Japanese shipping major Mitsui O.S.K Lines (MOL) has reported a full-year loss for the fiscal year ended March 31, 2018, of USD 446 million (JPY 47.3 billion).
The red ink is being attributed to the establishment of a joint venture container shipping company Ocean Network Express (ONE) with compatriot lines NYK and K Line.
Specifically, MOL said that it had incurred losses due to the charter-out of vessels to ONE, losses on liquidation of the company’s agencies, and others. Therefore, the company has recorded a loss as “loss related to business restructuring.”
Out of Japan’s Big Three shipping firms, MOL was the only to end the previous fiscal year with a net income, despite a decrease in its revenues.
Namely, the shipping firm’s net income stood at JPY 5.2 billion, bouncing back from a net loss of JPY 170.4 billion seen in the previous year.
For the fiscal year ended March 31, 2018, the company’s revenues were higher standing at JPY 1.65 trillion against last year’s JPY 1.5 trillion. MOL booked an operating profit of JPY 22.6 billion, also up from last year’s JPY 2.55 billion.
Nevertheless, MOL is optimistic about returning to the black, as it forecasts profit of USD 285 million for the FY ending March 31, 2019.