MOL YoY Q1 2014 Profit Slips, but Dividend Planned

By George Backwell
Monday, August 11, 2014
Koichi Muto: Photo MOL

MOL President Koichi Muto informs in a letter addressed to company shareholders of a year-on-year decline in profits during the first quarter of fiscal year (FY) 2014, excerpted as follows:

"I would like to report our business results for the first quarter of fiscal year (FY) 2014 (April 1, 2014 to June 30, 2014).

1. Business Performance for First Quarter of FY2014
During the first three months of FY2014, while geopolitical risks such as political strife in Ukraine and Iraq raised concerns of a spike in crude oil prices, moderate recoveries in the United States and Europe drove global economic growth.

Looking at maritime shipping markets, a continuing surplus of dry bulk vessels kept that sector weak overall. The very large crude oil carrier (VLCC) market slumped mainly as a result of a decline in demand for crude oil shipments due to scheduled periodic maintenance at East Asian refineries. On the other hand, the LPG carrier market was strong. In the containership business, the gap between supply and demand remained substantial, reflecting deliveries of large containerships, and freight rate levels remained weak as a result.

We responded to this environment with continued efforts toward rationalization, such as improvement of operating efficiency and reduction of fuel expenditures by slow steaming. However, our business performance showed a decline year on year, with revenue of ¥443.9 billion, operating income of ¥3.9 billion, ordinary income of ¥7.5 billion, and net income of ¥8.5 billion.

2. Forecasts for FY2014 and Dividends
For the second quarter and after, we assume that the exchange rate and bunker price will both be in line with our initial outlook. In the dry bulker market, cargo volumes are recovering due to seasonal factors, and the imbalance between supply and demand is showing signs of improvement. As for containerships, although we expect the introduction of large vessels to help realize cost reductions, we are still cautious about the business environments as the market remains soft.

For the full year, we project revenue of ¥1,830.0 billion, operating income of ¥36.0 billion, ordinary income of ¥50.0 billion, and net income of ¥40.0 billion.

At present, we plan to pay an annual dividend of ¥6 per share (including an interim dividend of ¥3 per share) for FY2014."

Maritime Reporter July 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Marad Visits TX Maritime Technology & Training Center

United States Maritime Administration tours Maritime Technology and Training Center site.   Administrators from the United States Maritime Administration (MARAD),

ISS Announces CEO Transition

Captain Claus Hyldager yesterday decided to step down as the Chief Executive Officer of Inchcape Shipping Services (“ISS”).    The current Chief Financial Officer,

CME Lifts Force Majeure for all Illinois River Grain Terminals

CME Group has lifted its declaration of force majeure at all Illinois River terminals that are regular for Chicago Board of Trade corn and soybean futures delivery,


FURUNO of Japan Increases Investment in ENL

ENL Group and FURUNO Electric Co. Ltd of Japan have announced that FURUNO has increased its investment into the New Zealand company to a total of 29.5%. The

Pressure for Australia Sub Deal Grows

Australia to spend A$65 bln on ships and subs over 20 years; PM pledges A$40 bln for domestic shipbuilders. Australia will spend A$89 billion ($65 billion) on

S.Africa Considering Ship-Based Power Generation

South Africa could deploy power barges using gas to generate electricity to help overcome chronic supply shortages, a senior government official said on Tuesday.

Container Ships

FMC Collects $1,227,500 in Penalties from NVOCC's

Federal Maritime Commission Chairman Mario Cordero announced that the Commission has completed compromise agreements recovering a total of $1,227,500 in civil penalties.

NYK Hosts Safety Conference

Over three dates in July, NYK hosted a safety promotion conference for shipowners and ship-management companies at the NYK head office in Tokyo and at Imabari city in Ehime prefecture.

First Italian Port To Deploy 23 Rw Gantry Cranes

La Spezia Container Terminal (LSCT), Contship Italia Group’s flagship gateway to Northern and Central Italy, Southern Europe and beyond is the first Italian regional

Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Offshore Oil Pod Propulsion Port Authority Salvage Ship Electronics Ship Simulators Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2595 sec (4 req/sec)