MOL profit sinks 49.9% in 2025 as affiliate earnings collapse
Its equity income dropped to $0.27b from $1.67b, dragging returns lower.
Mitsui O.S.K. Lines reported profit attributable to owners of the parent fell 49.9% to $1.36b (JPY213.2b) in financial year (FY) 2025, as a sharp drop in equity-accounted earnings outweighed modest revenue growth and mixed shipping market conditions across segments.
Operating profit declined 15.8% to $0.81b (JPY127.0b), despite a 2.8% rise in revenue to $11.61b (JPY1.825t) for the year ended March 2026.
The result reflected weaker non-operating income, particularly a fall in equity in earnings of affiliated companies from $1.67b (JPY262.4b) to $0.27b (JPY41.7b), according to the company’s financial statement.
Ordinary profit dropped 58.1% to $1.12b (JPY175.8b), whilst profit before income taxes fell to $1.52b (JPY239.0b) from $2.88b (JPY452.7b) a year earlier.
This underscored reduced contribution from associated shipping investments, lower contributions from affiliated companies, and higher costs.
The earnings swing came even as core shipping operations remained broadly supported by firm tanker and dry bulk markets, underpinned by Middle East tensions, trade rerouting, and solid commodity flows.
Energy-related segments held up better than containerships and product transport, which faced freight pressure and cost inflation.
Segment performance diverged sharply. Product transport recorded a 68.3% drop in segment profit, whilst containerships fell 87.7% as vessel supply growth and weaker freight rates eroded returns.
Energy declined 45.6% in profit, though supported by tanker strength in crude and liquefied petroleum gas trades.
Dry Bulk profit fell 29.7% despite stable cargo flows of iron ore, bauxite, and grains. Gains from improved vessel allocation and project cargo could not offset depreciation and weakness in parts of the fleet.
Cash flow from operating activities rose to $2.87b (JPY450.9b), whilst investing cash outflow widened to $4.59b (JPY721.6b), driven by acquisitions and fleet expansion.
Financing cash flow turned positive at $1.99b (JPY312.9b), supported by long-term bank borrowing.
Total assets increased to $37.90b (JPY5.96t), reflecting expansion in vessels, buildings, and goodwill.
Long-term bank loans rose to $10.94b (JPY1.72t), lifting total liabilities to $19.27b (JPY3.03t). Net assets grew to $18.63b (JPY2.93t), with a shareholders’ equity ratio of 48.2%.
The company forecast revenue of $12.97b (JPY2.04t) for FY2026, with operating profit of $0.67b (JPY105.0b) and profit attributable to owners of $1.08b (JPY170.0b), signalling lower earnings despite higher turnover.
It also introduced a new segment structure, adding a Chemical Logistics Business from FY2026, reflecting internal restructuring of tanker and terminal operations.
Dividend policy shifted to a more predictable framework, with a progressive minimum annual payout of $1.30 (JPY205) per share and a total return ratio target of 40%, alongside FY2025 dividends of $1.27 (JPY200) per share.
(US$1 = JPY157.26)
