Japan’s shipping major Mitsui O.S.K. Line is on the path of returning to profitability at the ordinary income level, the company’s President & CEO, Junichiro Ikeda said on the occasion of MOL’s 133rd anniversary.
Ikeda added that MOL is ” well positioned to deliver profits this fiscal year and beyond, through execution of its newly-established management plan” despite shipping market’s expected volatility.
“The key will be to harness the cost competitiveness of our fleet, a foundation we have laid through our business structural reforms,” Ikeda added.
Speaking of the integration of the containership operations of Japan’s three largest shipping companies, Ikeda stressed that ” all hands on deck are needed to pursue this project”.
MOL Group is currently overhauling its business structure under “One MOL” strategy, which saw setting up of a dry bulk business unit and energy transport business unit, last year, in addition to its heavyweight transport unit.
On April 1, 2017 MOL launched the new product transport unit, merging liner, car carrier, port projects & logistics business divisions.
In addition, MOL said it will push ahead with its LNG-fuelled vessels and LNG fuel supply businesses, and devote more energy to group management centred on ferry and real estate business.
The message comes after MOL announced an extraordinary loss worth JPY 20.5 billion (USD183 million) for the fourth quarter of FY2016 which was mainly ascribed to low spot freight rate market.
MOL also issued a revised forecast for extraordinary loss for fiscal year 2016 for its dry bulker business, saying that it expects to record a greater loss due to structural reforms and cancellation of charter-in contracts for its operated vessels and transfer of its remaining charter-in contracts to the company.