MPC stock surge on Oslo Børs
Market for all
High demand for goods combined with a lack of supply and a lean world fleet has driven freight rates and shipping shares through the roof. After 2020's decline in the market, analysis of 2021 shows a historic growth in the maritime freight market. However, not everyone was on board – it was first and foremost the segment for container freight that had gained momentum, with the market for break-bulk following in its wake.
The Oslo Stock Exchange, part of the Euronext Group, is world leading in the energy, shipping and seafood sectors. It operates the regulated markets for securities trading in Norway, the Oslo Børs main board and Oslo Expand, as well as the multilateral trading facility Euronext Growth. The marketplaces operated by the Oslo Stock Exchange are part of the Norwegian maritime cluster, with access to domestic and international investors, investment banks with industry focus, seasoned legal advisors and a highly competent research community, as well as efficient settlement, listing and admission processes and trading systems.
Among the top 20 winners on the Norwegian stock market in 2021 were the shipping companies MPC Container Ships (MPC), Jinhui Shipping and Transportation, Awilco LNG, Belships, Wilson, Golden Ocean Group and 2020 Bulkers.
The freight boom has led to soaring share prices in the Norwegian stock market for shipping companies in general, and especially for the container freight industry. MPC is being referred to as the "stock rocket" of the year on the Oslo Stock Exchange. MPC has also strengthened its position in the market by the new 1.8 billion kroner acquisition of Songa Container, expanding its fleet from 64 to 75 feeder ships. Commenting on the market in an interview with the Norwegian financial website E24, MPC's Constantin Baack said he believed that MPC would see a quick return on its new acquisition and expressed strong optimism for 2022.
MPC assumes a gross operating profit of over $350 million in 2022, equivalent to around 3 billion kroner, an increase from the approximate 170 to 180 million kroner in 2021.
The listing of Western Bulk Chartering's shares on Euronext Growth had its first day of trading on 20 September 2021. On completing the issue for new shares, Western Bulk Chartering experienced an overwhelming interest and felt it necessary to cut the subscription period. The investors at Arctic Securities and DNB Markets completed the issue of 130 million kroner in just a few hours.
Both professional and retail investors are loading up with container shares. MPC, the only pure container company on the Oslo Stock Exchange, also attracts many Norwegian retail investors.
For dry-bulk on the Oslo Stock Exchange, companies such as 2020 Bulkers Ltd reached its all-time high in mid-August 2021, nearly three times the market cap compared with the same time in 2020. Similarly, Golden Ocean Group reached an all-time high in the beginning of September 2021, well over three times the market cap of the same time in 2020.
For further information on this topic please contact Dag Erik Rasmussen or Simen Varhaug at Wikborg Rein by telephone (+47 22 82 75 00) or email ([email protected] or [email protected]). The Wikborg Rein website can be accessed at www.wr.no.