Mitsui OSK Lines (MOL) increased its nine-month earnings for FY2016 reporting profit of JPY19.03bn ($163.33m), but lowered its full year profit forecast.
MOL reported improved profitability despite a drop in revenues to JPY1.08trn for the nine month period ended 31 December 2016 compared to JPY1.32trn previous corresponding period.
At a segmental level profits for its bulkships division of the nine-month period in 2016 were JPY25.8bn compared to JPY44.9bn in the previous year.
Losses of the container shipping division widen in the period to JPY26.1bn compared to JPY18.4bn in the same period a year earlier. Profits from the ferry, coastal and ro-ro sector remained flat at JPY3.8bn.
Despite the positive result MOL reviewed its forecast of a full year net profit of JPY7bn to a breakeven of zero.
“The company conservatively reviewed the consolidated business outlook and made a downward revision of net income due to concerns about possibility for more impairment of owned containerships depending on future trend in ship prices, which showed a significant drop over the past year, and the future cash flow, which will be planned,” MOL said.