Mitsui OSK Lines' financial statement for Q3, December 31, 2012, underlines a stagnant shipping market.
Excerpts from the statement follow:
Looking at the maritime shipping market conditions, in the dry bulker market, conditions for all vessel types continued to stagnate because the number of new vessel deliveries was consistently high from the start of 2012, preventing further improvements in the balance of supply and demand.
Although the crude oil tanker (VLCC) market was weakened by the combined effects of the summer season, during which demand drops off, and weaker cargo volume due to slower economic growth in China, freight rates rose from November in anticipation of the winter demand period.
For containerships, freight rate levels weakened from around the middle of the summer, particularly for Asia-Europe routes, reflecting stagnation in Europe and slower growth in China partly caused by the situation in Europe.
For Financial Year 2012, taking into consideration the financial results for the first nine months and MOL's projection that the difficult business environment will continue, and factoring in the recording of costs associated with business structural reforms for dry bulkers and tankers in the fourth quarter, MOL project that its consolidated financial results will be considerably lower than in the previous outlook.
In addition to this statement MOL President: Koichi Muto) also announced a reversal of deferred tax assets.