The president of Mitsui O.S.K. Lines, Koichi Muto, comments on the company's performance during financial year 2013 in a letter to shareholders, excerpted as follows:
Combined with the continuing weaker yen and falling bunker prices, we saw a significant year-on-year improvement in profitability, and successfully achieved the main theme set forth in the Single-year Management Plan RISE2013 – Achieve profitability in FY2013 to make it the first year of MOL’s new growth stage.
Looking at maritime shipping market conditions, despite signs of a year-on-year recovery, the environment remained difficult overall.
In the dry bulker market, on the vessel supply front the number of new vessel deliveries showed a substantial year-on-year decline. On the cargo demand front, cargo volumes were brisk overall and shipment volumes of iron ore from Western Australia hit a record high.
With respect to tanker market conditions, the very large crude oil carrier (VLCC) market weakened in the summer season, during which demand drops off. Although there was a temporary surge from November on the back of crude oil inventory building by various Asian countries, the market slumped following the lunar New Year.
In the market for containerships, the supply and demand environment worsened reflecting a substantial number of deliveries of large containerships, and freight rate levels declined as a result.
We responded to this environment by continuing to push ahead with the actions set out in the Single-year Management Plan RISE 2013 in addition to the Business Structural Reforms we launched in FY2012.
As a result, we recorded revenue of ¥1,729.4 billion, operating income of ¥41.0 billion, ordinary income of ¥54.9 billion, and net income of ¥57.3 billion.
We plan to pay an annual dividend of ¥5 per share for FY2013, including an interim dividend of ¥2 per share we have already paid. We will keep aiming to increase the dividend payout as we improve our financial standing, and remain grateful for your understanding.