Mitsui O.S.K. Lines Ltd (MSLOF) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

I am Kinzuya Hamazaki, CFO of Mitsui OSK Lines. Let me start with a general overview. In our fiscal year 2025 first quarter results, we recorded business profit, which is operating profit plus equity in earnings of affiliated companies, of 50.9 billion yen, ordinary profit of 52.2 billion yen, income before income taxes of 61.6 billion yen, and net income of 52.8 billion yen. The energy business and the vehicle transport business performed strongly, and our results exceeded initial estimate. As a result, our balance sheet showed total assets exceeding 5.3 trillion yen and shareholders' equity exceeding 2.5 trillion yen. During the first quarter of fiscal year 2025, we increased investment for stable revenue businesses, including completing acquisition of LBC tank terminals, acquiring an office building in central London, joining an offshore wind project in Taiwan, and signing a long-term time charter contract for a new LNG dual-fuel VLCC with Itamitsu Tanker. Looking at our fiscal year 2025 full year forecast, we revised our initial ordinary profit forecast of ¥150.0 billion upwards by ¥20.0 billion to ¥170.0 billion. Our previous forecast for net income has also been raised by ¥30.0 billion to ¥200.0 billion. While we must continue to monitor the impact on trade volumes of the introduction of additional tariffs by the US, we have roughly halved our initial estimate of the impact of tariffs of ¥40.0 billion based on cuts to the tariff rates and our first quarter results. Our exchange rate assumption is unchanged at 140 yen to the dollar. As for the Red Sea tensions, in line with our forecast at the beginning of the fiscal year, we assume there is no prospect of transit restrictions being lifted during fiscal year 2025. Due to the upward revision of our full-year fore...