Mitsui O.S.K. Lines Ltd (MSLOF) Q1 2023 Earnings Call

Investor webinar replay

Replay transcript excerpt

This is Mitsui OSK Line's Fiscal Year 2023, First Quarter, Business Performance Briefing. Starting with an overview of our first quarter results. As shown on page 3 of the slides, we recorded business profit, which is operating profit plus equity in earnings, of affiliated companies. Of 58.1 billion yen. Wardmary profit of 90.3 billion yen, income before income taxes of 109.6 billion yen. And net income of 91.1 billion yen. In the container ships business, equity and earnings of affiliated companies, attributable to Ocean Network Express, 1, decreased by around 210.0 billion yen, year on year. due to the normalization of freight rates, which had surged on account of the supply chain disruptions caused by the COVID-19 pandemic. As a result, profit at each level fell sharply. However, ordinary profit excluding the container ships business increased, partly due to the favorable impact of a weaker yen, in addition to solid performances in the energy business and car carrier business. I will explain our full-year forecasts in detail later. However, taking into consideration our first quarter results and the market outlook, and based on our revised exchange rate forecast of a weaker yen, we have revised our initial forecasts announced on April 28th upward. Raising our ordinary profit forecast from 200.0 billion yen to 220.0 billion yen, income before income taxes from 240.0 billion yen to 260.0 billion yen, and net income from 210.0 billion yen to 215.0 billion yen. However, we plan to increase the dividend in line with our dividend policy if our results are better than expected, and even if our results sharply fall short of expectations, the minimum dividend we plan to pay is 150.0 yen. I will now explain results by segment. The dry bulk business posted an ordinary profit...