Asia/Pacific News
Rising Bunker Prices Cited as MOL Revises H1 Profit Outlook
Tokyo headquartered shipping firm Mitsui O.S.K. Lines, Ltd. [TYO:9104] (MOL) has revised its consolidated business outlook for the first half of FY2012, saying it now expects net income to be a loss of ¥13.5 billion ($172.9 million) compared to its previous forecast for the April 1, 2012 to September 30, 2012 period to be a loss of ¥2.0 billion ($25.6 million).
A rise in bunker prices, weakness in the dry bulker market, and softening of the demand-supply environment in the containership business were all cited as reasons for the revision.
In addition the firm said it made a ¥7.4 billion ($94.8 million) loss from the write-down of investment securities it said was a result of a decline in stock market prices.
Revenues were revised down 1.9% from ¥770 billion ($9.86 billion) to ¥755 billion ($9.67 billion).
MOL said is now reviewing the consolidated business outlook for the period April 1,
2012 to March 31, 2013, and plans to issue an updated outlook when announcing the
consolidated financial results for the first half of FY2012 scheduled to take place on October 31,
2012.
In August MOL announced it had narrowed its quarterly losses for the period ended June 30, 2012 showing a net loss of ¥5.02 billion ($63 million) or -¥4.20 ($0.053) per share compared with a loss of ¥8.05 billion ($102 million) or -¥6.73 (-$0.086) per share in Q1, 2011.
