the value in use is the present value of estimated future cash flows expected from the continued use of an asset.
The following assumptions have been made when calculating the value in use for container vessels:
+Future cash flows are based on an assessment of expected development in charter rates and estimated level of administrative and operating expenses (including maintenance and repair) and dry-docking over the remaining useful life of the vessel plus any residual value.
+The net present value of future estimated cash flows of each cash-generating unit is based on a discount rate according to a pre-tax weighted average cost of capital. The weighted average cost of capital (WACC) is calculated based on the expected long-term borrowing rate and risk-free USD SOFR rate plus an equity risk premium.
An impairment loss recognized in prior periods for an asset is reversed if there has been a change in the estimates used to determine the asset\u2019s recoverable amount since the last impairment loss was recognized.
Judgement and estimates
+The carrying amounts of our vessels are reviewed for potential impairment charges whenever events or changes in circumstances indicate that the carrying amount of a particular vessel may not accurately reflect the recoverable amount. Management continuously monitors both external and internal factors to determine if there are indicators that the vessels may be impaired or, in case of previously recognized impairment, that there are indicators that this may be reversed. The factors evaluated in the assessment include both external and internal sources of information. External sources include a significant decline in market value that is not the result of the passage of time, normal use of the assets, depressed charter rates or increase in market interest rates. Internal sources of information include, among others, evidence of obsolescence of, or physical damage to the vessels.
+As we obtain information from various industry and other sources, our estimates of charter-free market value of our vessels are inherently uncertain. In addition, vessel values are highly volatile; as such, our estimates may not be indicative of the current or future charter-free market value of our vessels or prices that we could achieve if we were to sell them.
Climate risk
+Management continuously monitors climate related risks when assessing indicators of impairment. Future climate change measures may affect the shipping industry regarding fuel regulation, port fees and the recycling values of the vessels. Potential future fuel taxes or carbon emission regulation such as EU\u2019s emission trading system (EU ETS) or development of new more climate friendly fuel may increase the future operating expenses or capex of the Group that may be only partly offset by higher time charter rates. Technological developments enabling more climate friendly container vessels may affect the ability to obtain new charters in the future, the potential useful life of the vessels and the recycle values of the vessels. These effects may result in indicators of impairment or impairment losses of our vessels due to lower recycling value from mandatory EU approved yards, or generating less cash-flow from not reaching regulatory targets.
Impairment testing and calculation of recoverable amount
As at December 31, 2024, management did not identify any events or changes in circumstances indicating that the carrying amounts of our owned vessels might not be recovered. As such, no further impairment test was performed.
As at December 31, 2023, management identified impairment indicators for our vessels, in which an impairment test was performed and resulted in the Group recognizing impairment losses of USD 79.4 million.
The following table summarises the contractual maturities of financial liabilities on an undiscounted basis as at December 31, 2024:
In USD thousands | < 1 year | 1\u20133 years | 4\u20135 years | > 5 years | Total |
Interest bearing loans and borrowings | 39,757 | 78,048 | 184,535 | 37,091 | 339,431 |
Interest payments | 25,267 | 39,863 | 28,962 | 12,226 | 106,318 |
Derivative financial instruments -current | 101 | - | - | - | 101 |
Trade and other payables | 12,632 | - | - | - | 12,632 |
Related party payable | 72 | - | - | - | 72 |
Other liabilities\u00b9 | 27,523 | - | - | - | 27,523 |
Total | 105,352 | 117,911 | 213,497 | 49,317 | 486,077 |
1 (excluded non-financial liabilities such as deferred revenue, social security taxes, income tax payable etc)
The following table summarises the contractual maturities of financial liabilities on an undiscounted basis as at December 31, 2023:
In USD thousands | < 1 year | 1\u20133 years | 4\u20135 years | > 5 years | Total |
Interest-bearing debt | 34,936 | 24,761 | 69,919 | - | 129,616 |
Interest payments | 9,277 | 13,421 | 6,985 | - | 29,683 |
Trade and other payables | 20,397 | - | - | - | 20,397 |
Related part payables | 1,062 | - | - | - | 1,062 |
Other liabilities\u200c1 | 16,011 | - | - | - | 16,011 |
Total | 81,683 | 38,182 | 76,904 | - | 196,769 |
1 (excluded non-financial liabilities such as deferred revenue, social security taxes, income tax payable etc)
", "dimensions": { "concept": "ifrs-full:DisclosureOfExpensesByNatureExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__38-1": { "value": "2.3\tVessel Voyage Expenditures
Accounting policy
Voyage expenses are expensed as incurred and primarily consist of port charges, bunker costs (bunker costs are normally covered by the Group\u2019s charterer, except in certain cases such as vessel re-positioning, or under repair and maintenance, or when the vessels have been idle), address commissions, brokerage commissions and emission cost.
in USD thousands | 2024 | 2023 |
Bunker consumption | (9,967) | (7,715) |
Other voyage expenses | (3,132) | (2,183) |
Emission cost | (6,096) | - |
Total vessel voyage expenditures | (19,195) | (9,898) |
Commission | (14,433) | (20,000) |
2.4\tVessel Operating Expenditures
Accounting policy
Vessel operating expenses are expensed as incurred and include crew wages and related costs, the cost of insurance, expenses for repairs and maintenance. Operating expenses are related to the cost of spares and consumable stores, tonnage taxes and other miscellaneous expenses. Vessel operating expenditures which are partially compensated by income from reimbursements from the charterer and are being recognized as other revenues.
in USD thousands | 2024 | 2023 |
Crew | (72,686) | (74,769) |
Lube oil | (7,609) | (9,189) |
Maintenance and repair | (56,721) | (48,670) |
Insurances | (13,761) | (15,983) |
Operating expenditures | (5,068) | (4,780) |
Total Vessel operation expenditures | (155,844) | (153,390) |
2.5\tOther Operating Expenses
Accounting policy
Other operating expenses including administrative expenses are expensed as incurred and include, audit fees, bookkeeping fees, legal fees, board remuneration, service cost, executive officers compensation, directors & officers insurance, share option expense and stock exchange fees.
Other administrative expenses include remuneration to the Board of Directors and executive management, and fees paid for corporate management services from MPC Maritime Investments GmbH and MPC M\u00fcnchmeyer Petersen Capital AG which are part of the Group\u2019s related parties. Further information on transactions between related parties can be found in Note 8.2Related party transactions. The average number of full time employees employed by the Group in 2024 was 29 people (2023: 33). The Group has defined contributions plan for all employees in line with established market practices and regulations in Norway, Germany and Netherlands.
in USD thousands | 2024 | 2023 |
Legal and advisory services | (3,192) | (2,869) |
Audit and accounting services | (756) | (1,045) |
Salary and employee expenses | (8,270) | (5,989) |
Other administrative expenses | (5,515) | (4,901) |
Total administrative expenses | (17,732) | (14,805) |
The following table details the administrative expenses incurred in relation to 2024 and 2023 audit and related services:
in USD thousands | 2024 | 2023 |
Audit fee | (703) | (670) |
Attestation services | (12) | (6) |
Total auditor services | (714) | (676) |
2.7\tFinancial Items
Accounting policy
Financial income consists of interest income, currency gain. Interest income are recognised as it accrues using effective rate.
Financial cost consist of interest expenses, currency losses, and other financial expenses. Interest expenses are recognized as they accrue using effective rate. In addition, there are interest expenses on leasing liabilities.
in USD thousands | 2024 | 2023 |
Interest income | 4,291 | 2,819 |
Other finance income | 5,131 | 5,022 |
Total finance income | 9,422 | 7,841 |
Interest expenses | (16,365) | (14,648) |
Bank fees on early repayment of debt | (685) | (904) |
Other finance cost | (3,586) | (2,821) |
Total finance cost | (20,636) | (18,373) |
4.2\tDeferred Revenues and Other Liabilities
Accounting policy
Provisions are recognized when the Group has a present obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to any provision is recognized through profit and loss net of any reimbursement.
Deferred revenue constitutes mainly contract liabilities which represent advance payments and billings in excess of revenue recognized.
The following table shows the components of other liabilities as at period end.
in USD thousands | December 31, 2024 | December 31, 2023 |
Accrued expenses | 13,849 | 13,337 |
Accrued salaries | 3,959 | 1,989 |
Acquired TC contracts | - | 1,011 |
Accrued emission expenses | 5,875 | - |
Other short-term liabilities | 4,043 | 685 |
Total Other liabilities | 27,726 | 17,022 |
Deferred revenues | 29,706 | 35,230 |
5.1\tVessels and Newbuildings
Accounting policy
Vessels and other property, plant and equipments
Vessels and other property, plant and equipments are stated at historical cost, less subsequent depreciation and impairment. For vessels purchased, these costs include capitalizable expenditures that are directly attributable to the acquisition of the vessels. Upon acquisition, each component of the vessels, with a cost significant to the total acquisition costs, such as dry-docking component, existing charter contract, is separately identified and depreciated over that component\u2019s useful life on a straight-line basis.
The scrubber installations are recognized in the carrying amount of the vessels, and depreciated over the remaining useful life of the vessels.
Depreciation is calculated on a straight-line basis over the useful life of the assets, taking residual values into consideration, and adjusted for impairment charges, if any. Impairment considerations are described in detail in the accounting policy disclosed in Note 5.2Depreciation, Amortisation and Impairment charges.
Ordinary repairs and maintenance expenses are charged to the income statement as incurred. Costs related to dry-docking or other major overhauls are recognized in the carrying amount of the vessels. The recognition is made when the dry-docking has been performed and is depreciated based on estimated time to the next class renewal, i.e.\u00a05\u00a0years. The remaining costs that do not meet the recognition criteria are expensed as repairs and maintenance.
Vessels held for sale
Vessels are classified as \u201cVessels held for sale\u201d when all of the following criteria are met: management has committed to a plan to sell the vessel; the vessel is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of vessels; an active program to locate a buyer and other actions required to complete the plan to sell the vessel have been initiated; the sale of the vessel is probable and transfer of the vessel is expected to qualify for recognition as a completed sale within one year; the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Vessels classified as
held for sale are measured at the lower of their carrying amount or fair value less cost to sell. These vessels are not depreciated once they meet the criteria to be held for sale.
Newbuildings
Instalments on newbuilding contracts are capitalized as \u201cNewbuildings\u201d when they are incurred. Upon delivery, newbuildings are reclassified to vessels and are subject to depreciation. The acquisition cost includes direct investments, cost incurred during the construction period and borrowing cost. Borrowing costs are capitalized during the construction period and based on accumulated expenditures for the applicable project at the Group\u2019s current weighted average rate of borrowing.
Judgement and estimates
+Vessels useful lives: Management estimates the average useful life of our vessels to be 25 years. The actual life of a vessel may be different, and the useful lives of the vessels are reviewed at fiscal year-end. New regulations, market deterioration or other future events could reduce the economic lives assigned to our vessels and result in higher depreciation expense and impairment losses in future periods (climate related risks further disclosed in Note 5.2Depreciation, Amortisation and Impairment charges). Any change in the estimated useful lives and/or residual values impact the deprecation of our vessels prospectively.
As at December 31, 2024, Management did not identify any indicators or circumstances which resulted in requiring changes to our vessel useful lives.
in USD thousands | Vessels | Newbuildings, additions | Total Vessels and Newbuildings | Vessels held-for-sale | Total |
Cost: | |||||
January 1, 2024 | 1,028,642 | 78,980 | 1,107,622 | 48,618 | 1,156,240 |
Acquisitions of vessels | 227,296 | - | 227,296 | - | 227,296 |
Capitalized dry-docking, progress payments, expenditures | 56,227 | 113,553 | 169,780 | - | 169,780 |
Disposal of vessels and other property, plant and equipments | (68,943) | - | (68,943) | (48,618) | (117,561) |
Transfers of vessels | 148,189 | (148,189) | - | - | - |
December 31, 2024 | 1,391,411 | 44,344 | 1,435,755 | - | 1,435,755 |
Accumulated depreciation and impairment: | |||||
January 1, 2024 | (337,351) | - | (337,351) | (23,453) | (360,804) |
Depreciation for the period | (70,946) | - | (70,946) | - | (70,946) |
Disposals of vessels and other other property, plant and equipments | 20,347 | - | 20,347 | 23,453 | 43,800 |
December 31, 2024 | (387,950) | - | (387,950) | - | (387,950) |
Net book value: | |||||
December 31, 2024 | 1,003,460 | 44,344 | 1,047,804 | - | 1,047,804 |
in USD thousands | Vessels | Newbuildings, additions | |||
Total Vessels and Newbuildings | Vessels held-for-sale | Total | |||
Cost: | |||||
January 1, 2023 | 976,170 | 32,770 | 1,008,940 | - | 1,008,940 |
Acquisitions of vessels | 169,376 | - | 169,376 | - | 169,376 |
Capitalized dry-docking, progress payments, expenditures | 48,254 | 46,210 | 94,464 | - | 94,464 |
Disposal of vessels and other property, plant and equipments | (116,540) | - | (116,540) | - | (116,540) |
Transfers to Vessel held for sale | (48,618) | - | (48,618) | 48,618 | - |
December 31, 2023 | 1,028,642 | 78,980 | 1,107,622 | 48,618 | 1,156,240 |
Accumulated depreciation and impairment: | |||||
January 1, 2023 | (230,297) | - | (230,297) | - | (230,297) |
Depreciation for the period | (102,504) | - | (102,504) | - | (102,504) |
Impairments | (79,378) | - | (79,378) | - | (79,378) |
Disposals of vessels and other property, plant and equipments | 51,375 | - | 51,375 | - | 51,375 |
Transfers to Vessels held for sale | 23,453 | - | 23,453 | (23,453) | - |
December 31, 2023 | (337,351) | - | (337,351) | (23,453) | (360,804) |
Net book value: | |||||
December 31, 2023 | 691,291 | 78,980 | 770,271 | 25,165 | 795,436 |
Fleet changes | 2024 | 2023 |
Number of container vessels at the start of the period\u200c1 | 59 | 58 |
Aquisition of vessels\u200c2 | 6 | 7 |
Newbuildings deliveries\u200c3 | 2 | - |
Disposal of vessels\u200c4 | (5) | (6) |
Vessels held for sale\u200c5 | (3) | - |
Number of container vessels at the end of the period\u200c1 | 59 | 59 |
1 Number of vessels does not include vessels owned by joint ventures
2 In July 2024, the Group took delivery of the two 3,500 TEU, 2009-built vessels, AS Nara and AS Nuria for USD 24.9 million and USD 22.4 million respectively. Consequent to the order of transaction, where the Group purchased the two shelf companies owned by our related party, MPC M\u00fcnchmeyer Petersen Capital AG, which also entered the MoA with the seller of the vessels, the transaction was classified as related party transaction.
In October and November 2024, the Group took delivery of four 3,800 TEU wide beam eco-design vessels, AS Nele, AS Nanne, AS Natalie and AS Ninette for a total price of USD 180.0 million. All vessels were acquired with existing charter agreements until the second quarter of 2025.
In March 2023, the Group took delivery of a 2010-built scrubber fitted vessel AS Nina and 2007-built scrubber fitted vessel, AS Caludia for USD 33.7 million. Both vessels were acquired with existing charters with renewals in the third quarter of 2023 and the first quarter of 2024.
In June and July 2023, the Group took delivery of five vessels, AS Anne, AS Silje, AS Simone, AS Stine and AS Sabine. AS Anne included an existing 36-month time charter agreement and was subsequently terminated in July 2023 upon delivery. The group received a cash compensation of USD 22.0 million for the early termination. As such, the Group depreciated the time charter component of the vessel of USD 22.0 million to reflect the cost of the contract.
3 In May and July 2024, the Group took delivery of two 5,550 TEU eco-design vessels, Mackenzie and Colorado from its newbuilding programs respectively.
4 Refer to Note 2.6Gain (loss) from sale of vessels and other property, plant and equipmentsfor further information
5 As at December 31, 2023 the Group had three vessels (AS Petra, AS Paulina and AS Pauline) classified as Vessel held for sale. The sale and delivery of the three vessels was completed in 2024.
As at December 31, 2024, the group have committed to retrofit eight vessels (2023: 13) for USD 2.4 million (2023:\u00a0USD 15.6 million), which is due in 2025.
Newbuildings:
As at December 31, 2024 the Group\u2019s newbuilding program consisted of two 1,300 TEU container vessels with a contract price of USD 39.0 million per vessel. The first newbuilding was delivered in the first quarter of 2025 while the second newbuilding is expected to be delivered in the second quarter of 2025. As at December 31, 2024, total additions to Group\u2019s newbuilding program was USD 44.3 million, including capitalized borrowing costs of USD 2.6 million ( 2023: USD 0.1 million ) , compared to USD 79.0 million as of December 31, 2023. The capitalization rate used for the borrowing cost in 2024 was 8.69%. The remaining commitments as at December 31, 2024 was USD 38.9 million (2023: USD 156.1 million) , of which USD 19.5 million was due in the first quarter of 2025 and USD 19.5 million in the first half of 2025.
In January 2024, the Group partnered with Unifeeder A/S (Unifeeder) in a joint investment for the construction of a 1,300 TEU container vessel, with a dual fuel engine, for a contract price of USD 39.0 million. The equity in the joint venture will be contributed 50% by the Group and the remaining half by Unifeeder. The newbuilding shall be scheduled for delivery in late 2026. As at December 31, 2024, the joint venture had paid installments of USD 7.8 million to the yard. The remaining commitments of USD 31.2 million are due with USD 3.9 million in 2025 and USD 27.3 million in 2026.
5.2\tDepreciation, Amortization and Impairment Charges
Accounting policy
Impairment of vessels
Indicators of impairment of vessels and other property, plant and equipments are assessed at each reporting date. The same applies when events or changes in circumstances that may entail that the vessels\u2019 carrying amount may not be recoverable. Such indicators may include depressed charter rates and lower second-hand vessel values. If impairment indicators are identified, the recoverable amount is estimated; and If the carrying amount exceeds its recoverable amount, an impairment loss is recognized; i.e. the asset is written down to the higher of the fair value less cost of sale and its value -in-use. Assets are grouped at the lowest level where there are separately identifiable independent cash flows, in which we have determined that each vessel is considered to be a separate cash-generating unit. The far value less cost of disposal is the amount obtainable from the sale of an asset in an arm\u2019s length transaction less the costs of sale and the value in use is the present value of estimated future cash flows expected from the continued use of an asset.
The following assumptions have been made when calculating the value in use for container vessels:
+Future cash flows are based on an assessment of expected development in charter rates and estimated level of administrative and operating expenses (including maintenance and repair) and dry-docking over the remaining useful life of the vessel plus any residual value.
+The net present value of future estimated cash flows of each cash-generating unit is based on a discount rate according to a pre-tax weighted average cost of capital. The weighted average cost of capital (WACC) is calculated based on the expected long-term borrowing rate and risk-free USD SOFR rate plus an equity risk premium.
An impairment loss recognized in prior periods for an asset is reversed if there has been a change in the estimates used to determine the asset\u2019s recoverable amount since the last impairment loss was recognized.
Judgement and estimates
+The carrying amounts of our vessels are reviewed for potential impairment charges whenever events or changes in circumstances indicate that the carrying amount of a particular vessel may not accurately reflect the recoverable amount. Management continuously monitors both external and internal factors to determine if there are indicators that the vessels may be impaired or, in case of previously recognized impairment, that there are indicators that this may be reversed. The factors evaluated in the assessment include both external and internal sources of information. External sources include a significant decline in market value that is not the result of the passage of time, normal use of the assets, depressed charter rates or increase in market interest rates. Internal sources of information include, among others, evidence of obsolescence of, or physical damage to the vessels.
+As we obtain information from various industry and other sources, our estimates of charter-free market value of our vessels are inherently uncertain. In addition, vessel values are highly volatile; as such, our estimates may not be indicative of the current or future charter-free market value of our vessels or prices that we could achieve if we were to sell them.
Climate risk
+Management continuously monitors climate related risks when assessing indicators of impairment. Future climate change measures may affect the shipping industry regarding fuel regulation, port fees and the recycling values of the vessels. Potential future fuel taxes or carbon emission regulation such as EU\u2019s emission trading system (EU ETS) or development of new more climate friendly fuel may increase the future operating expenses or capex of the Group that may be only partly offset by higher time charter rates. Technological developments enabling more climate friendly container vessels may affect the ability to obtain new charters in the future, the potential useful life of the vessels and the recycle values of the vessels. These effects may result in indicators of impairment or impairment losses of our vessels due to lower recycling value from mandatory EU approved yards, or generating less cash-flow from not reaching regulatory targets.
Impairment testing and calculation of recoverable amount
As at December 31, 2024, management did not identify any events or changes in circumstances indicating that the carrying amounts of our owned vessels might not be recovered. As such, no further impairment test was performed.
As at December 31, 2023, management identified impairment indicators for our vessels, in which an impairment test was performed and resulted in the Group recognizing impairment losses of USD 79.4 million.
The following table summarises the contractual maturities of financial liabilities on an undiscounted basis as at December 31, 2024:
In USD thousands | < 1 year | 1\u20133 years | 4\u20135 years | > 5 years | Total |
Interest bearing loans and borrowings | 39,757 | 78,048 | 184,535 | 37,091 | 339,431 |
Interest payments | 25,267 | 39,863 | 28,962 | 12,226 | 106,318 |
Derivative financial instruments -current | 101 | - | - | - | 101 |
Trade and other payables | 12,632 | - | - | - | 12,632 |
Related party payable | 72 | - | - | - | 72 |
Other liabilities\u00b9 | 27,523 | - | - | - | 27,523 |
Total | 105,352 | 117,911 | 213,497 | 49,317 | 486,077 |
1 (excluded non-financial liabilities such as deferred revenue, social security taxes, income tax payable etc)
The following table summarises the contractual maturities of financial liabilities on an undiscounted basis as at December 31, 2023:
In USD thousands | < 1 year | 1\u20133 years | 4\u20135 years | > 5 years | Total |
Interest-bearing debt | 34,936 | 24,761 | 69,919 | - | 129,616 |
Interest payments | 9,277 | 13,421 | 6,985 | - | 29,683 |
Trade and other payables | 20,397 | - | - | - | 20,397 |
Related part payables | 1,062 | - | - | - | 1,062 |
Other liabilities\u200c1 | 16,011 | - | - | - | 16,011 |
Total | 81,683 | 38,182 | 76,904 | - | 196,769 |
1 (excluded non-financial liabilities such as deferred revenue, social security taxes, income tax payable etc)
", "dimensions": { "concept": "ifrs-full:DisclosureOfExpensesExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__39-1": { "value": "Accounting policy
Voyage expenses are expensed as incurred and primarily consist of port charges, bunker costs (bunker costs are normally covered by the Group\u2019s charterer, except in certain cases such as vessel re-positioning, or under repair and maintenance, or when the vessels have been idle), address commissions, brokerage commissions and emission cost.
Accounting policy
Vessel operating expenses are expensed as incurred and include crew wages and related costs, the cost of insurance, expenses for repairs and maintenance. Operating expenses are related to the cost of spares and consumable stores, tonnage taxes and other miscellaneous expenses. Vessel operating expenditures which are partially compensated by income from reimbursements from the charterer and are being recognized as other revenues.
Accounting policy
Other operating expenses including administrative expenses are expensed as incurred and include, audit fees, bookkeeping fees, legal fees, board remuneration, service cost, executive officers compensation, directors & officers insurance, share option expense and stock exchange fees.
Accounting policy
Financial income consists of interest income, currency gain. Interest income are recognised as it accrues using effective rate.
Financial cost consist of interest expenses, currency losses, and other financial expenses. Interest expenses are recognized as they accrue using effective rate. In addition, there are interest expenses on leasing liabilities.
Accounting policy
Vessels and other property, plant and equipments
Vessels and other property, plant and equipments are stated at historical cost, less subsequent depreciation and impairment. For vessels purchased, these costs include capitalizable expenditures that are directly attributable to the acquisition of the vessels. Upon acquisition, each component of the vessels, with a cost significant to the total acquisition costs, such as dry-docking component, existing charter contract, is separately identified and depreciated over that component\u2019s useful life on a straight-line basis.
The scrubber installations are recognized in the carrying amount of the vessels, and depreciated over the remaining useful life of the vessels.
Depreciation is calculated on a straight-line basis over the useful life of the assets, taking residual values into consideration, and adjusted for impairment charges, if any. Impairment considerations are described in detail in the accounting policy disclosed in Note 5.2Depreciation, Amortisation and Impairment charges.
Ordinary repairs and maintenance expenses are charged to the income statement as incurred. Costs related to dry-docking or other major overhauls are recognized in the carrying amount of the vessels. The recognition is made when the dry-docking has been performed and is depreciated based on estimated time to the next class renewal, i.e.\u00a05\u00a0years. The remaining costs that do not meet the recognition criteria are expensed as repairs and maintenance.
Vessels held for sale
Vessels are classified as \u201cVessels held for sale\u201d when all of the following criteria are met: management has committed to a plan to sell the vessel; the vessel is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of vessels; an active program to locate a buyer and other actions required to complete the plan to sell the vessel have been initiated; the sale of the vessel is probable and transfer of the vessel is expected to qualify for recognition as a completed sale within one year; the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Vessels classified as
held for sale are measured at the lower of their carrying amount or fair value less cost to sell. These vessels are not depreciated once they meet the criteria to be held for sale.
Newbuildings
Instalments on newbuilding contracts are capitalized as \u201cNewbuildings\u201d when they are incurred. Upon delivery, newbuildings are reclassified to vessels and are subject to depreciation. The acquisition cost includes direct investments, cost incurred during the construction period and borrowing cost. Borrowing costs are capitalized during the construction period and based on accumulated expenditures for the applicable project at the Group\u2019s current weighted average rate of borrowing.
Accounting policy
Impairment of vessels
Indicators of impairment of vessels and other property, plant and equipments are assessed at each reporting date. The same applies when events or changes in circumstances that may entail that the vessels\u2019 carrying amount may not be recoverable. Such indicators may include depressed charter rates and lower second-hand vessel values. If impairment indicators are identified, the recoverable amount is estimated; and If the carrying amount exceeds its recoverable amount, an impairment loss is recognized; i.e. the asset is written down to the higher of the fair value less cost of sale and its value -in-use. Assets are grouped at the lowest level where there are separately identifiable independent cash flows, in which we have determined that each vessel is considered to be a separate cash-generating unit. The far value less cost of disposal is the amount obtainable from the sale of an asset in an arm\u2019s length transaction less the costs of sale and the value in use is the present value of estimated future cash flows expected from the continued use of an asset.
The following assumptions have been made when calculating the value in use for container vessels:
+Future cash flows are based on an assessment of expected development in charter rates and estimated level of administrative and operating expenses (including maintenance and repair) and dry-docking over the remaining useful life of the vessel plus any residual value.
+The net present value of future estimated cash flows of each cash-generating unit is based on a discount rate according to a pre-tax weighted average cost of capital. The weighted average cost of capital (WACC) is calculated based on the expected long-term borrowing rate and risk-free USD SOFR rate plus an equity risk premium.
An impairment loss recognized in prior periods for an asset is reversed if there has been a change in the estimates used to determine the asset\u2019s recoverable amount since the last impairment loss was recognized.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForExpensesExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__44-1": { "value": "2.5\tOther Operating Expenses
Accounting policy
Other operating expenses including administrative expenses are expensed as incurred and include, audit fees, bookkeeping fees, legal fees, board remuneration, service cost, executive officers compensation, directors & officers insurance, share option expense and stock exchange fees.
Other administrative expenses include remuneration to the Board of Directors and executive management, and fees paid for corporate management services from MPC Maritime Investments GmbH and MPC M\u00fcnchmeyer Petersen Capital AG which are part of the Group\u2019s related parties. Further information on transactions between related parties can be found in Note 8.2Related party transactions. The average number of full time employees employed by the Group in 2024 was 29 people (2023: 33). The Group has defined contributions plan for all employees in line with established market practices and regulations in Norway, Germany and Netherlands.
in USD thousands | 2024 | 2023 |
Legal and advisory services | (3,192) | (2,869) |
Audit and accounting services | (756) | (1,045) |
Salary and employee expenses | (8,270) | (5,989) |
Other administrative expenses | (5,515) | (4,901) |
Total administrative expenses | (17,732) | (14,805) |
The following table details the administrative expenses incurred in relation to 2024 and 2023 audit and related services:
in USD thousands | 2024 | 2023 |
Audit fee | (703) | (670) |
Attestation services | (12) | (6) |
Total auditor services | (714) | (676) |
The following tables shows the summarized financial information of the Group\u2019s investment in Bluewater and Palmaille 75:
IN USD THOUSANDS | DECEMBER 31, 2024 | DECEMBER 31, 2023 |
Non-current assets | 7,833 | - |
Cash and cash equivalents | 185 | 2,148 |
Other current assets | 3 | 1,450 |
Current liabilities | - | 192 |
Equity | 8,021 | 3,405 |
Group\u2019s carrying amount of the investment | 4,010 | 1,703 |
IN USD THOUSANDS | 2024\u200c1 | 2023 |
Operating revenues | 8 | 14,752 |
Operating costs | (850) | (8,416) |
Other income (expense) | - | 278 |
Gain (loss) from sale of vessels | - | 39,535 |
Depreciation | - | (959) |
Net financial income (expense) | 73 | 112 |
Income tax | (21) | (28) |
Profit after tax for the period | (790) | 45,275 |
Total comprehensive income for the period | (790) | 45,275 |
Group\u2019s share of profit for the period | (395) | 22,637 |
Dividends received | - | 41,000 |
1 Bluewater is included for the first nine months of 2024.
Investment in associate
In 2022, the Group entered into an agreement with INERATEC for the supply of synthetic Marine Diesel Oil (MDO) made from biogenic CO2and renewable hydrogen, with delivery set to start in 2024. The Group recorded its initial investment at a cost of USD 0.8 million to acquire 24.5% ownership interest in Siemssen KG which holds an investment in INERATEC. In January 2023, the Group further increased its investment of USD 0.4 million to maintain its ownership position. As at December 31, 2023, the Group\u2019s investment in Siemssen KG was USD 1.2 million. The investment is accounted under the equity method.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExpenseExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__45": { "value": "2.5\tOther Operating Expenses
Accounting policy
Other operating expenses including administrative expenses are expensed as incurred and include, audit fees, bookkeeping fees, legal fees, board remuneration, service cost, executive officers compensation, directors & officers insurance, share option expense and stock exchange fees.
Other administrative expenses include remuneration to the Board of Directors and executive management, and fees paid for corporate management services from MPC Maritime Investments GmbH and MPC M\u00fcnchmeyer Petersen Capital AG which are part of the Group\u2019s related parties. Further information on transactions between related parties can be found in Note 8.2Related party transactions. The average number of full time employees employed by the Group in 2024 was 29 people (2023: 33). The Group has defined contributions plan for all employees in line with established market practices and regulations in Norway, Germany and Netherlands.
in USD thousands | 2024 | 2023 |
Legal and advisory services | (3,192) | (2,869) |
Audit and accounting services | (756) | (1,045) |
Salary and employee expenses | (8,270) | (5,989) |
Other administrative expenses | (5,515) | (4,901) |
Total administrative expenses | (17,732) | (14,805) |
The following table details the administrative expenses incurred in relation to 2024 and 2023 audit and related services:
in USD thousands | 2024 | 2023 |
Audit fee | (703) | (670) |
Attestation services | (12) | (6) |
Total auditor services | (714) | (676) |
2.5\tOther Operating Expenses
Accounting policy
Other operating expenses including administrative expenses are expensed as incurred and include, audit fees, bookkeeping fees, legal fees, board remuneration, service cost, executive officers compensation, directors & officers insurance, share option expense and stock exchange fees.
Other administrative expenses include remuneration to the Board of Directors and executive management, and fees paid for corporate management services from MPC Maritime Investments GmbH and MPC M\u00fcnchmeyer Petersen Capital AG which are part of the Group\u2019s related parties. Further information on transactions between related parties can be found in Note 8.2Related party transactions. The average number of full time employees employed by the Group in 2024 was 29 people (2023: 33). The Group has defined contributions plan for all employees in line with established market practices and regulations in Norway, Germany and Netherlands.
in USD thousands | 2024 | 2023 |
Legal and advisory services | (3,192) | (2,869) |
Audit and accounting services | (756) | (1,045) |
Salary and employee expenses | (8,270) | (5,989) |
Other administrative expenses | (5,515) | (4,901) |
Total administrative expenses | (17,732) | (14,805) |
The following table details the administrative expenses incurred in relation to 2024 and 2023 audit and related services:
in USD thousands | 2024 | 2023 |
Audit fee | (703) | (670) |
Attestation services | (12) | (6) |
Total auditor services | (714) | (676) |
8.2\tRelated Party and Key Management Compensation
The Group has entered into a corporate service agreement to purchase administrative and corporate services from MPC M\u00fcnchmeyer Petersen Capital AG and its subsidiaries.
The Company is responsible for the technical ship management of the vessels owned by the Group. Performance of technical ship management services is sub-contracted to Wilhelmsen Ahrenkiel Ship Management GmbH & Co. KG, Wilhelmsen Ahrenkiel Ship Management B.V. and ZEABORN Ship Management Gmbh & Cie. KG, joint ventures of MPC M\u00fcnchmeyer Petersen Capital AG, for 52 of the 59 vessels owned by the Group at December 31, 2024.
Commercial ship management of the vessels owned by the Group and associated joint ventures is contracted to Harper Petersen B.V., which are joint ventures of MPC M\u00fcnchmeyer Petersen Capital AG.
The following table provides the total amount of service transactions that have been entered into with related parties for the relevant period:
in USD thousands | 2024 | 2023 |
Wilhelmsen Ahrenkiel Ship Man. GmbH & Co. KG / B.V. | 7,796 | 8,167 |
Harper Petersen & Co. GmbH | 5,701 | 6,624 |
MPC M\u00fcnchmeyer Petersen Capital AG | 520 | 924 |
ZEABORN Ship Management GmbH & Cie. KG | 148 | - |
Total | 14,165 | 15,715 |
Compensation to Key Management
The key management personnel of the Company include the Board of Directors and the leading personnel. For details on remuneration to leading personnel and board of directors, see remuneration report published on our website.
Directors\u2019 and executive management\u2019s compensation and shareholding\u200c
Shares at December 31, 2024 | 2024 remuneration | |
Ulf Holl\u00e4nder (Chairman)\u200c | - | USD 90,000 |
Dr. Axel Schroeder\u200c1 | - | USD 47,397 |
Petros Panagiotidis (from 12.12.2024) | - | USD 1,781 |
Pia Meling | - | USD 50,000 |
Peter Fredriksen | 200,000 | USD 50,000 |
Ellen Hanetho | 60,000 | USD 55,000 |
Constantin Baack (CEO) \u00b2 | 66,000 | USD 833,709 |
Moritz Fuhrmann (CO-CEO/CFO) \u00b2 | - | USD 808,184 |
Christian Rychly (COO) \u00b2 | - | USD 470,691 |
1 In December 2024, Dr. Axel Schroeder\u200c resigned from his position as a member of the Board of Directors. Simultaneously, Mr. Petros Panagiotidis was appointed to the Company\u2019s Board of Directors. The change of the Board of Directors comes as a result of MPC M\u00fcnchmeyer Petersen & Co. GmbH, an\u00a0indirect shareholder of the Company, selling 74.09% of its stake in MPC Capital AG to Thalvora Holdings GmbH.
2 Total remuneration includes pension and other retirement benefits to our key management personnel.
Shares at December 31, 2023 | 2023 remuneration | |
Ulf Holl\u00e4nder (Chairman)\u200c2 | 165,637 | USD 90,000 |
Dr. Axel Schroeder\u200c3 | 2,471,110 | USD 50,000 |
Pia Meling | - | USD 50,000 |
Peter Fredriksen | 200,000 | USD 50,000 |
Ellen Hanetho | 60,000 | USD 50,000 |
Constantin Baack (CEO) | 66,000 | USD 1,239,446 |
Moritz Fuhrmann (CFO) | - | USD 494,587 |
Dr. Benjamin Pfeifer (former CFO) | - | USD 81,235 |
1 Several of the board members hold further share through indirect shareholdings in the Company. Please refer to Note 7.5Equityfor further details
2 On March 15, 2024, an agreement was reached that all shares held by Ulf Holl\u00e4nder were sold to MPC CSI GmbH.
3 On March 15, 2024, an agreement was reached that all shares held by Dr. Axel Schroeder were sold to MPC CSI GmbH.
In April, 2024, the Company\u2019s general meeting resolved that each member of the Board of Directors shall receive USD 50,000 (USD 90,000 for the Chairman of the Board) in remuneration for the financial year 2024. The\u00a0Board fees resolved for the year are paid out in the subsequent year. The total remuneration to the Board of Directors and executive management in 2024 was USD 2.1 million (2023: USD 2.1 million).
In October 2024, the Board of the Company resolved to introduce an employees\u2019 option program for its key employees of the Company and its subsidiaries. The program allows each option holder the right to acquire one ordinary share of the Company and the purchase price shall be equal to par value of a share at the time of exercise, which is on July 1, 2028. Correspondingly, the option shall be vested in full and exercisable in four years, i.e. July 2028. Under the share option arrangement, in the event of dividends or other distributions in cash or in kind are made to shareholders of the Company from July 1, 2024, such distributions shall be made to the option holder as if the option shares were delivered to the holder prior to the record date for the distribution. If the options were not vested at the time of distribution, then the distribution shall be withheld by the Company until vesting and paid together with the option shares.The option program is subject to the 2024\u2019s Annual General Meeting which is to be held in May 2025. If the program is not approved, no options shall be vested but instead each option holders shall be compensated as bonus payment in cash. The fair value of the options is estimated by using the Black Scholes option price model . In 2024, the share option program gave an income statement effect of USD 286 thousands related to the expense due to the share award arrangement.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__49": { "value": "2.5\tOther Operating Expenses
Accounting policy
Other operating expenses including administrative expenses are expensed as incurred and include, audit fees, bookkeeping fees, legal fees, board remuneration, service cost, executive officers compensation, directors & officers insurance, share option expense and stock exchange fees.
