Friday, January 29, 2010

Mitsui OSK Lines Increase Profit Forecast For Container And Bulk Shipping Operations

Japanese Group Take a Bullish Approach
Shipping News Feature

JAPAN – Mitsui OSK Lines (MOL) announced today that they are upwardly revising their forecast for the year to 31st March 2010 with regard to their shipping operations. The company view is that the dry bulk market has steadied up due to increased coal and iron ore demand from China and that the demand for their tanker vessels will increase due to withdrawal of single hulled VLCC’s. They are also predicting a rise in demand for global container freight and are confident the newly imposed rate restrictions will hold.

This positive outlook is reflected in the company’s consolidated business outlook announced today by MOL Group President Mr Akimitsu Ashida in which he predicts a revised net income figure from the previous estimate of 2,000 million Yen to 5,000 million Yen. This of course is in stark contrast to figures announced earlier today by China Shipping Container Lines. The predicted income per share for MOL now stands at 4.18 yen as against the 1.67 Yen which equates to a 3 Yen per share dividend. The forecast made on 27th October did not foresee any dividend for the figures then available. The company paid an annual dividend per share of 31 Yen to last years year end in March 2009.

A full analysis of the company’s figures and their reasons for the more positive attitude can be found here with the announcement of their third quarter highlights and provides a useful analysis of the corporate views of the reasons for the downturn and why the Japanese group are taking a bullish view of future prospects for the industry.

Photo: Mr Akimitsu Ashida courtesy of MOL