Mitsui O.S.K. Lines Ltd (MSLOF) Q4 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

I am Takashi Hashimoto, President of Mitsui OSK Lines. I would like to give a summary at the beginning of this presentation. In our fiscal year 2024 financial results, we achieved a significant profit increase year-on-year, driven by strong performances in the container ship business, the car carrier business, and the energy business. Profit before tax reached 452.7 billion yen. We had set 240 billion yen as our target for fiscal year 2025, the final fiscal year of phase 1 of our management plan, Blue Action 2035, and we far exceeded the target of this phase. As a result, our balance sheet has an appropriate capital structure, by effective use of financial leverages, with total assets exceeding ¥4.9 trillion, shareholders' equity exceeding ¥2.6 trillion, and a shareholders' equity ratio of 43%, including estimated lease liabilities of ¥900 billion. As for progress on the investment plan, set out in Blue Action 2035, we surpassed our initial plan of investing 1.2 trillion yen in total by fiscal year 2025 and have clear outlook for 1.8 trillion yen investments in total. In fiscal year 2024, we made investments for the future and development of our fleets through the acquisition of a tank terminal company, which can be expected to generate synergies with the chemical tanker business and has the potential to become a core non-shipping business, the placement of orders for new FSRUs, ethane carriers, and ammonia dual-fuel bulk carriers, and the purchase of the sister ship of Mitsui Ocean Fuji. In terms of financial KPIs, through total profits earned and total investments made during fiscal year 2023 and fiscal year 2024, we succeeded in achieving our profit projection and investment plan for the three-year period of Phase 1, ahead of schedule. For dividends, we plan to in...