Mitsui O.S.K. Lines Expects Firm Dry Bulk Market Moving Forward

The average exchange rate of Japanese yen against the U.S. dollar during the first six months appreciated by ¥0.08 year on year to ¥109.39. The average bunker price during the same period fell by US$19/MT year on year to US$438/MT.

As a result of the above, we recorded revenue of ¥574.3 billion, operating profit of ¥12.0 billion, ordinary profit of ¥28.1 billion and profit attributable to owners of parent of ¥25.6 billion.

The following is a summary of business conditions including revenue and ordinary profit/loss per business segment.

(A) Dry Bulk BusinessIn the Capesize bulker market, the charter rate continued to improve from the slump caused by the collapse of a mining dam in Brazil among other factors. From the beginning of July, the market rate rose, reflecting tighter vessel availability due to an increase in the number of vessels going into dry dock for the installation of scrubbers, in addition to the recovery of shipment volumes. The rate then remained firm in general. The Panamax bulker market remained in a downward trend in June. From early July, however, the market improved, driven by robust grain shipments from South America, and made steady headway until it peaked in September. Under such market conditions, the dry bulk business stably fulfilled long-term contracts for iron ore carriers, wood chip carriers and other vessels, also steadily implemented contract extensions and recorded an ordinary profit, albeit lower year on year.

(B) Energy Transport BusinessThe ver....

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