MOL in Restructuring Mode
Japanese shipping major Mitsui O.S.K. Lines (MOL) has unveiled a number of new restructuring measures effective April 1, 2020.
As informed, the company intends to establish three new divisions and integrate its two tanker divisions to achieve synergy.
Firstly, within its energy transport business unit, MOL will create offshore gas project division focusing on FSRU projects and LNG bunker vessel projects as the company is investing heavily to boost its offshore business.
In addition, the Japanese shipping company plans to form ferry and associated business division as an organization for reinforcing group business management with abolishing the new & clean energy business division.
The third division would be the steaming coal & renewable energy project in which functions of the offshore wind power project will be integrated into the steaming coal & energy project division. In this way, MOL said it strengthens its commitment to environmental and emission free businesses.
What is more, the company will create new roles including a chief environment and sustainability officer and a chief digital officer.
The announcement coincided with the company’s financial results for the third quarter of the fiscal year ending March 31, 2020, showing that MOL delivered a net income of JPY 22.8 billion (USD 209.6 million), an increase compared to JPY 14.3 billion seen in Q3 FY2018.
The company also saw a significant increase in ordinary profit in a year-on-year comparison, which rose to JPY 21.1 billion in Q3 FY2019 from JPY 14.4 billion in Q3 FY2018.
Specifically, the energy transport business recorded a higher profit, thanks to a favorable tanker market and an increase in profit from long-term contracts for LNG carriers. Furthermore, the containership business, ONE, which marks the second year since its integration, showed a significant improvement.
On the other hand, MOL’s revenue decreased to JPY 292.9 in Q3 FY2019 from JPY 322.3 reported in the same quarter a year earlier.
As explained, revenue dropped due to the negation of MOL’s non-consolidated revenue for the containership business which was included in the results for the same period of the previous year.
The full-year fiscal year 2019 forecast remains unchanged, with ordinary profit expected to be JPY 50 billion and net income JPY 40 billion.