Other administrative expenses include remuneration to the Board of Directors and executive management, and fees paid for corporate management services from MPC Maritime Investments GmbH and MPC M\u00fcnchmeyer Petersen Capital AG which are part of the Group\u2019s related parties. Further information on transactions between related parties can be found in Note 8.2Related party transactions. The average number of full time employees employed by the Group in 2024 was 29 people (2023: 33). The Group has defined contributions plan for all employees in line with established market practices and regulations in Norway, Germany and Netherlands.
in USD thousands | 2024 | 2023 |
Legal and advisory services | (3,192) | (2,869) |
Audit and accounting services | (756) | (1,045) |
Salary and employee expenses | (8,270) | (5,989) |
Other administrative expenses | (5,515) | (4,901) |
Total administrative expenses | (17,732) | (14,805) |
The following table details the administrative expenses incurred in relation to 2024 and 2023 audit and related services:
in USD thousands | 2024 | 2023 |
Audit fee | (703) | (670) |
Attestation services | (12) | (6) |
Total auditor services | (714) | (676) |
The following table details the administrative expenses incurred in relation to 2024 and 2023 audit and related services:
in USD thousands | 2024 | 2023 |
Audit fee | (703) | (670) |
Attestation services | (12) | (6) |
Total auditor services | (714) | (676) |
2.6\tGain (loss) from Sale of Vessels and Other Property, Plant and Equipments
Accounting policy
Vessels and other property, plant and equipments are derecognized upon disposal or when no future economic benefits are expected from their use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the period the asset is derecognized.
IN USD THOUSANDS | 2024 | 2023 |
Gain(loss) from sale of vessels | 23,359 | (1,208) |
Gain(loss) from disposal of other property, plant and equipments | (2,214) | - |
Total Gain (loss) from sale of vessels and other property, plant and equipments | 21,145 | (1,208) |
In the first quarter of 2024, the Group delivered and completed the sale of its three previously held for sale vessels, AS Petra, AS Paulina and AS Pauline to an unrelated party. The Group recognized a loss on the sale of vessels of USD 0.2 million in the first quarter of 2024.
In April 2024, the Group sold its wholly-owned 2007-built AS Nadia and 2009-built sale and leaseback vessel, AS Ragna collectively to an unrelated party for USD 25.5 million. The Group recorded a gain on the sale of USD 6.4 million.
In July 2024, the Group completed the sale of its wholly-owned 2006-built AS Clarita to an unrelated party for USD 10.3 million. The Group recorded a gain of USD 2.0 million on the sale of vessel.
In August 2024, the Group agreed to sell its sale and leaseback vessel, 2008-built AS Fatima to an unrelated party for USD 11.8 million. The sale of AS Fatima was completed in September 2024. As a result, the Group recorded a gain on the sale of USD 4.2 million.
In December 2024, the Group completed the sale of 2005-built vessel, AS Paola to an unrelated party for USD 20.6 million. The Group recorded a gain of USD 11.0 million on the sale of vessel.
In December 2024, the Group entered into agreement to sell its wholly-owned 2005-built vessel, AS Fenja for USD 8.6 million to an unrelated party. The sale of the vessel was completed in January 2025.
In 2023, the Group sold and delivered six wholly-owned vessels (AS Rosalia, AS Romina, AS Flora, AS Roberta, AS Rafaela and AS Emma) for a total sales price of USD 58.0 million. The Group recorded USD 1.2 million as losses upon the delivery of the vessels. See also Note 5.2Depreciation, Amortization and Impairment Chargesfor information about impairment in 2023.
5.1\tVessels and Newbuildings
Accounting policy
Vessels and other property, plant and equipments
Vessels and other property, plant and equipments are stated at historical cost, less subsequent depreciation and impairment. For vessels purchased, these costs include capitalizable expenditures that are directly attributable to the acquisition of the vessels. Upon acquisition, each component of the vessels, with a cost significant to the total acquisition costs, such as dry-docking component, existing charter contract, is separately identified and depreciated over that component\u2019s useful life on a straight-line basis.
The scrubber installations are recognized in the carrying amount of the vessels, and depreciated over the remaining useful life of the vessels.
Depreciation is calculated on a straight-line basis over the useful life of the assets, taking residual values into consideration, and adjusted for impairment charges, if any. Impairment considerations are described in detail in the accounting policy disclosed in Note 5.2Depreciation, Amortisation and Impairment charges.
Ordinary repairs and maintenance expenses are charged to the income statement as incurred. Costs related to dry-docking or other major overhauls are recognized in the carrying amount of the vessels. The recognition is made when the dry-docking has been performed and is depreciated based on estimated time to the next class renewal, i.e.\u00a05\u00a0years. The remaining costs that do not meet the recognition criteria are expensed as repairs and maintenance.
Vessels held for sale
Vessels are classified as \u201cVessels held for sale\u201d when all of the following criteria are met: management has committed to a plan to sell the vessel; the vessel is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of vessels; an active program to locate a buyer and other actions required to complete the plan to sell the vessel have been initiated; the sale of the vessel is probable and transfer of the vessel is expected to qualify for recognition as a completed sale within one year; the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Vessels classified as
held for sale are measured at the lower of their carrying amount or fair value less cost to sell. These vessels are not depreciated once they meet the criteria to be held for sale.
Newbuildings
Instalments on newbuilding contracts are capitalized as \u201cNewbuildings\u201d when they are incurred. Upon delivery, newbuildings are reclassified to vessels and are subject to depreciation. The acquisition cost includes direct investments, cost incurred during the construction period and borrowing cost. Borrowing costs are capitalized during the construction period and based on accumulated expenditures for the applicable project at the Group\u2019s current weighted average rate of borrowing.
Judgement and estimates
+Vessels useful lives: Management estimates the average useful life of our vessels to be 25 years. The actual life of a vessel may be different, and the useful lives of the vessels are reviewed at fiscal year-end. New regulations, market deterioration or other future events could reduce the economic lives assigned to our vessels and result in higher depreciation expense and impairment losses in future periods (climate related risks further disclosed in Note 5.2Depreciation, Amortisation and Impairment charges). Any change in the estimated useful lives and/or residual values impact the deprecation of our vessels prospectively.
As at December 31, 2024, Management did not identify any indicators or circumstances which resulted in requiring changes to our vessel useful lives.
in USD thousands | Vessels | Newbuildings, additions | Total Vessels and Newbuildings | Vessels held-for-sale | Total |
Cost: | |||||
January 1, 2024 | 1,028,642 | 78,980 | 1,107,622 | 48,618 | 1,156,240 |
Acquisitions of vessels | 227,296 | - | 227,296 | - | 227,296 |
Capitalized dry-docking, progress payments, expenditures | 56,227 | 113,553 | 169,780 | - | 169,780 |
Disposal of vessels and other property, plant and equipments | (68,943) | - | (68,943) | (48,618) | (117,561) |
Transfers of vessels | 148,189 | (148,189) | - | - | - |
December 31, 2024 | 1,391,411 | 44,344 | 1,435,755 | - | 1,435,755 |
Accumulated depreciation and impairment: | |||||
January 1, 2024 | (337,351) | - | (337,351) | (23,453) | (360,804) |
Depreciation for the period | (70,946) | - | (70,946) | - | (70,946) |
Disposals of vessels and other other property, plant and equipments | 20,347 | - | 20,347 | 23,453 | 43,800 |
December 31, 2024 | (387,950) | - | (387,950) | - | (387,950) |
Net book value: | |||||
December 31, 2024 | 1,003,460 | 44,344 | 1,047,804 | - | 1,047,804 |
in USD thousands | Vessels | Newbuildings, additions | |||
Total Vessels and Newbuildings | Vessels held-for-sale | Total | |||
Cost: | |||||
January 1, 2023 | 976,170 | 32,770 | 1,008,940 | - | 1,008,940 |
Acquisitions of vessels | 169,376 | - | 169,376 | - | 169,376 |
Capitalized dry-docking, progress payments, expenditures | 48,254 | 46,210 | 94,464 | - | 94,464 |
Disposal of vessels and other property, plant and equipments | (116,540) | - | (116,540) | - | (116,540) |
Transfers to Vessel held for sale | (48,618) | - | (48,618) | 48,618 | - |
December 31, 2023 | 1,028,642 | 78,980 | 1,107,622 | 48,618 | 1,156,240 |
Accumulated depreciation and impairment: | |||||
January 1, 2023 | (230,297) | - | (230,297) | - | (230,297) |
Depreciation for the period | (102,504) | - | (102,504) | - | (102,504) |
Impairments | (79,378) | - | (79,378) | - | (79,378) |
Disposals of vessels and other property, plant and equipments | 51,375 | - | 51,375 | - | 51,375 |
Transfers to Vessels held for sale | 23,453 | - | 23,453 | (23,453) | - |
December 31, 2023 | (337,351) | - | (337,351) | (23,453) | (360,804) |
Net book value: | |||||
December 31, 2023 | 691,291 | 78,980 | 770,271 | 25,165 | 795,436 |
Fleet changes | 2024 | 2023 |
Number of container vessels at the start of the period\u200c1 | 59 | 58 |
Aquisition of vessels\u200c2 | 6 | 7 |
Newbuildings deliveries\u200c3 | 2 | - |
Disposal of vessels\u200c4 | (5) | (6) |
Vessels held for sale\u200c5 | (3) | - |
Number of container vessels at the end of the period\u200c1 | 59 | 59 |
1 Number of vessels does not include vessels owned by joint ventures
2 In July 2024, the Group took delivery of the two 3,500 TEU, 2009-built vessels, AS Nara and AS Nuria for USD 24.9 million and USD 22.4 million respectively. Consequent to the order of transaction, where the Group purchased the two shelf companies owned by our related party, MPC M\u00fcnchmeyer Petersen Capital AG, which also entered the MoA with the seller of the vessels, the transaction was classified as related party transaction.
In October and November 2024, the Group took delivery of four 3,800 TEU wide beam eco-design vessels, AS Nele, AS Nanne, AS Natalie and AS Ninette for a total price of USD 180.0 million. All vessels were acquired with existing charter agreements until the second quarter of 2025.
In March 2023, the Group took delivery of a 2010-built scrubber fitted vessel AS Nina and 2007-built scrubber fitted vessel, AS Caludia for USD 33.7 million. Both vessels were acquired with existing charters with renewals in the third quarter of 2023 and the first quarter of 2024.
In June and July 2023, the Group took delivery of five vessels, AS Anne, AS Silje, AS Simone, AS Stine and AS Sabine. AS Anne included an existing 36-month time charter agreement and was subsequently terminated in July 2023 upon delivery. The group received a cash compensation of USD 22.0 million for the early termination. As such, the Group depreciated the time charter component of the vessel of USD 22.0 million to reflect the cost of the contract.
3 In May and July 2024, the Group took delivery of two 5,550 TEU eco-design vessels, Mackenzie and Colorado from its newbuilding programs respectively.
4 Refer to Note 2.6Gain (loss) from sale of vessels and other property, plant and equipmentsfor further information
5 As at December 31, 2023 the Group had three vessels (AS Petra, AS Paulina and AS Pauline) classified as Vessel held for sale. The sale and delivery of the three vessels was completed in 2024.
As at December 31, 2024, the group have committed to retrofit eight vessels (2023: 13) for USD 2.4 million (2023:\u00a0USD 15.6 million), which is due in 2025.
Newbuildings:
As at December 31, 2024 the Group\u2019s newbuilding program consisted of two 1,300 TEU container vessels with a contract price of USD 39.0 million per vessel. The first newbuilding was delivered in the first quarter of 2025 while the second newbuilding is expected to be delivered in the second quarter of 2025. As at December 31, 2024, total additions to Group\u2019s newbuilding program was USD 44.3 million, including capitalized borrowing costs of USD 2.6 million ( 2023: USD 0.1 million ) , compared to USD 79.0 million as of December 31, 2023. The capitalization rate used for the borrowing cost in 2024 was 8.69%. The remaining commitments as at December 31, 2024 was USD 38.9 million (2023: USD 156.1 million) , of which USD 19.5 million was due in the first quarter of 2025 and USD 19.5 million in the first half of 2025.
In January 2024, the Group partnered with Unifeeder A/S (Unifeeder) in a joint investment for the construction of a 1,300 TEU container vessel, with a dual fuel engine, for a contract price of USD 39.0 million. The equity in the joint venture will be contributed 50% by the Group and the remaining half by Unifeeder. The newbuilding shall be scheduled for delivery in late 2026. As at December 31, 2024, the joint venture had paid installments of USD 7.8 million to the yard. The remaining commitments of USD 31.2 million are due with USD 3.9 million in 2025 and USD 27.3 million in 2026.
Accounting policy
Vessels and other property, plant and equipments are derecognized upon disposal or when no future economic benefits are expected from their use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the period the asset is derecognized.
Accounting policy
Vessels and other property, plant and equipments
Vessels and other property, plant and equipments are stated at historical cost, less subsequent depreciation and impairment. For vessels purchased, these costs include capitalizable expenditures that are directly attributable to the acquisition of the vessels. Upon acquisition, each component of the vessels, with a cost significant to the total acquisition costs, such as dry-docking component, existing charter contract, is separately identified and depreciated over that component\u2019s useful life on a straight-line basis.
The scrubber installations are recognized in the carrying amount of the vessels, and depreciated over the remaining useful life of the vessels.
Depreciation is calculated on a straight-line basis over the useful life of the assets, taking residual values into consideration, and adjusted for impairment charges, if any. Impairment considerations are described in detail in the accounting policy disclosed in Note 5.2Depreciation, Amortisation and Impairment charges.
Ordinary repairs and maintenance expenses are charged to the income statement as incurred. Costs related to dry-docking or other major overhauls are recognized in the carrying amount of the vessels. The recognition is made when the dry-docking has been performed and is depreciated based on estimated time to the next class renewal, i.e.\u00a05\u00a0years. The remaining costs that do not meet the recognition criteria are expensed as repairs and maintenance.
Vessels held for sale
Vessels are classified as \u201cVessels held for sale\u201d when all of the following criteria are met: management has committed to a plan to sell the vessel; the vessel is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of vessels; an active program to locate a buyer and other actions required to complete the plan to sell the vessel have been initiated; the sale of the vessel is probable and transfer of the vessel is expected to qualify for recognition as a completed sale within one year; the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Vessels classified as
held for sale are measured at the lower of their carrying amount or fair value less cost to sell. These vessels are not depreciated once they meet the criteria to be held for sale.
Newbuildings
Instalments on newbuilding contracts are capitalized as \u201cNewbuildings\u201d when they are incurred. Upon delivery, newbuildings are reclassified to vessels and are subject to depreciation. The acquisition cost includes direct investments, cost incurred during the construction period and borrowing cost. Borrowing costs are capitalized during the construction period and based on accumulated expenditures for the applicable project at the Group\u2019s current weighted average rate of borrowing.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__57": { "value": "Accounting policy
Vessels and other property, plant and equipments are derecognized upon disposal or when no future economic benefits are expected from their use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the period the asset is derecognized.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleAndDiscontinuedOperationsExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__59-1": { "value": "2.7\tFinancial Items
Accounting policy
Financial income consists of interest income, currency gain. Interest income are recognised as it accrues using effective rate.
Financial cost consist of interest expenses, currency losses, and other financial expenses. Interest expenses are recognized as they accrue using effective rate. In addition, there are interest expenses on leasing liabilities.
in USD thousands | 2024 | 2023 |
Interest income | 4,291 | 2,819 |
Other finance income | 5,131 | 5,022 |
Total finance income | 9,422 | 7,841 |
Interest expenses | (16,365) | (14,648) |
Bank fees on early repayment of debt | (685) | (904) |
Other finance cost | (3,586) | (2,821) |
Total finance cost | (20,636) | (18,373) |
Accounting policy
All loans and borrowings are initially recognized at fair value less directly attributable transaction costs and have not been designated as at fair value through profit or loss. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method. The calculation takes into account any premium or discount on acquisition and includes transaction costs and fees that are an integral part of the effective interest rate.
A financial liability is derecognized when the obligation under the liability is discharged, cancelled or expires.
Debt issuance costs, including debt arrangement fees, are capitalized and amortized using the effective interest method over the term of the relevant loan. Amortization of debt issuance costs is included in interest expense. If a loan is repaid early, any unamortized portion of the related debt issuance costs is expensed in the period in which the loan is repaid. The Group has recorded debt issuance costs as a direct deduction from the carrying amount of the related debt using the effective interest rate method.
Under a sale and leaseback transaction, when the transfer of vessels does not qualify as a sale under IFRS 15, the seller-lessee does not de-recognise the transferred asset, and it accounts for the cash received as a financial liability.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceIncomeAndCostsExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__60-1": { "value": "2.7\tFinancial Items
Accounting policy
Financial income consists of interest income, currency gain. Interest income are recognised as it accrues using effective rate.
Financial cost consist of interest expenses, currency losses, and other financial expenses. Interest expenses are recognized as they accrue using effective rate. In addition, there are interest expenses on leasing liabilities.
in USD thousands | 2024 | 2023 |
Interest income | 4,291 | 2,819 |
Other finance income | 5,131 | 5,022 |
Total finance income | 9,422 | 7,841 |
Interest expenses | (16,365) | (14,648) |
Bank fees on early repayment of debt | (685) | (904) |
Other finance cost | (3,586) | (2,821) |
Total finance cost | (20,636) | (18,373) |
In USD thousands | Currency | Facility amount | Interest | Maturity | December 31, 2024 | December 31, 2023 |
Senior secured credit facility | USD | 8,300 | SOFR + 3.50% | February 2027 | - | 4,810 |
Sale-leaseback financing | USD | 75,000 | SOFR+2.6% | September 2027 | 39,818 | 66,963 |
Term loan and credit facility | USD | 15,933\u2013101,493 | SOFR+1.5%-2.5% | May/July 2036 | 92,953 | 8,713 |
Term loan facility | USD | 50,000 | SOFR+ 2.8%-3.35%\u200c | July/Aug 2028 | 45,650 | 49,130 |
Term loan facility | USD | 54,460 | SOFR+2.3% | January/April 2036 | 15,560 | - |
Term loan facility | USD | 30,000 | SOFR+1.95% | October 2028 | 30,000 | - |
Senior unsecured sustainability\u00a0linked bonds | USD | 200,000 | 7. 375% | October 2029 | 125,000 | - |
Other long-term debt incl accrued\u00a0interest | 3,843 | 256 | ||||
Total outstanding | 352,824 | 129,872 | ||||
Debt issuance costs | (9,551) | (3,357) | ||||
Total interest-bearing debt outstanding | 343,273 | 126,515 |
Classified as:
Non-current | 299,236 | 92,951 |
Current | 44,037 | 33,564 |
Total | 343,273 | 126,515 |
Changes in the interest-bearing debt
Changes in interest bearing debt over a period consisting of both cash effects and non-cash effects. The following is the changes in the Group\u2019s interest-bearing debt:
Non-cash changes | |||||
In USD thousands | Balance as at December 31, 2023 | Cash flow | Amortization of loan expenses | Other effects | Balance as at December 31, 2024 |
Debt to credit institution | 60,397 | 117,367 | 531 | (284) | 178,011 |
Sale-leaseback financing | 65,862 | (27,145) | 530 | - | 39,247 |
Bond Loans | - | 122,062 | 111 | - | 122,173 |
Total Interest-bearing liabilities | 126,259 | 212,283 | 1,172 | (284) | 339,431 |
Non-cash changes | |||||
In USD thousands | Balance as at December 31, 2022 | Cash flow | Amortization of loan expenses | Other effects | Balance as at December 31, 2023 |
Debt to credit institution | 153,171 | (94,665) | 1,891 | - | 60,397 |
Sale-leaseback financing | - | 65,687 | 175 | - | 65,862 |
Total Interest-bearing liabilities | 153,171 | (28,978) | 2,066 | - | 126,259 |
In February 2023, the Group signed a senior secured term loan facility in an amount up to USD 8.3 million with OVB and it was fully drawn down as at March 31, 2023. The loan facility was used to partially finance the acquisition of the 2007-built AS Claudia. The loan facility carries an interest equivalent to the SOFR plus a margin of 350 basis points and matures in February 2027. The loan was to be repaid quarterly. In 2024, the Group repaid USD 1.1 million (2023: USD 3.5 million) and prepaid USD 3.8 million of the remaining outstanding loan. As a result, the loan was terminated as at December 31, 2024.
In May 2023, the Group entered into a pre-delivery term loan facility in an amount of USD 15.9 million and post-delivery term loan facility in an amount of up to USD 101.5 million with Cr\u00e9dit Agricole together with K-SURE Agent. The loan facilities were used to finance the construction of two 5,500 TEU eco-design vessels, Mackenzie and Colorado, which were subsequently delivered from the yard in May and July 2024. The commercial facility with Cr\u00e9dit Agricole carries an interest equivalent to the SOFR plus a margin of 250 basis points and matures in 2034 while the K-SURE facility carries an interest equivalent to the SOFR plus a margin of 150 basis points and matures in 2036. Upon delivery of both vessels
in 2024, the Group repaid USD 15.9 million of the pre-delivery loan and drew USD 101.5 million of the post-delivery loan. A at December 31, 2024, USD 93.0 million remained outstanding and the carrying amount of the two vessels was USD 145.2 million.
In July 2023, the Group entered into a 5-year loan facility in an amount of up to USD 50.0 million with Hamburg Commercial Bank (HCOB) to finance part of the acquisition cost of the five modern eco-design vessels, AS Anne, AS Simone, AS Stine, AS Silje, and AS Sabine. The facility has a tenor of five years, carries an interest rate of Secured Overnight Financing Rate (SOFR) plus a margin of a range from 280 basis points to 335 basis points depending on the Loan to Value (LTV) percentage. In 2023, USD 50.0 million was drawn on the facility to pay for the vessels. In 2024, the Group repaid USD 3.5 million (2023: USD 0.9 million) of the loan facilities and there was no available undrawn amount. As at December 31, 2024, the carrying amount of the five vessels was USD 113.6 million (2023: USD 112.5 million).
In September 2023, the Group entered into a sale and leaseback transactions with BoComm Leasing in an amount of USD 75.0 million for 12 of its vessels. The lease financing has a tenor of 48 months starting from September/October 2023 and carries an interest rate of SOFR plus a margin of 260 basis point, and includes purchase obligations for the 12 vessels at the end of the term. The Group is precluded from accounting for the sale of the vessels due to the purchase obligations at the end of the term which prevents the lessor from obtaining control of the vessels as such the lease has been accounted for as a secured borrowing, with the vessels recorded under \u201cVessels\u201d. The amount allocated to interest expense is determined by the incremental borrowing rate or imputed interest rate. Since the transaction does not qualify as a sale as according to IFRS 15, the transferred vessels are not derecognized and was depreciated by the Group as it we were the legal owner. The proceeds of USD 75.0 million was recognized as financial liabilities. In 2024, the Group sold two of its sale and leaseback vessels, AS Fatima and AS Ragna and subsequently exercised the purchase option. As a result, the Group made principal repayments of USD 6.9 million relating to the sale of vessels and discharge the financing liabilities of both vessels. As at December 31,2024, USD 39.8 million remained outstanding with BoComm Leasing and the carrying amount of the ten vessels was USD 90.9 million (2023: USD 116.1 million).
In December 2023, the Group entered into a senior secured reducing revolving loan facility of up to USD 100.0 million with HCOB, subject to finalization of the loan. The facility has a tenor of five years, and carries an interest rate of SOFR plus a margin of 295 basis points. As at December 31, 2023, no draw-down was made on this facility.
In Augst 2024, the Group entered into an ECA covered term loan facility of USD 54.6 million with Deutsche Bank and SINOSURE for its two dual-fuel methanol newbuildings. The facility carries an interest rate of compounded risk-free rate plus a margin of 230 basis points. The facility will mature 12 years from the delivery date of the vessels. As at December 31,2024, USD 15.6 million was drawn and USD 39.9 million remained undrawn.
In September 2024, the Group entered into a USD 30.0 million term loan facility with First-Citizens Bank & Trust Company (First Citizens) relating to the financing of the acquisition of AS Nara and AS Nuria. The loan facility carries an interest equivalent to adjusted term SOFR plus a margin of 195 basis points and matures in October 2029. The loan was fully drawn in October 2024, and no repayment was made as at December 31, 2024.
In October 2024, the Company completed the issuance of five-year unsecured sustainability bond in the amount of USD 125.0 million, carrying a coupon of 7.375%.
The following main financial covenants are defined in the terms of the credit facility agreement with Cr\u00e9dit Agricole, Deutsche Bank, First Citizens, the unsecured sustainability bond and\u00a0HCOB:
+The Parent company (MPC Container Ships ASA) shall maintain a minimum equity ratio of 40% throughout the term loan
+The consolidated liquidity in the Group shall maintain a minimum liquidity of USD 250.000 per consolidated vessel throughout the term loan
The Group is in compliance with all loan and credit facility covenants as at December 31, 2024.
2.7\tFinancial Items
Accounting policy
Financial income consists of interest income, currency gain. Interest income are recognised as it accrues using effective rate.
Financial cost consist of interest expenses, currency losses, and other financial expenses. Interest expenses are recognized as they accrue using effective rate. In addition, there are interest expenses on leasing liabilities.
in USD thousands | 2024 | 2023 |
Interest income | 4,291 | 2,819 |
Other finance income | 5,131 | 5,022 |
Total finance income | 9,422 | 7,841 |
Interest expenses | (16,365) | (14,648) |
Bank fees on early repayment of debt | (685) | (904) |
Other finance cost | (3,586) | (2,821) |
Total finance cost | (20,636) | (18,373) |
2.7\tFinancial Items
Accounting policy
Financial income consists of interest income, currency gain. Interest income are recognised as it accrues using effective rate.
Financial cost consist of interest expenses, currency losses, and other financial expenses. Interest expenses are recognized as they accrue using effective rate. In addition, there are interest expenses on leasing liabilities.
in USD thousands | 2024 | 2023 |
Interest income | 4,291 | 2,819 |
Other finance income | 5,131 | 5,022 |
Total finance income | 9,422 | 7,841 |
Interest expenses | (16,365) | (14,648) |
Bank fees on early repayment of debt | (685) | (904) |
Other finance cost | (3,586) | (2,821) |
Total finance cost | (20,636) | (18,373) |
In USD thousands | Currency | Facility amount | Interest | Maturity | December 31, 2024 | December 31, 2023 |
Senior secured credit facility | USD | 8,300 | SOFR + 3.50% | February 2027 | - | 4,810 |
Sale-leaseback financing | USD | 75,000 | SOFR+2.6% | September 2027 | 39,818 | 66,963 |
Term loan and credit facility | USD | 15,933\u2013101,493 | SOFR+1.5%-2.5% | May/July 2036 | 92,953 | 8,713 |
Term loan facility | USD | 50,000 | SOFR+ 2.8%-3.35%\u200c | July/Aug 2028 | 45,650 | 49,130 |
Term loan facility | USD | 54,460 | SOFR+2.3% | January/April 2036 | 15,560 | - |
Term loan facility | USD | 30,000 | SOFR+1.95% | October 2028 | 30,000 | - |
Senior unsecured sustainability\u00a0linked bonds | USD | 200,000 | 7. 375% | October 2029 | 125,000 | - |
Other long-term debt incl accrued\u00a0interest | 3,843 | 256 | ||||
Total outstanding | 352,824 | 129,872 | ||||
Debt issuance costs | (9,551) | (3,357) | ||||
Total interest-bearing debt outstanding | 343,273 | 126,515 |
Classified as:
Non-current | 299,236 | 92,951 |
Current | 44,037 | 33,564 |
Total | 343,273 | 126,515 |
Changes in the interest-bearing debt
Changes in interest bearing debt over a period consisting of both cash effects and non-cash effects. The following is the changes in the Group\u2019s interest-bearing debt:
Non-cash changes | |||||
In USD thousands | Balance as at December 31, 2023 | Cash flow | Amortization of loan expenses | Other effects | Balance as at December 31, 2024 |
Debt to credit institution | 60,397 | 117,367 | 531 | (284) | 178,011 |
Sale-leaseback financing | 65,862 | (27,145) | 530 | - | 39,247 |
Bond Loans | - | 122,062 | 111 | - | 122,173 |
Total Interest-bearing liabilities | 126,259 | 212,283 | 1,172 | (284) | 339,431 |
Non-cash changes | |||||
In USD thousands | Balance as at December 31, 2022 | Cash flow | Amortization of loan expenses | Other effects | Balance as at December 31, 2023 |
Debt to credit institution | 153,171 | (94,665) | 1,891 | - | 60,397 |
Sale-leaseback financing | - | 65,687 | 175 | - | 65,862 |
Total Interest-bearing liabilities | 153,171 | (28,978) | 2,066 | - | 126,259 |
In February 2023, the Group signed a senior secured term loan facility in an amount up to USD 8.3 million with OVB and it was fully drawn down as at March 31, 2023. The loan facility was used to partially finance the acquisition of the 2007-built AS Claudia. The loan facility carries an interest equivalent to the SOFR plus a margin of 350 basis points and matures in February 2027. The loan was to be repaid quarterly. In 2024, the Group repaid USD 1.1 million (2023: USD 3.5 million) and prepaid USD 3.8 million of the remaining outstanding loan. As a result, the loan was terminated as at December 31, 2024.
In May 2023, the Group entered into a pre-delivery term loan facility in an amount of USD 15.9 million and post-delivery term loan facility in an amount of up to USD 101.5 million with Cr\u00e9dit Agricole together with K-SURE Agent. The loan facilities were used to finance the construction of two 5,500 TEU eco-design vessels, Mackenzie and Colorado, which were subsequently delivered from the yard in May and July 2024. The commercial facility with Cr\u00e9dit Agricole carries an interest equivalent to the SOFR plus a margin of 250 basis points and matures in 2034 while the K-SURE facility carries an interest equivalent to the SOFR plus a margin of 150 basis points and matures in 2036. Upon delivery of both vessels
in 2024, the Group repaid USD 15.9 million of the pre-delivery loan and drew USD 101.5 million of the post-delivery loan. A at December 31, 2024, USD 93.0 million remained outstanding and the carrying amount of the two vessels was USD 145.2 million.
In July 2023, the Group entered into a 5-year loan facility in an amount of up to USD 50.0 million with Hamburg Commercial Bank (HCOB) to finance part of the acquisition cost of the five modern eco-design vessels, AS Anne, AS Simone, AS Stine, AS Silje, and AS Sabine. The facility has a tenor of five years, carries an interest rate of Secured Overnight Financing Rate (SOFR) plus a margin of a range from 280 basis points to 335 basis points depending on the Loan to Value (LTV) percentage. In 2023, USD 50.0 million was drawn on the facility to pay for the vessels. In 2024, the Group repaid USD 3.5 million (2023: USD 0.9 million) of the loan facilities and there was no available undrawn amount. As at December 31, 2024, the carrying amount of the five vessels was USD 113.6 million (2023: USD 112.5 million).
In September 2023, the Group entered into a sale and leaseback transactions with BoComm Leasing in an amount of USD 75.0 million for 12 of its vessels. The lease financing has a tenor of 48 months starting from September/October 2023 and carries an interest rate of SOFR plus a margin of 260 basis point, and includes purchase obligations for the 12 vessels at the end of the term. The Group is precluded from accounting for the sale of the vessels due to the purchase obligations at the end of the term which prevents the lessor from obtaining control of the vessels as such the lease has been accounted for as a secured borrowing, with the vessels recorded under \u201cVessels\u201d. The amount allocated to interest expense is determined by the incremental borrowing rate or imputed interest rate. Since the transaction does not qualify as a sale as according to IFRS 15, the transferred vessels are not derecognized and was depreciated by the Group as it we were the legal owner. The proceeds of USD 75.0 million was recognized as financial liabilities. In 2024, the Group sold two of its sale and leaseback vessels, AS Fatima and AS Ragna and subsequently exercised the purchase option. As a result, the Group made principal repayments of USD 6.9 million relating to the sale of vessels and discharge the financing liabilities of both vessels. As at December 31,2024, USD 39.8 million remained outstanding with BoComm Leasing and the carrying amount of the ten vessels was USD 90.9 million (2023: USD 116.1 million).
In December 2023, the Group entered into a senior secured reducing revolving loan facility of up to USD 100.0 million with HCOB, subject to finalization of the loan. The facility has a tenor of five years, and carries an interest rate of SOFR plus a margin of 295 basis points. As at December 31, 2023, no draw-down was made on this facility.
In Augst 2024, the Group entered into an ECA covered term loan facility of USD 54.6 million with Deutsche Bank and SINOSURE for its two dual-fuel methanol newbuildings. The facility carries an interest rate of compounded risk-free rate plus a margin of 230 basis points. The facility will mature 12 years from the delivery date of the vessels. As at December 31,2024, USD 15.6 million was drawn and USD 39.9 million remained undrawn.
In September 2024, the Group entered into a USD 30.0 million term loan facility with First-Citizens Bank & Trust Company (First Citizens) relating to the financing of the acquisition of AS Nara and AS Nuria. The loan facility carries an interest equivalent to adjusted term SOFR plus a margin of 195 basis points and matures in October 2029. The loan was fully drawn in October 2024, and no repayment was made as at December 31, 2024.
In October 2024, the Company completed the issuance of five-year unsecured sustainability bond in the amount of USD 125.0 million, carrying a coupon of 7.375%.
The following main financial covenants are defined in the terms of the credit facility agreement with Cr\u00e9dit Agricole, Deutsche Bank, First Citizens, the unsecured sustainability bond and\u00a0HCOB:
+The Parent company (MPC Container Ships ASA) shall maintain a minimum equity ratio of 40% throughout the term loan
+The consolidated liquidity in the Group shall maintain a minimum liquidity of USD 250.000 per consolidated vessel throughout the term loan
The Group is in compliance with all loan and credit facility covenants as at December 31, 2024.
2.7\tFinancial Items
Accounting policy
Financial income consists of interest income, currency gain. Interest income are recognised as it accrues using effective rate.
Financial cost consist of interest expenses, currency losses, and other financial expenses. Interest expenses are recognized as they accrue using effective rate. In addition, there are interest expenses on leasing liabilities.
in USD thousands | 2024 | 2023 |
Interest income | 4,291 | 2,819 |
Other finance income | 5,131 | 5,022 |
Total finance income | 9,422 | 7,841 |
Interest expenses | (16,365) | (14,648) |
Bank fees on early repayment of debt | (685) | (904) |
Other finance cost | (3,586) | (2,821) |
Total finance cost | (20,636) | (18,373) |
2.7\tFinancial Items
Accounting policy
Financial income consists of interest income, currency gain. Interest income are recognised as it accrues using effective rate.
Financial cost consist of interest expenses, currency losses, and other financial expenses. Interest expenses are recognized as they accrue using effective rate. In addition, there are interest expenses on leasing liabilities.
in USD thousands | 2024 | 2023 |
Interest income | 4,291 | 2,819 |
Other finance income | 5,131 | 5,022 |
Total finance income | 9,422 | 7,841 |
Interest expenses | (16,365) | (14,648) |
Bank fees on early repayment of debt | (685) | (904) |
Other finance cost | (3,586) | (2,821) |
Total finance cost | (20,636) | (18,373) |
2.7\tFinancial Items
Accounting policy
Financial income consists of interest income, currency gain. Interest income are recognised as it accrues using effective rate.
Financial cost consist of interest expenses, currency losses, and other financial expenses. Interest expenses are recognized as they accrue using effective rate. In addition, there are interest expenses on leasing liabilities.
in USD thousands | 2024 | 2023 |
Interest income | 4,291 | 2,819 |
Other finance income | 5,131 | 5,022 |
Total finance income | 9,422 | 7,841 |
Interest expenses | (16,365) | (14,648) |
Bank fees on early repayment of debt | (685) | (904) |
Other finance cost | (3,586) | (2,821) |
Total finance cost | (20,636) | (18,373) |
Accounting policy
Financial income consists of interest income, currency gain. Interest income are recognised as it accrues using effective rate.
Financial cost consist of interest expenses, currency losses, and other financial expenses. Interest expenses are recognized as they accrue using effective rate. In addition, there are interest expenses on leasing liabilities.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInterestIncomeAndExpenseExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__71": { "value": "2.8\tEarnings Per Share
Accounting policy
The Group presents basic and diluted earnings per share data for its ordinary shares.
Basic earnings per share are calculated by dividing the profit for the reporting period attributable to ordinary equity holders of the Company by the weighted average number of ordinary shares outstanding during the reporting period.
Diluted earnings per share are calculated by dividing the profit attributable to ordinary equity holders of the Company by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.
The following table sets forth the computation of basic and diluted earnings per share for the year ended December 31:
in USD thousands | 2024 | 2023 |
Profit/(loss) for year attributable to ordinary equity holders \u2013 in USD thousands | 266,683 | 324,961 |
Weighted average number of shares outstanding, basic | 443,700,279 | 443,700,279 |
Weighted average number of shares outstanding, diluted | 443,700,279 | 443,700,279 |
Basic earnings per share \u2013 in USD | 0.60 | 0.73 |
Diluted earnings per share \u2013 in USD | 0.60 | 0.73 |
Accounting policy
The Group presents basic and diluted earnings per share data for its ordinary shares.
Basic earnings per share are calculated by dividing the profit for the reporting period attributable to ordinary equity holders of the Company by the weighted average number of ordinary shares outstanding during the reporting period.
Diluted earnings per share are calculated by dividing the profit attributable to ordinary equity holders of the Company by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEarningsPerShareExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__73": { "value": "Note 3\tIncome Taxes
3.1\tIncome Tax Reconciliation
Accounting policy
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the relevant taxation authorities.
The Company is subject to tax on its income in accordance with the general tax rules pertaining to companies that are tax resident in Norway.
