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MOL profits for FY 2008/9 drop 33%

MOL profits for FY 2008/9 drop 33%

Tokyo: High bunker prices, a strong yen and the unfolding global economic crisis all conspired to negatively impact profits in FY 2008 to end March 2009, reports Mitsui OSK Lines (MOL), by some reckonings the world's largest shipping group.

Revenue was down only 4% year-on-year to ¥1,865bn ($19.3bn) but operating income plunged by 32% to ¥197.2bn ($2.03bn) and net income by 33% to ¥126.9bn ($1.31bn).

Average exchange rate for the period fell from ¥115.55 per dollar to ¥100.3 per dollar, while average bunker price climbed from $409/tonne to $119/tonne.

"The spot freight market for dry bulkers initially continued at a high level following of from the previous year, but dropped rapidly in the second half of the financial year as the economic crisis gained momentum," relates MOL. "Freight rates for VLCCs and petrochemical product tankers (MR-type) remained strong up to the end of 2008, but have continued to slide since the 2009 New Year. In the containership business, fleet supply and de,mand has deteriorated, even on the major East/West routes, causing a slump in both cargo liftings and freight rates."  [28/04/09]