Asia/Pacific News
Bunker Price Drop Helps MOL Swing to Profit in FY2013
Japanese carrier Mitsui OSK Lines Ltd. [TYO:9104] (MOL) reports it returned to a profit in fiscal year 2013, achieving a net income of ¥57.4 billion ($557.6 million), compared with a loss of ¥178.8 billion ($1.7 billion) the previous year.
The company's revenues for the fiscal year, ended March 31, 2014, rose 15 percent to ¥1.7 trillion ($16.8 billion).
MOL said its results were helped by by a weaker yen and a drop in bunker prices of $52 per metric tonne (pmt), bringing the average paid over the fiscal year to $610 pmt.
Looking ahead to FY 2014, the company predicts an increase in both revenues and profits, anticipating net income of ¥60 billion ($587 million) on revenues of ¥1.8 trillion ($17.6 billion).
"Although the robust economic recoveries seen in developed countries are expected to continue, it is assumed that developing countries will remain susceptible to being affected by trends in the Chinese economy and the fiscal markets," MOL said.
To improve its position in the market, the company plans to increase the size of its containerships, improve operational efficiencies, and expand alliances.
MOL said in November that its increased efficiency measures were helping it to improve its financial footing.