The Company\u2019s vessel-owning subsidiaries are subject to the Norwegian, German or Dutch tonnage tax regime, i.e. taxable income is calculated as a lump sum depending on the net tonnage of the respective vessels, independent of the realized earnings. Income not derived from the operation of the vessels in international waters, such as financial income, is usually taxed according the ordinary taxation rules applicable in the resident country of each respective company. Tonnage taxes are classified as Vessel Operating Expenditures.
Deferred tax liabilities are classified as non-current liabilities and are recognized for all taxable temporary differences. Deferred tax assets are recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which the deductible temporary difference can be utilised.
in USD thousands | 2024 | 2023 |
Income taxes paid/payable | (425) | (692) |
Change in deferred tax asset | 748 | 55 |
Other taxes | - | - |
Income tax expense | 323 | (637) |
Specification of corporate income tax expense | ||
Basis for ordinary corporation tax expense | ||
Profit(loss) before taxes | 266,371 | 325,754 |
Nominal tax rate | 22% | 22% |
Expected tax at nominal tax rate | (58,602) | (71,666) |
Tax effect of reconciling items | ||
Income tax exempted from corporate tax under the tonnage regime | 62,132 | 70,046 |
Share of result in joint venture | (87) | 4,980 |
Change in temporary differences recognized | 3,398 | - |
Change in temporary differences not recognized | (6,518) | (4,747) |
Other permanent differences/exchange translation differences | - | 750 |
Income tax expense | 323 | (637) |
Recognized on the statement of financial position: | ||
Deferred tax assets | - | - |
Deferred tax liabilities | - | (748) |
Income taxes payable | (164) | (289) |
Temporary differences | ||
Foreign exchange differences on translation to local currency for tax reporting | - | (3,398) |
Net basis for deferred tax liabilities: | - | (3,398) |
The parent company (MPC Container Ships ASA) is under ordinary taxation rules in Norway. The ordinary rate of corporation tax in Norway is 22% for 2024 (2023: 22%). Refer to Note 6Income Taxin the Parent Financial Statement. The parent company and other holding companies within the group may have individual tax losses each year, which generate carry forward losses for the individual companies. Deferred tax assets are only recognized to the extent that the future utilization within the Group can be justified as at December 31, 2024. As a consequence, a tax position of USD 63.0 million (2023: 66.9 million) relating to carry forward losses has not been recognized in the balance sheet.
The Group has assessed the revenue threshold for both 2023 and 2024 and concluded that the OECD Pillar Two model rule would not be applicable for the Group\u2019s consolidated financial statement.
Note 3\tIncome Taxes
3.1\tIncome Tax Reconciliation
Accounting policy
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the relevant taxation authorities.
The Company is subject to tax on its income in accordance with the general tax rules pertaining to companies that are tax resident in Norway.
The Company\u2019s vessel-owning subsidiaries are subject to the Norwegian, German or Dutch tonnage tax regime, i.e. taxable income is calculated as a lump sum depending on the net tonnage of the respective vessels, independent of the realized earnings. Income not derived from the operation of the vessels in international waters, such as financial income, is usually taxed according the ordinary taxation rules applicable in the resident country of each respective company. Tonnage taxes are classified as Vessel Operating Expenditures.
Deferred tax liabilities are classified as non-current liabilities and are recognized for all taxable temporary differences. Deferred tax assets are recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which the deductible temporary difference can be utilised.
in USD thousands | 2024 | 2023 |
Income taxes paid/payable | (425) | (692) |
Change in deferred tax asset | 748 | 55 |
Other taxes | - | - |
Income tax expense | 323 | (637) |
Specification of corporate income tax expense | ||
Basis for ordinary corporation tax expense | ||
Profit(loss) before taxes | 266,371 | 325,754 |
Nominal tax rate | 22% | 22% |
Expected tax at nominal tax rate | (58,602) | (71,666) |
Tax effect of reconciling items | ||
Income tax exempted from corporate tax under the tonnage regime | 62,132 | 70,046 |
Share of result in joint venture | (87) | 4,980 |
Change in temporary differences recognized | 3,398 | - |
Change in temporary differences not recognized | (6,518) | (4,747) |
Other permanent differences/exchange translation differences | - | 750 |
Income tax expense | 323 | (637) |
Recognized on the statement of financial position: | ||
Deferred tax assets | - | - |
Deferred tax liabilities | - | (748) |
Income taxes payable | (164) | (289) |
Temporary differences | ||
Foreign exchange differences on translation to local currency for tax reporting | - | (3,398) |
Net basis for deferred tax liabilities: | - | (3,398) |
The parent company (MPC Container Ships ASA) is under ordinary taxation rules in Norway. The ordinary rate of corporation tax in Norway is 22% for 2024 (2023: 22%). Refer to Note 6Income Taxin the Parent Financial Statement. The parent company and other holding companies within the group may have individual tax losses each year, which generate carry forward losses for the individual companies. Deferred tax assets are only recognized to the extent that the future utilization within the Group can be justified as at December 31, 2024. As a consequence, a tax position of USD 63.0 million (2023: 66.9 million) relating to carry forward losses has not been recognized in the balance sheet.
The Group has assessed the revenue threshold for both 2023 and 2024 and concluded that the OECD Pillar Two model rule would not be applicable for the Group\u2019s consolidated financial statement.
Note 3\tIncome Taxes
3.1\tIncome Tax Reconciliation
Accounting policy
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the relevant taxation authorities.
The Company is subject to tax on its income in accordance with the general tax rules pertaining to companies that are tax resident in Norway.
The Company\u2019s vessel-owning subsidiaries are subject to the Norwegian, German or Dutch tonnage tax regime, i.e. taxable income is calculated as a lump sum depending on the net tonnage of the respective vessels, independent of the realized earnings. Income not derived from the operation of the vessels in international waters, such as financial income, is usually taxed according the ordinary taxation rules applicable in the resident country of each respective company. Tonnage taxes are classified as Vessel Operating Expenditures.
Deferred tax liabilities are classified as non-current liabilities and are recognized for all taxable temporary differences. Deferred tax assets are recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which the deductible temporary difference can be utilised.
in USD thousands | 2024 | 2023 |
Income taxes paid/payable | (425) | (692) |
Change in deferred tax asset | 748 | 55 |
Other taxes | - | - |
Income tax expense | 323 | (637) |
Specification of corporate income tax expense | ||
Basis for ordinary corporation tax expense | ||
Profit(loss) before taxes | 266,371 | 325,754 |
Nominal tax rate | 22% | 22% |
Expected tax at nominal tax rate | (58,602) | (71,666) |
Tax effect of reconciling items | ||
Income tax exempted from corporate tax under the tonnage regime | 62,132 | 70,046 |
Share of result in joint venture | (87) | 4,980 |
Change in temporary differences recognized | 3,398 | - |
Change in temporary differences not recognized | (6,518) | (4,747) |
Other permanent differences/exchange translation differences | - | 750 |
Income tax expense | 323 | (637) |
Recognized on the statement of financial position: | ||
Deferred tax assets | - | - |
Deferred tax liabilities | - | (748) |
Income taxes payable | (164) | (289) |
Temporary differences | ||
Foreign exchange differences on translation to local currency for tax reporting | - | (3,398) |
Net basis for deferred tax liabilities: | - | (3,398) |
The parent company (MPC Container Ships ASA) is under ordinary taxation rules in Norway. The ordinary rate of corporation tax in Norway is 22% for 2024 (2023: 22%). Refer to Note 6Income Taxin the Parent Financial Statement. The parent company and other holding companies within the group may have individual tax losses each year, which generate carry forward losses for the individual companies. Deferred tax assets are only recognized to the extent that the future utilization within the Group can be justified as at December 31, 2024. As a consequence, a tax position of USD 63.0 million (2023: 66.9 million) relating to carry forward losses has not been recognized in the balance sheet.
The Group has assessed the revenue threshold for both 2023 and 2024 and concluded that the OECD Pillar Two model rule would not be applicable for the Group\u2019s consolidated financial statement.
Accounting policy
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the relevant taxation authorities.
The Company is subject to tax on its income in accordance with the general tax rules pertaining to companies that are tax resident in Norway.
The Company\u2019s vessel-owning subsidiaries are subject to the Norwegian, German or Dutch tonnage tax regime, i.e. taxable income is calculated as a lump sum depending on the net tonnage of the respective vessels, independent of the realized earnings. Income not derived from the operation of the vessels in international waters, such as financial income, is usually taxed according the ordinary taxation rules applicable in the resident country of each respective company. Tonnage taxes are classified as Vessel Operating Expenditures.
Deferred tax liabilities are classified as non-current liabilities and are recognized for all taxable temporary differences. Deferred tax assets are recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which the deductible temporary difference can be utilised.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__75": { "value": "Accounting policy
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the relevant taxation authorities.
The Company is subject to tax on its income in accordance with the general tax rules pertaining to companies that are tax resident in Norway.
The Company\u2019s vessel-owning subsidiaries are subject to the Norwegian, German or Dutch tonnage tax regime, i.e. taxable income is calculated as a lump sum depending on the net tonnage of the respective vessels, independent of the realized earnings. Income not derived from the operation of the vessels in international waters, such as financial income, is usually taxed according the ordinary taxation rules applicable in the resident country of each respective company. Tonnage taxes are classified as Vessel Operating Expenditures.
Deferred tax liabilities are classified as non-current liabilities and are recognized for all taxable temporary differences. Deferred tax assets are recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which the deductible temporary difference can be utilised.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTaxesOtherThanIncomeTaxExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__76": { "value": "Accounting policy
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the relevant taxation authorities.
The Company is subject to tax on its income in accordance with the general tax rules pertaining to companies that are tax resident in Norway.
The Company\u2019s vessel-owning subsidiaries are subject to the Norwegian, German or Dutch tonnage tax regime, i.e. taxable income is calculated as a lump sum depending on the net tonnage of the respective vessels, independent of the realized earnings. Income not derived from the operation of the vessels in international waters, such as financial income, is usually taxed according the ordinary taxation rules applicable in the resident country of each respective company. Tonnage taxes are classified as Vessel Operating Expenditures.
Deferred tax liabilities are classified as non-current liabilities and are recognized for all taxable temporary differences. Deferred tax assets are recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which the deductible temporary difference can be utilised.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__80-1": { "value": "Note 4\tNet Working Capital
4.1\tTrade and Other Current Assets
Accounting policy
Trade and other current assets
Trade receivables and other short-term receivables are measured at transaction price upon initial recognition and subsequently measured at amortised cost less expected credit losses. The Group applies the simplified approach to provide for lifetime expected credit losses in accordance with IFRS 9. Credit loss allowance is recognised based on both historical and forward-looking credit loss assessment. Trade receivables relate to receivables against the charterers for the Group\u2019s time charter contracts while emission allowances are receivables against charterers for the greenhouse gases (GHG) emitted during the voyage. Insurance claims are the Group\u2019s claims covered by insurance agreements where the virtually certain threshold are met.
in USD thousands | December 31, 2024 | December 31, 2023 |
Trade receivables | 7,893 | 6,310 |
Claims related to insurance cases | 17,141 | 12,065 |
Other receivables and prepayments | 7,081 | 5,292 |
Emission allowances | 5,620 | - |
Total Trade and other current assets | 37,735 | 23,667 |
The Group had outstanding receivables per December 31, 2024 amounting to USD 7.9 million (2023: USD 6.3 million). Historically, the Group have not had any credit losses of significance. A significant part of the outstanding receivables is against larger liner companies, of which the Group have had a long business relationship with, which reduces the risk further. The invoiced amount is considered to be approximately equal to the value which would be derived under the amortized cost method. In 2024, the Group recognized USD 0.1 million as impairment losses, compared to USD 0.4 million in 2023.
4.2\tDeferred Revenues and Other Liabilities
Accounting policy
Provisions are recognized when the Group has a present obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to any provision is recognized through profit and loss net of any reimbursement.
Deferred revenue constitutes mainly contract liabilities which represent advance payments and billings in excess of revenue recognized.
The following table shows the components of other liabilities as at period end.
in USD thousands | December 31, 2024 | December 31, 2023 |
Accrued expenses | 13,849 | 13,337 |
Accrued salaries | 3,959 | 1,989 |
Acquired TC contracts | - | 1,011 |
Accrued emission expenses | 5,875 | - |
Other short-term liabilities | 4,043 | 685 |
Total Other liabilities | 27,726 | 17,022 |
Deferred revenues | 29,706 | 35,230 |
Set out below is a comparison by category for carrying amounts and fair values of all of the Group\u2019s financial instruments that are carried in the financial statements. The estimated fair value amounts of the financial instruments have been determined using appropriate market information and valuation techniques.
Fair value of trade receivables, cash and cash equivalents and trade payables approximate their carrying amounts measured at amortized cost due to the short-term maturities of these instruments.
The fair value of interest-bearing debt is estimated by discounting future cash flows using rates for debt on similar terms, credit risk and remaining maturities. Fair value of interest-bearing debt approximates the carrying amounts as there have been no significant changes in the market rates for similar debt financing between the date of securing the debt financing and the reporting date.
December 31, 2024 | December 31, 2023 | |||
in USD thousands | Carrying Amount | Fair Value | Carrying Amount | Fair Value |
Financial assets | ||||
Trade and other current assets | 37,735 | 37,735 | 23,667 | 23,667 |
Financial instruments at fair value | 1,060 | 1,060 | 1,951 | 1,951 |
Restricted cash | 6,364 | 6,364 | 5,005 | 5,005 |
Cash and cash equivalents | 125,696 | 125,696 | 117,579 | 117,579 |
Total financial assets | 170,855 | 170,855 | 148,202 | 148,202 |
December 31, 2024 | December 31, 2023 | |||
in USD thousands | Carrying Amount | Fair Value | Carrying Amount | Fair Value |
Financial liabilities at amortized cost | ||||
Interest-bearing debt: | ||||
Floating rate debt | 218,865 | 218,865 | 126,515 | 126,515 |
Fixed rate debt | 124,409 | 126,317 | - | - |
Derivative financial instruments | 101 | 101 | - | - |
Trade and other payables | 12,632 | 12,632 | 20,397 | 20,397 |
Related party payable | 72 | 72 | 1,062 | 1,062 |
Other liabilities\u200c1 | 27,523 | 27,523 | 16,011 | 16,011 |
Total financial liabilities | 383,602 | 385,510 | 163,985 | 163,985 |
1 Excludes non-financial items in the line item Other liabilities on the Statement of Financial Position
", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__82": { "value": "4.1\tTrade and Other Current Assets
Accounting policy
Trade and other current assets
Trade receivables and other short-term receivables are measured at transaction price upon initial recognition and subsequently measured at amortised cost less expected credit losses. The Group applies the simplified approach to provide for lifetime expected credit losses in accordance with IFRS 9. Credit loss allowance is recognised based on both historical and forward-looking credit loss assessment. Trade receivables relate to receivables against the charterers for the Group\u2019s time charter contracts while emission allowances are receivables against charterers for the greenhouse gases (GHG) emitted during the voyage. Insurance claims are the Group\u2019s claims covered by insurance agreements where the virtually certain threshold are met.
in USD thousands | December 31, 2024 | December 31, 2023 |
Trade receivables | 7,893 | 6,310 |
Claims related to insurance cases | 17,141 | 12,065 |
Other receivables and prepayments | 7,081 | 5,292 |
Emission allowances | 5,620 | - |
Total Trade and other current assets | 37,735 | 23,667 |
The Group had outstanding receivables per December 31, 2024 amounting to USD 7.9 million (2023: USD 6.3 million). Historically, the Group have not had any credit losses of significance. A significant part of the outstanding receivables is against larger liner companies, of which the Group have had a long business relationship with, which reduces the risk further. The invoiced amount is considered to be approximately equal to the value which would be derived under the amortized cost method. In 2024, the Group recognized USD 0.1 million as impairment losses, compared to USD 0.4 million in 2023.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAllowanceForCreditLossesExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__83": { "value": "4.1\tTrade and Other Current Assets
Accounting policy
Trade and other current assets
Trade receivables and other short-term receivables are measured at transaction price upon initial recognition and subsequently measured at amortised cost less expected credit losses. The Group applies the simplified approach to provide for lifetime expected credit losses in accordance with IFRS 9. Credit loss allowance is recognised based on both historical and forward-looking credit loss assessment. Trade receivables relate to receivables against the charterers for the Group\u2019s time charter contracts while emission allowances are receivables against charterers for the greenhouse gases (GHG) emitted during the voyage. Insurance claims are the Group\u2019s claims covered by insurance agreements where the virtually certain threshold are met.
in USD thousands | December 31, 2024 | December 31, 2023 |
Trade receivables | 7,893 | 6,310 |
Claims related to insurance cases | 17,141 | 12,065 |
Other receivables and prepayments | 7,081 | 5,292 |
Emission allowances | 5,620 | - |
Total Trade and other current assets | 37,735 | 23,667 |
The Group had outstanding receivables per December 31, 2024 amounting to USD 7.9 million (2023: USD 6.3 million). Historically, the Group have not had any credit losses of significance. A significant part of the outstanding receivables is against larger liner companies, of which the Group have had a long business relationship with, which reduces the risk further. The invoiced amount is considered to be approximately equal to the value which would be derived under the amortized cost method. In 2024, the Group recognized USD 0.1 million as impairment losses, compared to USD 0.4 million in 2023.
", "dimensions": { "concept": "ifrs-full:DisclosureOfPrepaymentsAndOtherAssetsExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__84": { "value": "4.1\tTrade and Other Current Assets
Accounting policy
Trade and other current assets
Trade receivables and other short-term receivables are measured at transaction price upon initial recognition and subsequently measured at amortised cost less expected credit losses. The Group applies the simplified approach to provide for lifetime expected credit losses in accordance with IFRS 9. Credit loss allowance is recognised based on both historical and forward-looking credit loss assessment. Trade receivables relate to receivables against the charterers for the Group\u2019s time charter contracts while emission allowances are receivables against charterers for the greenhouse gases (GHG) emitted during the voyage. Insurance claims are the Group\u2019s claims covered by insurance agreements where the virtually certain threshold are met.
in USD thousands | December 31, 2024 | December 31, 2023 |
Trade receivables | 7,893 | 6,310 |
Claims related to insurance cases | 17,141 | 12,065 |
Other receivables and prepayments | 7,081 | 5,292 |
Emission allowances | 5,620 | - |
Total Trade and other current assets | 37,735 | 23,667 |
The Group had outstanding receivables per December 31, 2024 amounting to USD 7.9 million (2023: USD 6.3 million). Historically, the Group have not had any credit losses of significance. A significant part of the outstanding receivables is against larger liner companies, of which the Group have had a long business relationship with, which reduces the risk further. The invoiced amount is considered to be approximately equal to the value which would be derived under the amortized cost method. In 2024, the Group recognized USD 0.1 million as impairment losses, compared to USD 0.4 million in 2023.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherCurrentAssetsExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__85": { "value": "4.1\tTrade and Other Current Assets
Accounting policy
Trade and other current assets
Trade receivables and other short-term receivables are measured at transaction price upon initial recognition and subsequently measured at amortised cost less expected credit losses. The Group applies the simplified approach to provide for lifetime expected credit losses in accordance with IFRS 9. Credit loss allowance is recognised based on both historical and forward-looking credit loss assessment. Trade receivables relate to receivables against the charterers for the Group\u2019s time charter contracts while emission allowances are receivables against charterers for the greenhouse gases (GHG) emitted during the voyage. Insurance claims are the Group\u2019s claims covered by insurance agreements where the virtually certain threshold are met.
in USD thousands | December 31, 2024 | December 31, 2023 |
Trade receivables | 7,893 | 6,310 |
Claims related to insurance cases | 17,141 | 12,065 |
Other receivables and prepayments | 7,081 | 5,292 |
Emission allowances | 5,620 | - |
Total Trade and other current assets | 37,735 | 23,667 |
The Group had outstanding receivables per December 31, 2024 amounting to USD 7.9 million (2023: USD 6.3 million). Historically, the Group have not had any credit losses of significance. A significant part of the outstanding receivables is against larger liner companies, of which the Group have had a long business relationship with, which reduces the risk further. The invoiced amount is considered to be approximately equal to the value which would be derived under the amortized cost method. In 2024, the Group recognized USD 0.1 million as impairment losses, compared to USD 0.4 million in 2023.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherAssetsExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__81-1": { "value": "Accounting policy
Trade and other current assets
Trade receivables and other short-term receivables are measured at transaction price upon initial recognition and subsequently measured at amortised cost less expected credit losses. The Group applies the simplified approach to provide for lifetime expected credit losses in accordance with IFRS 9. Credit loss allowance is recognised based on both historical and forward-looking credit loss assessment. Trade receivables relate to receivables against the charterers for the Group\u2019s time charter contracts while emission allowances are receivables against charterers for the greenhouse gases (GHG) emitted during the voyage. Insurance claims are the Group\u2019s claims covered by insurance agreements where the virtually certain threshold are met.
Accounting policy
Provisions are recognized when the Group has a present obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to any provision is recognized through profit and loss net of any reimbursement.
Deferred revenue constitutes mainly contract liabilities which represent advance payments and billings in excess of revenue recognized.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__88": { "value": "4.2\tDeferred Revenues and Other Liabilities
Accounting policy
Provisions are recognized when the Group has a present obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to any provision is recognized through profit and loss net of any reimbursement.
Deferred revenue constitutes mainly contract liabilities which represent advance payments and billings in excess of revenue recognized.
The following table shows the components of other liabilities as at period end.
in USD thousands | December 31, 2024 | December 31, 2023 |
Accrued expenses | 13,849 | 13,337 |
Accrued salaries | 3,959 | 1,989 |
Acquired TC contracts | - | 1,011 |
Accrued emission expenses | 5,875 | - |
Other short-term liabilities | 4,043 | 685 |
Total Other liabilities | 27,726 | 17,022 |
Deferred revenues | 29,706 | 35,230 |
4.2\tDeferred Revenues and Other Liabilities
Accounting policy
Provisions are recognized when the Group has a present obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to any provision is recognized through profit and loss net of any reimbursement.
Deferred revenue constitutes mainly contract liabilities which represent advance payments and billings in excess of revenue recognized.
The following table shows the components of other liabilities as at period end.
in USD thousands | December 31, 2024 | December 31, 2023 |
Accrued expenses | 13,849 | 13,337 |
Accrued salaries | 3,959 | 1,989 |
Acquired TC contracts | - | 1,011 |
Accrued emission expenses | 5,875 | - |
Other short-term liabilities | 4,043 | 685 |
Total Other liabilities | 27,726 | 17,022 |
Deferred revenues | 29,706 | 35,230 |
4.2\tDeferred Revenues and Other Liabilities
Accounting policy
Provisions are recognized when the Group has a present obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to any provision is recognized through profit and loss net of any reimbursement.
Deferred revenue constitutes mainly contract liabilities which represent advance payments and billings in excess of revenue recognized.
The following table shows the components of other liabilities as at period end.
in USD thousands | December 31, 2024 | December 31, 2023 |
Accrued expenses | 13,849 | 13,337 |
Accrued salaries | 3,959 | 1,989 |
Acquired TC contracts | - | 1,011 |
Accrued emission expenses | 5,875 | - |
Other short-term liabilities | 4,043 | 685 |
Total Other liabilities | 27,726 | 17,022 |
Deferred revenues | 29,706 | 35,230 |
4.2\tDeferred Revenues and Other Liabilities
Accounting policy
Provisions are recognized when the Group has a present obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to any provision is recognized through profit and loss net of any reimbursement.
Deferred revenue constitutes mainly contract liabilities which represent advance payments and billings in excess of revenue recognized.
The following table shows the components of other liabilities as at period end.
in USD thousands | December 31, 2024 | December 31, 2023 |
Accrued expenses | 13,849 | 13,337 |
Accrued salaries | 3,959 | 1,989 |
Acquired TC contracts | - | 1,011 |
Accrued emission expenses | 5,875 | - |
Other short-term liabilities | 4,043 | 685 |
Total Other liabilities | 27,726 | 17,022 |
Deferred revenues | 29,706 | 35,230 |
4.2\tDeferred Revenues and Other Liabilities
Accounting policy
Provisions are recognized when the Group has a present obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to any provision is recognized through profit and loss net of any reimbursement.
Deferred revenue constitutes mainly contract liabilities which represent advance payments and billings in excess of revenue recognized.
The following table shows the components of other liabilities as at period end.
in USD thousands | December 31, 2024 | December 31, 2023 |
Accrued expenses | 13,849 | 13,337 |
Accrued salaries | 3,959 | 1,989 |
Acquired TC contracts | - | 1,011 |
Accrued emission expenses | 5,875 | - |
Other short-term liabilities | 4,043 | 685 |
Total Other liabilities | 27,726 | 17,022 |
Deferred revenues | 29,706 | 35,230 |
Accounting policy
Provisions are recognized when the Group has a present obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to any provision is recognized through profit and loss net of any reimbursement.
Deferred revenue constitutes mainly contract liabilities which represent advance payments and billings in excess of revenue recognized.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherProvisionsContingentLiabilitiesAndContingentAssetsExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__93-1": { "value": "The following table shows the components of other liabilities as at period end.
in USD thousands | December 31, 2024 | December 31, 2023 |
Accrued expenses | 13,849 | 13,337 |
Accrued salaries | 3,959 | 1,989 |
Acquired TC contracts | - | 1,011 |
Accrued emission expenses | 5,875 | - |
Other short-term liabilities | 4,043 | 685 |
Total Other liabilities | 27,726 | 17,022 |
Deferred revenues | 29,706 | 35,230 |
The following table summarises the contractual maturities of financial liabilities on an undiscounted basis as at December 31, 2024:
In USD thousands | < 1 year | 1\u20133 years | 4\u20135 years | > 5 years | Total |
Interest bearing loans and borrowings | 39,757 | 78,048 | 184,535 | 37,091 | 339,431 |
Interest payments | 25,267 | 39,863 | 28,962 | 12,226 | 106,318 |
Derivative financial instruments -current | 101 | - | - | - | 101 |
Trade and other payables | 12,632 | - | - | - | 12,632 |
Related party payable | 72 | - | - | - | 72 |
Other liabilities\u00b9 | 27,523 | - | - | - | 27,523 |
Total | 105,352 | 117,911 | 213,497 | 49,317 | 486,077 |
1 (excluded non-financial liabilities such as deferred revenue, social security taxes, income tax payable etc)
The following table summarises the contractual maturities of financial liabilities on an undiscounted basis as at December 31, 2023:
In USD thousands | < 1 year | 1\u20133 years | 4\u20135 years | > 5 years | Total |
Interest-bearing debt | 34,936 | 24,761 | 69,919 | - | 129,616 |
Interest payments | 9,277 | 13,421 | 6,985 | - | 29,683 |
Trade and other payables | 20,397 | - | - | - | 20,397 |
Related part payables | 1,062 | - | - | - | 1,062 |
Other liabilities\u200c1 | 16,011 | - | - | - | 16,011 |
Total | 81,683 | 38,182 | 76,904 | - | 196,769 |
1 (excluded non-financial liabilities such as deferred revenue, social security taxes, income tax payable etc)
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherLiabilitiesExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__103": { "value": "5.1\tVessels and Newbuildings
Accounting policy
Vessels and other property, plant and equipments
Vessels and other property, plant and equipments are stated at historical cost, less subsequent depreciation and impairment. For vessels purchased, these costs include capitalizable expenditures that are directly attributable to the acquisition of the vessels. Upon acquisition, each component of the vessels, with a cost significant to the total acquisition costs, such as dry-docking component, existing charter contract, is separately identified and depreciated over that component\u2019s useful life on a straight-line basis.
The scrubber installations are recognized in the carrying amount of the vessels, and depreciated over the remaining useful life of the vessels.
Depreciation is calculated on a straight-line basis over the useful life of the assets, taking residual values into consideration, and adjusted for impairment charges, if any. Impairment considerations are described in detail in the accounting policy disclosed in Note 5.2Depreciation, Amortisation and Impairment charges.
Ordinary repairs and maintenance expenses are charged to the income statement as incurred. Costs related to dry-docking or other major overhauls are recognized in the carrying amount of the vessels. The recognition is made when the dry-docking has been performed and is depreciated based on estimated time to the next class renewal, i.e.\u00a05\u00a0years. The remaining costs that do not meet the recognition criteria are expensed as repairs and maintenance.
Vessels held for sale
Vessels are classified as \u201cVessels held for sale\u201d when all of the following criteria are met: management has committed to a plan to sell the vessel; the vessel is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of vessels; an active program to locate a buyer and other actions required to complete the plan to sell the vessel have been initiated; the sale of the vessel is probable and transfer of the vessel is expected to qualify for recognition as a completed sale within one year; the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Vessels classified as
held for sale are measured at the lower of their carrying amount or fair value less cost to sell. These vessels are not depreciated once they meet the criteria to be held for sale.
Newbuildings
Instalments on newbuilding contracts are capitalized as \u201cNewbuildings\u201d when they are incurred. Upon delivery, newbuildings are reclassified to vessels and are subject to depreciation. The acquisition cost includes direct investments, cost incurred during the construction period and borrowing cost. Borrowing costs are capitalized during the construction period and based on accumulated expenditures for the applicable project at the Group\u2019s current weighted average rate of borrowing.
Judgement and estimates
+Vessels useful lives: Management estimates the average useful life of our vessels to be 25 years. The actual life of a vessel may be different, and the useful lives of the vessels are reviewed at fiscal year-end. New regulations, market deterioration or other future events could reduce the economic lives assigned to our vessels and result in higher depreciation expense and impairment losses in future periods (climate related risks further disclosed in Note 5.2Depreciation, Amortisation and Impairment charges). Any change in the estimated useful lives and/or residual values impact the deprecation of our vessels prospectively.
As at December 31, 2024, Management did not identify any indicators or circumstances which resulted in requiring changes to our vessel useful lives.
in USD thousands | Vessels | Newbuildings, additions | Total Vessels and Newbuildings | Vessels held-for-sale | Total |
Cost: | |||||
January 1, 2024 | 1,028,642 | 78,980 | 1,107,622 | 48,618 | 1,156,240 |
Acquisitions of vessels | 227,296 | - | 227,296 | - | 227,296 |
Capitalized dry-docking, progress payments, expenditures | 56,227 | 113,553 | 169,780 | - | 169,780 |
Disposal of vessels and other property, plant and equipments | (68,943) | - | (68,943) | (48,618) | (117,561) |
Transfers of vessels | 148,189 | (148,189) | - | - | - |
December 31, 2024 | 1,391,411 | 44,344 | 1,435,755 | - | 1,435,755 |
Accumulated depreciation and impairment: | |||||
January 1, 2024 | (337,351) | - | (337,351) | (23,453) | (360,804) |
Depreciation for the period | (70,946) | - | (70,946) | - | (70,946) |
Disposals of vessels and other other property, plant and equipments | 20,347 | - | 20,347 | 23,453 | 43,800 |
December 31, 2024 | (387,950) | - | (387,950) | - | (387,950) |
Net book value: | |||||
December 31, 2024 | 1,003,460 | 44,344 | 1,047,804 | - | 1,047,804 |
in USD thousands | Vessels | Newbuildings, additions | |||
Total Vessels and Newbuildings | Vessels held-for-sale | Total | |||
Cost: | |||||
January 1, 2023 | 976,170 | 32,770 | 1,008,940 | - | 1,008,940 |
Acquisitions of vessels | 169,376 | - | 169,376 | - | 169,376 |
Capitalized dry-docking, progress payments, expenditures | 48,254 | 46,210 | 94,464 | - | 94,464 |
Disposal of vessels and other property, plant and equipments | (116,540) | - | (116,540) | - | (116,540) |
Transfers to Vessel held for sale | (48,618) | - | (48,618) | 48,618 | - |
December 31, 2023 | 1,028,642 | 78,980 | 1,107,622 | 48,618 | 1,156,240 |
Accumulated depreciation and impairment: | |||||
January 1, 2023 | (230,297) | - | (230,297) | - | (230,297) |
Depreciation for the period | (102,504) | - | (102,504) | - | (102,504) |
Impairments | (79,378) | - | (79,378) | - | (79,378) |
Disposals of vessels and other property, plant and equipments | 51,375 | - | 51,375 | - | 51,375 |
Transfers to Vessels held for sale | 23,453 | - | 23,453 | (23,453) | - |
December 31, 2023 | (337,351) | - | (337,351) | (23,453) | (360,804) |
Net book value: | |||||
December 31, 2023 | 691,291 | 78,980 | 770,271 | 25,165 | 795,436 |
Fleet changes | 2024 | 2023 |
Number of container vessels at the start of the period\u200c1 | 59 | 58 |
Aquisition of vessels\u200c2 | 6 | 7 |
Newbuildings deliveries\u200c3 | 2 | - |
Disposal of vessels\u200c4 | (5) | (6) |
Vessels held for sale\u200c5 | (3) | - |
Number of container vessels at the end of the period\u200c1 | 59 | 59 |
1 Number of vessels does not include vessels owned by joint ventures
2 In July 2024, the Group took delivery of the two 3,500 TEU, 2009-built vessels, AS Nara and AS Nuria for USD 24.9 million and USD 22.4 million respectively. Consequent to the order of transaction, where the Group purchased the two shelf companies owned by our related party, MPC M\u00fcnchmeyer Petersen Capital AG, which also entered the MoA with the seller of the vessels, the transaction was classified as related party transaction.
In October and November 2024, the Group took delivery of four 3,800 TEU wide beam eco-design vessels, AS Nele, AS Nanne, AS Natalie and AS Ninette for a total price of USD 180.0 million. All vessels were acquired with existing charter agreements until the second quarter of 2025.
In March 2023, the Group took delivery of a 2010-built scrubber fitted vessel AS Nina and 2007-built scrubber fitted vessel, AS Caludia for USD 33.7 million. Both vessels were acquired with existing charters with renewals in the third quarter of 2023 and the first quarter of 2024.
In June and July 2023, the Group took delivery of five vessels, AS Anne, AS Silje, AS Simone, AS Stine and AS Sabine. AS Anne included an existing 36-month time charter agreement and was subsequently terminated in July 2023 upon delivery. The group received a cash compensation of USD 22.0 million for the early termination. As such, the Group depreciated the time charter component of the vessel of USD 22.0 million to reflect the cost of the contract.
3 In May and July 2024, the Group took delivery of two 5,550 TEU eco-design vessels, Mackenzie and Colorado from its newbuilding programs respectively.
4 Refer to Note 2.6Gain (loss) from sale of vessels and other property, plant and equipmentsfor further information
5 As at December 31, 2023 the Group had three vessels (AS Petra, AS Paulina and AS Pauline) classified as Vessel held for sale. The sale and delivery of the three vessels was completed in 2024.
As at December 31, 2024, the group have committed to retrofit eight vessels (2023: 13) for USD 2.4 million (2023:\u00a0USD 15.6 million), which is due in 2025.
Newbuildings:
As at December 31, 2024 the Group\u2019s newbuilding program consisted of two 1,300 TEU container vessels with a contract price of USD 39.0 million per vessel. The first newbuilding was delivered in the first quarter of 2025 while the second newbuilding is expected to be delivered in the second quarter of 2025. As at December 31, 2024, total additions to Group\u2019s newbuilding program was USD 44.3 million, including capitalized borrowing costs of USD 2.6 million ( 2023: USD 0.1 million ) , compared to USD 79.0 million as of December 31, 2023. The capitalization rate used for the borrowing cost in 2024 was 8.69%. The remaining commitments as at December 31, 2024 was USD 38.9 million (2023: USD 156.1 million) , of which USD 19.5 million was due in the first quarter of 2025 and USD 19.5 million in the first half of 2025.
In January 2024, the Group partnered with Unifeeder A/S (Unifeeder) in a joint investment for the construction of a 1,300 TEU container vessel, with a dual fuel engine, for a contract price of USD 39.0 million. The equity in the joint venture will be contributed 50% by the Group and the remaining half by Unifeeder. The newbuilding shall be scheduled for delivery in late 2026. As at December 31, 2024, the joint venture had paid installments of USD 7.8 million to the yard. The remaining commitments of USD 31.2 million are due with USD 3.9 million in 2025 and USD 27.3 million in 2026.
5.1\tVessels and Newbuildings
Accounting policy
Vessels and other property, plant and equipments
Vessels and other property, plant and equipments are stated at historical cost, less subsequent depreciation and impairment. For vessels purchased, these costs include capitalizable expenditures that are directly attributable to the acquisition of the vessels. Upon acquisition, each component of the vessels, with a cost significant to the total acquisition costs, such as dry-docking component, existing charter contract, is separately identified and depreciated over that component\u2019s useful life on a straight-line basis.
The scrubber installations are recognized in the carrying amount of the vessels, and depreciated over the remaining useful life of the vessels.
Depreciation is calculated on a straight-line basis over the useful life of the assets, taking residual values into consideration, and adjusted for impairment charges, if any. Impairment considerations are described in detail in the accounting policy disclosed in Note 5.2Depreciation, Amortisation and Impairment charges.
Ordinary repairs and maintenance expenses are charged to the income statement as incurred. Costs related to dry-docking or other major overhauls are recognized in the carrying amount of the vessels. The recognition is made when the dry-docking has been performed and is depreciated based on estimated time to the next class renewal, i.e.\u00a05\u00a0years. The remaining costs that do not meet the recognition criteria are expensed as repairs and maintenance.
Vessels held for sale
Vessels are classified as \u201cVessels held for sale\u201d when all of the following criteria are met: management has committed to a plan to sell the vessel; the vessel is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of vessels; an active program to locate a buyer and other actions required to complete the plan to sell the vessel have been initiated; the sale of the vessel is probable and transfer of the vessel is expected to qualify for recognition as a completed sale within one year; the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Vessels classified as
held for sale are measured at the lower of their carrying amount or fair value less cost to sell. These vessels are not depreciated once they meet the criteria to be held for sale.
Newbuildings
Instalments on newbuilding contracts are capitalized as \u201cNewbuildings\u201d when they are incurred. Upon delivery, newbuildings are reclassified to vessels and are subject to depreciation. The acquisition cost includes direct investments, cost incurred during the construction period and borrowing cost. Borrowing costs are capitalized during the construction period and based on accumulated expenditures for the applicable project at the Group\u2019s current weighted average rate of borrowing.
