The $46.9m profit compares to a loss $1.51bn in FY2015 when the Japanese shipowner undertook a major restructuring. MOL reported revenues of $13.4bn for FY2016 with an operating profit ratio of 0.2%.
By segment MOL’s bulkships division – comprising tankers and dry bulk – made JPY39bn ($351m) profit for FY2016, while containerships reported a JPY32.8bn loss, ferries and coastal ro-ro vessel a JPY42.1bn profit, and associated businesses JPY111.7bn.
Looking ahead MOL forecast a doubling of net profit in FY2017 ended 31 March 2018 with a $90.9m net profit. Revenues for FY2017 were forecast at $14.6m.
Commenting on the dry bulk market outlook MOL said: “The level of the dry bulker market is expected to remain higher than the current fiscal year due to a certain level of the fleet demand on the back of an increase in cargo volumes of iron ore due to firm demand from China, a major Brazilian resource company’s plan to increase production, and an increase in grain shipments from South America, and other factors, while showing a damping effect on growth in fleet supply.”
For the crude tanker market it said: “With respect to the very large crude oil carrier (VLCC) market, despite expectations of an increase in long-distance trade from West Africa bound for Asia to supplement slowing crude oil cargo volumes from the Middle East stemming from OPEC production reductions, because the high level of vessel supply seen in 2016 will continue, we are assuming the market will follow a weakening trend.”
Meanwhile the trend for container shipping was positive and MOL said: “With respect to containerships, we expect the Asia-North America cargo volumes to continue to be firm on the back of the strong U.S. economy. On Asia-Europe routes, we also expect cargo volumes from Asia to be firm as well based on current demand levels.”
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