Mitsui O.S.K. Lines Ltd (MSLOF) Q1 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

This is Mitsui OSK Lines Fiscal Year 2024 First Quarter Business Performance Briefing. I am Kazuya Hamazaki, CFO of Mitsui OSK Lines. Let me start with a general overview. In the first quarter of fiscal year 2024, we achieved business profit of ¥94.9 billion, ordinary profit of ¥108.6 billion, and net income of ¥107.1 billion. Overall, we achieved financial results that far exceeded both our initial forecasts and the levels achieved in the same period a year earlier. Reflecting strong performances in the container ships business and the energy business with the depreciation of the yen against the dollar. As a result, our balance sheet showed total assets exceeding 4.4 trillion yen and shareholders' equity exceeding 2.5 trillion yen. As for progress on the investment plan, set out in Blue Action 2035, in the first quarter of this fiscal year, we made various investments including ordering an FSRU for a project in Poland, joining a project to develop a frozen and refrigerated warehouse in Singapore, and joining an office building development project in India. Looking at our full year forecast of this fiscal year, we revised our initial ordinary profit forecast of 230 billion yen, upwards by 120 billion yen, to 350 billion yen. Our previous forecast for net income has also been raised by 120 billion yen to 335 billion yen. Considering prevailing exchange rates conditions, we also revised the exchange rate assumption in our outlook for fiscal year 2024 from 140 yen to the dollar to 150 yen to the dollar. Since, there has been no improvement in Red Sea tensions, we changed our assumption on resumption of transit through the Red Sea, from October 1, 2024, to January 1, 2025. Due to the upward revision of our forecast, we revised our annual total dividend forecast to 280 ye...