MOL’s Full Year Results Down

Full year results of the Japanese shipping conglomerate Mitsui O.S.K. Lines (MOL) dipped over 26% year-on-year.

The company posted a net profit of JPY 42.3 billion (USD 352.4 million) for the fiscal year ending March 31st, 2015 against JPY 57.3 billion profit booked in 2013 fiscal year.

MOL’s revenues were higher than in the previous year amounting to JPY 1.81 trillion, compared to JPY 1.73 trillion in 2013.

The company’s container-shipping business posted a widened loss of JPY 24.1 billion, against a JPY 14.5 billion loss in the previous year.

The loss was mainly attributed to severe market conditions in Europe and North-South routes, which are expected to continue as increase in cargo volume may slow-down in Europe route due to depreciation of Euro and boxship oversupply.  The market of North America and Intra-Asia routes is expected to remain comparatively firm, MOL said.

MOL’s other business were predominantly profitable.

Looking ahead, MOL predicts a moderate trend of recovery in global economy to be maintained in 2015 “centered on developed countries boosted by factors such as fall in crude oil prices, despite a continued lack of momentum in China and other emerging/resource-producing countries.”

With respect to the dry bulk market, MOL said that the sector will probably continue to be pressured by oversupply with a moderate increase in the volume of bulk cargo including iron ore.

Tanker market is expected to remain stable amid attained balance between supply and demand.

Car carriers exports from Japan remain on a decreasing trend, whereas growth is expected in cross trades and inbound cargo including Intra-Asia and Intra-Atlantic routes.

For the full year, MOL projects a revenue of JPY 1.820 billion, operating income of JPY 32 billion, ordinary income of JPY 60 billion and net income of JPY 43 billion.