Asia/Pacific News
MOL Addresses Speculation Over ¥5 billion Loss from Daiichi Chuo Kisen Kaisha Bankruptcy
Japan-based Mitsui O.S.K. Lines (MOL) says that recent media reports suggesting that the company will be posting a ¥5 billion ($42.09 million) loss, largely as a result of Daiichi Chuo Kisen Kaisha's (Daiichi Chuo's) bankruptcy protection filing, are inaccurate.
"On October 9, 2015, the Nihon Keizai Shimbun reported that the Company (MOL) is projected to show an operating loss of more than ¥5 billion ($42.09 million) in its consolidated financial result for the first half of FY2015, due mainly to the stock revaluation of Daiichi Chuo. However, this is not the outlook reported by the Company," explained MOL in the statement.
"Net income for the first half of FY2015 is projected to exceed the media-reported figure due to an extraordinary gain from cancellation of vessel charter contracts in the bulkship business, although it is expected to be lower than the previously announced outlook due to recording an extraordinary loss as mentioned above."
MOL says it plans to release its financial results on October 30, noting that its "business outlook is currently under close scrutiny."
On September 29, the company initially announced the prospect of recording an extraordinary loss of about ¥25 billion ($210 million) from the stock revaluation of Daiichi Chuo Kisen Kaisha.
In September, Japanese dry bulk shipping firm Daiichi Chuo filed for bankruptcy protection with roughly ¥120 billion ($1 billion) in liabilities.
