Financial Highlights: The First Quarter Ended June 30, 2026
In the crude oil tanker market, the vessel supply-demand balance tightened due to an increase in ton-miles resulting from alternative procurement of Middle Eastern cargoes and a decrease in effective vessel supply, following the deterioration of the situation in the Middle East and the de facto closure of the Strait of Hormuz. Accordingly, market conditions remained above the level of the previous fiscal year.
In the LPG carrier market, as in the crude oil tanker market, the vessel supply-demand balance tightened against the backdrop of an increase in ton-miles resulting from a shift in demand to North American cargoes following disruptions to loadings of Middle Eastern cargoes, as well as congestion in the Panama Canal.
Accordingly, market conditions remained above the level of the previous fiscal year.
Accordingly, the Tanker Business recorded an increase in profit compared to the previous fiscal year.
The FPSO business continued to secure stable profit from existing long-term charter contracts. In addition, the steady progress of FPSO construction projects at MODEC, Inc., an equity-method affiliate, resulted in an increase in profit compared to the previous fiscal year.
The LNG and Ethane Carrier Business recorded a decrease in profit compared to the previous fiscal year due to the absence of a one-time profit associated with the refinancing of an existing project recorded in the previous fiscal year.
The Gas Infrastructure Business recorded a decrease in profit compared to the previous fiscal year, partly due to the termination of contracts.
Accordingly, the Energy Business recorded a decrease in profit compared to the previous fiscal year.
(C) Chemical Logistics Business
In the Methanol Tanker and Product Tanker Businesses, earnings increased as Waterfront Shipping Limited, an equity-method affiliate of the Company, continued to perform solidly. In addition, the deterioration of the situation in the Middle East led to an increase in cargoes loading in the United States, temporarily tightening vessel supply and demand, and resulting in firm market conditions.
In the Chemical Tanker Business, although cargo volumes from each loading port fluctuated due to the impact of U.S. tariffs and the situation in the Middle East, earnings improved as freight rates rose from April onward, reflecting an improvement in market conditions for U.S. Gulf loadings. In addition, earnings increased year on year due to the impact of the change in the fiscal year-end of the Company’s consolidated subsidiary MOL Chemical Tankers Pte. Ltd., which resulted in a six-month accounting period from January 1 to June 30, 2026.
In the Tank Terminal Business, while the burden of goodwill amortization and other expenses associated with the acquisition of shares in LBC Tank Terminals Group Holding Netherlands Coöperatief U.A.
continued, performance remained stable, supported by increased export demand from the United States for petroleum products and chemicals following the escalation of tensions in the Middle East.
(D) Product Transport Business
In the Containership Business, although freight market rates rose from May onward against the backdrop of strong cargo demand, mainly on routes from Asia to North America and Europe, Ocean Network Express Pte.
Ltd., an equity-method affiliate, recorded a decrease in profit compared to the previous fiscal year due to the impact of higher fuel costs arising from Middle East tensions.
Handling volumes at domestic container terminals remained broadly firm.
Although demand for vehicle transport remained firm, profit decreased compared to the previous fiscal year due to the suspension of vessel deployments to Persian Gulf routes following the closure of the Strait of Hormuz, higher fuel costs, and vessel deployment restrictions resulting from congestion at certain ports.
In the overseas container terminal business, although higher fuel costs arising from Middle East tensions had an impact, handling volumes remained firm, as Vietnam’s overall import and export cargo volumes increased against the backdrop of a partial shift of supply chains to Vietnam due to U.S.-China trade friction.
In the Logistics Business, the impact of Middle East tensions on supply chains continued, and handling volumes of air and ocean cargo were lower compared to the previous fiscal year.
Accordingly, the Product Transport Business recorded a decrease in profit compared to the previous fiscal year.
(A)Wellbeing & Lifestyle Business
Daibiru Corporation the core of the Group’s real property business, recorded an increase in profit compared to the previous fiscal year, driven by firm profit from its existing portfolio of office and commercial buildings, as well as profit contributions from newly acquired properties (Capital House and Warwick Court in the United Kingdom).
At MOL Sunflower Ltd., profit decreased compared to the same period of the previous fiscal year due to a reduction in the number of sailings caused by rough weather, a decline in cargo volumes amid sluggish cargo conditions, and the impact of higher fuel costs.
At MOL Cruises, Ltd., profit decreased compared to the previous fiscal year, as it has taken time to capture demand for MITSUI OCEAN FUJI.
Accordingly, the Wellbeing & Lifestyle Business recorded an increase in profit compared to the previous fiscal year.
(B)Associated Businesses
The tugboat business recorded an increase in profit compared to the previous fiscal year, as the number of operations remained firm.
(C)Others
Other businesses, including ship operation, ship management, and financing, recorded an increase in profit compared to the previous fiscal year.
(1)Outlook for FY2026
As for the Current Forecast, there is no change from the forecast that announced in the news release on August 3,2026.
titled “Notice of Revisions in Financial Forecasts for Fiscal Year Ending March 2027”.
The following outlooks by segment have been formulated based on the following assumptions.
In the Persian Gulf, both westbound and eastbound navigation is expected to resume around October 2026 despite a limited number of routes, and conditions are expected to recover to pre-conflict levels around January 2027.
Navigation in the Red Sea is expected to remain unavailable throughout the fiscal year.
(A) Dry Bulk Business
For Capesize bulkers, firm cargo movements are expected for iron ore from Western Australia and Brazil, as well as bauxite and iron ore from West Africa. In addition, new vessel completions are projected to remain limited, and market conditions are therefore expected to remain firm.