Judgement and estimates
+Vessels useful lives: Management estimates the average useful life of our vessels to be 25 years. The actual life of a vessel may be different, and the useful lives of the vessels are reviewed at fiscal year-end. New regulations, market deterioration or other future events could reduce the economic lives assigned to our vessels and result in higher depreciation expense and impairment losses in future periods (climate related risks further disclosed in Note 5.2Depreciation, Amortisation and Impairment charges). Any change in the estimated useful lives and/or residual values impact the deprecation of our vessels prospectively.
As at December 31, 2024, Management did not identify any indicators or circumstances which resulted in requiring changes to our vessel useful lives.
in USD thousands | Vessels | Newbuildings, additions | Total Vessels and Newbuildings | Vessels held-for-sale | Total |
Cost: | |||||
January 1, 2024 | 1,028,642 | 78,980 | 1,107,622 | 48,618 | 1,156,240 |
Acquisitions of vessels | 227,296 | - | 227,296 | - | 227,296 |
Capitalized dry-docking, progress payments, expenditures | 56,227 | 113,553 | 169,780 | - | 169,780 |
Disposal of vessels and other property, plant and equipments | (68,943) | - | (68,943) | (48,618) | (117,561) |
Transfers of vessels | 148,189 | (148,189) | - | - | - |
December 31, 2024 | 1,391,411 | 44,344 | 1,435,755 | - | 1,435,755 |
Accumulated depreciation and impairment: | |||||
January 1, 2024 | (337,351) | - | (337,351) | (23,453) | (360,804) |
Depreciation for the period | (70,946) | - | (70,946) | - | (70,946) |
Disposals of vessels and other other property, plant and equipments | 20,347 | - | 20,347 | 23,453 | 43,800 |
December 31, 2024 | (387,950) | - | (387,950) | - | (387,950) |
Net book value: | |||||
December 31, 2024 | 1,003,460 | 44,344 | 1,047,804 | - | 1,047,804 |
in USD thousands | Vessels | Newbuildings, additions | |||
Total Vessels and Newbuildings | Vessels held-for-sale | Total | |||
Cost: | |||||
January 1, 2023 | 976,170 | 32,770 | 1,008,940 | - | 1,008,940 |
Acquisitions of vessels | 169,376 | - | 169,376 | - | 169,376 |
Capitalized dry-docking, progress payments, expenditures | 48,254 | 46,210 | 94,464 | - | 94,464 |
Disposal of vessels and other property, plant and equipments | (116,540) | - | (116,540) | - | (116,540) |
Transfers to Vessel held for sale | (48,618) | - | (48,618) | 48,618 | - |
December 31, 2023 | 1,028,642 | 78,980 | 1,107,622 | 48,618 | 1,156,240 |
Accumulated depreciation and impairment: | |||||
January 1, 2023 | (230,297) | - | (230,297) | - | (230,297) |
Depreciation for the period | (102,504) | - | (102,504) | - | (102,504) |
Impairments | (79,378) | - | (79,378) | - | (79,378) |
Disposals of vessels and other property, plant and equipments | 51,375 | - | 51,375 | - | 51,375 |
Transfers to Vessels held for sale | 23,453 | - | 23,453 | (23,453) | - |
December 31, 2023 | (337,351) | - | (337,351) | (23,453) | (360,804) |
Net book value: | |||||
December 31, 2023 | 691,291 | 78,980 | 770,271 | 25,165 | 795,436 |
Fleet changes | 2024 | 2023 |
Number of container vessels at the start of the period\u200c1 | 59 | 58 |
Aquisition of vessels\u200c2 | 6 | 7 |
Newbuildings deliveries\u200c3 | 2 | - |
Disposal of vessels\u200c4 | (5) | (6) |
Vessels held for sale\u200c5 | (3) | - |
Number of container vessels at the end of the period\u200c1 | 59 | 59 |
1 Number of vessels does not include vessels owned by joint ventures
2 In July 2024, the Group took delivery of the two 3,500 TEU, 2009-built vessels, AS Nara and AS Nuria for USD 24.9 million and USD 22.4 million respectively. Consequent to the order of transaction, where the Group purchased the two shelf companies owned by our related party, MPC M\u00fcnchmeyer Petersen Capital AG, which also entered the MoA with the seller of the vessels, the transaction was classified as related party transaction.
In October and November 2024, the Group took delivery of four 3,800 TEU wide beam eco-design vessels, AS Nele, AS Nanne, AS Natalie and AS Ninette for a total price of USD 180.0 million. All vessels were acquired with existing charter agreements until the second quarter of 2025.
In March 2023, the Group took delivery of a 2010-built scrubber fitted vessel AS Nina and 2007-built scrubber fitted vessel, AS Caludia for USD 33.7 million. Both vessels were acquired with existing charters with renewals in the third quarter of 2023 and the first quarter of 2024.
In June and July 2023, the Group took delivery of five vessels, AS Anne, AS Silje, AS Simone, AS Stine and AS Sabine. AS Anne included an existing 36-month time charter agreement and was subsequently terminated in July 2023 upon delivery. The group received a cash compensation of USD 22.0 million for the early termination. As such, the Group depreciated the time charter component of the vessel of USD 22.0 million to reflect the cost of the contract.
3 In May and July 2024, the Group took delivery of two 5,550 TEU eco-design vessels, Mackenzie and Colorado from its newbuilding programs respectively.
4 Refer to Note 2.6Gain (loss) from sale of vessels and other property, plant and equipmentsfor further information
5 As at December 31, 2023 the Group had three vessels (AS Petra, AS Paulina and AS Pauline) classified as Vessel held for sale. The sale and delivery of the three vessels was completed in 2024.
As at December 31, 2024, the group have committed to retrofit eight vessels (2023: 13) for USD 2.4 million (2023:\u00a0USD 15.6 million), which is due in 2025.
Newbuildings:
As at December 31, 2024 the Group\u2019s newbuilding program consisted of two 1,300 TEU container vessels with a contract price of USD 39.0 million per vessel. The first newbuilding was delivered in the first quarter of 2025 while the second newbuilding is expected to be delivered in the second quarter of 2025. As at December 31, 2024, total additions to Group\u2019s newbuilding program was USD 44.3 million, including capitalized borrowing costs of USD 2.6 million ( 2023: USD 0.1 million ) , compared to USD 79.0 million as of December 31, 2023. The capitalization rate used for the borrowing cost in 2024 was 8.69%. The remaining commitments as at December 31, 2024 was USD 38.9 million (2023: USD 156.1 million) , of which USD 19.5 million was due in the first quarter of 2025 and USD 19.5 million in the first half of 2025.
In January 2024, the Group partnered with Unifeeder A/S (Unifeeder) in a joint investment for the construction of a 1,300 TEU container vessel, with a dual fuel engine, for a contract price of USD 39.0 million. The equity in the joint venture will be contributed 50% by the Group and the remaining half by Unifeeder. The newbuilding shall be scheduled for delivery in late 2026. As at December 31, 2024, the joint venture had paid installments of USD 7.8 million to the yard. The remaining commitments of USD 31.2 million are due with USD 3.9 million in 2025 and USD 27.3 million in 2026.
The following tables shows the summarized financial information of the Group\u2019s investment in Bluewater and Palmaille 75:
IN USD THOUSANDS | DECEMBER 31, 2024 | DECEMBER 31, 2023 |
Non-current assets | 7,833 | - |
Cash and cash equivalents | 185 | 2,148 |
Other current assets | 3 | 1,450 |
Current liabilities | - | 192 |
Equity | 8,021 | 3,405 |
Group\u2019s carrying amount of the investment | 4,010 | 1,703 |
IN USD THOUSANDS | 2024\u200c1 | 2023 |
Operating revenues | 8 | 14,752 |
Operating costs | (850) | (8,416) |
Other income (expense) | - | 278 |
Gain (loss) from sale of vessels | - | 39,535 |
Depreciation | - | (959) |
Net financial income (expense) | 73 | 112 |
Income tax | (21) | (28) |
Profit after tax for the period | (790) | 45,275 |
Total comprehensive income for the period | (790) | 45,275 |
Group\u2019s share of profit for the period | (395) | 22,637 |
Dividends received | - | 41,000 |
1 Bluewater is included for the first nine months of 2024.
Investment in associate
In 2022, the Group entered into an agreement with INERATEC for the supply of synthetic Marine Diesel Oil (MDO) made from biogenic CO2and renewable hydrogen, with delivery set to start in 2024. The Group recorded its initial investment at a cost of USD 0.8 million to acquire 24.5% ownership interest in Siemssen KG which holds an investment in INERATEC. In January 2023, the Group further increased its investment of USD 0.4 million to maintain its ownership position. As at December 31, 2023, the Group\u2019s investment in Siemssen KG was USD 1.2 million. The investment is accounted under the equity method.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDepreciationAndAmortisationExpenseExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__106-1": { "value": "5.1\tVessels and Newbuildings
Accounting policy
Vessels and other property, plant and equipments
Vessels and other property, plant and equipments are stated at historical cost, less subsequent depreciation and impairment. For vessels purchased, these costs include capitalizable expenditures that are directly attributable to the acquisition of the vessels. Upon acquisition, each component of the vessels, with a cost significant to the total acquisition costs, such as dry-docking component, existing charter contract, is separately identified and depreciated over that component\u2019s useful life on a straight-line basis.
The scrubber installations are recognized in the carrying amount of the vessels, and depreciated over the remaining useful life of the vessels.
Depreciation is calculated on a straight-line basis over the useful life of the assets, taking residual values into consideration, and adjusted for impairment charges, if any. Impairment considerations are described in detail in the accounting policy disclosed in Note 5.2Depreciation, Amortisation and Impairment charges.
Ordinary repairs and maintenance expenses are charged to the income statement as incurred. Costs related to dry-docking or other major overhauls are recognized in the carrying amount of the vessels. The recognition is made when the dry-docking has been performed and is depreciated based on estimated time to the next class renewal, i.e.\u00a05\u00a0years. The remaining costs that do not meet the recognition criteria are expensed as repairs and maintenance.
Vessels held for sale
Vessels are classified as \u201cVessels held for sale\u201d when all of the following criteria are met: management has committed to a plan to sell the vessel; the vessel is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of vessels; an active program to locate a buyer and other actions required to complete the plan to sell the vessel have been initiated; the sale of the vessel is probable and transfer of the vessel is expected to qualify for recognition as a completed sale within one year; the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Vessels classified as
held for sale are measured at the lower of their carrying amount or fair value less cost to sell. These vessels are not depreciated once they meet the criteria to be held for sale.
Newbuildings
Instalments on newbuilding contracts are capitalized as \u201cNewbuildings\u201d when they are incurred. Upon delivery, newbuildings are reclassified to vessels and are subject to depreciation. The acquisition cost includes direct investments, cost incurred during the construction period and borrowing cost. Borrowing costs are capitalized during the construction period and based on accumulated expenditures for the applicable project at the Group\u2019s current weighted average rate of borrowing.
Judgement and estimates
+Vessels useful lives: Management estimates the average useful life of our vessels to be 25 years. The actual life of a vessel may be different, and the useful lives of the vessels are reviewed at fiscal year-end. New regulations, market deterioration or other future events could reduce the economic lives assigned to our vessels and result in higher depreciation expense and impairment losses in future periods (climate related risks further disclosed in Note 5.2Depreciation, Amortisation and Impairment charges). Any change in the estimated useful lives and/or residual values impact the deprecation of our vessels prospectively.
As at December 31, 2024, Management did not identify any indicators or circumstances which resulted in requiring changes to our vessel useful lives.
in USD thousands | Vessels | Newbuildings, additions | Total Vessels and Newbuildings | Vessels held-for-sale | Total |
Cost: | |||||
January 1, 2024 | 1,028,642 | 78,980 | 1,107,622 | 48,618 | 1,156,240 |
Acquisitions of vessels | 227,296 | - | 227,296 | - | 227,296 |
Capitalized dry-docking, progress payments, expenditures | 56,227 | 113,553 | 169,780 | - | 169,780 |
Disposal of vessels and other property, plant and equipments | (68,943) | - | (68,943) | (48,618) | (117,561) |
Transfers of vessels | 148,189 | (148,189) | - | - | - |
December 31, 2024 | 1,391,411 | 44,344 | 1,435,755 | - | 1,435,755 |
Accumulated depreciation and impairment: | |||||
January 1, 2024 | (337,351) | - | (337,351) | (23,453) | (360,804) |
Depreciation for the period | (70,946) | - | (70,946) | - | (70,946) |
Disposals of vessels and other other property, plant and equipments | 20,347 | - | 20,347 | 23,453 | 43,800 |
December 31, 2024 | (387,950) | - | (387,950) | - | (387,950) |
Net book value: | |||||
December 31, 2024 | 1,003,460 | 44,344 | 1,047,804 | - | 1,047,804 |
in USD thousands | Vessels | Newbuildings, additions | |||
Total Vessels and Newbuildings | Vessels held-for-sale | Total | |||
Cost: | |||||
January 1, 2023 | 976,170 | 32,770 | 1,008,940 | - | 1,008,940 |
Acquisitions of vessels | 169,376 | - | 169,376 | - | 169,376 |
Capitalized dry-docking, progress payments, expenditures | 48,254 | 46,210 | 94,464 | - | 94,464 |
Disposal of vessels and other property, plant and equipments | (116,540) | - | (116,540) | - | (116,540) |
Transfers to Vessel held for sale | (48,618) | - | (48,618) | 48,618 | - |
December 31, 2023 | 1,028,642 | 78,980 | 1,107,622 | 48,618 | 1,156,240 |
Accumulated depreciation and impairment: | |||||
January 1, 2023 | (230,297) | - | (230,297) | - | (230,297) |
Depreciation for the period | (102,504) | - | (102,504) | - | (102,504) |
Impairments | (79,378) | - | (79,378) | - | (79,378) |
Disposals of vessels and other property, plant and equipments | 51,375 | - | 51,375 | - | 51,375 |
Transfers to Vessels held for sale | 23,453 | - | 23,453 | (23,453) | - |
December 31, 2023 | (337,351) | - | (337,351) | (23,453) | (360,804) |
Net book value: | |||||
December 31, 2023 | 691,291 | 78,980 | 770,271 | 25,165 | 795,436 |
Fleet changes | 2024 | 2023 |
Number of container vessels at the start of the period\u200c1 | 59 | 58 |
Aquisition of vessels\u200c2 | 6 | 7 |
Newbuildings deliveries\u200c3 | 2 | - |
Disposal of vessels\u200c4 | (5) | (6) |
Vessels held for sale\u200c5 | (3) | - |
Number of container vessels at the end of the period\u200c1 | 59 | 59 |
1 Number of vessels does not include vessels owned by joint ventures
2 In July 2024, the Group took delivery of the two 3,500 TEU, 2009-built vessels, AS Nara and AS Nuria for USD 24.9 million and USD 22.4 million respectively. Consequent to the order of transaction, where the Group purchased the two shelf companies owned by our related party, MPC M\u00fcnchmeyer Petersen Capital AG, which also entered the MoA with the seller of the vessels, the transaction was classified as related party transaction.
In October and November 2024, the Group took delivery of four 3,800 TEU wide beam eco-design vessels, AS Nele, AS Nanne, AS Natalie and AS Ninette for a total price of USD 180.0 million. All vessels were acquired with existing charter agreements until the second quarter of 2025.
In March 2023, the Group took delivery of a 2010-built scrubber fitted vessel AS Nina and 2007-built scrubber fitted vessel, AS Caludia for USD 33.7 million. Both vessels were acquired with existing charters with renewals in the third quarter of 2023 and the first quarter of 2024.
In June and July 2023, the Group took delivery of five vessels, AS Anne, AS Silje, AS Simone, AS Stine and AS Sabine. AS Anne included an existing 36-month time charter agreement and was subsequently terminated in July 2023 upon delivery. The group received a cash compensation of USD 22.0 million for the early termination. As such, the Group depreciated the time charter component of the vessel of USD 22.0 million to reflect the cost of the contract.
3 In May and July 2024, the Group took delivery of two 5,550 TEU eco-design vessels, Mackenzie and Colorado from its newbuilding programs respectively.
4 Refer to Note 2.6Gain (loss) from sale of vessels and other property, plant and equipmentsfor further information
5 As at December 31, 2023 the Group had three vessels (AS Petra, AS Paulina and AS Pauline) classified as Vessel held for sale. The sale and delivery of the three vessels was completed in 2024.
As at December 31, 2024, the group have committed to retrofit eight vessels (2023: 13) for USD 2.4 million (2023:\u00a0USD 15.6 million), which is due in 2025.
Newbuildings:
As at December 31, 2024 the Group\u2019s newbuilding program consisted of two 1,300 TEU container vessels with a contract price of USD 39.0 million per vessel. The first newbuilding was delivered in the first quarter of 2025 while the second newbuilding is expected to be delivered in the second quarter of 2025. As at December 31, 2024, total additions to Group\u2019s newbuilding program was USD 44.3 million, including capitalized borrowing costs of USD 2.6 million ( 2023: USD 0.1 million ) , compared to USD 79.0 million as of December 31, 2023. The capitalization rate used for the borrowing cost in 2024 was 8.69%. The remaining commitments as at December 31, 2024 was USD 38.9 million (2023: USD 156.1 million) , of which USD 19.5 million was due in the first quarter of 2025 and USD 19.5 million in the first half of 2025.
In January 2024, the Group partnered with Unifeeder A/S (Unifeeder) in a joint investment for the construction of a 1,300 TEU container vessel, with a dual fuel engine, for a contract price of USD 39.0 million. The equity in the joint venture will be contributed 50% by the Group and the remaining half by Unifeeder. The newbuilding shall be scheduled for delivery in late 2026. As at December 31, 2024, the joint venture had paid installments of USD 7.8 million to the yard. The remaining commitments of USD 31.2 million are due with USD 3.9 million in 2025 and USD 27.3 million in 2026.
Accounting policy
Impairment of vessels
Indicators of impairment of vessels and other property, plant and equipments are assessed at each reporting date. The same applies when events or changes in circumstances that may entail that the vessels\u2019 carrying amount may not be recoverable. Such indicators may include depressed charter rates and lower second-hand vessel values. If impairment indicators are identified, the recoverable amount is estimated; and If the carrying amount exceeds its recoverable amount, an impairment loss is recognized; i.e. the asset is written down to the higher of the fair value less cost of sale and its value -in-use. Assets are grouped at the lowest level where there are separately identifiable independent cash flows, in which we have determined that each vessel is considered to be a separate cash-generating unit. The far value less cost of disposal is the amount obtainable from the sale of an asset in an arm\u2019s length transaction less the costs of sale and the value in use is the present value of estimated future cash flows expected from the continued use of an asset.
The following assumptions have been made when calculating the value in use for container vessels:
+Future cash flows are based on an assessment of expected development in charter rates and estimated level of administrative and operating expenses (including maintenance and repair) and dry-docking over the remaining useful life of the vessel plus any residual value.
+The net present value of future estimated cash flows of each cash-generating unit is based on a discount rate according to a pre-tax weighted average cost of capital. The weighted average cost of capital (WACC) is calculated based on the expected long-term borrowing rate and risk-free USD SOFR rate plus an equity risk premium.
An impairment loss recognized in prior periods for an asset is reversed if there has been a change in the estimates used to determine the asset\u2019s recoverable amount since the last impairment loss was recognized.
Impairment testing and calculation of recoverable amount
As at December 31, 2024, management did not identify any events or changes in circumstances indicating that the carrying amounts of our owned vessels might not be recovered. As such, no further impairment test was performed.
As at December 31, 2023, management identified impairment indicators for our vessels, in which an impairment test was performed and resulted in the Group recognizing impairment losses of USD 79.4 million.
", "dimensions": { "concept": "ifrs-full:DisclosureOfImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__98": { "value": "Accounting policy
Vessels and other property, plant and equipments
Vessels and other property, plant and equipments are stated at historical cost, less subsequent depreciation and impairment. For vessels purchased, these costs include capitalizable expenditures that are directly attributable to the acquisition of the vessels. Upon acquisition, each component of the vessels, with a cost significant to the total acquisition costs, such as dry-docking component, existing charter contract, is separately identified and depreciated over that component\u2019s useful life on a straight-line basis.
The scrubber installations are recognized in the carrying amount of the vessels, and depreciated over the remaining useful life of the vessels.
Depreciation is calculated on a straight-line basis over the useful life of the assets, taking residual values into consideration, and adjusted for impairment charges, if any. Impairment considerations are described in detail in the accounting policy disclosed in Note 5.2Depreciation, Amortisation and Impairment charges.
Ordinary repairs and maintenance expenses are charged to the income statement as incurred. Costs related to dry-docking or other major overhauls are recognized in the carrying amount of the vessels. The recognition is made when the dry-docking has been performed and is depreciated based on estimated time to the next class renewal, i.e.\u00a05\u00a0years. The remaining costs that do not meet the recognition criteria are expensed as repairs and maintenance.
Vessels held for sale
Vessels are classified as \u201cVessels held for sale\u201d when all of the following criteria are met: management has committed to a plan to sell the vessel; the vessel is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of vessels; an active program to locate a buyer and other actions required to complete the plan to sell the vessel have been initiated; the sale of the vessel is probable and transfer of the vessel is expected to qualify for recognition as a completed sale within one year; the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Vessels classified as
held for sale are measured at the lower of their carrying amount or fair value less cost to sell. These vessels are not depreciated once they meet the criteria to be held for sale.
Newbuildings
Instalments on newbuilding contracts are capitalized as \u201cNewbuildings\u201d when they are incurred. Upon delivery, newbuildings are reclassified to vessels and are subject to depreciation. The acquisition cost includes direct investments, cost incurred during the construction period and borrowing cost. Borrowing costs are capitalized during the construction period and based on accumulated expenditures for the applicable project at the Group\u2019s current weighted average rate of borrowing.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRepairsAndMaintenanceExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__99": { "value": "Accounting policy
Vessels and other property, plant and equipments
Vessels and other property, plant and equipments are stated at historical cost, less subsequent depreciation and impairment. For vessels purchased, these costs include capitalizable expenditures that are directly attributable to the acquisition of the vessels. Upon acquisition, each component of the vessels, with a cost significant to the total acquisition costs, such as dry-docking component, existing charter contract, is separately identified and depreciated over that component\u2019s useful life on a straight-line basis.
The scrubber installations are recognized in the carrying amount of the vessels, and depreciated over the remaining useful life of the vessels.
Depreciation is calculated on a straight-line basis over the useful life of the assets, taking residual values into consideration, and adjusted for impairment charges, if any. Impairment considerations are described in detail in the accounting policy disclosed in Note 5.2Depreciation, Amortisation and Impairment charges.
Ordinary repairs and maintenance expenses are charged to the income statement as incurred. Costs related to dry-docking or other major overhauls are recognized in the carrying amount of the vessels. The recognition is made when the dry-docking has been performed and is depreciated based on estimated time to the next class renewal, i.e.\u00a05\u00a0years. The remaining costs that do not meet the recognition criteria are expensed as repairs and maintenance.
Vessels held for sale
Vessels are classified as \u201cVessels held for sale\u201d when all of the following criteria are met: management has committed to a plan to sell the vessel; the vessel is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of vessels; an active program to locate a buyer and other actions required to complete the plan to sell the vessel have been initiated; the sale of the vessel is probable and transfer of the vessel is expected to qualify for recognition as a completed sale within one year; the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Vessels classified as
held for sale are measured at the lower of their carrying amount or fair value less cost to sell. These vessels are not depreciated once they meet the criteria to be held for sale.
Newbuildings
Instalments on newbuilding contracts are capitalized as \u201cNewbuildings\u201d when they are incurred. Upon delivery, newbuildings are reclassified to vessels and are subject to depreciation. The acquisition cost includes direct investments, cost incurred during the construction period and borrowing cost. Borrowing costs are capitalized during the construction period and based on accumulated expenditures for the applicable project at the Group\u2019s current weighted average rate of borrowing.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__101": { "value": "Accounting policy
Vessels and other property, plant and equipments
Vessels and other property, plant and equipments are stated at historical cost, less subsequent depreciation and impairment. For vessels purchased, these costs include capitalizable expenditures that are directly attributable to the acquisition of the vessels. Upon acquisition, each component of the vessels, with a cost significant to the total acquisition costs, such as dry-docking component, existing charter contract, is separately identified and depreciated over that component\u2019s useful life on a straight-line basis.
The scrubber installations are recognized in the carrying amount of the vessels, and depreciated over the remaining useful life of the vessels.
Depreciation is calculated on a straight-line basis over the useful life of the assets, taking residual values into consideration, and adjusted for impairment charges, if any. Impairment considerations are described in detail in the accounting policy disclosed in Note 5.2Depreciation, Amortisation and Impairment charges.
Ordinary repairs and maintenance expenses are charged to the income statement as incurred. Costs related to dry-docking or other major overhauls are recognized in the carrying amount of the vessels. The recognition is made when the dry-docking has been performed and is depreciated based on estimated time to the next class renewal, i.e.\u00a05\u00a0years. The remaining costs that do not meet the recognition criteria are expensed as repairs and maintenance.
Vessels held for sale
Vessels are classified as \u201cVessels held for sale\u201d when all of the following criteria are met: management has committed to a plan to sell the vessel; the vessel is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of vessels; an active program to locate a buyer and other actions required to complete the plan to sell the vessel have been initiated; the sale of the vessel is probable and transfer of the vessel is expected to qualify for recognition as a completed sale within one year; the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Vessels classified as
held for sale are measured at the lower of their carrying amount or fair value less cost to sell. These vessels are not depreciated once they meet the criteria to be held for sale.
Newbuildings
Instalments on newbuilding contracts are capitalized as \u201cNewbuildings\u201d when they are incurred. Upon delivery, newbuildings are reclassified to vessels and are subject to depreciation. The acquisition cost includes direct investments, cost incurred during the construction period and borrowing cost. Borrowing costs are capitalized during the construction period and based on accumulated expenditures for the applicable project at the Group\u2019s current weighted average rate of borrowing.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__108": { "value": "Accounting policy
Impairment of vessels
Indicators of impairment of vessels and other property, plant and equipments are assessed at each reporting date. The same applies when events or changes in circumstances that may entail that the vessels\u2019 carrying amount may not be recoverable. Such indicators may include depressed charter rates and lower second-hand vessel values. If impairment indicators are identified, the recoverable amount is estimated; and If the carrying amount exceeds its recoverable amount, an impairment loss is recognized; i.e. the asset is written down to the higher of the fair value less cost of sale and its value -in-use. Assets are grouped at the lowest level where there are separately identifiable independent cash flows, in which we have determined that each vessel is considered to be a separate cash-generating unit. The far value less cost of disposal is the amount obtainable from the sale of an asset in an arm\u2019s length transaction less the costs of sale and the value in use is the present value of estimated future cash flows expected from the continued use of an asset.
The following assumptions have been made when calculating the value in use for container vessels:
+Future cash flows are based on an assessment of expected development in charter rates and estimated level of administrative and operating expenses (including maintenance and repair) and dry-docking over the remaining useful life of the vessel plus any residual value.
+The net present value of future estimated cash flows of each cash-generating unit is based on a discount rate according to a pre-tax weighted average cost of capital. The weighted average cost of capital (WACC) is calculated based on the expected long-term borrowing rate and risk-free USD SOFR rate plus an equity risk premium.
An impairment loss recognized in prior periods for an asset is reversed if there has been a change in the estimates used to determine the asset\u2019s recoverable amount since the last impairment loss was recognized.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__110": { "value": "Accounting policy
Impairment of vessels
Indicators of impairment of vessels and other property, plant and equipments are assessed at each reporting date. The same applies when events or changes in circumstances that may entail that the vessels\u2019 carrying amount may not be recoverable. Such indicators may include depressed charter rates and lower second-hand vessel values. If impairment indicators are identified, the recoverable amount is estimated; and If the carrying amount exceeds its recoverable amount, an impairment loss is recognized; i.e. the asset is written down to the higher of the fair value less cost of sale and its value -in-use. Assets are grouped at the lowest level where there are separately identifiable independent cash flows, in which we have determined that each vessel is considered to be a separate cash-generating unit. The far value less cost of disposal is the amount obtainable from the sale of an asset in an arm\u2019s length transaction less the costs of sale and the value in use is the present value of estimated future cash flows expected from the continued use of an asset.
The following assumptions have been made when calculating the value in use for container vessels:
+Future cash flows are based on an assessment of expected development in charter rates and estimated level of administrative and operating expenses (including maintenance and repair) and dry-docking over the remaining useful life of the vessel plus any residual value.
+The net present value of future estimated cash flows of each cash-generating unit is based on a discount rate according to a pre-tax weighted average cost of capital. The weighted average cost of capital (WACC) is calculated based on the expected long-term borrowing rate and risk-free USD SOFR rate plus an equity risk premium.
An impairment loss recognized in prior periods for an asset is reversed if there has been a change in the estimates used to determine the asset\u2019s recoverable amount since the last impairment loss was recognized.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfNonfinancialAssetsExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__116": { "value": "Note 6\tGroup Structure
6.1\tInvestments in Joint Venture and Associate
Accounting policy
Joint ventures are those entities whereby the Group has joint control and rights to the net assets. Associates are those entities where the Group has significant influence but not control or joint control (usually between twenty and fifty percent of the voting power). The Group\u2019s investments in associate and joint venture are accounted for using equity method. The investments in an associate or a joint venture are initially recognized at cost and thereafter adjusted for Group\u2019s share of post-acquisition profits or losses, movements in other comprehensive income or dividends received.
in USD thousands | December 31, 2024 | December 31, 2023 |
Investment in joint venture \u2013 Bluewater | - | 1,703 |
Investment in joint venture \u2013 Palmaille 75 | 4,010 | - |
Investment in other joint venture | 4 | - |
investment in associate | 1,231 | 1,231 |
Total | 5,245 | 2,934 |
Investment in Joint venture
As at December 31, 2023, the Group had a 50% interest in 2. Bluewater Holding Schifffahrtsgesellschaft GmbH Co. KG (Bluewater), Hamburg (Germany), which used to own container vessels through respective fully owned subsidiaries. The carrying amount of the interest as at December 31, 2023 was USD 1.7 million. In October 2024, the Company acquired the remaining 50% interest in Bluewater, for net cash USD 1.0 million from an unrelated party. The total carrying amount of the interest in Bluewater was USD 3.0 million as at December 31, 2024. Subsequent to the acquisition, the Company controls 100.0% of the shares in Bluewater and it was fully consolidated into the Group.
In January 2024, the Group partnered with Unifeeder A/S (Unifeeder) in a joint investment for the construction of a 1,300 TEU dual-fuel methanol newbuilding, scheduled for delivery in late 2026. The contract price is USD 39.0 million and the interest in the joint venture, Palmaille 75 Einundachtzigste Beteiligungsgesellschaft mbH & Co. KG (Palmaille 75),Hamburg (Germany), was contributed 50% by the Group while the remaining half was contributed by Unifeeder. According to the joint venture agreement, each party agreed to fund Palmaille 75 for a total amount of USD 10.0 million, of which USD 8.0 million was paid during 2024. As at December 31, 2024, remaining commitments to the joint venture was USD 2.0 million in total, with the Group's share amounting to USD 1.0 million. The remaining construction price would be covered by bank financing with each partner committed to guarantee 50% of the entire loan amount plus related costs. As at December 31, 2024, Palmaille 75 have remaining commitments to the yard of USD 31.2 million, of which USD 3.9 million is due in 2025 and USD 27.3 million is due in 2026.
Palmaille 75 is not allowed to distribute its profits without the consent from the two partners. In view of the shared control structure in the joint venture, the Group\u2019s interest in Palmaille 75 is accounted for using the equity method.
The following tables shows the summarized financial information of the Group\u2019s investment in Bluewater and Palmaille 75:
IN USD THOUSANDS | DECEMBER 31, 2024 | DECEMBER 31, 2023 |
Non-current assets | 7,833 | - |
Cash and cash equivalents | 185 | 2,148 |
Other current assets | 3 | 1,450 |
Current liabilities | - | 192 |
Equity | 8,021 | 3,405 |
Group\u2019s carrying amount of the investment | 4,010 | 1,703 |
IN USD THOUSANDS | 2024\u200c1 | 2023 |
Operating revenues | 8 | 14,752 |
Operating costs | (850) | (8,416) |
Other income (expense) | - | 278 |
Gain (loss) from sale of vessels | - | 39,535 |
Depreciation | - | (959) |
Net financial income (expense) | 73 | 112 |
Income tax | (21) | (28) |
Profit after tax for the period | (790) | 45,275 |
Total comprehensive income for the period | (790) | 45,275 |
Group\u2019s share of profit for the period | (395) | 22,637 |
Dividends received | - | 41,000 |
1 Bluewater is included for the first nine months of 2024.
Investment in associate
In 2022, the Group entered into an agreement with INERATEC for the supply of synthetic Marine Diesel Oil (MDO) made from biogenic CO2and renewable hydrogen, with delivery set to start in 2024. The Group recorded its initial investment at a cost of USD 0.8 million to acquire 24.5% ownership interest in Siemssen KG which holds an investment in INERATEC. In January 2023, the Group further increased its investment of USD 0.4 million to maintain its ownership position. As at December 31, 2023, the Group\u2019s investment in Siemssen KG was USD 1.2 million. The investment is accounted under the equity method.
6.2\tGroup Companies
The Group\u2019s consolidated financial statements include the financial statements of the Company and its subsidiaries listed in the table below. The table excludes all general partner companies and non-operating companies.
Company | Country | Principal activity | Ownership |
MPC Container Ships Invest B.V. | Netherlands | Holding company | 100.00% |
\"AS Angelina\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS California\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Carelia\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Clara\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Clementina CV\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Columbia\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Cypria\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Fabiana\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Fabrizia\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Felicia\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Filippa\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Fiorella\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Floretta\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Floriana\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Patria\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Petronia\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
Company | Country | Principal activity | Ownership |
\"AS Sara\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Savanna\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Selina\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Sevillia\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Sicilia\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Sophia\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
MPCC Second Financing GmbH & Co. KG | Germany | Holding company | 100.00% |
\"AS Serena\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Carlotta\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Christiana\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Sabrina\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Samanta\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Susanna\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Svenja\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Anita\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Alexandria\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Pamela\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Pia\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Nora\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Caspria\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
MPCC Fourth Financing GmbH & Co. KG | Germany | Holding company | 100.00% |
\"AS Anne\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Stine\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Silje\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Simone\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Sabine\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
MPCC Third Financing AS | Norway | Holding company | 100.00% |
\"AS Fenja\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Freya\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
Company | Country | Principal activity | Ownership |
\"AS Penelope\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
Zweite \"AS Palina\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Constantina\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
MPCC Alva AS | Norway | Ship-owning entity | 100.00% |
MPCC GREENBOX AS | Norway | Holding company | 90.10% |
MPCC NORDLAND AS | Norway | Ship-owning entity | 90.10% |
MPCC VESTLAND AS | Norway | Ship-owning entity | 90.10% |
MPCC NCL Ammonia AS | Norway | Holding company | 50.00% |
MPC ECOBOX OPCO 5 GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
MPC ECOBOX OPCO 6 GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Carolina\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Franziska\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Nina\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Claudia\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Camellia\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Nuria\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Nara\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Ninette\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Nele\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Nanne\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Natalie\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
AS Shipping OpCo 2 GmbH & Co. KG | Germany | Holding company | 90.00% |
Note 6\tGroup Structure
6.1\tInvestments in Joint Venture and Associate
Accounting policy
Joint ventures are those entities whereby the Group has joint control and rights to the net assets. Associates are those entities where the Group has significant influence but not control or joint control (usually between twenty and fifty percent of the voting power). The Group\u2019s investments in associate and joint venture are accounted for using equity method. The investments in an associate or a joint venture are initially recognized at cost and thereafter adjusted for Group\u2019s share of post-acquisition profits or losses, movements in other comprehensive income or dividends received.
in USD thousands | December 31, 2024 | December 31, 2023 |
Investment in joint venture \u2013 Bluewater | - | 1,703 |
Investment in joint venture \u2013 Palmaille 75 | 4,010 | - |
Investment in other joint venture | 4 | - |
investment in associate | 1,231 | 1,231 |
Total | 5,245 | 2,934 |
Investment in Joint venture
As at December 31, 2023, the Group had a 50% interest in 2. Bluewater Holding Schifffahrtsgesellschaft GmbH Co. KG (Bluewater), Hamburg (Germany), which used to own container vessels through respective fully owned subsidiaries. The carrying amount of the interest as at December 31, 2023 was USD 1.7 million. In October 2024, the Company acquired the remaining 50% interest in Bluewater, for net cash USD 1.0 million from an unrelated party. The total carrying amount of the interest in Bluewater was USD 3.0 million as at December 31, 2024. Subsequent to the acquisition, the Company controls 100.0% of the shares in Bluewater and it was fully consolidated into the Group.
In January 2024, the Group partnered with Unifeeder A/S (Unifeeder) in a joint investment for the construction of a 1,300 TEU dual-fuel methanol newbuilding, scheduled for delivery in late 2026. The contract price is USD 39.0 million and the interest in the joint venture, Palmaille 75 Einundachtzigste Beteiligungsgesellschaft mbH & Co. KG (Palmaille 75),Hamburg (Germany), was contributed 50% by the Group while the remaining half was contributed by Unifeeder. According to the joint venture agreement, each party agreed to fund Palmaille 75 for a total amount of USD 10.0 million, of which USD 8.0 million was paid during 2024. As at December 31, 2024, remaining commitments to the joint venture was USD 2.0 million in total, with the Group's share amounting to USD 1.0 million. The remaining construction price would be covered by bank financing with each partner committed to guarantee 50% of the entire loan amount plus related costs. As at December 31, 2024, Palmaille 75 have remaining commitments to the yard of USD 31.2 million, of which USD 3.9 million is due in 2025 and USD 27.3 million is due in 2026.
