MPC Capital develops stably in third quarter

16 November 2017

  • Transaction fees in the double-digit millions contracted
  • Full-year forecast for 2017 confirmed

Hamburg, 16 November 2017 - MPC Capital AG (Deutsche Börse Scale, ISIN DE000A1TNWJ4), an international asset and investment manager of real assets, developed stably in the third quarter of 2017. Revenue for Q3 2017 came to EUR 8.9 million, compared with EUR 14.5 million for the third quarter of 2016. Earnings before tax (EBT) were EUR 1.3 million, as against EUR 3.8 million in the prior-year quarter. The decline in revenue and profit is attributable to the lower transaction fees compared with the previous year. The fourth quarter is expected to bring a significant increase in transaction business that should generate additional income in the double-digit million Euro range.

After the first nine months of the 2017 financial year, aggregate revenue was EUR 31.6 million (9M 2016: EUR 37.4 million). Management fees were stable at the solid level of EUR 26.7 million (9M 2016: EUR 28.3 million). Transaction fees of EUR 4.7 million were down on the level for the first nine months of the previous year (9M 2016: EUR 9.0 million) because asset sales were relatively low. Earnings before tax (EBT) in the first nine month 2017 came to EUR 4.8 million (9M 2016: EUR 11.2 million). The equity ratio as at 30 September 2017 climbed to 78 % (31 December 2016: 70 %).

High transaction fees expected in Real Estate sector
In the Real Estate sector, MPC Capital has signed preliminary agreements, which give rise to expectations of eight-digit income in the fourth quarter of 2017. These relate to the sale of real estate which will remain predominantly in the management of MPC Capital even after the exit. Furthermore, the Dutch subsidiary of MPC Capital has won the contract for the development of one of the biggest inner-city residential development projects in Amsterdam. The purchase price for the land was EUR 84 million. The estimated investment volume is around EUR 300 million.

MPC Container Ships increases investment volume to USD 275 million
In the Shipping segment, the company MPC Container Ships AS established by MPC Capital AG and listed on the Oslo Stock Exchange has increased its investment volume to USD 275 million and further enlarged its fleet. Of the 26 container ships in the feeder segment, a large is managed by MPC Capital. In addition, MPC Capital has participated in further transactions in the Container and Bulker segment.

Infrastructure projects with focus on renewables
In the Infrastructure sector, MPC Capital has structured two new wind farm projects in Portugal (25 megawatts) and Mongolia (55 megawatts). In connection with the establishment of a renewable energies platform in the Caribbean region, negotiations are currently in progress on the acquisition of further projects with an aggregate output of 200 megawatts. Other infrastructure projects that mainly involve industrial opportunities in emerging countries are currently being analysed.

Forecast confirmed
The transactions already contracted and initiated are likely to produce a substantial rise in income in the fourth quarter of 2017. For 2017 overall, MPC Capital therefore reiterates its expectation of consolidated revenue growth of at least 10 % and a disproportional rise in EBT.

Note: the figures for the third quarter and first nine months of 2017 are unaudited and have not been subjected to any accounting review.

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