For Panamax and smaller bulkers, market conditions are expected to remain firm, supported by solid movements of coal, grain, and steel products. Meanwhile, there are concerns regarding the potential impact of the Middle East situation and any congestion in the Panama Canal.
In the open-hatch vessel business, transport demand for the main cargoes of pulp and project cargo is expected to remain firm.
Accordingly, the Dry Bulk Business expects an increase in profit compared to the previous forecast.
(B)Energy Business
For crude oil tankers, ton-miles are expected to remain at high levels as alternative procurement from North and South America and other regions continues against the backdrop of the unstable situation in the Middle East. Although market conditions are expected to gradually normalize due to new vessel completions and an anticipated increase in effective vessel supply if the situation in the Middle East eases, they are expected to remain firm.
For LPG carriers, as with crude oil tankers, the shift in demand to North American cargoes is expected to continue against the backdrop of the unstable situation in the Middle East, and ton-miles are expected to remain at high levels. Additionally, congestion in the Panama Canal is expected to continue, sustaining tight vessel supply-demand conditions, and market conditions are therefore expected to remain firm.
The Offshore Business is expected to continue securing stable profit from existing long-term charter contracts.
The LNG and Ethane Carrier Business is expected to continue maintaining stable profit through the continuation of existing long-term charter contracts and the commencement of new contracts.
The Gas Infrastructure Business expects earnings to be in line with the previous forecast, supported by the continued stable operation of existing projects.
Accordingly, the Energy Business expects an increase in profit compared to the previous forecast.
(C)Chemical Logistics Business
In the Product Tanker Business, although uncertainty in market conditions is expected to persist due to the continued instability in the Middle East, performance is expected to remain firm, supported by medium-term contracts.
In the Methanol Tanker Business, stable earnings are expected to continue based on existing long-term charter contracts.
In the Chemical Tanker Business, although route restrictions and other factors arising from the deterioration of the situation in the Middle East had an impact, profit is expected to exceed the previous forecast, supported by an improvement in market conditions on U.S.
exports where demand has increased as an alternative route.
In the Tank Terminal Business, while goodwill amortization associated with the acquisition of shares in LBC Tank Terminals Group Holding Netherlands Coöperatief U.A. will continue, performance is expected to remain stable, supported by robust storage demand and existing long-term contracts with customers.
Accordingly, the Chemical Logistics Business is expected to record a higher profit compared to the previous forecast.
(D)Product Transport Business
In the Containership Business, although high fuel costs are anticipated due to continued instability arising from Middle East tensions, profit is expected to increase compared to the previous forecast, supported by freight rate increase against the backdrop of strong cargo demand. Handling volumes at domestic container terminals are expected to remain firm.
In the Vehicle Transport Business, although the closure of the Strait of Hormuz is expected to affect vessel deployment plans, we will closely monitor automobile sales and political and economic conditions for efficient operations through agile vessel deployment to meet firm demand for vehicle transport.
In the overseas container terminal business, we plan to continue proceeding with the transfer of shares in the remaining terminal companies. Although a partial decrease in profit is expected due to high fuel costs arising from Middle East tensions, profit is expected to increase compared to the previous forecast, supported by firm handling volumes.
In the Logistics Business, while the impact of geopolitical risks, including Middle East tensions, and delays in the recovery of demand in certain overseas regions are anticipated, we will work to improve its financial results through measures such as passing on higher costs arising from fluctuations in commodity prices and fuel prices.
Accordingly, the Product Transport Business expects an increase in profit compared to the previous forecast.
(E)Wellbeing & Lifestyle Business
In the Real Property Business, Daibiru Corporation, the core of the Company’s real property business, is expected to continue securing firm profit from its existing portfolio of office and commercial buildings, profit contributions from properties acquired in the previous fiscal year (Capital House and Warwick Court in the United Kingdom), profit contribution from the completion of Atrium Place in India, and returns from capital gain investments in Japan and overseas.
The ferry and coastal RoRo ships businesses expect to secure a certain level of profit, supported by firm domestic cargo and passenger demand.
Although increased fuel costs resulting from Middle East tensions are temporarily weighing on current earnings, the business will continue to strive to improve performance by appropriately reflecting fluctuations in fuel costs in freight rates and other charges, while closely monitoring demand trends.
The Cruise Business is in a transitional phase from a one-vessel to a two-vessel operation.
It is taking time for marketing and sales promotion activities, and profits are expected to fall below the previous forecast.
Accordingly, the Wellbeing & Lifestyle Business expects a decrease in profit compared to the previous forecast.
(F)Associated Businesses
Associated Businesses, including the tugboat and the trading businesses, expect to secure firm earnings and record an increase in profit compared to the previous forecast.
1.Financial Position
Total assets as of June 30, 2026 increased by ¥240.1 billion compared to the balance as of the end of the previous fiscal year, to ¥6,202.4 billion. This was primarily due to the increase in Vessels.
Total liabilities as of June 30, 2026 increased by ¥133.2 billion compared to the balance as of the end of the previous fiscal year, to ¥3,166.4 billion. This was primarily due to the increase in Long-term bank loans.
Total net assets as of June 30, 2026 increased by ¥106.8 billion compared to the balance as of the end of the previous fiscal year, to ¥3,035.9 billion. This was primarily due to the increase in Foreign currency translation adjustments.
As a result, shareholders’ equity ratio decreased by 0.2 percentage points compared to the ratio as of the end of the previous fiscal year, to 48.0%.
Source: Mitsui O.S.K. Lines