Palmaille 75 is not allowed to distribute its profits without the consent from the two partners. In view of the shared control structure in the joint venture, the Group\u2019s interest in Palmaille 75 is accounted for using the equity method.
The following tables shows the summarized financial information of the Group\u2019s investment in Bluewater and Palmaille 75:
IN USD THOUSANDS | DECEMBER 31, 2024 | DECEMBER 31, 2023 |
Non-current assets | 7,833 | - |
Cash and cash equivalents | 185 | 2,148 |
Other current assets | 3 | 1,450 |
Current liabilities | - | 192 |
Equity | 8,021 | 3,405 |
Group\u2019s carrying amount of the investment | 4,010 | 1,703 |
IN USD THOUSANDS | 2024\u200c1 | 2023 |
Operating revenues | 8 | 14,752 |
Operating costs | (850) | (8,416) |
Other income (expense) | - | 278 |
Gain (loss) from sale of vessels | - | 39,535 |
Depreciation | - | (959) |
Net financial income (expense) | 73 | 112 |
Income tax | (21) | (28) |
Profit after tax for the period | (790) | 45,275 |
Total comprehensive income for the period | (790) | 45,275 |
Group\u2019s share of profit for the period | (395) | 22,637 |
Dividends received | - | 41,000 |
1 Bluewater is included for the first nine months of 2024.
Investment in associate
In 2022, the Group entered into an agreement with INERATEC for the supply of synthetic Marine Diesel Oil (MDO) made from biogenic CO2and renewable hydrogen, with delivery set to start in 2024. The Group recorded its initial investment at a cost of USD 0.8 million to acquire 24.5% ownership interest in Siemssen KG which holds an investment in INERATEC. In January 2023, the Group further increased its investment of USD 0.4 million to maintain its ownership position. As at December 31, 2023, the Group\u2019s investment in Siemssen KG was USD 1.2 million. The investment is accounted under the equity method.
6.2\tGroup Companies
The Group\u2019s consolidated financial statements include the financial statements of the Company and its subsidiaries listed in the table below. The table excludes all general partner companies and non-operating companies.
Company | Country | Principal activity | Ownership |
MPC Container Ships Invest B.V. | Netherlands | Holding company | 100.00% |
\"AS Angelina\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS California\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Carelia\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Clara\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Clementina CV\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Columbia\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Cypria\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Fabiana\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Fabrizia\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Felicia\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Filippa\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Fiorella\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Floretta\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Floriana\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Patria\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Petronia\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
Company | Country | Principal activity | Ownership |
\"AS Sara\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Savanna\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Selina\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Sevillia\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Sicilia\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
\"AS Sophia\" ShipCo C.V. | Netherlands | Ship-owning entity | 99.90% |
MPCC Second Financing GmbH & Co. KG | Germany | Holding company | 100.00% |
\"AS Serena\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Carlotta\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Christiana\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Sabrina\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Samanta\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Susanna\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Svenja\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Anita\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Alexandria\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Pamela\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Pia\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Nora\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Caspria\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
MPCC Fourth Financing GmbH & Co. KG | Germany | Holding company | 100.00% |
\"AS Anne\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Stine\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Silje\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Simone\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Sabine\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
MPCC Third Financing AS | Norway | Holding company | 100.00% |
\"AS Fenja\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Freya\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
Company | Country | Principal activity | Ownership |
\"AS Penelope\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
Zweite \"AS Palina\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Constantina\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
MPCC Alva AS | Norway | Ship-owning entity | 100.00% |
MPCC GREENBOX AS | Norway | Holding company | 90.10% |
MPCC NORDLAND AS | Norway | Ship-owning entity | 90.10% |
MPCC VESTLAND AS | Norway | Ship-owning entity | 90.10% |
MPCC NCL Ammonia AS | Norway | Holding company | 50.00% |
MPC ECOBOX OPCO 5 GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
MPC ECOBOX OPCO 6 GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Carolina\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Franziska\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Nina\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Claudia\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Camellia\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Nuria\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Nara\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Ninette\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Nele\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Nanne\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
\"AS Natalie\" Schifffahrtsgesellschaft GmbH & Co. KG | Germany | Ship-owning entity | 100.00% |
AS Shipping OpCo 2 GmbH & Co. KG | Germany | Holding company | 90.00% |
6.1\tInvestments in Joint Venture and Associate
Accounting policy
Joint ventures are those entities whereby the Group has joint control and rights to the net assets. Associates are those entities where the Group has significant influence but not control or joint control (usually between twenty and fifty percent of the voting power). The Group\u2019s investments in associate and joint venture are accounted for using equity method. The investments in an associate or a joint venture are initially recognized at cost and thereafter adjusted for Group\u2019s share of post-acquisition profits or losses, movements in other comprehensive income or dividends received.
in USD thousands | December 31, 2024 | December 31, 2023 |
Investment in joint venture \u2013 Bluewater | - | 1,703 |
Investment in joint venture \u2013 Palmaille 75 | 4,010 | - |
Investment in other joint venture | 4 | - |
investment in associate | 1,231 | 1,231 |
Total | 5,245 | 2,934 |
Investment in Joint venture
As at December 31, 2023, the Group had a 50% interest in 2. Bluewater Holding Schifffahrtsgesellschaft GmbH Co. KG (Bluewater), Hamburg (Germany), which used to own container vessels through respective fully owned subsidiaries. The carrying amount of the interest as at December 31, 2023 was USD 1.7 million. In October 2024, the Company acquired the remaining 50% interest in Bluewater, for net cash USD 1.0 million from an unrelated party. The total carrying amount of the interest in Bluewater was USD 3.0 million as at December 31, 2024. Subsequent to the acquisition, the Company controls 100.0% of the shares in Bluewater and it was fully consolidated into the Group.
In January 2024, the Group partnered with Unifeeder A/S (Unifeeder) in a joint investment for the construction of a 1,300 TEU dual-fuel methanol newbuilding, scheduled for delivery in late 2026. The contract price is USD 39.0 million and the interest in the joint venture, Palmaille 75 Einundachtzigste Beteiligungsgesellschaft mbH & Co. KG (Palmaille 75),Hamburg (Germany), was contributed 50% by the Group while the remaining half was contributed by Unifeeder. According to the joint venture agreement, each party agreed to fund Palmaille 75 for a total amount of USD 10.0 million, of which USD 8.0 million was paid during 2024. As at December 31, 2024, remaining commitments to the joint venture was USD 2.0 million in total, with the Group's share amounting to USD 1.0 million. The remaining construction price would be covered by bank financing with each partner committed to guarantee 50% of the entire loan amount plus related costs. As at December 31, 2024, Palmaille 75 have remaining commitments to the yard of USD 31.2 million, of which USD 3.9 million is due in 2025 and USD 27.3 million is due in 2026.
Palmaille 75 is not allowed to distribute its profits without the consent from the two partners. In view of the shared control structure in the joint venture, the Group\u2019s interest in Palmaille 75 is accounted for using the equity method.
The following tables shows the summarized financial information of the Group\u2019s investment in Bluewater and Palmaille 75:
IN USD THOUSANDS | DECEMBER 31, 2024 | DECEMBER 31, 2023 |
Non-current assets | 7,833 | - |
Cash and cash equivalents | 185 | 2,148 |
Other current assets | 3 | 1,450 |
Current liabilities | - | 192 |
Equity | 8,021 | 3,405 |
Group\u2019s carrying amount of the investment | 4,010 | 1,703 |
IN USD THOUSANDS | 2024\u200c1 | 2023 |
Operating revenues | 8 | 14,752 |
Operating costs | (850) | (8,416) |
Other income (expense) | - | 278 |
Gain (loss) from sale of vessels | - | 39,535 |
Depreciation | - | (959) |
Net financial income (expense) | 73 | 112 |
Income tax | (21) | (28) |
Profit after tax for the period | (790) | 45,275 |
Total comprehensive income for the period | (790) | 45,275 |
Group\u2019s share of profit for the period | (395) | 22,637 |
Dividends received | - | 41,000 |
1 Bluewater is included for the first nine months of 2024.
Investment in associate
In 2022, the Group entered into an agreement with INERATEC for the supply of synthetic Marine Diesel Oil (MDO) made from biogenic CO2and renewable hydrogen, with delivery set to start in 2024. The Group recorded its initial investment at a cost of USD 0.8 million to acquire 24.5% ownership interest in Siemssen KG which holds an investment in INERATEC. In January 2023, the Group further increased its investment of USD 0.4 million to maintain its ownership position. As at December 31, 2023, the Group\u2019s investment in Siemssen KG was USD 1.2 million. The investment is accounted under the equity method.
", "dimensions": { "concept": "ifrs-full:DisclosureOfJointVenturesExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__122": { "value": "6.1\tInvestments in Joint Venture and Associate
Accounting policy
Joint ventures are those entities whereby the Group has joint control and rights to the net assets. Associates are those entities where the Group has significant influence but not control or joint control (usually between twenty and fifty percent of the voting power). The Group\u2019s investments in associate and joint venture are accounted for using equity method. The investments in an associate or a joint venture are initially recognized at cost and thereafter adjusted for Group\u2019s share of post-acquisition profits or losses, movements in other comprehensive income or dividends received.
in USD thousands | December 31, 2024 | December 31, 2023 |
Investment in joint venture \u2013 Bluewater | - | 1,703 |
Investment in joint venture \u2013 Palmaille 75 | 4,010 | - |
Investment in other joint venture | 4 | - |
investment in associate | 1,231 | 1,231 |
Total | 5,245 | 2,934 |
Investment in Joint venture
As at December 31, 2023, the Group had a 50% interest in 2. Bluewater Holding Schifffahrtsgesellschaft GmbH Co. KG (Bluewater), Hamburg (Germany), which used to own container vessels through respective fully owned subsidiaries. The carrying amount of the interest as at December 31, 2023 was USD 1.7 million. In October 2024, the Company acquired the remaining 50% interest in Bluewater, for net cash USD 1.0 million from an unrelated party. The total carrying amount of the interest in Bluewater was USD 3.0 million as at December 31, 2024. Subsequent to the acquisition, the Company controls 100.0% of the shares in Bluewater and it was fully consolidated into the Group.
In January 2024, the Group partnered with Unifeeder A/S (Unifeeder) in a joint investment for the construction of a 1,300 TEU dual-fuel methanol newbuilding, scheduled for delivery in late 2026. The contract price is USD 39.0 million and the interest in the joint venture, Palmaille 75 Einundachtzigste Beteiligungsgesellschaft mbH & Co. KG (Palmaille 75),Hamburg (Germany), was contributed 50% by the Group while the remaining half was contributed by Unifeeder. According to the joint venture agreement, each party agreed to fund Palmaille 75 for a total amount of USD 10.0 million, of which USD 8.0 million was paid during 2024. As at December 31, 2024, remaining commitments to the joint venture was USD 2.0 million in total, with the Group's share amounting to USD 1.0 million. The remaining construction price would be covered by bank financing with each partner committed to guarantee 50% of the entire loan amount plus related costs. As at December 31, 2024, Palmaille 75 have remaining commitments to the yard of USD 31.2 million, of which USD 3.9 million is due in 2025 and USD 27.3 million is due in 2026.
Palmaille 75 is not allowed to distribute its profits without the consent from the two partners. In view of the shared control structure in the joint venture, the Group\u2019s interest in Palmaille 75 is accounted for using the equity method.
The following tables shows the summarized financial information of the Group\u2019s investment in Bluewater and Palmaille 75:
IN USD THOUSANDS | DECEMBER 31, 2024 | DECEMBER 31, 2023 |
Non-current assets | 7,833 | - |
Cash and cash equivalents | 185 | 2,148 |
Other current assets | 3 | 1,450 |
Current liabilities | - | 192 |
Equity | 8,021 | 3,405 |
Group\u2019s carrying amount of the investment | 4,010 | 1,703 |
IN USD THOUSANDS | 2024\u200c1 | 2023 |
Operating revenues | 8 | 14,752 |
Operating costs | (850) | (8,416) |
Other income (expense) | - | 278 |
Gain (loss) from sale of vessels | - | 39,535 |
Depreciation | - | (959) |
Net financial income (expense) | 73 | 112 |
Income tax | (21) | (28) |
Profit after tax for the period | (790) | 45,275 |
Total comprehensive income for the period | (790) | 45,275 |
Group\u2019s share of profit for the period | (395) | 22,637 |
Dividends received | - | 41,000 |
1 Bluewater is included for the first nine months of 2024.
Investment in associate
In 2022, the Group entered into an agreement with INERATEC for the supply of synthetic Marine Diesel Oil (MDO) made from biogenic CO2and renewable hydrogen, with delivery set to start in 2024. The Group recorded its initial investment at a cost of USD 0.8 million to acquire 24.5% ownership interest in Siemssen KG which holds an investment in INERATEC. In January 2023, the Group further increased its investment of USD 0.4 million to maintain its ownership position. As at December 31, 2023, the Group\u2019s investment in Siemssen KG was USD 1.2 million. The investment is accounted under the equity method.
", "dimensions": { "concept": "ifrs-full:DisclosureOfSignificantInvestmentsInAssociatesExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__123-1": { "value": "6.1\tInvestments in Joint Venture and Associate
Accounting policy
Joint ventures are those entities whereby the Group has joint control and rights to the net assets. Associates are those entities where the Group has significant influence but not control or joint control (usually between twenty and fifty percent of the voting power). The Group\u2019s investments in associate and joint venture are accounted for using equity method. The investments in an associate or a joint venture are initially recognized at cost and thereafter adjusted for Group\u2019s share of post-acquisition profits or losses, movements in other comprehensive income or dividends received.
in USD thousands | December 31, 2024 | December 31, 2023 |
Investment in joint venture \u2013 Bluewater | - | 1,703 |
Investment in joint venture \u2013 Palmaille 75 | 4,010 | - |
Investment in other joint venture | 4 | - |
investment in associate | 1,231 | 1,231 |
Total | 5,245 | 2,934 |
Investment in Joint venture
As at December 31, 2023, the Group had a 50% interest in 2. Bluewater Holding Schifffahrtsgesellschaft GmbH Co. KG (Bluewater), Hamburg (Germany), which used to own container vessels through respective fully owned subsidiaries. The carrying amount of the interest as at December 31, 2023 was USD 1.7 million. In October 2024, the Company acquired the remaining 50% interest in Bluewater, for net cash USD 1.0 million from an unrelated party. The total carrying amount of the interest in Bluewater was USD 3.0 million as at December 31, 2024. Subsequent to the acquisition, the Company controls 100.0% of the shares in Bluewater and it was fully consolidated into the Group.
In January 2024, the Group partnered with Unifeeder A/S (Unifeeder) in a joint investment for the construction of a 1,300 TEU dual-fuel methanol newbuilding, scheduled for delivery in late 2026. The contract price is USD 39.0 million and the interest in the joint venture, Palmaille 75 Einundachtzigste Beteiligungsgesellschaft mbH & Co. KG (Palmaille 75),Hamburg (Germany), was contributed 50% by the Group while the remaining half was contributed by Unifeeder. According to the joint venture agreement, each party agreed to fund Palmaille 75 for a total amount of USD 10.0 million, of which USD 8.0 million was paid during 2024. As at December 31, 2024, remaining commitments to the joint venture was USD 2.0 million in total, with the Group's share amounting to USD 1.0 million. The remaining construction price would be covered by bank financing with each partner committed to guarantee 50% of the entire loan amount plus related costs. As at December 31, 2024, Palmaille 75 have remaining commitments to the yard of USD 31.2 million, of which USD 3.9 million is due in 2025 and USD 27.3 million is due in 2026.
Palmaille 75 is not allowed to distribute its profits without the consent from the two partners. In view of the shared control structure in the joint venture, the Group\u2019s interest in Palmaille 75 is accounted for using the equity method.
The following tables shows the summarized financial information of the Group\u2019s investment in Bluewater and Palmaille 75:
IN USD THOUSANDS | DECEMBER 31, 2024 | DECEMBER 31, 2023 |
Non-current assets | 7,833 | - |
Cash and cash equivalents | 185 | 2,148 |
Other current assets | 3 | 1,450 |
Current liabilities | - | 192 |
Equity | 8,021 | 3,405 |
Group\u2019s carrying amount of the investment | 4,010 | 1,703 |
IN USD THOUSANDS | 2024\u200c1 | 2023 |
Operating revenues | 8 | 14,752 |
Operating costs | (850) | (8,416) |
Other income (expense) | - | 278 |
Gain (loss) from sale of vessels | - | 39,535 |
Depreciation | - | (959) |
Net financial income (expense) | 73 | 112 |
Income tax | (21) | (28) |
Profit after tax for the period | (790) | 45,275 |
Total comprehensive income for the period | (790) | 45,275 |
Group\u2019s share of profit for the period | (395) | 22,637 |
Dividends received | - | 41,000 |
1 Bluewater is included for the first nine months of 2024.
Investment in associate
In 2022, the Group entered into an agreement with INERATEC for the supply of synthetic Marine Diesel Oil (MDO) made from biogenic CO2and renewable hydrogen, with delivery set to start in 2024. The Group recorded its initial investment at a cost of USD 0.8 million to acquire 24.5% ownership interest in Siemssen KG which holds an investment in INERATEC. In January 2023, the Group further increased its investment of USD 0.4 million to maintain its ownership position. As at December 31, 2023, the Group\u2019s investment in Siemssen KG was USD 1.2 million. The investment is accounted under the equity method.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInvestmentsAccountedForUsingEquityMethodExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__118": { "value": "Accounting policy
Joint ventures are those entities whereby the Group has joint control and rights to the net assets. Associates are those entities where the Group has significant influence but not control or joint control (usually between twenty and fifty percent of the voting power). The Group\u2019s investments in associate and joint venture are accounted for using equity method. The investments in an associate or a joint venture are initially recognized at cost and thereafter adjusted for Group\u2019s share of post-acquisition profits or losses, movements in other comprehensive income or dividends received.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociatesAndJointVenturesExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__119": { "value": "Accounting policy
Joint ventures are those entities whereby the Group has joint control and rights to the net assets. Associates are those entities where the Group has significant influence but not control or joint control (usually between twenty and fifty percent of the voting power). The Group\u2019s investments in associate and joint venture are accounted for using equity method. The investments in an associate or a joint venture are initially recognized at cost and thereafter adjusted for Group\u2019s share of post-acquisition profits or losses, movements in other comprehensive income or dividends received.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociates", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__120": { "value": "Accounting policy
Joint ventures are those entities whereby the Group has joint control and rights to the net assets. Associates are those entities where the Group has significant influence but not control or joint control (usually between twenty and fifty percent of the voting power). The Group\u2019s investments in associate and joint venture are accounted for using equity method. The investments in an associate or a joint venture are initially recognized at cost and thereafter adjusted for Group\u2019s share of post-acquisition profits or losses, movements in other comprehensive income or dividends received.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsInJointVentures", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__129": { "value": "Note 7\tCapital Structure and Financial Instruments
7.1\tFinancial Risk Management
This section provides additional information about the Group\u2019s policies that are considered most relevant in understanding the operations and management of the Group, in particular objectives and policies of how the Group manages its financial risks, liquidity positions and capital structure.
The Group owns and operates vessels for worldwide transportation of containerised cargo. Through its operation, the Group is exposed to market risk, credit risk, liquidity risk and other risks that may negatively influence the value of assets, liability and future cash flows.
Market risk
Market risk from financial instruments is the risk that future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprise four types of risk: interest rate risk, foreign currency risk, credit risk and price risk.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group\u2019s exposure to the risk of changes in market interest rates relates primarily to the Group\u2019s long-term debt obligations with floating interest rates, i.e. interest payable on the bond issued and the non-recourse senior secured term loan depends on the short-term SOFR. An increase of the short-term SOFR rate by 100 basis points would cause the Group\u2019s annualized interest expenses to increase by USD 2.1 million on a net debt basis (total interest-bearing net minus cash and cash equivalents including restricted cash).
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The functional currency of most of the entities in the Group is USD, and the Group has only minor currency risk from its operations since all income and all major vessel costs are in USD. However, the Group has exposure to EUR and NOK as parts of administration and vessel operating expenses and a portion of cash and cash equivalents, other short-term assets, trade payables and provisions and accruals are denominated in EUR and NOK. Currently, currency derivatives have been entered into to mitigate this risk, see further in Note 7.2Financial Instruments.
The Group is subject to price risk related to the charter market for feeder container vessel which is uncertain and volatile and will depend upon, among other things, the global and regional macroeconomic developments. In addition, the future financial position of the Group depends on valuations of the vessels owned by the Group. Currently, no financial instruments have been entered into to reduce this shipping market risk. The Group will normally have limited exposure to risks associated with bunker price fluctuations as the bunkers are for the charterers account when the vessels are on time charter contracts. See Board of Directors\u2019 report for further description.
Credit risk
Credit risk refers to the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Group is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments. The maximum credit risk exposure is related to the Group\u2019s trade receivables of USD 7.9 million as at December 31.2024 as compared to USD 6.3 million as at December 31, 2023.
It is the aim of the Group to enter into contracts with creditworthy counterparties only. Prior to concluding a charter party, the Group evaluates the credit quality of the customer, assessing its financial position, past experience and other factors. Charter hire is paid in advance, effectively reducing the potential exposure to credit risk. Bank deposits are only deposited with internationally recognized financial institutions.
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations when they fall due. The Group\u2019s approach to managing liquidity risk is to ensure, as far as possible, that it will have sufficient liquidity and/or undrawn committed credit facilities at all times to meet its obligations. See Board of Directors\u2019 report for further description with respect to liquidity risk. To ensure this, the Group continuously monitors projected cash flows using a liquidity planning tool. This includes furnishing management with weekly cash reporting, monthly liquidity forecasts and furnishing management and the Board of Directors with rolling 12\u201324 months liquidity forecasts.
The following table summarises the contractual maturities of financial liabilities on an undiscounted basis as at December 31, 2024:
In USD thousands | < 1 year | 1\u20133 years | 4\u20135 years | > 5 years | Total |
Interest bearing loans and borrowings | 39,757 | 78,048 | 184,535 | 37,091 | 339,431 |
Interest payments | 25,267 | 39,863 | 28,962 | 12,226 | 106,318 |
Derivative financial instruments -current | 101 | - | - | - | 101 |
Trade and other payables | 12,632 | - | - | - | 12,632 |
Related party payable | 72 | - | - | - | 72 |
Other liabilities\u00b9 | 27,523 | - | - | - | 27,523 |
Total | 105,352 | 117,911 | 213,497 | 49,317 | 486,077 |
1 (excluded non-financial liabilities such as deferred revenue, social security taxes, income tax payable etc)
The following table summarises the contractual maturities of financial liabilities on an undiscounted basis as at December 31, 2023:
In USD thousands | < 1 year | 1\u20133 years | 4\u20135 years | > 5 years | Total |
Interest-bearing debt | 34,936 | 24,761 | 69,919 | - | 129,616 |
Interest payments | 9,277 | 13,421 | 6,985 | - | 29,683 |
Trade and other payables | 20,397 | - | - | - | 20,397 |
Related part payables | 1,062 | - | - | - | 1,062 |
Other liabilities\u200c1 | 16,011 | - | - | - | 16,011 |
Total | 81,683 | 38,182 | 76,904 | - | 196,769 |
1 (excluded non-financial liabilities such as deferred revenue, social security taxes, income tax payable etc)
7.2\tFinancial Instruments
Accounting policy
The Group may use certain hedging instruments, such as forward contracts or options, to manage foreign exchange or interest rate risk, for instance. Such derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.
At the inception of a hedge relationship, the Group formally documents the relationship between the hedge instrument and the hedged item, including the risk management objectives and strategy in undertaking the hedge transaction and the hedged risk, together with the methods that will be used to assess the effectiveness of the hedging relationship.
The Group makes an assessment at inception and on an ongoing basis according to IFRS 9, of whether the hedging instruments are expected to be effective in offsetting the changes in the fair value or cash flows. For a cash flow hedge of a forecast transaction, the transaction should be highly probable to occur and should present an exposure to variations in cash flows that ultimately could affect profit or loss.
For the purpose of hedge accounting, hedges are classified as:
+fair value hedges when hedging the exposure to changes in the fair value of a recognized asset or liability or an unrecognized firm commitment (except for foreign currency risk); or
+cash flow hedges when hedging exposure to variability in cash flows that is either attributable to a particular risk associated with a recognized asset or liability or a highly probable transactions.
Hedges which meet the criteria for hedge accounting are accounted for as follows:
The effective portion of the gain or loss on the hedging instrument is recognized in other comprehensive income (OCI) in the cash flow hedge reserve, while any ineffective portion is recognized immediately in the statement of profit or loss. Amounts recognized as OCI are transferred to profit or loss when the hedged transaction affects profit or loss, such as when the hedged financial income or financial expense is recognized or when a forecast sale occurs. When the hedged item is the cost of a non-financial asset or non-financial liability, the amounts recognized as OCI are transferred to the initial carrying amount of the non-financial asset or liability.
If the forecast transaction or firm commitment is no longer expected to occur, amounts previously recognized in equity are transferred to profit or loss. If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover, or if its designation as a hedge is revoked, amounts previously recognized in equity remain in equity until the forecast transaction or firm commitment occurs.
Set out below is a comparison by category for carrying amounts and fair values of all of the Group\u2019s financial instruments that are carried in the financial statements. The estimated fair value amounts of the financial instruments have been determined using appropriate market information and valuation techniques.
Fair value of trade receivables, cash and cash equivalents and trade payables approximate their carrying amounts measured at amortized cost due to the short-term maturities of these instruments.
The fair value of interest-bearing debt is estimated by discounting future cash flows using rates for debt on similar terms, credit risk and remaining maturities. Fair value of interest-bearing debt approximates the carrying amounts as there have been no significant changes in the market rates for similar debt financing between the date of securing the debt financing and the reporting date.
December 31, 2024 | December 31, 2023 | |||
in USD thousands | Carrying Amount | Fair Value | Carrying Amount | Fair Value |
Financial assets | ||||
Trade and other current assets | 37,735 | 37,735 | 23,667 | 23,667 |
Financial instruments at fair value | 1,060 | 1,060 | 1,951 | 1,951 |
Restricted cash | 6,364 | 6,364 | 5,005 | 5,005 |
Cash and cash equivalents | 125,696 | 125,696 | 117,579 | 117,579 |
Total financial assets | 170,855 | 170,855 | 148,202 | 148,202 |
December 31, 2024 | December 31, 2023 | |||
in USD thousands | Carrying Amount | Fair Value | Carrying Amount | Fair Value |
Financial liabilities at amortized cost | ||||
Interest-bearing debt: | ||||
Floating rate debt | 218,865 | 218,865 | 126,515 | 126,515 |
Fixed rate debt | 124,409 | 126,317 | - | - |
Derivative financial instruments | 101 | 101 | - | - |
Trade and other payables | 12,632 | 12,632 | 20,397 | 20,397 |
Related party payable | 72 | 72 | 1,062 | 1,062 |
Other liabilities\u200c1 | 27,523 | 27,523 | 16,011 | 16,011 |
Total financial liabilities | 383,602 | 385,510 | 163,985 | 163,985 |
1 Excludes non-financial items in the line item Other liabilities on the Statement of Financial Position
Fair value hierarchy
The Group uses a hierarchy for determining and disclosing the fair value of financial instruments by valuation techniques. The table below shows the fair value measurements for both the Group\u2019s assets and liabilities as at December 31, 2024.
in USD thousands | Level 1 | Level 2 | Level 3 | Total fair value |
Liabilities | ||||
Floating rate debt | - | 218,865 | - | 218,865 |
Fixed rate debt | - | - | 126,317 | 126,317 |
Derivative financial instruments | 101 | - | - | 101 |
Assets | ||||
Financial instruments | - | 1,060 | - | 1,060 |
The table below shows the fair value measurements for both the Group\u2019s assets and liabilities as at December 31, 2023
in USD thousands | Level 1 | Level 2 | Level 3 | Total fair value |
Liabilities | ||||
Floating rate debt | - | 126,515 | - | 126,515 |
Assets | ||||
Financial instruments | - | 1,951 | - | 1,951 |
Cash Flow Hedges
The Group uses interest rate swaps, caps and collars as hedges of its exposure to interest rate fluctuations in connection with its debt and bond financing.
As at December 31, 2024 the Group has three interest rate caps, as compared to three interest rate caps and two swaptions as at December 31, 2023.
The table below shows the notional amounts of current and future anticipated interest-bearing debt under existing debt facilities hedged by interest-rate caps as at December 31, 2024:
instrument | Notiona amount | Effective period | Interest cap | Maturity |
Interest-rate cap | USD 45\u201327 million | 2024\u20132026 | 4.0% | December 2026 |
Interest-rate caps | USD 15.9\u20132.2 million | 2024\u20132031 | 4.0% | May/ June 2031 |
instrument | Notiona amount | Effective period | Interest cap | Maturity |
Interest-rate cap | USD 45\u201327 million | 2024\u20132026 | 4.0% | December 2026 |
Interest-rate caps | USD 15.9\u20132.2 million | 2024\u20132031 | 4.0% | May/ June 2031 |
Swaptions | USD 43.7\u201310.2 million | 2024\u20132036 | 3.5% | July 2024 |
In 2023, the Group entered into two options (swaptions) to enter into interest-rate swaps whereby the Group receives SOFR floating interest and pays a fixed interest of 3.5% on a declining notional amount starting at USD 43.7 million. If exercised, the interest-rate swaps have declining notional amounts over the period and contractual maturities in 2036. In 2024, the two swaptions were expired and as a result, the hedging relationship for both swaptions were terminated. Hence, the Group recognized the previously paid premium of USD 1.1 million that would have amortized over the swaption period as finance cost.
The fair value (level 2) of the Group\u2019s interest rate caps is the estimated amount that the Group would receive or pay to terminate the agreements as at the reporting date, considering, as applicable, the forward interest rate curves. The estimated amount is the present value of future cash flows. Fair value adjustment of the interest rate cap as at December 31, 2024 is recognized directly to Other reserves (other comprehensive income) in equity and are reclassed to profit or loss as a reclassification adjustment in the same period or periods during which the hedged expected future cash flows (future interest payments) affect profit or loss.
In October 2024, the Group entered into foreign currency forward contracts to hedge against in EUR. Hedge accounting has not been applied for these forward contracts as no hedge relationships were designated at inception. Currency derivatives that are not hedging instruments are valued at fair value, and any changes in value are entered in the condensed consolidated statement of profit or loss as finance income or finance cost. As at December 31, 2024, the fair value of derivative financial instruments relating to the foreign currency forward contracts is a liability of USD 0.1 million.
7.3\tCash and Cash Equivalents
Accounting policy
Cash and short-term deposits in the statement of financial position comprise cash at banks, on hand and short-term deposits with a maturity of three months or less. Cash equivalents represent short-term, liquid investments which are readily convertible into known amounts of cash with original maturities of three months or less.
Cash not available for general use by the Group due to minimum liquidity requirements in the loan agreements and required class are classified as restricted cash.
in USD thousands | December 31, 2024 | December 31, 2023 |
Bank deposits denominated in USD | 93,215 | 106,149 |
Bank deposits denominated in EUR | 3,113 | 2,194 |
Bank deposits denominated in NOK | 617 | 563 |
Money market | 35,115 | 13,678 |
Total cash and cash equivalents and restricted cash | 132,060 | 122,584 |
The fair value of cash and cash equivalents at December 31, 2024 is USD 125.7 million (USD 117.6 million at December 31, 2023). Restricted cash as at December 31, 2024 was USD 6.4 million compared to USD 5.0 million as at December 31, 2023. USD 1.4 million under the senior secured credit facility is restricted cash for the solely use for required class-related maintenance on the vessels, compared to USD 3.8 million at December 31, 2023. Further, the group have USD 4.3 million (2023: USD 0.6 million) in a retention account, related to repayment on the term loan facility, and USD 0.6 million (2023: 0.6 million) is kept as minimum liquidity as required by the loan agreements described in Note 7.4Interest-bearing debt.
Bank deposits earn interest at floating rates based on applicable bank deposit rates. Short-term deposits are made for varying periods, depending on the cash requirements of the Group.
7.4\tInterest-Bearing Debt
Accounting policy
All loans and borrowings are initially recognized at fair value less directly attributable transaction costs and have not been designated as at fair value through profit or loss. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method. The calculation takes into account any premium or discount on acquisition and includes transaction costs and fees that are an integral part of the effective interest rate.
A financial liability is derecognized when the obligation under the liability is discharged, cancelled or expires.
Debt issuance costs, including debt arrangement fees, are capitalized and amortized using the effective interest method over the term of the relevant loan. Amortization of debt issuance costs is included in interest expense. If a loan is repaid early, any unamortized portion of the related debt issuance costs is expensed in the period in which the loan is repaid. The Group has recorded debt issuance costs as a direct deduction from the carrying amount of the related debt using the effective interest rate method.
Under a sale and leaseback transaction, when the transfer of vessels does not qualify as a sale under IFRS 15, the seller-lessee does not de-recognise the transferred asset, and it accounts for the cash received as a financial liability.
In USD thousands | Currency | Facility amount | Interest | Maturity | December 31, 2024 | December 31, 2023 |
Senior secured credit facility | USD | 8,300 | SOFR + 3.50% | February 2027 | - | 4,810 |
Sale-leaseback financing | USD | 75,000 | SOFR+2.6% | September 2027 | 39,818 | 66,963 |
Term loan and credit facility | USD | 15,933\u2013101,493 | SOFR+1.5%-2.5% | May/July 2036 | 92,953 | 8,713 |
Term loan facility | USD | 50,000 | SOFR+ 2.8%-3.35%\u200c | July/Aug 2028 | 45,650 | 49,130 |
Term loan facility | USD | 54,460 | SOFR+2.3% | January/April 2036 | 15,560 | - |
Term loan facility | USD | 30,000 | SOFR+1.95% | October 2028 | 30,000 | - |
Senior unsecured sustainability\u00a0linked bonds | USD | 200,000 | 7. 375% | October 2029 | 125,000 | - |
Other long-term debt incl accrued\u00a0interest | 3,843 | 256 | ||||
Total outstanding | 352,824 | 129,872 | ||||
Debt issuance costs | (9,551) | (3,357) | ||||
Total interest-bearing debt outstanding | 343,273 | 126,515 |
Classified as:
Non-current | 299,236 | 92,951 |
Current | 44,037 | 33,564 |
Total | 343,273 | 126,515 |
Changes in the interest-bearing debt
Changes in interest bearing debt over a period consisting of both cash effects and non-cash effects. The following is the changes in the Group\u2019s interest-bearing debt:
Non-cash changes | |||||
In USD thousands | Balance as at December 31, 2023 | Cash flow | Amortization of loan expenses | Other effects | Balance as at December 31, 2024 |
Debt to credit institution | 60,397 | 117,367 | 531 | (284) | 178,011 |
Sale-leaseback financing | 65,862 | (27,145) | 530 | - | 39,247 |
Bond Loans | - | 122,062 | 111 | - | 122,173 |
Total Interest-bearing liabilities | 126,259 | 212,283 | 1,172 | (284) | 339,431 |
Non-cash changes | |||||
In USD thousands | Balance as at December 31, 2022 | Cash flow | Amortization of loan expenses | Other effects | Balance as at December 31, 2023 |
Debt to credit institution | 153,171 | (94,665) | 1,891 | - | 60,397 |
Sale-leaseback financing | - | 65,687 | 175 | - | 65,862 |
Total Interest-bearing liabilities | 153,171 | (28,978) | 2,066 | - | 126,259 |
In February 2023, the Group signed a senior secured term loan facility in an amount up to USD 8.3 million with OVB and it was fully drawn down as at March 31, 2023. The loan facility was used to partially finance the acquisition of the 2007-built AS Claudia. The loan facility carries an interest equivalent to the SOFR plus a margin of 350 basis points and matures in February 2027. The loan was to be repaid quarterly. In 2024, the Group repaid USD 1.1 million (2023: USD 3.5 million) and prepaid USD 3.8 million of the remaining outstanding loan. As a result, the loan was terminated as at December 31, 2024.
In May 2023, the Group entered into a pre-delivery term loan facility in an amount of USD 15.9 million and post-delivery term loan facility in an amount of up to USD 101.5 million with Cr\u00e9dit Agricole together with K-SURE Agent. The loan facilities were used to finance the construction of two 5,500 TEU eco-design vessels, Mackenzie and Colorado, which were subsequently delivered from the yard in May and July 2024. The commercial facility with Cr\u00e9dit Agricole carries an interest equivalent to the SOFR plus a margin of 250 basis points and matures in 2034 while the K-SURE facility carries an interest equivalent to the SOFR plus a margin of 150 basis points and matures in 2036. Upon delivery of both vessels
in 2024, the Group repaid USD 15.9 million of the pre-delivery loan and drew USD 101.5 million of the post-delivery loan. A at December 31, 2024, USD 93.0 million remained outstanding and the carrying amount of the two vessels was USD 145.2 million.
In July 2023, the Group entered into a 5-year loan facility in an amount of up to USD 50.0 million with Hamburg Commercial Bank (HCOB) to finance part of the acquisition cost of the five modern eco-design vessels, AS Anne, AS Simone, AS Stine, AS Silje, and AS Sabine. The facility has a tenor of five years, carries an interest rate of Secured Overnight Financing Rate (SOFR) plus a margin of a range from 280 basis points to 335 basis points depending on the Loan to Value (LTV) percentage. In 2023, USD 50.0 million was drawn on the facility to pay for the vessels. In 2024, the Group repaid USD 3.5 million (2023: USD 0.9 million) of the loan facilities and there was no available undrawn amount. As at December 31, 2024, the carrying amount of the five vessels was USD 113.6 million (2023: USD 112.5 million).
