MOL posts Q1 loss as average bunker price rises 37%

Japanese shipper predicts $12 rise in Q2 marine fuel price.

The MOL Triumph during its first visit to Rotterdam in May 2017. Image credit: Kees Torn Flickr CC BY-SA 2.0

Updated on 31 Jul 2018 08:31 GMT

Mitsui O.S.K. Lines (MOL) reports that it recorded a net loss of JPY 1.68 billion (or $15.2 million) for the first fiscal quarter (Q1) of 2018, between April and June, as the company's performance was affected by higher bunker prices.

The average bunker price for Q1 rose year-on-year (YoY) by $119, or 37.3 percent, to $438 per metric tonne, up from $319 per tonne during the corresponding period in 2017.

In a quarter-on-quarter comparison with Q4 2017, marine fuel prices were higher by $42, or 10.6 percent, sequentially.

In its forecast for Q2 (which runs between July and September), MOL predicts that the average bunker price will rise by $12, or 2.7 percent, compared to Q1 to reach $450 per tonne.

MOL also forecasts an average fuel price of $450 per tonne for the second half of 2018 (October 2018 to March 2019).

In MOL's other key financial results for fiscal Q1, revenue declined YoY by JPY 98.8 billion, or 24.5 percent, to JPY 304.4bn ($2.7bn), down from JPY 403.3bn.

Operating profit jumped JPY 2.5bn to JPY 3.6bn ($32.4m), and ordinary profit fell by JPY 5.6bn to JPY 0.2bn ($1.8m).