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MPC Capital AG Sees More Revenue From its Shipping Investments Moving Forward

MPC Capital AG (Deutsche Börse Scale, ISIN DE000A1TNWJ4), an international real asset and investment manager, publishes its 2019 Interim Financial Report.

New business again compensates for decrease in retail revenue

Revenue for the MPC Capital Group came in at EUR 20.0 million in the first half of 2019 (H1 2018: EUR 19.7 million). This means the expected decline in income from the former retail business area was again compensated by rising income from business with institutional investors. Management fees amounted to EUR 17.8 million, nearly 6 % up on the previous year (EUR 16.8 million). Transaction fees of EUR 1.8 million for the first half of 2019 were below the prior-year figure of EUR 2.7 million due to reduced transaction activity. These were generated primarily by the sale of a portfolio of office properties in the Netherlands and a number of individual transactions in the Shipping unit.

Earnings before taxes (EBT) for the first half of 2019 came to EUR 1.8 million (H1 2018: EUR 3.8 million). The decline was due to EUR 5.5 million lower other operating income in the first half of 2019, though this movement was offset by an increased result from equity investments. Overall, MPC Capital AG posted a consolidated profit after tax of EUR 1.2 million for the first half of 2019 (H1 2018: EUR 2.8 million).

EUR 4.2 billion assets under management

The assets under management of the MPC Capital Group as at 30 June 2019 totalled EUR 4.2 billion, nearly unchanged from the level as at 31 December 2018 (EUR 4.3 billion). Business with institutional investors represented 61 % of this sum. New business resulted in asset additions of EUR 0.2 billion, while there was a similar volume of asset disposals.

Financial assets, which mainly include MPC Capital’s co-investments, increased by EUR 1.4 million to EUR 82.7 million (31 December 2018: EUR 81.3 million). Additions comprised for example the equity investment in the new investment platform for Dutch office properties “InTheCity” as well as equity investments in shipping projects. Disposals from the co-investment portfolio include sale of the office portfolio in the Netherlands as well as other asset sales. The cash position declined to EUR 14.1 million as at 30 June 2019 (31 December 2018: EUR 28.9 million) mainly as a result of investing activities, with liabilities substantially reduced. The equity ratio further strengthened from 74.4 % to 80.0 %.

Forecast for 2019 full year confirmed

For the second half of the year, the Management Board of MPC Capital AG expects a continuing stable development. The Shipping unit in particular should bring in a slightly higher revenue and profit contribution despite a challenging market environment. In the Real Estate unit, additional income from transactions is expected above all in the Netherlands. The team at MPC Renewable Energies is examining the addition of further wind and solar projects in the MPC Caribbean Clean Energy Fund.

For the full financial year 2019, MPC Capital reiterates its expectation of a slight rise in consolidated revenue along with at least break-even earnings before taxes. A dynamic development in new business, additional transactions and acting on external market influences could impact revenue and earnings positively.

Key Group figures for H1 2019

01/01 – 30/06/2019 01/01 – 30/06/2018
Revenue 19,977 19,690
of which from management services 17,778 16,780
of which from transaction services 1,802 2,730
of which others 396 180
Other operating income 3,929 9,391
Earnings before taxes (EBT) 1,814 3,807
Consolidated net profit 1,198 2,807
Employees (average) 295 272
30/06/2019 31/12/2018
Assets under management (EUR billion) 4.2 4.3
Total assets 141,032 151,214
Financial assets 82,728 81,313
Liquid funds* 14,082 28,578
Equity 112,858 112,467
Equity ratio (%) 80.0 % 74.4 %

*Cash in hand and bank balances; unless otherwise stated, all figures in thousand euros

Full Report

Source: MPC Capital AG

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