In September 2023, the Group entered into a sale and leaseback transactions with BoComm Leasing in an amount of USD 75.0 million for 12 of its vessels. The lease financing has a tenor of 48 months starting from September/October 2023 and carries an interest rate of SOFR plus a margin of 260 basis point, and includes purchase obligations for the 12 vessels at the end of the term. The Group is precluded from accounting for the sale of the vessels due to the purchase obligations at the end of the term which prevents the lessor from obtaining control of the vessels as such the lease has been accounted for as a secured borrowing, with the vessels recorded under \u201cVessels\u201d. The amount allocated to interest expense is determined by the incremental borrowing rate or imputed interest rate. Since the transaction does not qualify as a sale as according to IFRS 15, the transferred vessels are not derecognized and was depreciated by the Group as it we were the legal owner. The proceeds of USD 75.0 million was recognized as financial liabilities. In 2024, the Group sold two of its sale and leaseback vessels, AS Fatima and AS Ragna and subsequently exercised the purchase option. As a result, the Group made principal repayments of USD 6.9 million relating to the sale of vessels and discharge the financing liabilities of both vessels. As at December 31,2024, USD 39.8 million remained outstanding with BoComm Leasing and the carrying amount of the ten vessels was USD 90.9 million (2023: USD 116.1 million).
In December 2023, the Group entered into a senior secured reducing revolving loan facility of up to USD 100.0 million with HCOB, subject to finalization of the loan. The facility has a tenor of five years, and carries an interest rate of SOFR plus a margin of 295 basis points. As at December 31, 2023, no draw-down was made on this facility.
In Augst 2024, the Group entered into an ECA covered term loan facility of USD 54.6 million with Deutsche Bank and SINOSURE for its two dual-fuel methanol newbuildings. The facility carries an interest rate of compounded risk-free rate plus a margin of 230 basis points. The facility will mature 12 years from the delivery date of the vessels. As at December 31,2024, USD 15.6 million was drawn and USD 39.9 million remained undrawn.
In September 2024, the Group entered into a USD 30.0 million term loan facility with First-Citizens Bank & Trust Company (First Citizens) relating to the financing of the acquisition of AS Nara and AS Nuria. The loan facility carries an interest equivalent to adjusted term SOFR plus a margin of 195 basis points and matures in October 2029. The loan was fully drawn in October 2024, and no repayment was made as at December 31, 2024.
In October 2024, the Company completed the issuance of five-year unsecured sustainability bond in the amount of USD 125.0 million, carrying a coupon of 7.375%.
The following main financial covenants are defined in the terms of the credit facility agreement with Cr\u00e9dit Agricole, Deutsche Bank, First Citizens, the unsecured sustainability bond and\u00a0HCOB:
+The Parent company (MPC Container Ships ASA) shall maintain a minimum equity ratio of 40% throughout the term loan
+The consolidated liquidity in the Group shall maintain a minimum liquidity of USD 250.000 per consolidated vessel throughout the term loan
The Group is in compliance with all loan and credit facility covenants as at December 31, 2024.
7.1\tFinancial Risk Management
This section provides additional information about the Group\u2019s policies that are considered most relevant in understanding the operations and management of the Group, in particular objectives and policies of how the Group manages its financial risks, liquidity positions and capital structure.
The Group owns and operates vessels for worldwide transportation of containerised cargo. Through its operation, the Group is exposed to market risk, credit risk, liquidity risk and other risks that may negatively influence the value of assets, liability and future cash flows.
Market risk
Market risk from financial instruments is the risk that future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprise four types of risk: interest rate risk, foreign currency risk, credit risk and price risk.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group\u2019s exposure to the risk of changes in market interest rates relates primarily to the Group\u2019s long-term debt obligations with floating interest rates, i.e. interest payable on the bond issued and the non-recourse senior secured term loan depends on the short-term SOFR. An increase of the short-term SOFR rate by 100 basis points would cause the Group\u2019s annualized interest expenses to increase by USD 2.1 million on a net debt basis (total interest-bearing net minus cash and cash equivalents including restricted cash).
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The functional currency of most of the entities in the Group is USD, and the Group has only minor currency risk from its operations since all income and all major vessel costs are in USD. However, the Group has exposure to EUR and NOK as parts of administration and vessel operating expenses and a portion of cash and cash equivalents, other short-term assets, trade payables and provisions and accruals are denominated in EUR and NOK. Currently, currency derivatives have been entered into to mitigate this risk, see further in Note 7.2Financial Instruments.
The Group is subject to price risk related to the charter market for feeder container vessel which is uncertain and volatile and will depend upon, among other things, the global and regional macroeconomic developments. In addition, the future financial position of the Group depends on valuations of the vessels owned by the Group. Currently, no financial instruments have been entered into to reduce this shipping market risk. The Group will normally have limited exposure to risks associated with bunker price fluctuations as the bunkers are for the charterers account when the vessels are on time charter contracts. See Board of Directors\u2019 report for further description.
Credit risk
Credit risk refers to the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Group is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments. The maximum credit risk exposure is related to the Group\u2019s trade receivables of USD 7.9 million as at December 31.2024 as compared to USD 6.3 million as at December 31, 2023.
It is the aim of the Group to enter into contracts with creditworthy counterparties only. Prior to concluding a charter party, the Group evaluates the credit quality of the customer, assessing its financial position, past experience and other factors. Charter hire is paid in advance, effectively reducing the potential exposure to credit risk. Bank deposits are only deposited with internationally recognized financial institutions.
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations when they fall due. The Group\u2019s approach to managing liquidity risk is to ensure, as far as possible, that it will have sufficient liquidity and/or undrawn committed credit facilities at all times to meet its obligations. See Board of Directors\u2019 report for further description with respect to liquidity risk. To ensure this, the Group continuously monitors projected cash flows using a liquidity planning tool. This includes furnishing management with weekly cash reporting, monthly liquidity forecasts and furnishing management and the Board of Directors with rolling 12\u201324 months liquidity forecasts.
The following table summarises the contractual maturities of financial liabilities on an undiscounted basis as at December 31, 2024:
In USD thousands | < 1 year | 1\u20133 years | 4\u20135 years | > 5 years | Total |
Interest bearing loans and borrowings | 39,757 | 78,048 | 184,535 | 37,091 | 339,431 |
Interest payments | 25,267 | 39,863 | 28,962 | 12,226 | 106,318 |
Derivative financial instruments -current | 101 | - | - | - | 101 |
Trade and other payables | 12,632 | - | - | - | 12,632 |
Related party payable | 72 | - | - | - | 72 |
Other liabilities\u00b9 | 27,523 | - | - | - | 27,523 |
Total | 105,352 | 117,911 | 213,497 | 49,317 | 486,077 |
1 (excluded non-financial liabilities such as deferred revenue, social security taxes, income tax payable etc)
The following table summarises the contractual maturities of financial liabilities on an undiscounted basis as at December 31, 2023:
In USD thousands | < 1 year | 1\u20133 years | 4\u20135 years | > 5 years | Total |
Interest-bearing debt | 34,936 | 24,761 | 69,919 | - | 129,616 |
Interest payments | 9,277 | 13,421 | 6,985 | - | 29,683 |
Trade and other payables | 20,397 | - | - | - | 20,397 |
Related part payables | 1,062 | - | - | - | 1,062 |
Other liabilities\u200c1 | 16,011 | - | - | - | 16,011 |
Total | 81,683 | 38,182 | 76,904 | - | 196,769 |
1 (excluded non-financial liabilities such as deferred revenue, social security taxes, income tax payable etc)
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialRiskManagementExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__131": { "value": "Market risk
Market risk from financial instruments is the risk that future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprise four types of risk: interest rate risk, foreign currency risk, credit risk and price risk.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group\u2019s exposure to the risk of changes in market interest rates relates primarily to the Group\u2019s long-term debt obligations with floating interest rates, i.e. interest payable on the bond issued and the non-recourse senior secured term loan depends on the short-term SOFR. An increase of the short-term SOFR rate by 100 basis points would cause the Group\u2019s annualized interest expenses to increase by USD 2.1 million on a net debt basis (total interest-bearing net minus cash and cash equivalents including restricted cash).
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The functional currency of most of the entities in the Group is USD, and the Group has only minor currency risk from its operations since all income and all major vessel costs are in USD. However, the Group has exposure to EUR and NOK as parts of administration and vessel operating expenses and a portion of cash and cash equivalents, other short-term assets, trade payables and provisions and accruals are denominated in EUR and NOK. Currently, currency derivatives have been entered into to mitigate this risk, see further in Note 7.2Financial Instruments.
The Group is subject to price risk related to the charter market for feeder container vessel which is uncertain and volatile and will depend upon, among other things, the global and regional macroeconomic developments. In addition, the future financial position of the Group depends on valuations of the vessels owned by the Group. Currently, no financial instruments have been entered into to reduce this shipping market risk. The Group will normally have limited exposure to risks associated with bunker price fluctuations as the bunkers are for the charterers account when the vessels are on time charter contracts. See Board of Directors\u2019 report for further description.
", "dimensions": { "concept": "ifrs-full:DisclosureOfMarketRiskExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__132": { "value": "Credit risk
Credit risk refers to the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Group is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments. The maximum credit risk exposure is related to the Group\u2019s trade receivables of USD 7.9 million as at December 31.2024 as compared to USD 6.3 million as at December 31, 2023.
It is the aim of the Group to enter into contracts with creditworthy counterparties only. Prior to concluding a charter party, the Group evaluates the credit quality of the customer, assessing its financial position, past experience and other factors. Charter hire is paid in advance, effectively reducing the potential exposure to credit risk. Bank deposits are only deposited with internationally recognized financial institutions.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCreditRiskExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__133": { "value": "Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations when they fall due. The Group\u2019s approach to managing liquidity risk is to ensure, as far as possible, that it will have sufficient liquidity and/or undrawn committed credit facilities at all times to meet its obligations. See Board of Directors\u2019 report for further description with respect to liquidity risk. To ensure this, the Group continuously monitors projected cash flows using a liquidity planning tool. This includes furnishing management with weekly cash reporting, monthly liquidity forecasts and furnishing management and the Board of Directors with rolling 12\u201324 months liquidity forecasts.
The following table summarises the contractual maturities of financial liabilities on an undiscounted basis as at December 31, 2024:
In USD thousands | < 1 year | 1\u20133 years | 4\u20135 years | > 5 years | Total |
Interest bearing loans and borrowings | 39,757 | 78,048 | 184,535 | 37,091 | 339,431 |
Interest payments | 25,267 | 39,863 | 28,962 | 12,226 | 106,318 |
Derivative financial instruments -current | 101 | - | - | - | 101 |
Trade and other payables | 12,632 | - | - | - | 12,632 |
Related party payable | 72 | - | - | - | 72 |
Other liabilities\u00b9 | 27,523 | - | - | - | 27,523 |
Total | 105,352 | 117,911 | 213,497 | 49,317 | 486,077 |
1 (excluded non-financial liabilities such as deferred revenue, social security taxes, income tax payable etc)
The following table summarises the contractual maturities of financial liabilities on an undiscounted basis as at December 31, 2023:
In USD thousands | < 1 year | 1\u20133 years | 4\u20135 years | > 5 years | Total |
Interest-bearing debt | 34,936 | 24,761 | 69,919 | - | 129,616 |
Interest payments | 9,277 | 13,421 | 6,985 | - | 29,683 |
Trade and other payables | 20,397 | - | - | - | 20,397 |
Related part payables | 1,062 | - | - | - | 1,062 |
Other liabilities\u200c1 | 16,011 | - | - | - | 16,011 |
Total | 81,683 | 38,182 | 76,904 | - | 196,769 |
1 (excluded non-financial liabilities such as deferred revenue, social security taxes, income tax payable etc)
", "dimensions": { "concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__142": { "value": "7.2\tFinancial Instruments
Accounting policy
The Group may use certain hedging instruments, such as forward contracts or options, to manage foreign exchange or interest rate risk, for instance. Such derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.
At the inception of a hedge relationship, the Group formally documents the relationship between the hedge instrument and the hedged item, including the risk management objectives and strategy in undertaking the hedge transaction and the hedged risk, together with the methods that will be used to assess the effectiveness of the hedging relationship.
The Group makes an assessment at inception and on an ongoing basis according to IFRS 9, of whether the hedging instruments are expected to be effective in offsetting the changes in the fair value or cash flows. For a cash flow hedge of a forecast transaction, the transaction should be highly probable to occur and should present an exposure to variations in cash flows that ultimately could affect profit or loss.
For the purpose of hedge accounting, hedges are classified as:
+fair value hedges when hedging the exposure to changes in the fair value of a recognized asset or liability or an unrecognized firm commitment (except for foreign currency risk); or
+cash flow hedges when hedging exposure to variability in cash flows that is either attributable to a particular risk associated with a recognized asset or liability or a highly probable transactions.
Hedges which meet the criteria for hedge accounting are accounted for as follows:
The effective portion of the gain or loss on the hedging instrument is recognized in other comprehensive income (OCI) in the cash flow hedge reserve, while any ineffective portion is recognized immediately in the statement of profit or loss. Amounts recognized as OCI are transferred to profit or loss when the hedged transaction affects profit or loss, such as when the hedged financial income or financial expense is recognized or when a forecast sale occurs. When the hedged item is the cost of a non-financial asset or non-financial liability, the amounts recognized as OCI are transferred to the initial carrying amount of the non-financial asset or liability.
If the forecast transaction or firm commitment is no longer expected to occur, amounts previously recognized in equity are transferred to profit or loss. If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover, or if its designation as a hedge is revoked, amounts previously recognized in equity remain in equity until the forecast transaction or firm commitment occurs.
Set out below is a comparison by category for carrying amounts and fair values of all of the Group\u2019s financial instruments that are carried in the financial statements. The estimated fair value amounts of the financial instruments have been determined using appropriate market information and valuation techniques.
Fair value of trade receivables, cash and cash equivalents and trade payables approximate their carrying amounts measured at amortized cost due to the short-term maturities of these instruments.
The fair value of interest-bearing debt is estimated by discounting future cash flows using rates for debt on similar terms, credit risk and remaining maturities. Fair value of interest-bearing debt approximates the carrying amounts as there have been no significant changes in the market rates for similar debt financing between the date of securing the debt financing and the reporting date.
December 31, 2024 | December 31, 2023 | |||
in USD thousands | Carrying Amount | Fair Value | Carrying Amount | Fair Value |
Financial assets | ||||
Trade and other current assets | 37,735 | 37,735 | 23,667 | 23,667 |
Financial instruments at fair value | 1,060 | 1,060 | 1,951 | 1,951 |
Restricted cash | 6,364 | 6,364 | 5,005 | 5,005 |
Cash and cash equivalents | 125,696 | 125,696 | 117,579 | 117,579 |
Total financial assets | 170,855 | 170,855 | 148,202 | 148,202 |
December 31, 2024 | December 31, 2023 | |||
in USD thousands | Carrying Amount | Fair Value | Carrying Amount | Fair Value |
Financial liabilities at amortized cost | ||||
Interest-bearing debt: | ||||
Floating rate debt | 218,865 | 218,865 | 126,515 | 126,515 |
Fixed rate debt | 124,409 | 126,317 | - | - |
Derivative financial instruments | 101 | 101 | - | - |
Trade and other payables | 12,632 | 12,632 | 20,397 | 20,397 |
Related party payable | 72 | 72 | 1,062 | 1,062 |
Other liabilities\u200c1 | 27,523 | 27,523 | 16,011 | 16,011 |
Total financial liabilities | 383,602 | 385,510 | 163,985 | 163,985 |
1 Excludes non-financial items in the line item Other liabilities on the Statement of Financial Position
Fair value hierarchy
The Group uses a hierarchy for determining and disclosing the fair value of financial instruments by valuation techniques. The table below shows the fair value measurements for both the Group\u2019s assets and liabilities as at December 31, 2024.
in USD thousands | Level 1 | Level 2 | Level 3 | Total fair value |
Liabilities | ||||
Floating rate debt | - | 218,865 | - | 218,865 |
Fixed rate debt | - | - | 126,317 | 126,317 |
Derivative financial instruments | 101 | - | - | 101 |
Assets | ||||
Financial instruments | - | 1,060 | - | 1,060 |
The table below shows the fair value measurements for both the Group\u2019s assets and liabilities as at December 31, 2023
in USD thousands | Level 1 | Level 2 | Level 3 | Total fair value |
Liabilities | ||||
Floating rate debt | - | 126,515 | - | 126,515 |
Assets | ||||
Financial instruments | - | 1,951 | - | 1,951 |
Cash Flow Hedges
The Group uses interest rate swaps, caps and collars as hedges of its exposure to interest rate fluctuations in connection with its debt and bond financing.
As at December 31, 2024 the Group has three interest rate caps, as compared to three interest rate caps and two swaptions as at December 31, 2023.
The table below shows the notional amounts of current and future anticipated interest-bearing debt under existing debt facilities hedged by interest-rate caps as at December 31, 2024:
instrument | Notiona amount | Effective period | Interest cap | Maturity |
Interest-rate cap | USD 45\u201327 million | 2024\u20132026 | 4.0% | December 2026 |
Interest-rate caps | USD 15.9\u20132.2 million | 2024\u20132031 | 4.0% | May/ June 2031 |
instrument | Notiona amount | Effective period | Interest cap | Maturity |
Interest-rate cap | USD 45\u201327 million | 2024\u20132026 | 4.0% | December 2026 |
Interest-rate caps | USD 15.9\u20132.2 million | 2024\u20132031 | 4.0% | May/ June 2031 |
Swaptions | USD 43.7\u201310.2 million | 2024\u20132036 | 3.5% | July 2024 |
In 2023, the Group entered into two options (swaptions) to enter into interest-rate swaps whereby the Group receives SOFR floating interest and pays a fixed interest of 3.5% on a declining notional amount starting at USD 43.7 million. If exercised, the interest-rate swaps have declining notional amounts over the period and contractual maturities in 2036. In 2024, the two swaptions were expired and as a result, the hedging relationship for both swaptions were terminated. Hence, the Group recognized the previously paid premium of USD 1.1 million that would have amortized over the swaption period as finance cost.
The fair value (level 2) of the Group\u2019s interest rate caps is the estimated amount that the Group would receive or pay to terminate the agreements as at the reporting date, considering, as applicable, the forward interest rate curves. The estimated amount is the present value of future cash flows. Fair value adjustment of the interest rate cap as at December 31, 2024 is recognized directly to Other reserves (other comprehensive income) in equity and are reclassed to profit or loss as a reclassification adjustment in the same period or periods during which the hedged expected future cash flows (future interest payments) affect profit or loss.
In October 2024, the Group entered into foreign currency forward contracts to hedge against in EUR. Hedge accounting has not been applied for these forward contracts as no hedge relationships were designated at inception. Currency derivatives that are not hedging instruments are valued at fair value, and any changes in value are entered in the condensed consolidated statement of profit or loss as finance income or finance cost. As at December 31, 2024, the fair value of derivative financial instruments relating to the foreign currency forward contracts is a liability of USD 0.1 million.
Accounting policy
The Group may use certain hedging instruments, such as forward contracts or options, to manage foreign exchange or interest rate risk, for instance. Such derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.
At the inception of a hedge relationship, the Group formally documents the relationship between the hedge instrument and the hedged item, including the risk management objectives and strategy in undertaking the hedge transaction and the hedged risk, together with the methods that will be used to assess the effectiveness of the hedging relationship.
The Group makes an assessment at inception and on an ongoing basis according to IFRS 9, of whether the hedging instruments are expected to be effective in offsetting the changes in the fair value or cash flows. For a cash flow hedge of a forecast transaction, the transaction should be highly probable to occur and should present an exposure to variations in cash flows that ultimately could affect profit or loss.
For the purpose of hedge accounting, hedges are classified as:
+fair value hedges when hedging the exposure to changes in the fair value of a recognized asset or liability or an unrecognized firm commitment (except for foreign currency risk); or
+cash flow hedges when hedging exposure to variability in cash flows that is either attributable to a particular risk associated with a recognized asset or liability or a highly probable transactions.
Hedges which meet the criteria for hedge accounting are accounted for as follows:
The effective portion of the gain or loss on the hedging instrument is recognized in other comprehensive income (OCI) in the cash flow hedge reserve, while any ineffective portion is recognized immediately in the statement of profit or loss. Amounts recognized as OCI are transferred to profit or loss when the hedged transaction affects profit or loss, such as when the hedged financial income or financial expense is recognized or when a forecast sale occurs. When the hedged item is the cost of a non-financial asset or non-financial liability, the amounts recognized as OCI are transferred to the initial carrying amount of the non-financial asset or liability.
If the forecast transaction or firm commitment is no longer expected to occur, amounts previously recognized in equity are transferred to profit or loss. If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover, or if its designation as a hedge is revoked, amounts previously recognized in equity remain in equity until the forecast transaction or firm commitment occurs.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__138": { "value": "Accounting policy
The Group may use certain hedging instruments, such as forward contracts or options, to manage foreign exchange or interest rate risk, for instance. Such derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.
At the inception of a hedge relationship, the Group formally documents the relationship between the hedge instrument and the hedged item, including the risk management objectives and strategy in undertaking the hedge transaction and the hedged risk, together with the methods that will be used to assess the effectiveness of the hedging relationship.
The Group makes an assessment at inception and on an ongoing basis according to IFRS 9, of whether the hedging instruments are expected to be effective in offsetting the changes in the fair value or cash flows. For a cash flow hedge of a forecast transaction, the transaction should be highly probable to occur and should present an exposure to variations in cash flows that ultimately could affect profit or loss.
For the purpose of hedge accounting, hedges are classified as:
+fair value hedges when hedging the exposure to changes in the fair value of a recognized asset or liability or an unrecognized firm commitment (except for foreign currency risk); or
+cash flow hedges when hedging exposure to variability in cash flows that is either attributable to a particular risk associated with a recognized asset or liability or a highly probable transactions.
Hedges which meet the criteria for hedge accounting are accounted for as follows:
The effective portion of the gain or loss on the hedging instrument is recognized in other comprehensive income (OCI) in the cash flow hedge reserve, while any ineffective portion is recognized immediately in the statement of profit or loss. Amounts recognized as OCI are transferred to profit or loss when the hedged transaction affects profit or loss, such as when the hedged financial income or financial expense is recognized or when a forecast sale occurs. When the hedged item is the cost of a non-financial asset or non-financial liability, the amounts recognized as OCI are transferred to the initial carrying amount of the non-financial asset or liability.
If the forecast transaction or firm commitment is no longer expected to occur, amounts previously recognized in equity are transferred to profit or loss. If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover, or if its designation as a hedge is revoked, amounts previously recognized in equity remain in equity until the forecast transaction or firm commitment occurs.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsAndHedgingExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__139": { "value": "Accounting policy
The Group may use certain hedging instruments, such as forward contracts or options, to manage foreign exchange or interest rate risk, for instance. Such derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.
At the inception of a hedge relationship, the Group formally documents the relationship between the hedge instrument and the hedged item, including the risk management objectives and strategy in undertaking the hedge transaction and the hedged risk, together with the methods that will be used to assess the effectiveness of the hedging relationship.
The Group makes an assessment at inception and on an ongoing basis according to IFRS 9, of whether the hedging instruments are expected to be effective in offsetting the changes in the fair value or cash flows. For a cash flow hedge of a forecast transaction, the transaction should be highly probable to occur and should present an exposure to variations in cash flows that ultimately could affect profit or loss.
For the purpose of hedge accounting, hedges are classified as:
+fair value hedges when hedging the exposure to changes in the fair value of a recognized asset or liability or an unrecognized firm commitment (except for foreign currency risk); or
+cash flow hedges when hedging exposure to variability in cash flows that is either attributable to a particular risk associated with a recognized asset or liability or a highly probable transactions.
Hedges which meet the criteria for hedge accounting are accounted for as follows:
The effective portion of the gain or loss on the hedging instrument is recognized in other comprehensive income (OCI) in the cash flow hedge reserve, while any ineffective portion is recognized immediately in the statement of profit or loss. Amounts recognized as OCI are transferred to profit or loss when the hedged transaction affects profit or loss, such as when the hedged financial income or financial expense is recognized or when a forecast sale occurs. When the hedged item is the cost of a non-financial asset or non-financial liability, the amounts recognized as OCI are transferred to the initial carrying amount of the non-financial asset or liability.
If the forecast transaction or firm commitment is no longer expected to occur, amounts previously recognized in equity are transferred to profit or loss. If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover, or if its designation as a hedge is revoked, amounts previously recognized in equity remain in equity until the forecast transaction or firm commitment occurs.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__140": { "value": "Accounting policy
The Group may use certain hedging instruments, such as forward contracts or options, to manage foreign exchange or interest rate risk, for instance. Such derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.
At the inception of a hedge relationship, the Group formally documents the relationship between the hedge instrument and the hedged item, including the risk management objectives and strategy in undertaking the hedge transaction and the hedged risk, together with the methods that will be used to assess the effectiveness of the hedging relationship.
The Group makes an assessment at inception and on an ongoing basis according to IFRS 9, of whether the hedging instruments are expected to be effective in offsetting the changes in the fair value or cash flows. For a cash flow hedge of a forecast transaction, the transaction should be highly probable to occur and should present an exposure to variations in cash flows that ultimately could affect profit or loss.
For the purpose of hedge accounting, hedges are classified as:
+fair value hedges when hedging the exposure to changes in the fair value of a recognized asset or liability or an unrecognized firm commitment (except for foreign currency risk); or
+cash flow hedges when hedging exposure to variability in cash flows that is either attributable to a particular risk associated with a recognized asset or liability or a highly probable transactions.
Hedges which meet the criteria for hedge accounting are accounted for as follows:
The effective portion of the gain or loss on the hedging instrument is recognized in other comprehensive income (OCI) in the cash flow hedge reserve, while any ineffective portion is recognized immediately in the statement of profit or loss. Amounts recognized as OCI are transferred to profit or loss when the hedged transaction affects profit or loss, such as when the hedged financial income or financial expense is recognized or when a forecast sale occurs. When the hedged item is the cost of a non-financial asset or non-financial liability, the amounts recognized as OCI are transferred to the initial carrying amount of the non-financial asset or liability.
If the forecast transaction or firm commitment is no longer expected to occur, amounts previously recognized in equity are transferred to profit or loss. If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover, or if its designation as a hedge is revoked, amounts previously recognized in equity remain in equity until the forecast transaction or firm commitment occurs.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__141": { "value": "Accounting policy
The Group may use certain hedging instruments, such as forward contracts or options, to manage foreign exchange or interest rate risk, for instance. Such derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.
At the inception of a hedge relationship, the Group formally documents the relationship between the hedge instrument and the hedged item, including the risk management objectives and strategy in undertaking the hedge transaction and the hedged risk, together with the methods that will be used to assess the effectiveness of the hedging relationship.
The Group makes an assessment at inception and on an ongoing basis according to IFRS 9, of whether the hedging instruments are expected to be effective in offsetting the changes in the fair value or cash flows. For a cash flow hedge of a forecast transaction, the transaction should be highly probable to occur and should present an exposure to variations in cash flows that ultimately could affect profit or loss.
For the purpose of hedge accounting, hedges are classified as:
+fair value hedges when hedging the exposure to changes in the fair value of a recognized asset or liability or an unrecognized firm commitment (except for foreign currency risk); or
+cash flow hedges when hedging exposure to variability in cash flows that is either attributable to a particular risk associated with a recognized asset or liability or a highly probable transactions.
Hedges which meet the criteria for hedge accounting are accounted for as follows:
The effective portion of the gain or loss on the hedging instrument is recognized in other comprehensive income (OCI) in the cash flow hedge reserve, while any ineffective portion is recognized immediately in the statement of profit or loss. Amounts recognized as OCI are transferred to profit or loss when the hedged transaction affects profit or loss, such as when the hedged financial income or financial expense is recognized or when a forecast sale occurs. When the hedged item is the cost of a non-financial asset or non-financial liability, the amounts recognized as OCI are transferred to the initial carrying amount of the non-financial asset or liability.
If the forecast transaction or firm commitment is no longer expected to occur, amounts previously recognized in equity are transferred to profit or loss. If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover, or if its designation as a hedge is revoked, amounts previously recognized in equity remain in equity until the forecast transaction or firm commitment occurs.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialLiabilitiesExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__147": { "value": "Accounting policy
The Group may use certain hedging instruments, such as forward contracts or options, to manage foreign exchange or interest rate risk, for instance. Such derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.
At the inception of a hedge relationship, the Group formally documents the relationship between the hedge instrument and the hedged item, including the risk management objectives and strategy in undertaking the hedge transaction and the hedged risk, together with the methods that will be used to assess the effectiveness of the hedging relationship.
The Group makes an assessment at inception and on an ongoing basis according to IFRS 9, of whether the hedging instruments are expected to be effective in offsetting the changes in the fair value or cash flows. For a cash flow hedge of a forecast transaction, the transaction should be highly probable to occur and should present an exposure to variations in cash flows that ultimately could affect profit or loss.
For the purpose of hedge accounting, hedges are classified as:
+fair value hedges when hedging the exposure to changes in the fair value of a recognized asset or liability or an unrecognized firm commitment (except for foreign currency risk); or
+cash flow hedges when hedging exposure to variability in cash flows that is either attributable to a particular risk associated with a recognized asset or liability or a highly probable transactions.
Hedges which meet the criteria for hedge accounting are accounted for as follows:
The effective portion of the gain or loss on the hedging instrument is recognized in other comprehensive income (OCI) in the cash flow hedge reserve, while any ineffective portion is recognized immediately in the statement of profit or loss. Amounts recognized as OCI are transferred to profit or loss when the hedged transaction affects profit or loss, such as when the hedged financial income or financial expense is recognized or when a forecast sale occurs. When the hedged item is the cost of a non-financial asset or non-financial liability, the amounts recognized as OCI are transferred to the initial carrying amount of the non-financial asset or liability.
If the forecast transaction or firm commitment is no longer expected to occur, amounts previously recognized in equity are transferred to profit or loss. If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover, or if its designation as a hedge is revoked, amounts previously recognized in equity remain in equity until the forecast transaction or firm commitment occurs.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForHedgingExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__144": { "value": "Set out below is a comparison by category for carrying amounts and fair values of all of the Group\u2019s financial instruments that are carried in the financial statements. The estimated fair value amounts of the financial instruments have been determined using appropriate market information and valuation techniques.
Fair value of trade receivables, cash and cash equivalents and trade payables approximate their carrying amounts measured at amortized cost due to the short-term maturities of these instruments.
The fair value of interest-bearing debt is estimated by discounting future cash flows using rates for debt on similar terms, credit risk and remaining maturities. Fair value of interest-bearing debt approximates the carrying amounts as there have been no significant changes in the market rates for similar debt financing between the date of securing the debt financing and the reporting date.
December 31, 2024 | December 31, 2023 | |||
in USD thousands | Carrying Amount | Fair Value | Carrying Amount | Fair Value |
Financial assets | ||||
Trade and other current assets | 37,735 | 37,735 | 23,667 | 23,667 |
Financial instruments at fair value | 1,060 | 1,060 | 1,951 | 1,951 |
Restricted cash | 6,364 | 6,364 | 5,005 | 5,005 |
Cash and cash equivalents | 125,696 | 125,696 | 117,579 | 117,579 |
Total financial assets | 170,855 | 170,855 | 148,202 | 148,202 |
December 31, 2024 | December 31, 2023 | |||
in USD thousands | Carrying Amount | Fair Value | Carrying Amount | Fair Value |
Financial liabilities at amortized cost | ||||
Interest-bearing debt: | ||||
Floating rate debt | 218,865 | 218,865 | 126,515 | 126,515 |
Fixed rate debt | 124,409 | 126,317 | - | - |
Derivative financial instruments | 101 | 101 | - | - |
Trade and other payables | 12,632 | 12,632 | 20,397 | 20,397 |
Related party payable | 72 | 72 | 1,062 | 1,062 |
Other liabilities\u200c1 | 27,523 | 27,523 | 16,011 | 16,011 |
Total financial liabilities | 383,602 | 385,510 | 163,985 | 163,985 |
1 Excludes non-financial items in the line item Other liabilities on the Statement of Financial Position
Fair value hierarchy
The Group uses a hierarchy for determining and disclosing the fair value of financial instruments by valuation techniques. The table below shows the fair value measurements for both the Group\u2019s assets and liabilities as at December 31, 2024.
in USD thousands | Level 1 | Level 2 | Level 3 | Total fair value |
Liabilities | ||||
Floating rate debt | - | 218,865 | - | 218,865 |
Fixed rate debt | - | - | 126,317 | 126,317 |
Derivative financial instruments | 101 | - | - | 101 |
Assets | ||||
Financial instruments | - | 1,060 | - | 1,060 |
The table below shows the fair value measurements for both the Group\u2019s assets and liabilities as at December 31, 2023
in USD thousands | Level 1 | Level 2 | Level 3 | Total fair value |
Liabilities | ||||
Floating rate debt | - | 126,515 | - | 126,515 |
Assets | ||||
Financial instruments | - | 1,951 | - | 1,951 |
Cash Flow Hedges
The Group uses interest rate swaps, caps and collars as hedges of its exposure to interest rate fluctuations in connection with its debt and bond financing.
As at December 31, 2024 the Group has three interest rate caps, as compared to three interest rate caps and two swaptions as at December 31, 2023.
The table below shows the notional amounts of current and future anticipated interest-bearing debt under existing debt facilities hedged by interest-rate caps as at December 31, 2024:
instrument | Notiona amount | Effective period | Interest cap | Maturity |
Interest-rate cap | USD 45\u201327 million | 2024\u20132026 | 4.0% | December 2026 |
Interest-rate caps | USD 15.9\u20132.2 million | 2024\u20132031 | 4.0% | May/ June 2031 |
instrument | Notiona amount | Effective period | Interest cap | Maturity |
Interest-rate cap | USD 45\u201327 million | 2024\u20132026 | 4.0% | December 2026 |
Interest-rate caps | USD 15.9\u20132.2 million | 2024\u20132031 | 4.0% | May/ June 2031 |
Swaptions | USD 43.7\u201310.2 million | 2024\u20132036 | 3.5% | July 2024 |
In 2023, the Group entered into two options (swaptions) to enter into interest-rate swaps whereby the Group receives SOFR floating interest and pays a fixed interest of 3.5% on a declining notional amount starting at USD 43.7 million. If exercised, the interest-rate swaps have declining notional amounts over the period and contractual maturities in 2036. In 2024, the two swaptions were expired and as a result, the hedging relationship for both swaptions were terminated. Hence, the Group recognized the previously paid premium of USD 1.1 million that would have amortized over the swaption period as finance cost.
The fair value (level 2) of the Group\u2019s interest rate caps is the estimated amount that the Group would receive or pay to terminate the agreements as at the reporting date, considering, as applicable, the forward interest rate curves. The estimated amount is the present value of future cash flows. Fair value adjustment of the interest rate cap as at December 31, 2024 is recognized directly to Other reserves (other comprehensive income) in equity and are reclassed to profit or loss as a reclassification adjustment in the same period or periods during which the hedged expected future cash flows (future interest payments) affect profit or loss.
In October 2024, the Group entered into foreign currency forward contracts to hedge against in EUR. Hedge accounting has not been applied for these forward contracts as no hedge relationships were designated at inception. Currency derivatives that are not hedging instruments are valued at fair value, and any changes in value are entered in the condensed consolidated statement of profit or loss as finance income or finance cost. As at December 31, 2024, the fair value of derivative financial instruments relating to the foreign currency forward contracts is a liability of USD 0.1 million.
Set out below is a comparison by category for carrying amounts and fair values of all of the Group\u2019s financial instruments that are carried in the financial statements. The estimated fair value amounts of the financial instruments have been determined using appropriate market information and valuation techniques.
Fair value of trade receivables, cash and cash equivalents and trade payables approximate their carrying amounts measured at amortized cost due to the short-term maturities of these instruments.
The fair value of interest-bearing debt is estimated by discounting future cash flows using rates for debt on similar terms, credit risk and remaining maturities. Fair value of interest-bearing debt approximates the carrying amounts as there have been no significant changes in the market rates for similar debt financing between the date of securing the debt financing and the reporting date.
December 31, 2024 | December 31, 2023 | |||
in USD thousands | Carrying Amount | Fair Value | Carrying Amount | Fair Value |
Financial assets | ||||
Trade and other current assets | 37,735 | 37,735 | 23,667 | 23,667 |
Financial instruments at fair value | 1,060 | 1,060 | 1,951 | 1,951 |
Restricted cash | 6,364 | 6,364 | 5,005 | 5,005 |
Cash and cash equivalents | 125,696 | 125,696 | 117,579 | 117,579 |
Total financial assets | 170,855 | 170,855 | 148,202 | 148,202 |
December 31, 2024 | December 31, 2023 | |||
in USD thousands | Carrying Amount | Fair Value | Carrying Amount | Fair Value |
Financial liabilities at amortized cost | ||||
Interest-bearing debt: | ||||
Floating rate debt | 218,865 | 218,865 | 126,515 | 126,515 |
Fixed rate debt | 124,409 | 126,317 | - | - |
Derivative financial instruments | 101 | 101 | - | - |
Trade and other payables | 12,632 | 12,632 | 20,397 | 20,397 |
Related party payable | 72 | 72 | 1,062 | 1,062 |
Other liabilities\u200c1 | 27,523 | 27,523 | 16,011 | 16,011 |
Total financial liabilities | 383,602 | 385,510 | 163,985 | 163,985 |
1 Excludes non-financial items in the line item Other liabilities on the Statement of Financial Position
7.3\tCash and Cash Equivalents
Accounting policy
Cash and short-term deposits in the statement of financial position comprise cash at banks, on hand and short-term deposits with a maturity of three months or less. Cash equivalents represent short-term, liquid investments which are readily convertible into known amounts of cash with original maturities of three months or less.
