The Japanese shipping company Mitsui O.S.K. Lines (MOL) has quitted the year 2016 with a profit decrease of 10.8 billion. ¥ to 25.4 billion ¥. For this year another decline is expected.
But for MOL the year 2016 has endet with an significant upturn because even in Januar 2017 the[ds_preview] company had expected a profit of only 8 billion ¥.
MOL sees main reasons in the containership business, in strong cargo liftings on the Asia–North America and Asia-Europe routes, a higher utilization than the assumption was and firmer markets for all types of dry bulkers compared with that assumption.
On the other hand, net income/loss remained on an upswing, showing an increase of 5.0 billion ¥ from the »zero income/loss« outlook at the end of January. This was due to an increase in expenses related to dry bulker Business Structural Reforms, resulting from a review and revision of applicable foreign exchange rate from the rate as of 30 September 2016 to the one as of 31 December 2016, as well as the settled amount of impairment loss related to their owned containerships the company stated.
But the full-year ordinary loss in the containership business was 32.8 billion ¥, which was still significant, but the fiscal year ended with a large upswing from a deficit in 40.0 billion ¥ in the previous outlook MOL informs.
MOL forecasts another slide decrease for 2017
But MOL forecasts another tough year. The company expects a full-year ordinary profit of 22 billion ¥, which would be a slide decrease from the previous year. In the container ship business MOL expects a certain improvement due to currently firm liftings and freight rates. Overall, however, the business performance has not recovered to a point where the company can expect higher profits than the previous year, because of a larger decrease in profit in the tanker business, in which the Japanese forecast another slight weakness again this fiscal year, and the impact of higher bunker prices. MOL projected its net income for this year at 10.0 billion ¥.
