MOL posts H1 net loss of $214.78mln
Mitsui O.S.K. Lines (MOL) swung into half-year net loss as bunker costs bite and freight rates remain weak, prompting the shipping firm to forecast a full year net loss, Seatrade Asia online reports. The Japan-based shipping firm registered first-half net loss of JPY16.46bn ($214.78m) as against net profit of JPY48.25bn in the same period of last year.
Revenue also slipped to JPY717.35bn during the period compared to JPY802.84bn in the corresponding period of 2010.
MOL said the capesize bulker market had been weak due to a slump in cargo trade and the supply of new vessels.
“As for containerships, freight rates fell for the East-West trade route because of lower-than-expected cargo trade and fuel costs increased as a result of rising bunker prices, which put enormous pressure on the bottom line,” MOL said.
For the financial year 1 April 2011 to 31 March 2012, MOL made a downward revision to project a full year net loss of JPY4m compared to a previous outlook of a JPY17m net profit.
MOL blamed the anticipated net loss to “loss on valuation of investment securities caused by the decline in stock market prices, in addition to other negative factors such as falling container freight rates in the Asia-Europe and Asia-North America routes, a delay in turnover in the tanker market, and the ongoing appreciation of the yen, although the dry bulker market remains steady.”
Revenue also slipped to JPY717.35bn during the period compared to JPY802.84bn in the corresponding period of 2010.
MOL said the capesize bulker market had been weak due to a slump in cargo trade and the supply of new vessels.
“As for containerships, freight rates fell for the East-West trade route because of lower-than-expected cargo trade and fuel costs increased as a result of rising bunker prices, which put enormous pressure on the bottom line,” MOL said.
For the financial year 1 April 2011 to 31 March 2012, MOL made a downward revision to project a full year net loss of JPY4m compared to a previous outlook of a JPY17m net profit.
MOL blamed the anticipated net loss to “loss on valuation of investment securities caused by the decline in stock market prices, in addition to other negative factors such as falling container freight rates in the Asia-Europe and Asia-North America routes, a delay in turnover in the tanker market, and the ongoing appreciation of the yen, although the dry bulker market remains steady.”