Cash not available for general use by the Group due to minimum liquidity requirements in the loan agreements and required class are classified as restricted cash.
in USD thousands | December 31, 2024 | December 31, 2023 |
Bank deposits denominated in USD | 93,215 | 106,149 |
Bank deposits denominated in EUR | 3,113 | 2,194 |
Bank deposits denominated in NOK | 617 | 563 |
Money market | 35,115 | 13,678 |
Total cash and cash equivalents and restricted cash | 132,060 | 122,584 |
The fair value of cash and cash equivalents at December 31, 2024 is USD 125.7 million (USD 117.6 million at December 31, 2023). Restricted cash as at December 31, 2024 was USD 6.4 million compared to USD 5.0 million as at December 31, 2023. USD 1.4 million under the senior secured credit facility is restricted cash for the solely use for required class-related maintenance on the vessels, compared to USD 3.8 million at December 31, 2023. Further, the group have USD 4.3 million (2023: USD 0.6 million) in a retention account, related to repayment on the term loan facility, and USD 0.6 million (2023: 0.6 million) is kept as minimum liquidity as required by the loan agreements described in Note 7.4Interest-bearing debt.
Bank deposits earn interest at floating rates based on applicable bank deposit rates. Short-term deposits are made for varying periods, depending on the cash requirements of the Group.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__143": { "value": "Fair value hierarchy
The Group uses a hierarchy for determining and disclosing the fair value of financial instruments by valuation techniques. The table below shows the fair value measurements for both the Group\u2019s assets and liabilities as at December 31, 2024.
in USD thousands | Level 1 | Level 2 | Level 3 | Total fair value |
Liabilities | ||||
Floating rate debt | - | 218,865 | - | 218,865 |
Fixed rate debt | - | - | 126,317 | 126,317 |
Derivative financial instruments | 101 | - | - | 101 |
Assets | ||||
Financial instruments | - | 1,060 | - | 1,060 |
The table below shows the fair value measurements for both the Group\u2019s assets and liabilities as at December 31, 2023
in USD thousands | Level 1 | Level 2 | Level 3 | Total fair value |
Liabilities | ||||
Floating rate debt | - | 126,515 | - | 126,515 |
Assets | ||||
Financial instruments | - | 1,951 | - | 1,951 |
Cash Flow Hedges
The Group uses interest rate swaps, caps and collars as hedges of its exposure to interest rate fluctuations in connection with its debt and bond financing.
As at December 31, 2024 the Group has three interest rate caps, as compared to three interest rate caps and two swaptions as at December 31, 2023.
The table below shows the notional amounts of current and future anticipated interest-bearing debt under existing debt facilities hedged by interest-rate caps as at December 31, 2024:
instrument | Notiona amount | Effective period | Interest cap | Maturity |
Interest-rate cap | USD 45\u201327 million | 2024\u20132026 | 4.0% | December 2026 |
Interest-rate caps | USD 15.9\u20132.2 million | 2024\u20132031 | 4.0% | May/ June 2031 |
instrument | Notiona amount | Effective period | Interest cap | Maturity |
Interest-rate cap | USD 45\u201327 million | 2024\u20132026 | 4.0% | December 2026 |
Interest-rate caps | USD 15.9\u20132.2 million | 2024\u20132031 | 4.0% | May/ June 2031 |
Swaptions | USD 43.7\u201310.2 million | 2024\u20132036 | 3.5% | July 2024 |
In 2023, the Group entered into two options (swaptions) to enter into interest-rate swaps whereby the Group receives SOFR floating interest and pays a fixed interest of 3.5% on a declining notional amount starting at USD 43.7 million. If exercised, the interest-rate swaps have declining notional amounts over the period and contractual maturities in 2036. In 2024, the two swaptions were expired and as a result, the hedging relationship for both swaptions were terminated. Hence, the Group recognized the previously paid premium of USD 1.1 million that would have amortized over the swaption period as finance cost.
The fair value (level 2) of the Group\u2019s interest rate caps is the estimated amount that the Group would receive or pay to terminate the agreements as at the reporting date, considering, as applicable, the forward interest rate curves. The estimated amount is the present value of future cash flows. Fair value adjustment of the interest rate cap as at December 31, 2024 is recognized directly to Other reserves (other comprehensive income) in equity and are reclassed to profit or loss as a reclassification adjustment in the same period or periods during which the hedged expected future cash flows (future interest payments) affect profit or loss.
In October 2024, the Group entered into foreign currency forward contracts to hedge against in EUR. Hedge accounting has not been applied for these forward contracts as no hedge relationships were designated at inception. Currency derivatives that are not hedging instruments are valued at fair value, and any changes in value are entered in the condensed consolidated statement of profit or loss as finance income or finance cost. As at December 31, 2024, the fair value of derivative financial instruments relating to the foreign currency forward contracts is a liability of USD 0.1 million.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__152": { "value": "7.3\tCash and Cash Equivalents
Accounting policy
Cash and short-term deposits in the statement of financial position comprise cash at banks, on hand and short-term deposits with a maturity of three months or less. Cash equivalents represent short-term, liquid investments which are readily convertible into known amounts of cash with original maturities of three months or less.
Cash not available for general use by the Group due to minimum liquidity requirements in the loan agreements and required class are classified as restricted cash.
in USD thousands | December 31, 2024 | December 31, 2023 |
Bank deposits denominated in USD | 93,215 | 106,149 |
Bank deposits denominated in EUR | 3,113 | 2,194 |
Bank deposits denominated in NOK | 617 | 563 |
Money market | 35,115 | 13,678 |
Total cash and cash equivalents and restricted cash | 132,060 | 122,584 |
The fair value of cash and cash equivalents at December 31, 2024 is USD 125.7 million (USD 117.6 million at December 31, 2023). Restricted cash as at December 31, 2024 was USD 6.4 million compared to USD 5.0 million as at December 31, 2023. USD 1.4 million under the senior secured credit facility is restricted cash for the solely use for required class-related maintenance on the vessels, compared to USD 3.8 million at December 31, 2023. Further, the group have USD 4.3 million (2023: USD 0.6 million) in a retention account, related to repayment on the term loan facility, and USD 0.6 million (2023: 0.6 million) is kept as minimum liquidity as required by the loan agreements described in Note 7.4Interest-bearing debt.
Bank deposits earn interest at floating rates based on applicable bank deposit rates. Short-term deposits are made for varying periods, depending on the cash requirements of the Group.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCashAndBankBalancesAtCentralBanksExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__153": { "value": "7.3\tCash and Cash Equivalents
Accounting policy
Cash and short-term deposits in the statement of financial position comprise cash at banks, on hand and short-term deposits with a maturity of three months or less. Cash equivalents represent short-term, liquid investments which are readily convertible into known amounts of cash with original maturities of three months or less.
Cash not available for general use by the Group due to minimum liquidity requirements in the loan agreements and required class are classified as restricted cash.
in USD thousands | December 31, 2024 | December 31, 2023 |
Bank deposits denominated in USD | 93,215 | 106,149 |
Bank deposits denominated in EUR | 3,113 | 2,194 |
Bank deposits denominated in NOK | 617 | 563 |
Money market | 35,115 | 13,678 |
Total cash and cash equivalents and restricted cash | 132,060 | 122,584 |
The fair value of cash and cash equivalents at December 31, 2024 is USD 125.7 million (USD 117.6 million at December 31, 2023). Restricted cash as at December 31, 2024 was USD 6.4 million compared to USD 5.0 million as at December 31, 2023. USD 1.4 million under the senior secured credit facility is restricted cash for the solely use for required class-related maintenance on the vessels, compared to USD 3.8 million at December 31, 2023. Further, the group have USD 4.3 million (2023: USD 0.6 million) in a retention account, related to repayment on the term loan facility, and USD 0.6 million (2023: 0.6 million) is kept as minimum liquidity as required by the loan agreements described in Note 7.4Interest-bearing debt.
Bank deposits earn interest at floating rates based on applicable bank deposit rates. Short-term deposits are made for varying periods, depending on the cash requirements of the Group.
", "dimensions": { "concept": "ifrs-full:DisclosureOfRestrictedCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__149": { "value": "Accounting policy
Cash and short-term deposits in the statement of financial position comprise cash at banks, on hand and short-term deposits with a maturity of three months or less. Cash equivalents represent short-term, liquid investments which are readily convertible into known amounts of cash with original maturities of three months or less.
Cash not available for general use by the Group due to minimum liquidity requirements in the loan agreements and required class are classified as restricted cash.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__150": { "value": "Accounting policy
Cash and short-term deposits in the statement of financial position comprise cash at banks, on hand and short-term deposits with a maturity of three months or less. Cash equivalents represent short-term, liquid investments which are readily convertible into known amounts of cash with original maturities of three months or less.
Cash not available for general use by the Group due to minimum liquidity requirements in the loan agreements and required class are classified as restricted cash.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRestrictedCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__157": { "value": "7.4\tInterest-Bearing Debt
Accounting policy
All loans and borrowings are initially recognized at fair value less directly attributable transaction costs and have not been designated as at fair value through profit or loss. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method. The calculation takes into account any premium or discount on acquisition and includes transaction costs and fees that are an integral part of the effective interest rate.
A financial liability is derecognized when the obligation under the liability is discharged, cancelled or expires.
Debt issuance costs, including debt arrangement fees, are capitalized and amortized using the effective interest method over the term of the relevant loan. Amortization of debt issuance costs is included in interest expense. If a loan is repaid early, any unamortized portion of the related debt issuance costs is expensed in the period in which the loan is repaid. The Group has recorded debt issuance costs as a direct deduction from the carrying amount of the related debt using the effective interest rate method.
Under a sale and leaseback transaction, when the transfer of vessels does not qualify as a sale under IFRS 15, the seller-lessee does not de-recognise the transferred asset, and it accounts for the cash received as a financial liability.
In USD thousands | Currency | Facility amount | Interest | Maturity | December 31, 2024 | December 31, 2023 |
Senior secured credit facility | USD | 8,300 | SOFR + 3.50% | February 2027 | - | 4,810 |
Sale-leaseback financing | USD | 75,000 | SOFR+2.6% | September 2027 | 39,818 | 66,963 |
Term loan and credit facility | USD | 15,933\u2013101,493 | SOFR+1.5%-2.5% | May/July 2036 | 92,953 | 8,713 |
Term loan facility | USD | 50,000 | SOFR+ 2.8%-3.35%\u200c | July/Aug 2028 | 45,650 | 49,130 |
Term loan facility | USD | 54,460 | SOFR+2.3% | January/April 2036 | 15,560 | - |
Term loan facility | USD | 30,000 | SOFR+1.95% | October 2028 | 30,000 | - |
Senior unsecured sustainability\u00a0linked bonds | USD | 200,000 | 7. 375% | October 2029 | 125,000 | - |
Other long-term debt incl accrued\u00a0interest | 3,843 | 256 | ||||
Total outstanding | 352,824 | 129,872 | ||||
Debt issuance costs | (9,551) | (3,357) | ||||
Total interest-bearing debt outstanding | 343,273 | 126,515 |
Classified as:
Non-current | 299,236 | 92,951 |
Current | 44,037 | 33,564 |
Total | 343,273 | 126,515 |
Changes in the interest-bearing debt
Changes in interest bearing debt over a period consisting of both cash effects and non-cash effects. The following is the changes in the Group\u2019s interest-bearing debt:
Non-cash changes | |||||
In USD thousands | Balance as at December 31, 2023 | Cash flow | Amortization of loan expenses | Other effects | Balance as at December 31, 2024 |
Debt to credit institution | 60,397 | 117,367 | 531 | (284) | 178,011 |
Sale-leaseback financing | 65,862 | (27,145) | 530 | - | 39,247 |
Bond Loans | - | 122,062 | 111 | - | 122,173 |
Total Interest-bearing liabilities | 126,259 | 212,283 | 1,172 | (284) | 339,431 |
Non-cash changes | |||||
In USD thousands | Balance as at December 31, 2022 | Cash flow | Amortization of loan expenses | Other effects | Balance as at December 31, 2023 |
Debt to credit institution | 153,171 | (94,665) | 1,891 | - | 60,397 |
Sale-leaseback financing | - | 65,687 | 175 | - | 65,862 |
Total Interest-bearing liabilities | 153,171 | (28,978) | 2,066 | - | 126,259 |
In February 2023, the Group signed a senior secured term loan facility in an amount up to USD 8.3 million with OVB and it was fully drawn down as at March 31, 2023. The loan facility was used to partially finance the acquisition of the 2007-built AS Claudia. The loan facility carries an interest equivalent to the SOFR plus a margin of 350 basis points and matures in February 2027. The loan was to be repaid quarterly. In 2024, the Group repaid USD 1.1 million (2023: USD 3.5 million) and prepaid USD 3.8 million of the remaining outstanding loan. As a result, the loan was terminated as at December 31, 2024.
In May 2023, the Group entered into a pre-delivery term loan facility in an amount of USD 15.9 million and post-delivery term loan facility in an amount of up to USD 101.5 million with Cr\u00e9dit Agricole together with K-SURE Agent. The loan facilities were used to finance the construction of two 5,500 TEU eco-design vessels, Mackenzie and Colorado, which were subsequently delivered from the yard in May and July 2024. The commercial facility with Cr\u00e9dit Agricole carries an interest equivalent to the SOFR plus a margin of 250 basis points and matures in 2034 while the K-SURE facility carries an interest equivalent to the SOFR plus a margin of 150 basis points and matures in 2036. Upon delivery of both vessels
in 2024, the Group repaid USD 15.9 million of the pre-delivery loan and drew USD 101.5 million of the post-delivery loan. A at December 31, 2024, USD 93.0 million remained outstanding and the carrying amount of the two vessels was USD 145.2 million.
In July 2023, the Group entered into a 5-year loan facility in an amount of up to USD 50.0 million with Hamburg Commercial Bank (HCOB) to finance part of the acquisition cost of the five modern eco-design vessels, AS Anne, AS Simone, AS Stine, AS Silje, and AS Sabine. The facility has a tenor of five years, carries an interest rate of Secured Overnight Financing Rate (SOFR) plus a margin of a range from 280 basis points to 335 basis points depending on the Loan to Value (LTV) percentage. In 2023, USD 50.0 million was drawn on the facility to pay for the vessels. In 2024, the Group repaid USD 3.5 million (2023: USD 0.9 million) of the loan facilities and there was no available undrawn amount. As at December 31, 2024, the carrying amount of the five vessels was USD 113.6 million (2023: USD 112.5 million).
In September 2023, the Group entered into a sale and leaseback transactions with BoComm Leasing in an amount of USD 75.0 million for 12 of its vessels. The lease financing has a tenor of 48 months starting from September/October 2023 and carries an interest rate of SOFR plus a margin of 260 basis point, and includes purchase obligations for the 12 vessels at the end of the term. The Group is precluded from accounting for the sale of the vessels due to the purchase obligations at the end of the term which prevents the lessor from obtaining control of the vessels as such the lease has been accounted for as a secured borrowing, with the vessels recorded under \u201cVessels\u201d. The amount allocated to interest expense is determined by the incremental borrowing rate or imputed interest rate. Since the transaction does not qualify as a sale as according to IFRS 15, the transferred vessels are not derecognized and was depreciated by the Group as it we were the legal owner. The proceeds of USD 75.0 million was recognized as financial liabilities. In 2024, the Group sold two of its sale and leaseback vessels, AS Fatima and AS Ragna and subsequently exercised the purchase option. As a result, the Group made principal repayments of USD 6.9 million relating to the sale of vessels and discharge the financing liabilities of both vessels. As at December 31,2024, USD 39.8 million remained outstanding with BoComm Leasing and the carrying amount of the ten vessels was USD 90.9 million (2023: USD 116.1 million).
In December 2023, the Group entered into a senior secured reducing revolving loan facility of up to USD 100.0 million with HCOB, subject to finalization of the loan. The facility has a tenor of five years, and carries an interest rate of SOFR plus a margin of 295 basis points. As at December 31, 2023, no draw-down was made on this facility.
In Augst 2024, the Group entered into an ECA covered term loan facility of USD 54.6 million with Deutsche Bank and SINOSURE for its two dual-fuel methanol newbuildings. The facility carries an interest rate of compounded risk-free rate plus a margin of 230 basis points. The facility will mature 12 years from the delivery date of the vessels. As at December 31,2024, USD 15.6 million was drawn and USD 39.9 million remained undrawn.
In September 2024, the Group entered into a USD 30.0 million term loan facility with First-Citizens Bank & Trust Company (First Citizens) relating to the financing of the acquisition of AS Nara and AS Nuria. The loan facility carries an interest equivalent to adjusted term SOFR plus a margin of 195 basis points and matures in October 2029. The loan was fully drawn in October 2024, and no repayment was made as at December 31, 2024.
In October 2024, the Company completed the issuance of five-year unsecured sustainability bond in the amount of USD 125.0 million, carrying a coupon of 7.375%.
The following main financial covenants are defined in the terms of the credit facility agreement with Cr\u00e9dit Agricole, Deutsche Bank, First Citizens, the unsecured sustainability bond and\u00a0HCOB:
+The Parent company (MPC Container Ships ASA) shall maintain a minimum equity ratio of 40% throughout the term loan
+The consolidated liquidity in the Group shall maintain a minimum liquidity of USD 250.000 per consolidated vessel throughout the term loan
The Group is in compliance with all loan and credit facility covenants as at December 31, 2024.
7.4\tInterest-Bearing Debt
Accounting policy
All loans and borrowings are initially recognized at fair value less directly attributable transaction costs and have not been designated as at fair value through profit or loss. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method. The calculation takes into account any premium or discount on acquisition and includes transaction costs and fees that are an integral part of the effective interest rate.
A financial liability is derecognized when the obligation under the liability is discharged, cancelled or expires.
Debt issuance costs, including debt arrangement fees, are capitalized and amortized using the effective interest method over the term of the relevant loan. Amortization of debt issuance costs is included in interest expense. If a loan is repaid early, any unamortized portion of the related debt issuance costs is expensed in the period in which the loan is repaid. The Group has recorded debt issuance costs as a direct deduction from the carrying amount of the related debt using the effective interest rate method.
Under a sale and leaseback transaction, when the transfer of vessels does not qualify as a sale under IFRS 15, the seller-lessee does not de-recognise the transferred asset, and it accounts for the cash received as a financial liability.
In USD thousands | Currency | Facility amount | Interest | Maturity | December 31, 2024 | December 31, 2023 |
Senior secured credit facility | USD | 8,300 | SOFR + 3.50% | February 2027 | - | 4,810 |
Sale-leaseback financing | USD | 75,000 | SOFR+2.6% | September 2027 | 39,818 | 66,963 |
Term loan and credit facility | USD | 15,933\u2013101,493 | SOFR+1.5%-2.5% | May/July 2036 | 92,953 | 8,713 |
Term loan facility | USD | 50,000 | SOFR+ 2.8%-3.35%\u200c | July/Aug 2028 | 45,650 | 49,130 |
Term loan facility | USD | 54,460 | SOFR+2.3% | January/April 2036 | 15,560 | - |
Term loan facility | USD | 30,000 | SOFR+1.95% | October 2028 | 30,000 | - |
Senior unsecured sustainability\u00a0linked bonds | USD | 200,000 | 7. 375% | October 2029 | 125,000 | - |
Other long-term debt incl accrued\u00a0interest | 3,843 | 256 | ||||
Total outstanding | 352,824 | 129,872 | ||||
Debt issuance costs | (9,551) | (3,357) | ||||
Total interest-bearing debt outstanding | 343,273 | 126,515 |
Classified as:
Non-current | 299,236 | 92,951 |
Current | 44,037 | 33,564 |
Total | 343,273 | 126,515 |
Changes in the interest-bearing debt
Changes in interest bearing debt over a period consisting of both cash effects and non-cash effects. The following is the changes in the Group\u2019s interest-bearing debt:
Non-cash changes | |||||
In USD thousands | Balance as at December 31, 2023 | Cash flow | Amortization of loan expenses | Other effects | Balance as at December 31, 2024 |
Debt to credit institution | 60,397 | 117,367 | 531 | (284) | 178,011 |
Sale-leaseback financing | 65,862 | (27,145) | 530 | - | 39,247 |
Bond Loans | - | 122,062 | 111 | - | 122,173 |
Total Interest-bearing liabilities | 126,259 | 212,283 | 1,172 | (284) | 339,431 |
Non-cash changes | |||||
In USD thousands | Balance as at December 31, 2022 | Cash flow | Amortization of loan expenses | Other effects | Balance as at December 31, 2023 |
Debt to credit institution | 153,171 | (94,665) | 1,891 | - | 60,397 |
Sale-leaseback financing | - | 65,687 | 175 | - | 65,862 |
Total Interest-bearing liabilities | 153,171 | (28,978) | 2,066 | - | 126,259 |
In February 2023, the Group signed a senior secured term loan facility in an amount up to USD 8.3 million with OVB and it was fully drawn down as at March 31, 2023. The loan facility was used to partially finance the acquisition of the 2007-built AS Claudia. The loan facility carries an interest equivalent to the SOFR plus a margin of 350 basis points and matures in February 2027. The loan was to be repaid quarterly. In 2024, the Group repaid USD 1.1 million (2023: USD 3.5 million) and prepaid USD 3.8 million of the remaining outstanding loan. As a result, the loan was terminated as at December 31, 2024.
In May 2023, the Group entered into a pre-delivery term loan facility in an amount of USD 15.9 million and post-delivery term loan facility in an amount of up to USD 101.5 million with Cr\u00e9dit Agricole together with K-SURE Agent. The loan facilities were used to finance the construction of two 5,500 TEU eco-design vessels, Mackenzie and Colorado, which were subsequently delivered from the yard in May and July 2024. The commercial facility with Cr\u00e9dit Agricole carries an interest equivalent to the SOFR plus a margin of 250 basis points and matures in 2034 while the K-SURE facility carries an interest equivalent to the SOFR plus a margin of 150 basis points and matures in 2036. Upon delivery of both vessels
in 2024, the Group repaid USD 15.9 million of the pre-delivery loan and drew USD 101.5 million of the post-delivery loan. A at December 31, 2024, USD 93.0 million remained outstanding and the carrying amount of the two vessels was USD 145.2 million.
In July 2023, the Group entered into a 5-year loan facility in an amount of up to USD 50.0 million with Hamburg Commercial Bank (HCOB) to finance part of the acquisition cost of the five modern eco-design vessels, AS Anne, AS Simone, AS Stine, AS Silje, and AS Sabine. The facility has a tenor of five years, carries an interest rate of Secured Overnight Financing Rate (SOFR) plus a margin of a range from 280 basis points to 335 basis points depending on the Loan to Value (LTV) percentage. In 2023, USD 50.0 million was drawn on the facility to pay for the vessels. In 2024, the Group repaid USD 3.5 million (2023: USD 0.9 million) of the loan facilities and there was no available undrawn amount. As at December 31, 2024, the carrying amount of the five vessels was USD 113.6 million (2023: USD 112.5 million).
In September 2023, the Group entered into a sale and leaseback transactions with BoComm Leasing in an amount of USD 75.0 million for 12 of its vessels. The lease financing has a tenor of 48 months starting from September/October 2023 and carries an interest rate of SOFR plus a margin of 260 basis point, and includes purchase obligations for the 12 vessels at the end of the term. The Group is precluded from accounting for the sale of the vessels due to the purchase obligations at the end of the term which prevents the lessor from obtaining control of the vessels as such the lease has been accounted for as a secured borrowing, with the vessels recorded under \u201cVessels\u201d. The amount allocated to interest expense is determined by the incremental borrowing rate or imputed interest rate. Since the transaction does not qualify as a sale as according to IFRS 15, the transferred vessels are not derecognized and was depreciated by the Group as it we were the legal owner. The proceeds of USD 75.0 million was recognized as financial liabilities. In 2024, the Group sold two of its sale and leaseback vessels, AS Fatima and AS Ragna and subsequently exercised the purchase option. As a result, the Group made principal repayments of USD 6.9 million relating to the sale of vessels and discharge the financing liabilities of both vessels. As at December 31,2024, USD 39.8 million remained outstanding with BoComm Leasing and the carrying amount of the ten vessels was USD 90.9 million (2023: USD 116.1 million).
In December 2023, the Group entered into a senior secured reducing revolving loan facility of up to USD 100.0 million with HCOB, subject to finalization of the loan. The facility has a tenor of five years, and carries an interest rate of SOFR plus a margin of 295 basis points. As at December 31, 2023, no draw-down was made on this facility.
In Augst 2024, the Group entered into an ECA covered term loan facility of USD 54.6 million with Deutsche Bank and SINOSURE for its two dual-fuel methanol newbuildings. The facility carries an interest rate of compounded risk-free rate plus a margin of 230 basis points. The facility will mature 12 years from the delivery date of the vessels. As at December 31,2024, USD 15.6 million was drawn and USD 39.9 million remained undrawn.
In September 2024, the Group entered into a USD 30.0 million term loan facility with First-Citizens Bank & Trust Company (First Citizens) relating to the financing of the acquisition of AS Nara and AS Nuria. The loan facility carries an interest equivalent to adjusted term SOFR plus a margin of 195 basis points and matures in October 2029. The loan was fully drawn in October 2024, and no repayment was made as at December 31, 2024.
In October 2024, the Company completed the issuance of five-year unsecured sustainability bond in the amount of USD 125.0 million, carrying a coupon of 7.375%.
The following main financial covenants are defined in the terms of the credit facility agreement with Cr\u00e9dit Agricole, Deutsche Bank, First Citizens, the unsecured sustainability bond and\u00a0HCOB:
+The Parent company (MPC Container Ships ASA) shall maintain a minimum equity ratio of 40% throughout the term loan
+The consolidated liquidity in the Group shall maintain a minimum liquidity of USD 250.000 per consolidated vessel throughout the term loan
The Group is in compliance with all loan and credit facility covenants as at December 31, 2024.
Accounting policy
All loans and borrowings are initially recognized at fair value less directly attributable transaction costs and have not been designated as at fair value through profit or loss. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method. The calculation takes into account any premium or discount on acquisition and includes transaction costs and fees that are an integral part of the effective interest rate.
A financial liability is derecognized when the obligation under the liability is discharged, cancelled or expires.
Debt issuance costs, including debt arrangement fees, are capitalized and amortized using the effective interest method over the term of the relevant loan. Amortization of debt issuance costs is included in interest expense. If a loan is repaid early, any unamortized portion of the related debt issuance costs is expensed in the period in which the loan is repaid. The Group has recorded debt issuance costs as a direct deduction from the carrying amount of the related debt using the effective interest rate method.
Under a sale and leaseback transaction, when the transfer of vessels does not qualify as a sale under IFRS 15, the seller-lessee does not de-recognise the transferred asset, and it accounts for the cash received as a financial liability.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingCostsExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__155": { "value": "Accounting policy
All loans and borrowings are initially recognized at fair value less directly attributable transaction costs and have not been designated as at fair value through profit or loss. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method. The calculation takes into account any premium or discount on acquisition and includes transaction costs and fees that are an integral part of the effective interest rate.
A financial liability is derecognized when the obligation under the liability is discharged, cancelled or expires.
Debt issuance costs, including debt arrangement fees, are capitalized and amortized using the effective interest method over the term of the relevant loan. Amortization of debt issuance costs is included in interest expense. If a loan is repaid early, any unamortized portion of the related debt issuance costs is expensed in the period in which the loan is repaid. The Group has recorded debt issuance costs as a direct deduction from the carrying amount of the related debt using the effective interest rate method.
Under a sale and leaseback transaction, when the transfer of vessels does not qualify as a sale under IFRS 15, the seller-lessee does not de-recognise the transferred asset, and it accounts for the cash received as a financial liability.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceCostsExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__156": { "value": "Accounting policy
All loans and borrowings are initially recognized at fair value less directly attributable transaction costs and have not been designated as at fair value through profit or loss. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method. The calculation takes into account any premium or discount on acquisition and includes transaction costs and fees that are an integral part of the effective interest rate.
A financial liability is derecognized when the obligation under the liability is discharged, cancelled or expires.
Debt issuance costs, including debt arrangement fees, are capitalized and amortized using the effective interest method over the term of the relevant loan. Amortization of debt issuance costs is included in interest expense. If a loan is repaid early, any unamortized portion of the related debt issuance costs is expensed in the period in which the loan is repaid. The Group has recorded debt issuance costs as a direct deduction from the carrying amount of the related debt using the effective interest rate method.
Under a sale and leaseback transaction, when the transfer of vessels does not qualify as a sale under IFRS 15, the seller-lessee does not de-recognise the transferred asset, and it accounts for the cash received as a financial liability.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingsExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__162": { "value": "Non-current | 299,236 | 92,951 |
Current | 44,037 | 33,564 |
Total | 343,273 | 126,515 |
7.5\tEquity
Accounting policy
Profit distribution includes dividends approved by the Board of Directors\u2019 Meeting. The distribution of profits proposed by the Board of Directors is recognized as a liability and a deduction of equity once the distribution is approved by the Group\u2019 shareholders at the Board of Directors\u2019 Meeting. Costs related to share issuances are recognized directly in equity.
Total equity consists of share capital, share premium, fair value reserves, reserve for invested unrestricted equity, retained earnings and non-controlling interest. Share premium includes the amount exceeding the accounting par value of shares received by the Company in connection with share subscriptions. Fair value reserve includes hedge accounted component of fair value changes of derivatives under hedge accounting. Retained earnings include profit for the period and previous periods. Paid dividends approved in the General Meeting are first deducted from share premium before charging against retained earnings.
Share Capital
Number of shares | Share capital (USD thousands) | Other paid-in capital (USD\u00a0thousands) | Share premium (USD thousands) | Retained earnings (USD\u00a0thousands) | Non-controlling interest (USD\u00a0thousand) | |
At January 1, 2024 | 443,700,279 | 48,589 | - | 1,879 | 700,021 | 3,835 |
Dividend paid | - | - | - | - | (204,102) | (257) |
Share-based payment | - | - | 286 | - | - | - |
Addition from non-controlling interest | - | - | - | - | - | 935 |
Result for the period | - | - | - | - | 266,683 | 11 |
At December 31, 2024 | 443,700,279 | 48,589 | 286 | 1,879 | 762,602 | 4,524 |
Number of shares | Share capital (USD thousands) | |||||
Other paid-in capital (USD\u00a0thousands) | Share premium (USD thousands) | |||||
Retained earnings (USD\u00a0thousands) | Non-controlling interest (USD\u00a0thousand) | |||||
At January 1, 2023 | 443,700,279 | 48,589 | - | 152,737 | 517,044 | 2,551 |
Dividend paid from share premium | - | - | - | (150,858) | (141,984) | (292) |
Addition from non-controlling interest | - | - | - | - | - | 1,421 |
Result for the period | - | - | - | - | 324,961 | 155 |
At December 31, 2023 | 443,700,279 | 48,589 | - | 1,879 | 700,021 | 3,835 |
The share capital of the Company consists of 443,700,279 shares as at December 31, 2024, with nominal value per share of NOK 1. All issued shares are of equal rights and are fully paid up.
In July 2022, the Group entered into a contract to purchase two new carbon-neutral 1300 TEU newbuildings, in collaboration with Topeka MPC Maritime AS (a joint venture between Topeka Holding AS and MPC Capital AG) under MPCC Greenbox AS. Topeka MPC Maritime AS acquired a 9.9% non-controlling interest. In 2024, MPCC Greenbox AS had a capital increase where Topeka MPC Maritime AS contributed USD 0.9 million and the Company contributed USD 8.5 million as compared to total capital increase in MPCC Greenbox AS of USD 1.4 million in 2023.
Furthermore, non-controlling interests as of December 31, 2024 consists of the 0.1% shares the ship managers hold in the ship-owning entities under the MPC Container Ships Invest B.V. Group. As at December 31, 2024, the non-controlling interest also includes the minority interest\u2019s share of result within these ship-owning entities, see Note 6.2Group Companies.
The table below summarizes the changes in components in other reserves.
Cash flow hedging | Currency translation adjustment | Change in Other comprehensive income | |
As at January 1, 2024 | (1,368) | (109) | (1,477) |
Change during year | 583 | 51 | 634 |
As at December 31, 2024 | (785) | (58) | (843) |
Cash flow hedging | Currency translation adjustment | Change in Other comprehensive income | |
As at January 1, 2023 | - | (109) | (109) |
Change during year | (1,368) | - | (1,368) |
As at December 31, 2023 | (1,368) | (109) | (1,477) |
Overview of the 20 largest shareholders as at December 31, 2023
Shareholder | Number of shares | in % | Type |
MPC CSI GmbH | 73,994,977.00 | 16.68% | Ordinary |
Avanza Bank AB | 16,769,060.00 | 3.78% | Broker |
CLEARSTREAM BANKING S.A. | 16,663,681.00 | 3.76% | Nominee |
FOLKETRYGDFONDET | 15,618,316.00 | 3.52% | Ordinary |
State Street Bank and Trust Comp | 14,383,924.00 | 3.24% | Nominee |
JPMorgan Chase Bank, N.A., London | 8,237,734.00 | 1.86% | Nominee |
State Street Bank and Trust Comp | 7,635,795.00 | 1.72% | Nominee |
The Bank of New York Mellon | 7,445,611.00 | 1.68% | Nominee |
Nordnet Bank AB | 7,112,914.00 | 1.60% | Nominee |
The Bank of New York Mellon SA/NV | 7,045,603.00 | 1.59% | Nominee |
Brown Brothers Harriman & Co. | 6,579,365.00 | 1.48% | Nominee |
NORDNET LIVSFORSIKRING AS | 5,599,196.00 | 1.26% | Ordinary |
State Street Bank and Trust Comp | 4,619,496.00 | 1.04% | Nominee |
VERDIPAPIRFONDET KLP AKSJENORGE IN | 4,523,884.00 | 1.02% | Ordinary |
VERDIPAPIRFONDET DNB SMB | 3,636,743.00 | 0.82% | Ordinary |
Citibank, N.A. | 3,422,477.00 | 0.77% | Nominee |
Citibank, N.A. | 3,168,106.00 | 0.71% | Nominee |
The Bank of New York Mellon | 3,144,403.00 | 0.71% | Nominee |
SIX SIS AG | 2,909,146.00 | 0.66% | Nominee |
Interactive Brokers LLC | 2,809,135.00 | 0.63% | Nominee |
Total | 215,319,566 | 48.5% |
7.5\tEquity
Accounting policy
Profit distribution includes dividends approved by the Board of Directors\u2019 Meeting. The distribution of profits proposed by the Board of Directors is recognized as a liability and a deduction of equity once the distribution is approved by the Group\u2019 shareholders at the Board of Directors\u2019 Meeting. Costs related to share issuances are recognized directly in equity.
Total equity consists of share capital, share premium, fair value reserves, reserve for invested unrestricted equity, retained earnings and non-controlling interest. Share premium includes the amount exceeding the accounting par value of shares received by the Company in connection with share subscriptions. Fair value reserve includes hedge accounted component of fair value changes of derivatives under hedge accounting. Retained earnings include profit for the period and previous periods. Paid dividends approved in the General Meeting are first deducted from share premium before charging against retained earnings.
Share Capital
Number of shares | Share capital (USD thousands) | Other paid-in capital (USD\u00a0thousands) | Share premium (USD thousands) | Retained earnings (USD\u00a0thousands) | Non-controlling interest (USD\u00a0thousand) | |
At January 1, 2024 | 443,700,279 | 48,589 | - | 1,879 | 700,021 | 3,835 |
Dividend paid | - | - | - | - | (204,102) | (257) |
Share-based payment | - | - | 286 | - | - | - |
Addition from non-controlling interest | - | - | - | - | - | 935 |
Result for the period | - | - | - | - | 266,683 | 11 |
At December 31, 2024 | 443,700,279 | 48,589 | 286 | 1,879 | 762,602 | 4,524 |
Number of shares | Share capital (USD thousands) | |||||
Other paid-in capital (USD\u00a0thousands) | Share premium (USD thousands) | |||||
Retained earnings (USD\u00a0thousands) | Non-controlling interest (USD\u00a0thousand) | |||||
At January 1, 2023 | 443,700,279 | 48,589 | - | 152,737 | 517,044 | 2,551 |
Dividend paid from share premium | - | - | - | (150,858) | (141,984) | (292) |
Addition from non-controlling interest | - | - | - | - | - | 1,421 |
Result for the period | - | - | - | - | 324,961 | 155 |
At December 31, 2023 | 443,700,279 | 48,589 | - | 1,879 | 700,021 | 3,835 |
The share capital of the Company consists of 443,700,279 shares as at December 31, 2024, with nominal value per share of NOK 1. All issued shares are of equal rights and are fully paid up.
In July 2022, the Group entered into a contract to purchase two new carbon-neutral 1300 TEU newbuildings, in collaboration with Topeka MPC Maritime AS (a joint venture between Topeka Holding AS and MPC Capital AG) under MPCC Greenbox AS. Topeka MPC Maritime AS acquired a 9.9% non-controlling interest. In 2024, MPCC Greenbox AS had a capital increase where Topeka MPC Maritime AS contributed USD 0.9 million and the Company contributed USD 8.5 million as compared to total capital increase in MPCC Greenbox AS of USD 1.4 million in 2023.
Furthermore, non-controlling interests as of December 31, 2024 consists of the 0.1% shares the ship managers hold in the ship-owning entities under the MPC Container Ships Invest B.V. Group. As at December 31, 2024, the non-controlling interest also includes the minority interest\u2019s share of result within these ship-owning entities, see Note 6.2Group Companies.
The table below summarizes the changes in components in other reserves.
