MOL: Differences between Consolidated Business Outlook and Financial Results for the 1st Quarter FY2020

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Mitsui O.S.K. Lines, Ltd. announces differences between the consolidated business outlook for the 1st Quarter of fiscal year (FY) 2020 (April 1, 2020 – June 30, 2020) announced on April 30, 2020 and the financial results announced on.

Differences between consolidated business outlook and financial results for the 1st Quarter of FY2020 (April 1, 2020 – June 30, 2020).

 RevenueOperating ProfitOrdinary ProfitIncome/Loss*Net Income per Share
Previous Outlook (A) ¥ million  –¥ million  –¥ million (7,000)¥ million –¥ –
Financial Results (B)251,471(5,126)7,3585,49145.92
Change (B-A)14,358
Change (%)
(Ref.)  1Q FY2019(ended in June2019)283,1476,85414,00712,273102.63

* Profit attributable to owners of parent

Reason for revisions:

On April 30, 2020, the company announced its business outlook as consolidated ordinary loss for the 1st quarter of fiscal 2020 of (7,000) million yen and its consolidated ordinary loss for the full fiscal year of (10,000) million yen to (40,000) million yen range. It then made an upward revision on its consolidated ordinary profit/loss for the full fiscal year to 0 yen on 17 June, 2020. Ordinary profit for the 1st quarter of fiscal 2020 was higher than announced on April 30, mainly due to the effort in Containership business to cut cost and minimize dipping of utilization rates in Asia-North America and Asia-Europe services to mitigate the impact of sluggish cargo movement by COVID-19 pandemic, also supported by cheaper bunker price, in addition to longer-than-expected bullish market of crude oil carrier in tanker business. With regard to the full-year consolidated profit, forecast announced on June 17, 2020 is maintained because demand for ocean transport from the 2nd quarter onward remain uncertain in Car Carrier business and Containership business, operated by Ocean Network Express Pte. Ltd., an equity-method affiliate, and the speed of recovery in cargo movements is expected to further slow due to the lack of prospects when the COVID-19 pandemic will be fully contained.

Sue Terpilowski
Author: Sue Terpilowski