Asia/Pacific News
Fuel-Saving Efforts Help MOL Return to Profit
Japanese shipping company Mitsui O.S.K. Lines [TYO:9104] (MOL) reports that it returned to profitability in the first quarter of its 2013 fiscal year, ended June 30, after implementing cost-saving initiatives last year.
MOL recorded a profit of ¥14.5 billion ($147.5 million) on revenues of ¥411.9 billion ($4.2 billion) for the quarter after losing ¥5.0 billion ($50.9 million) on revenues of ¥378.9 billion ($3.9 billion) in the same quarter last year.
The tanker segment improved partly due to what the company termed a "temporary recovery on the back of a tighter balance between vessel supply and demand" for very large crude carriers (VLCCs) and partly because of slow steaming, pools formed with other operators, and other efforts to reduce fuel costs.
The company's containership segment remained unprofitable, but its performance improved year-over-year "due to redoubled efforts to reduce operating costs and improve operation efficiency," the company said.
MOL paid an average of $606 per metric tonne (mt) for bunkers over the quarter, down from $695 per mt in Q1 2012.
Looking into the rest of the year, the company said it anticipates bunker prices to be lower than last year's with limited recovery in shipping markets.
This spring, MOL announced plans to cut its costs by more than ¥30 billion ($321 million).
