Mitsui O.S.K. Lines (9104) Q2 2025 earnings summary

Executive summary

• H1 FY2024 revenue was JPY 900.6bn, up JPY 110.5bn year over year; operating profit reached JPY 89.1bn, ordinary profit JPY 249.0bn and net income JPY 246.6bn.

• Strong containership and energy results offset lower Dry Bulk profit.

• FY2024 ordinary profit guidance rose JPY 15.0bn to JPY 365.0bn; net income is forecast at JPY 350.0bn.

Financial highlights

• H1 ordinary profit was JPY 19.0bn above forecast; net income was JPY 16.6bn above forecast.

• H1 earnings per share was JPY 680.73, versus JPY 416.74 a year earlier; operating margin was 9.9% and ordinary margin 27.6%.

• Total assets were JPY 4,473.6bn and total net assets JPY 2,679.0bn at September 30, 2024; reported shareholders’ equity ratio was 59.5%.

• Equity ratio was 49% including estimated lease obligations of JPY 900.0bn; H1 average exchange rate was JPY 153.71/$.

Outlook and guidance

• FY2024 forecasts: revenue JPY 1,790.0bn, operating profit JPY 153.0bn, ordinary profit JPY 365.0bn and net income JPY 350.0bn.

• Forecast assumes Red Sea transit resumes in April 2025, shifted from the prior end-December 2024 assumption; exchange assumption remains JPY 150/$.

• Dry Bulk ordinary profit forecast fell JPY 4.0bn to JPY 18.0bn; Energy rose JPY 5.0bn to JPY 100.0bn and Product Transport rose JPY 17.0bn to JPY 244.0bn.

• ONE raised FY after-tax profit guidance by $350m to $3,095m, while H2 profit is forecast at $317m; containership ordinary profit guidance rose JPY 18.0bn to JPY 157.0bn.

• Annual dividend forecast is JPY 300/share, with year-end dividend increased JPY 20 to JPY 120/share; payout ratio target is 30%.