Cash flow hedging | Currency translation adjustment | Change in Other comprehensive income | |
As at January 1, 2024 | (1,368) | (109) | (1,477) |
Change during year | 583 | 51 | 634 |
As at December 31, 2024 | (785) | (58) | (843) |
Cash flow hedging | Currency translation adjustment | Change in Other comprehensive income | |
As at January 1, 2023 | - | (109) | (109) |
Change during year | (1,368) | - | (1,368) |
As at December 31, 2023 | (1,368) | (109) | (1,477) |
Overview of the 20 largest shareholders as at December 31, 2023
Shareholder | Number of shares | in % | Type |
MPC CSI GmbH | 73,994,977.00 | 16.68% | Ordinary |
Avanza Bank AB | 16,769,060.00 | 3.78% | Broker |
CLEARSTREAM BANKING S.A. | 16,663,681.00 | 3.76% | Nominee |
FOLKETRYGDFONDET | 15,618,316.00 | 3.52% | Ordinary |
State Street Bank and Trust Comp | 14,383,924.00 | 3.24% | Nominee |
JPMorgan Chase Bank, N.A., London | 8,237,734.00 | 1.86% | Nominee |
State Street Bank and Trust Comp | 7,635,795.00 | 1.72% | Nominee |
The Bank of New York Mellon | 7,445,611.00 | 1.68% | Nominee |
Nordnet Bank AB | 7,112,914.00 | 1.60% | Nominee |
The Bank of New York Mellon SA/NV | 7,045,603.00 | 1.59% | Nominee |
Brown Brothers Harriman & Co. | 6,579,365.00 | 1.48% | Nominee |
NORDNET LIVSFORSIKRING AS | 5,599,196.00 | 1.26% | Ordinary |
State Street Bank and Trust Comp | 4,619,496.00 | 1.04% | Nominee |
VERDIPAPIRFONDET KLP AKSJENORGE IN | 4,523,884.00 | 1.02% | Ordinary |
VERDIPAPIRFONDET DNB SMB | 3,636,743.00 | 0.82% | Ordinary |
Citibank, N.A. | 3,422,477.00 | 0.77% | Nominee |
Citibank, N.A. | 3,168,106.00 | 0.71% | Nominee |
The Bank of New York Mellon | 3,144,403.00 | 0.71% | Nominee |
SIX SIS AG | 2,909,146.00 | 0.66% | Nominee |
Interactive Brokers LLC | 2,809,135.00 | 0.63% | Nominee |
Total | 215,319,566 | 48.5% |
7.5\tEquity
Accounting policy
Profit distribution includes dividends approved by the Board of Directors\u2019 Meeting. The distribution of profits proposed by the Board of Directors is recognized as a liability and a deduction of equity once the distribution is approved by the Group\u2019 shareholders at the Board of Directors\u2019 Meeting. Costs related to share issuances are recognized directly in equity.
Total equity consists of share capital, share premium, fair value reserves, reserve for invested unrestricted equity, retained earnings and non-controlling interest. Share premium includes the amount exceeding the accounting par value of shares received by the Company in connection with share subscriptions. Fair value reserve includes hedge accounted component of fair value changes of derivatives under hedge accounting. Retained earnings include profit for the period and previous periods. Paid dividends approved in the General Meeting are first deducted from share premium before charging against retained earnings.
Share Capital
Number of shares | Share capital (USD thousands) | Other paid-in capital (USD\u00a0thousands) | Share premium (USD thousands) | Retained earnings (USD\u00a0thousands) | Non-controlling interest (USD\u00a0thousand) | |
At January 1, 2024 | 443,700,279 | 48,589 | - | 1,879 | 700,021 | 3,835 |
Dividend paid | - | - | - | - | (204,102) | (257) |
Share-based payment | - | - | 286 | - | - | - |
Addition from non-controlling interest | - | - | - | - | - | 935 |
Result for the period | - | - | - | - | 266,683 | 11 |
At December 31, 2024 | 443,700,279 | 48,589 | 286 | 1,879 | 762,602 | 4,524 |
Number of shares | Share capital (USD thousands) | |||||
Other paid-in capital (USD\u00a0thousands) | Share premium (USD thousands) | |||||
Retained earnings (USD\u00a0thousands) | Non-controlling interest (USD\u00a0thousand) | |||||
At January 1, 2023 | 443,700,279 | 48,589 | - | 152,737 | 517,044 | 2,551 |
Dividend paid from share premium | - | - | - | (150,858) | (141,984) | (292) |
Addition from non-controlling interest | - | - | - | - | - | 1,421 |
Result for the period | - | - | - | - | 324,961 | 155 |
At December 31, 2023 | 443,700,279 | 48,589 | - | 1,879 | 700,021 | 3,835 |
The share capital of the Company consists of 443,700,279 shares as at December 31, 2024, with nominal value per share of NOK 1. All issued shares are of equal rights and are fully paid up.
In July 2022, the Group entered into a contract to purchase two new carbon-neutral 1300 TEU newbuildings, in collaboration with Topeka MPC Maritime AS (a joint venture between Topeka Holding AS and MPC Capital AG) under MPCC Greenbox AS. Topeka MPC Maritime AS acquired a 9.9% non-controlling interest. In 2024, MPCC Greenbox AS had a capital increase where Topeka MPC Maritime AS contributed USD 0.9 million and the Company contributed USD 8.5 million as compared to total capital increase in MPCC Greenbox AS of USD 1.4 million in 2023.
Furthermore, non-controlling interests as of December 31, 2024 consists of the 0.1% shares the ship managers hold in the ship-owning entities under the MPC Container Ships Invest B.V. Group. As at December 31, 2024, the non-controlling interest also includes the minority interest\u2019s share of result within these ship-owning entities, see Note 6.2Group Companies.
The table below summarizes the changes in components in other reserves.
Cash flow hedging | Currency translation adjustment | Change in Other comprehensive income | |
As at January 1, 2024 | (1,368) | (109) | (1,477) |
Change during year | 583 | 51 | 634 |
As at December 31, 2024 | (785) | (58) | (843) |
Cash flow hedging | Currency translation adjustment | Change in Other comprehensive income | |
As at January 1, 2023 | - | (109) | (109) |
Change during year | (1,368) | - | (1,368) |
As at December 31, 2023 | (1,368) | (109) | (1,477) |
Overview of the 20 largest shareholders as at December 31, 2023
Shareholder | Number of shares | in % | Type |
MPC CSI GmbH | 73,994,977.00 | 16.68% | Ordinary |
Avanza Bank AB | 16,769,060.00 | 3.78% | Broker |
CLEARSTREAM BANKING S.A. | 16,663,681.00 | 3.76% | Nominee |
FOLKETRYGDFONDET | 15,618,316.00 | 3.52% | Ordinary |
State Street Bank and Trust Comp | 14,383,924.00 | 3.24% | Nominee |
JPMorgan Chase Bank, N.A., London | 8,237,734.00 | 1.86% | Nominee |
State Street Bank and Trust Comp | 7,635,795.00 | 1.72% | Nominee |
The Bank of New York Mellon | 7,445,611.00 | 1.68% | Nominee |
Nordnet Bank AB | 7,112,914.00 | 1.60% | Nominee |
The Bank of New York Mellon SA/NV | 7,045,603.00 | 1.59% | Nominee |
Brown Brothers Harriman & Co. | 6,579,365.00 | 1.48% | Nominee |
NORDNET LIVSFORSIKRING AS | 5,599,196.00 | 1.26% | Ordinary |
State Street Bank and Trust Comp | 4,619,496.00 | 1.04% | Nominee |
VERDIPAPIRFONDET KLP AKSJENORGE IN | 4,523,884.00 | 1.02% | Ordinary |
VERDIPAPIRFONDET DNB SMB | 3,636,743.00 | 0.82% | Ordinary |
Citibank, N.A. | 3,422,477.00 | 0.77% | Nominee |
Citibank, N.A. | 3,168,106.00 | 0.71% | Nominee |
The Bank of New York Mellon | 3,144,403.00 | 0.71% | Nominee |
SIX SIS AG | 2,909,146.00 | 0.66% | Nominee |
Interactive Brokers LLC | 2,809,135.00 | 0.63% | Nominee |
Total | 215,319,566 | 48.5% |
7.5\tEquity
Accounting policy
Profit distribution includes dividends approved by the Board of Directors\u2019 Meeting. The distribution of profits proposed by the Board of Directors is recognized as a liability and a deduction of equity once the distribution is approved by the Group\u2019 shareholders at the Board of Directors\u2019 Meeting. Costs related to share issuances are recognized directly in equity.
Total equity consists of share capital, share premium, fair value reserves, reserve for invested unrestricted equity, retained earnings and non-controlling interest. Share premium includes the amount exceeding the accounting par value of shares received by the Company in connection with share subscriptions. Fair value reserve includes hedge accounted component of fair value changes of derivatives under hedge accounting. Retained earnings include profit for the period and previous periods. Paid dividends approved in the General Meeting are first deducted from share premium before charging against retained earnings.
Share Capital
Number of shares | Share capital (USD thousands) | Other paid-in capital (USD\u00a0thousands) | Share premium (USD thousands) | Retained earnings (USD\u00a0thousands) | Non-controlling interest (USD\u00a0thousand) | |
At January 1, 2024 | 443,700,279 | 48,589 | - | 1,879 | 700,021 | 3,835 |
Dividend paid | - | - | - | - | (204,102) | (257) |
Share-based payment | - | - | 286 | - | - | - |
Addition from non-controlling interest | - | - | - | - | - | 935 |
Result for the period | - | - | - | - | 266,683 | 11 |
At December 31, 2024 | 443,700,279 | 48,589 | 286 | 1,879 | 762,602 | 4,524 |
Number of shares | Share capital (USD thousands) | |||||
Other paid-in capital (USD\u00a0thousands) | Share premium (USD thousands) | |||||
Retained earnings (USD\u00a0thousands) | Non-controlling interest (USD\u00a0thousand) | |||||
At January 1, 2023 | 443,700,279 | 48,589 | - | 152,737 | 517,044 | 2,551 |
Dividend paid from share premium | - | - | - | (150,858) | (141,984) | (292) |
Addition from non-controlling interest | - | - | - | - | - | 1,421 |
Result for the period | - | - | - | - | 324,961 | 155 |
At December 31, 2023 | 443,700,279 | 48,589 | - | 1,879 | 700,021 | 3,835 |
The share capital of the Company consists of 443,700,279 shares as at December 31, 2024, with nominal value per share of NOK 1. All issued shares are of equal rights and are fully paid up.
In July 2022, the Group entered into a contract to purchase two new carbon-neutral 1300 TEU newbuildings, in collaboration with Topeka MPC Maritime AS (a joint venture between Topeka Holding AS and MPC Capital AG) under MPCC Greenbox AS. Topeka MPC Maritime AS acquired a 9.9% non-controlling interest. In 2024, MPCC Greenbox AS had a capital increase where Topeka MPC Maritime AS contributed USD 0.9 million and the Company contributed USD 8.5 million as compared to total capital increase in MPCC Greenbox AS of USD 1.4 million in 2023.
Furthermore, non-controlling interests as of December 31, 2024 consists of the 0.1% shares the ship managers hold in the ship-owning entities under the MPC Container Ships Invest B.V. Group. As at December 31, 2024, the non-controlling interest also includes the minority interest\u2019s share of result within these ship-owning entities, see Note 6.2Group Companies.
The table below summarizes the changes in components in other reserves.
Cash flow hedging | Currency translation adjustment | Change in Other comprehensive income | |
As at January 1, 2024 | (1,368) | (109) | (1,477) |
Change during year | 583 | 51 | 634 |
As at December 31, 2024 | (785) | (58) | (843) |
Cash flow hedging | Currency translation adjustment | Change in Other comprehensive income | |
As at January 1, 2023 | - | (109) | (109) |
Change during year | (1,368) | - | (1,368) |
As at December 31, 2023 | (1,368) | (109) | (1,477) |
Overview of the 20 largest shareholders as at December 31, 2023
Shareholder | Number of shares | in % | Type |
MPC CSI GmbH | 73,994,977.00 | 16.68% | Ordinary |
Avanza Bank AB | 16,769,060.00 | 3.78% | Broker |
CLEARSTREAM BANKING S.A. | 16,663,681.00 | 3.76% | Nominee |
FOLKETRYGDFONDET | 15,618,316.00 | 3.52% | Ordinary |
State Street Bank and Trust Comp | 14,383,924.00 | 3.24% | Nominee |
JPMorgan Chase Bank, N.A., London | 8,237,734.00 | 1.86% | Nominee |
State Street Bank and Trust Comp | 7,635,795.00 | 1.72% | Nominee |
The Bank of New York Mellon | 7,445,611.00 | 1.68% | Nominee |
Nordnet Bank AB | 7,112,914.00 | 1.60% | Nominee |
The Bank of New York Mellon SA/NV | 7,045,603.00 | 1.59% | Nominee |
Brown Brothers Harriman & Co. | 6,579,365.00 | 1.48% | Nominee |
NORDNET LIVSFORSIKRING AS | 5,599,196.00 | 1.26% | Ordinary |
State Street Bank and Trust Comp | 4,619,496.00 | 1.04% | Nominee |
VERDIPAPIRFONDET KLP AKSJENORGE IN | 4,523,884.00 | 1.02% | Ordinary |
VERDIPAPIRFONDET DNB SMB | 3,636,743.00 | 0.82% | Ordinary |
Citibank, N.A. | 3,422,477.00 | 0.77% | Nominee |
Citibank, N.A. | 3,168,106.00 | 0.71% | Nominee |
The Bank of New York Mellon | 3,144,403.00 | 0.71% | Nominee |
SIX SIS AG | 2,909,146.00 | 0.66% | Nominee |
Interactive Brokers LLC | 2,809,135.00 | 0.63% | Nominee |
Total | 215,319,566 | 48.5% |
7.5\tEquity
Accounting policy
Profit distribution includes dividends approved by the Board of Directors\u2019 Meeting. The distribution of profits proposed by the Board of Directors is recognized as a liability and a deduction of equity once the distribution is approved by the Group\u2019 shareholders at the Board of Directors\u2019 Meeting. Costs related to share issuances are recognized directly in equity.
Total equity consists of share capital, share premium, fair value reserves, reserve for invested unrestricted equity, retained earnings and non-controlling interest. Share premium includes the amount exceeding the accounting par value of shares received by the Company in connection with share subscriptions. Fair value reserve includes hedge accounted component of fair value changes of derivatives under hedge accounting. Retained earnings include profit for the period and previous periods. Paid dividends approved in the General Meeting are first deducted from share premium before charging against retained earnings.
Share Capital
Number of shares | Share capital (USD thousands) | Other paid-in capital (USD\u00a0thousands) | Share premium (USD thousands) | Retained earnings (USD\u00a0thousands) | Non-controlling interest (USD\u00a0thousand) | |
At January 1, 2024 | 443,700,279 | 48,589 | - | 1,879 | 700,021 | 3,835 |
Dividend paid | - | - | - | - | (204,102) | (257) |
Share-based payment | - | - | 286 | - | - | - |
Addition from non-controlling interest | - | - | - | - | - | 935 |
Result for the period | - | - | - | - | 266,683 | 11 |
At December 31, 2024 | 443,700,279 | 48,589 | 286 | 1,879 | 762,602 | 4,524 |
Number of shares | Share capital (USD thousands) | |||||
Other paid-in capital (USD\u00a0thousands) | Share premium (USD thousands) | |||||
Retained earnings (USD\u00a0thousands) | Non-controlling interest (USD\u00a0thousand) | |||||
At January 1, 2023 | 443,700,279 | 48,589 | - | 152,737 | 517,044 | 2,551 |
Dividend paid from share premium | - | - | - | (150,858) | (141,984) | (292) |
Addition from non-controlling interest | - | - | - | - | - | 1,421 |
Result for the period | - | - | - | - | 324,961 | 155 |
At December 31, 2023 | 443,700,279 | 48,589 | - | 1,879 | 700,021 | 3,835 |
The share capital of the Company consists of 443,700,279 shares as at December 31, 2024, with nominal value per share of NOK 1. All issued shares are of equal rights and are fully paid up.
In July 2022, the Group entered into a contract to purchase two new carbon-neutral 1300 TEU newbuildings, in collaboration with Topeka MPC Maritime AS (a joint venture between Topeka Holding AS and MPC Capital AG) under MPCC Greenbox AS. Topeka MPC Maritime AS acquired a 9.9% non-controlling interest. In 2024, MPCC Greenbox AS had a capital increase where Topeka MPC Maritime AS contributed USD 0.9 million and the Company contributed USD 8.5 million as compared to total capital increase in MPCC Greenbox AS of USD 1.4 million in 2023.
Furthermore, non-controlling interests as of December 31, 2024 consists of the 0.1% shares the ship managers hold in the ship-owning entities under the MPC Container Ships Invest B.V. Group. As at December 31, 2024, the non-controlling interest also includes the minority interest\u2019s share of result within these ship-owning entities, see Note 6.2Group Companies.
The table below summarizes the changes in components in other reserves.
Cash flow hedging | Currency translation adjustment | Change in Other comprehensive income | |
As at January 1, 2024 | (1,368) | (109) | (1,477) |
Change during year | 583 | 51 | 634 |
As at December 31, 2024 | (785) | (58) | (843) |
Cash flow hedging | Currency translation adjustment | Change in Other comprehensive income | |
As at January 1, 2023 | - | (109) | (109) |
Change during year | (1,368) | - | (1,368) |
As at December 31, 2023 | (1,368) | (109) | (1,477) |
Overview of the 20 largest shareholders as at December 31, 2023
Shareholder | Number of shares | in % | Type |
MPC CSI GmbH | 73,994,977.00 | 16.68% | Ordinary |
Avanza Bank AB | 16,769,060.00 | 3.78% | Broker |
CLEARSTREAM BANKING S.A. | 16,663,681.00 | 3.76% | Nominee |
FOLKETRYGDFONDET | 15,618,316.00 | 3.52% | Ordinary |
State Street Bank and Trust Comp | 14,383,924.00 | 3.24% | Nominee |
JPMorgan Chase Bank, N.A., London | 8,237,734.00 | 1.86% | Nominee |
State Street Bank and Trust Comp | 7,635,795.00 | 1.72% | Nominee |
The Bank of New York Mellon | 7,445,611.00 | 1.68% | Nominee |
Nordnet Bank AB | 7,112,914.00 | 1.60% | Nominee |
The Bank of New York Mellon SA/NV | 7,045,603.00 | 1.59% | Nominee |
Brown Brothers Harriman & Co. | 6,579,365.00 | 1.48% | Nominee |
NORDNET LIVSFORSIKRING AS | 5,599,196.00 | 1.26% | Ordinary |
State Street Bank and Trust Comp | 4,619,496.00 | 1.04% | Nominee |
VERDIPAPIRFONDET KLP AKSJENORGE IN | 4,523,884.00 | 1.02% | Ordinary |
VERDIPAPIRFONDET DNB SMB | 3,636,743.00 | 0.82% | Ordinary |
Citibank, N.A. | 3,422,477.00 | 0.77% | Nominee |
Citibank, N.A. | 3,168,106.00 | 0.71% | Nominee |
The Bank of New York Mellon | 3,144,403.00 | 0.71% | Nominee |
SIX SIS AG | 2,909,146.00 | 0.66% | Nominee |
Interactive Brokers LLC | 2,809,135.00 | 0.63% | Nominee |
Total | 215,319,566 | 48.5% |
Accounting policy
Profit distribution includes dividends approved by the Board of Directors\u2019 Meeting. The distribution of profits proposed by the Board of Directors is recognized as a liability and a deduction of equity once the distribution is approved by the Group\u2019 shareholders at the Board of Directors\u2019 Meeting. Costs related to share issuances are recognized directly in equity.
Total equity consists of share capital, share premium, fair value reserves, reserve for invested unrestricted equity, retained earnings and non-controlling interest. Share premium includes the amount exceeding the accounting par value of shares received by the Company in connection with share subscriptions. Fair value reserve includes hedge accounted component of fair value changes of derivatives under hedge accounting. Retained earnings include profit for the period and previous periods. Paid dividends approved in the General Meeting are first deducted from share premium before charging against retained earnings.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDividendsExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__169": { "value": "7.6\tCapital Management
A key objective of the Group\u2019s capital management is to ensure that the Group maintains a capital structure in order to\u00a0support its business activities and maximise the shareholder value. The Group evaluates its capital structure in light of current and projected cash flows, the state of the shipping markets, new business opportunities and the Group\u2019s financial commitments. Capital is primarily managed on Group level.
The Group monitors its capital structure using the book-equity ratio, which stands at 66.4% as at December 31, 2024 (2023: 78.9%). The Group\u2019 s debt facilities contain certain financial covenants which require the Company or the subsidiaries to maintain the following financial covenants, minimum value of vessels, and a certain level of free cash and equity ratio. The Group aims at maintaining an equity ratio with adequate headroom to the respective covenant requirements (refer to Note 7.4Interest-Bearing Debt).
in USD thousands | December 31, 2024 | December 31, 2023 |
Book equity | 817,620 | 753,481 |
Total assets | 1,231,374 | 954,744 |
Book-equity ratio | 66.4% | 78.9% |
In support of the Group\u2019s objective of maximizing returns to shareholders, the Group\u2019s intention is to pay regular dividends by way of distributing 75% of profits (loss) for the period after considering CAPEX and working capital requirements, including liquidity reserves and one-off effects. Dividends will be declared or proposed by the Board at the sole discretion of the Board and will depend upon the financial position, earnings, debt covenants, distribution restrictions, capital requirements and other factors related to the Group. The Company cannot guarantee that its Board will declare or propose dividends in the future. Furthermore, the Board may make event driven distributions based on non-recurring proceeds, such as vessel sales, by way of extraordinary dividends or share buybacks, to be applied according to the Board\u2019s discretion.
During 2024, the Group distributed dividends for a total of USD 204.4 million (2023: USD 293.1 million), which also includes distributions to non-controlling interests. The dividend was distributed with USD 204.1 million from retained earnings (2023: USD 142.0 million from retained earnings and USD 150.9 million from share premium) and USD 0.3 million (2023: USD 0.3 million) from non-controlling interests.
The table below shows detail for distributions announced in 2024:
Announcement date | Type | Cash distribution per share | Ex-dividend | Record | Payment |
27.02.2024 | Recurring | USD 0.13 / NOK 1.3734 | 19.03.2024 | 20.03.2024 | 26.03.2024 |
28.05.2024 | Recurring | USD 0.13 / NOK 1.3729 | 20.06.2024 | 21.06.2024 | 27.06.2024 |
28.08.2024 | Recurring | USD 0.10 / NOK 1.0583 | 17.09.2024 | 18.09.2024 | 24.09.2024 |
26.11.2024 | Recurring | USD 0.10 / NOK 1.1147 | 12.12.2024 | 13.12.2024 | 19.12.2024 |
The table below shows detail for distributions announced in 2023:
Announcement date | Type | Cash distribution per share | Ex-dividend | Record | Payment |
31.01.2023 | Event-driven | USD 0.07 / NOK 0.7238 | 20.02.2023 | 21.02.2023 | 28.02.2023 |
28.02.2023 | Recurring | USD 0.15 / NOK 1.5765 | 23.03.2023 | 24.03.2023 | 30.03.2023 |
23.05.2023 | Recurring | USD 0.15 / NOK 1.5956 | 21.06.2023 | 22.06.2023 | 29.06.2023 |
21.08.2023 | Recurring | USD 0.15 / NOK 1.6118 | 20.09.2023 | 21.09.2023 | 28.09.2023 |
21.11.2023 | Recurring | USD 0.14 / NOK 1.5224 | 13.12.2023 | 14.12.2023 | 21.12.2023 |
8.1\tCommitment
As at December 31, 2024, the Group\u2019s newbuilding program consisted of two 1,300 TEU container vessels which are equipped with dual-fuel engines that are able to operate on green methanol. The first newbuilding was delivered in the first quarter of 2025 while the second newbuilding is expected to be delivered in the second quarter of 2025. As at December 31, 2024, remaining commitments owned amounted to the two newbuildings were USD 38.9 million, of which USD 19.5 million is due in the first quarter of 2025 and another USD 19.5 million is due in the first half of 2025.
In January 2024, the Group partnered with Unifeeder A/S (Unifeeder) in a joint investment for the construction of a 1,300 TEU dual-fuel methanol newbuilding, scheduled for delivery in late 2026. The contract price is USD 39.0 million and the interest in the joint venture, Palmaille 75 Einundachtzigste Beteiligungsgesellschaft mbH & Co. KG (Palmaille 75),Hamburg (Germany), was contributed 50% by the Group while the remaining half was contributed by Unifeeder. According to the joint venture agreement, each party agreed to fund Palmaille 75 for a total amount of USD 10.0 million, of which USD 8.0 million was paid during 2024. As at December 31, 2024, remaining commitments to the joint venture was USD 2.0 million in total, with the Group's share amounting to USD 1.0 million. The remaining construction price would be covered by bank financing with each partner committed to guarantee 50% of the entire loan amount plus related costs. As at December 31, 2024, Palmaille 75 have remaining commitments to the yard of USD 31.2 million, of which USD 3.9 million is due in 2025 and USD 27.3 million is due in 2026.
As at December 31, 2024, the Group was committed to undertake joint retrofit with some of our customers for eight vessels (2023: 13) with a total cost of USD 2.4 million (2023: 15.6 million). The retrofitting is expected to finalize in 2025.
In December 2022, the Company had entered into a put/call option with INERATEC GmbH through its investment in associates for the delivery of 1,500 MT green physical marine diesel oil between 2024 and 2026. The option would oblige the Company to purchase and take delivery of the at a maximum price of 2,500 USD/MT. As at December 31, 2024, the delivery of the green marine diesel oil is delayed and the put option was expired.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__172": { "value": "8.1\tCommitment
As at December 31, 2024, the Group\u2019s newbuilding program consisted of two 1,300 TEU container vessels which are equipped with dual-fuel engines that are able to operate on green methanol. The first newbuilding was delivered in the first quarter of 2025 while the second newbuilding is expected to be delivered in the second quarter of 2025. As at December 31, 2024, remaining commitments owned amounted to the two newbuildings were USD 38.9 million, of which USD 19.5 million is due in the first quarter of 2025 and another USD 19.5 million is due in the first half of 2025.
In January 2024, the Group partnered with Unifeeder A/S (Unifeeder) in a joint investment for the construction of a 1,300 TEU dual-fuel methanol newbuilding, scheduled for delivery in late 2026. The contract price is USD 39.0 million and the interest in the joint venture, Palmaille 75 Einundachtzigste Beteiligungsgesellschaft mbH & Co. KG (Palmaille 75),Hamburg (Germany), was contributed 50% by the Group while the remaining half was contributed by Unifeeder. According to the joint venture agreement, each party agreed to fund Palmaille 75 for a total amount of USD 10.0 million, of which USD 8.0 million was paid during 2024. As at December 31, 2024, remaining commitments to the joint venture was USD 2.0 million in total, with the Group's share amounting to USD 1.0 million. The remaining construction price would be covered by bank financing with each partner committed to guarantee 50% of the entire loan amount plus related costs. As at December 31, 2024, Palmaille 75 have remaining commitments to the yard of USD 31.2 million, of which USD 3.9 million is due in 2025 and USD 27.3 million is due in 2026.
As at December 31, 2024, the Group was committed to undertake joint retrofit with some of our customers for eight vessels (2023: 13) with a total cost of USD 2.4 million (2023: 15.6 million). The retrofitting is expected to finalize in 2025.
In December 2022, the Company had entered into a put/call option with INERATEC GmbH through its investment in associates for the delivery of 1,500 MT green physical marine diesel oil between 2024 and 2026. The option would oblige the Company to purchase and take delivery of the at a maximum price of 2,500 USD/MT. As at December 31, 2024, the delivery of the green marine diesel oil is delayed and the put option was expired.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsAndContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__173": { "value": "8.2\tRelated Party and Key Management Compensation
The Group has entered into a corporate service agreement to purchase administrative and corporate services from MPC M\u00fcnchmeyer Petersen Capital AG and its subsidiaries.
The Company is responsible for the technical ship management of the vessels owned by the Group. Performance of technical ship management services is sub-contracted to Wilhelmsen Ahrenkiel Ship Management GmbH & Co. KG, Wilhelmsen Ahrenkiel Ship Management B.V. and ZEABORN Ship Management Gmbh & Cie. KG, joint ventures of MPC M\u00fcnchmeyer Petersen Capital AG, for 52 of the 59 vessels owned by the Group at December 31, 2024.
Commercial ship management of the vessels owned by the Group and associated joint ventures is contracted to Harper Petersen B.V., which are joint ventures of MPC M\u00fcnchmeyer Petersen Capital AG.
The following table provides the total amount of service transactions that have been entered into with related parties for the relevant period:
in USD thousands | 2024 | 2023 |
Wilhelmsen Ahrenkiel Ship Man. GmbH & Co. KG / B.V. | 7,796 | 8,167 |
Harper Petersen & Co. GmbH | 5,701 | 6,624 |
MPC M\u00fcnchmeyer Petersen Capital AG | 520 | 924 |
ZEABORN Ship Management GmbH & Cie. KG | 148 | - |
Total | 14,165 | 15,715 |
Compensation to Key Management
The key management personnel of the Company include the Board of Directors and the leading personnel. For details on remuneration to leading personnel and board of directors, see remuneration report published on our website.
Directors\u2019 and executive management\u2019s compensation and shareholding\u200c
Shares at December 31, 2024 | 2024 remuneration | |
Ulf Holl\u00e4nder (Chairman)\u200c | - | USD 90,000 |
Dr. Axel Schroeder\u200c1 | - | USD 47,397 |
Petros Panagiotidis (from 12.12.2024) | - | USD 1,781 |
Pia Meling | - | USD 50,000 |
Peter Fredriksen | 200,000 | USD 50,000 |
Ellen Hanetho | 60,000 | USD 55,000 |
Constantin Baack (CEO) \u00b2 | 66,000 | USD 833,709 |
Moritz Fuhrmann (CO-CEO/CFO) \u00b2 | - | USD 808,184 |
Christian Rychly (COO) \u00b2 | - | USD 470,691 |
1 In December 2024, Dr. Axel Schroeder\u200c resigned from his position as a member of the Board of Directors. Simultaneously, Mr. Petros Panagiotidis was appointed to the Company\u2019s Board of Directors. The change of the Board of Directors comes as a result of MPC M\u00fcnchmeyer Petersen & Co. GmbH, an\u00a0indirect shareholder of the Company, selling 74.09% of its stake in MPC Capital AG to Thalvora Holdings GmbH.
2 Total remuneration includes pension and other retirement benefits to our key management personnel.
Shares at December 31, 2023 | 2023 remuneration | |
Ulf Holl\u00e4nder (Chairman)\u200c2 | 165,637 | USD 90,000 |
Dr. Axel Schroeder\u200c3 | 2,471,110 | USD 50,000 |
Pia Meling | - | USD 50,000 |
Peter Fredriksen | 200,000 | USD 50,000 |
Ellen Hanetho | 60,000 | USD 50,000 |
Constantin Baack (CEO) | 66,000 | USD 1,239,446 |
Moritz Fuhrmann (CFO) | - | USD 494,587 |
Dr. Benjamin Pfeifer (former CFO) | - | USD 81,235 |
1 Several of the board members hold further share through indirect shareholdings in the Company. Please refer to Note 7.5Equityfor further details
2 On March 15, 2024, an agreement was reached that all shares held by Ulf Holl\u00e4nder were sold to MPC CSI GmbH.
3 On March 15, 2024, an agreement was reached that all shares held by Dr. Axel Schroeder were sold to MPC CSI GmbH.
In April, 2024, the Company\u2019s general meeting resolved that each member of the Board of Directors shall receive USD 50,000 (USD 90,000 for the Chairman of the Board) in remuneration for the financial year 2024. The\u00a0Board fees resolved for the year are paid out in the subsequent year. The total remuneration to the Board of Directors and executive management in 2024 was USD 2.1 million (2023: USD 2.1 million).
In October 2024, the Board of the Company resolved to introduce an employees\u2019 option program for its key employees of the Company and its subsidiaries. The program allows each option holder the right to acquire one ordinary share of the Company and the purchase price shall be equal to par value of a share at the time of exercise, which is on July 1, 2028. Correspondingly, the option shall be vested in full and exercisable in four years, i.e. July 2028. Under the share option arrangement, in the event of dividends or other distributions in cash or in kind are made to shareholders of the Company from July 1, 2024, such distributions shall be made to the option holder as if the option shares were delivered to the holder prior to the record date for the distribution. If the options were not vested at the time of distribution, then the distribution shall be withheld by the Company until vesting and paid together with the option shares.The option program is subject to the 2024\u2019s Annual General Meeting which is to be held in May 2025. If the program is not approved, no options shall be vested but instead each option holders shall be compensated as bonus payment in cash. The fair value of the options is estimated by using the Black Scholes option price model . In 2024, the share option program gave an income statement effect of USD 286 thousands related to the expense due to the share award arrangement.
", "dimensions": { "concept": "ifrs-full:DisclosureOfRelatedPartyExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__174": { "value": "Directors\u2019 and executive management\u2019s compensation and shareholding\u200c
Shares at December 31, 2024 | 2024 remuneration | |
Ulf Holl\u00e4nder (Chairman)\u200c | - | USD 90,000 |
Dr. Axel Schroeder\u200c1 | - | USD 47,397 |
Petros Panagiotidis (from 12.12.2024) | - | USD 1,781 |
Pia Meling | - | USD 50,000 |
Peter Fredriksen | 200,000 | USD 50,000 |
Ellen Hanetho | 60,000 | USD 55,000 |
Constantin Baack (CEO) \u00b2 | 66,000 | USD 833,709 |
Moritz Fuhrmann (CO-CEO/CFO) \u00b2 | - | USD 808,184 |
Christian Rychly (COO) \u00b2 | - | USD 470,691 |
1 In December 2024, Dr. Axel Schroeder\u200c resigned from his position as a member of the Board of Directors. Simultaneously, Mr. Petros Panagiotidis was appointed to the Company\u2019s Board of Directors. The change of the Board of Directors comes as a result of MPC M\u00fcnchmeyer Petersen & Co. GmbH, an\u00a0indirect shareholder of the Company, selling 74.09% of its stake in MPC Capital AG to Thalvora Holdings GmbH.
2 Total remuneration includes pension and other retirement benefits to our key management personnel.
Shares at December 31, 2023 | 2023 remuneration | |
Ulf Holl\u00e4nder (Chairman)\u200c2 | 165,637 | USD 90,000 |
Dr. Axel Schroeder\u200c3 | 2,471,110 | USD 50,000 |
Pia Meling | - | USD 50,000 |
Peter Fredriksen | 200,000 | USD 50,000 |
Ellen Hanetho | 60,000 | USD 50,000 |
Constantin Baack (CEO) | 66,000 | USD 1,239,446 |
Moritz Fuhrmann (CFO) | - | USD 494,587 |
Dr. Benjamin Pfeifer (former CFO) | - | USD 81,235 |
1 Several of the board members hold further share through indirect shareholdings in the Company. Please refer to Note 7.5Equityfor further details
2 On March 15, 2024, an agreement was reached that all shares held by Ulf Holl\u00e4nder were sold to MPC CSI GmbH.
3 On March 15, 2024, an agreement was reached that all shares held by Dr. Axel Schroeder were sold to MPC CSI GmbH.
In April, 2024, the Company\u2019s general meeting resolved that each member of the Board of Directors shall receive USD 50,000 (USD 90,000 for the Chairman of the Board) in remuneration for the financial year 2024. The\u00a0Board fees resolved for the year are paid out in the subsequent year. The total remuneration to the Board of Directors and executive management in 2024 was USD 2.1 million (2023: USD 2.1 million).
In October 2024, the Board of the Company resolved to introduce an employees\u2019 option program for its key employees of the Company and its subsidiaries. The program allows each option holder the right to acquire one ordinary share of the Company and the purchase price shall be equal to par value of a share at the time of exercise, which is on July 1, 2028. Correspondingly, the option shall be vested in full and exercisable in four years, i.e. July 2028. Under the share option arrangement, in the event of dividends or other distributions in cash or in kind are made to shareholders of the Company from July 1, 2024, such distributions shall be made to the option holder as if the option shares were delivered to the holder prior to the record date for the distribution. If the options were not vested at the time of distribution, then the distribution shall be withheld by the Company until vesting and paid together with the option shares.The option program is subject to the 2024\u2019s Annual General Meeting which is to be held in May 2025. If the program is not approved, no options shall be vested but instead each option holders shall be compensated as bonus payment in cash. The fair value of the options is estimated by using the Black Scholes option price model . In 2024, the share option program gave an income statement effect of USD 286 thousands related to the expense due to the share award arrangement.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationAboutKeyManagementPersonnelExplanatory", "language": "en", "entity": "scheme:213800MXS7CXYJ2Q1805", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s7__6__176": { "value": "8.3\tSubsequent Events
In December 2024, the Group entered into agreement to sell its wholly-owned 2005-buit vessel, AS Fenja for USD 8.6 million to an unrelated party. The sale of the vessel was completed in January 2025.
In January 2025, the Group took delivery of the first 1,300 TEU container vessels from the yard. The vessel is contracted with a 15-year time carter with North Sea Container Line AS (NCL), back by CoAs from various parties, including a 15-year CoA with Norwegian Industrial Group, Elkem ASA.
In March 2025, the Group sold two Chinese-built 1,300 TEU vessels in an en-bloc deal of USD 21.8 million. The 2005-built\u00a0AS Franziska and 2007-built AS Fabiana, are respectively sold with USD 10.0 million and USD 11.8 million to an unrelated party.
In March 2025, the Company completed a USD 75.0 million tap issue in the Company's outstanding senior unsecured sustainability -linked bond maturing on October 9, 2029. The bond pays a coupon of 7.375% per annum and the tap issue priced at 96.0% of par.
In March 2025, the Group entered into secured term loan facility in an amount of up to USD 16.0 million with SBI Shinsei Bank, Limited (SBI Shinsei Bank) and Development Bank of Japan Inc (DBJ) to refinance one modern eco-design vessel, AS Anne, financed under the existing USD 50.0 million loan with HCOB. The new facility has a tenor of six years, carries an interest rate of SOFR plus a margin of 175 basis points. The outstanding interest-bearing debt of USD 8.7 million in relation to AS Anne with HCOB was prepaid in February 2025.
In March 2025, as part of the Group's strategy for fleet optimization and renewal, the Group entered into agreement to sell five vessels en bloc, involving three 1,300 TEU vessels and two 2,000 TEU vessels, to an unrelated party. The five vessels will be sold with the existing charters attached.
In March 2025, pursuant to the dividend declared in Februray 2025, the Group paid a total cash distributions of USD 39.9 million.
In April 2025, the Company listed its senior unsecured sustainability-linked bonds 2024/2029 of USD 200.0 million with ISIN NO0013355248 on Euronext Oslo B\u00f8rs.
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