Mitsui O.S.K. Lines Ltd (MSLOF) Q3 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

This is Mitsui OSK Lines Fiscal Year 2024, Third Quarter Business Performance Briefing. I am Kanzuya Hamazaki, Chief Financial Officer of Mitsui OSK Lines. Let me start with a general overview. In the third quarter of fiscal year 2024, we achieved ordinary profit of 374.8 billion yen and net income of 368.1 billion yen. The containership business and the energy business performed strongly and profits exceeded the previous forecasts and levels for the same period a year earlier. As a result, our balance sheet showed total assets exceeding 4,620 billion yen and shareholders' equity exceeding 2,580 billion yen. With a shareholders' equity ratio of 47%, including estimated lease obligations of 900 billion yen, our balance sheet shows a strong financial position. As for progress on the investment plan set out in Blue Action 2035, we invested in logistics infrastructure projects in the Southeast Asia, entered into a long-term time charter agreement for six LNG carriers for Qatar, and also signed a long-term charter agreement for three liquefied ethane carriers for Thailand, accumulating long-term stable profit. In our full-year outlook for fiscal year 2024, we forecast ordinary profit of 410.0 billion yen, which represents an upward revision of 45.0 billion yen, and net income of 400.0 billion yen, which represents an upward revision of 50.0 billion yen from our previous forecast, given our strong performance in the third quarter. In view of recent exchange rates, we changed our exchange rate assumption to 155 yen to the dollar. Despite the recent developments in the Middle East, we are not at the stage to confirm the safety of transit via the Red Sea, and our forecast is based on the assumption that Red Sea transit disruptions will last through to the end of the fiscal ye...