MOL’s Q1 Revenue Surges 69% to ¥731 Billion ($4.59 Billion) as Bunker Costs and Hormuz Disruption Mask Underlying Profit Pressure

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Mitsui O.S.K. Lines, Ltd. reported consolidated revenue of ¥730.9 billion ($4.59 billion) for the first quarter of fiscal year 2026, a 68.9% jump from ¥432.7 billion ($2.72 billion) in the same period last year, driven partly by a change in the fiscal year-end of 384 consolidated subsidiaries. Operating profit edged up 3.9% to ¥38.5 billion ($242 million) from ¥37.0 billion ($232 million), while ordinary profit held flat at ¥52.1 billion ($327 million) versus ¥52.2 billion ($328 million) as a near-doubling of bunker prices and Middle East route disruptions offset gains in bulk and tanker markets.

The Tokyo-based shipping group also raised its full-year profit forecast sharply, now expecting ordinary profit of ¥225 billion ($1.44 billion), up ¥80 billion ($511 million) from its April outlook, on the assumption that navigation around the Strait of Hormuz will gradually resume from October 2026 and normalize by January 2027.

While headline revenue ballooned, the profit picture was mixed across MOL’s six reportable segments. The Dry Bulk Business swung to an ordinary profit of ¥10.7 billion ($67 million) from a loss of ¥3.4 billion ($21 million) a year earlier, supported by firm Capesize rates and steady iron ore and bauxite shipments from Western Australia, Brazil, and West Africa. Gearbulk Holding AG, the group’s open-hatch vessel subsidiary, also benefited from pulp transport demand and project cargo contracts.

The Energy Business posted ¥15.0 billion ($94 million) in ordinary profit, down ¥6.9 billion ($43 million) from ¥22.0 billion ($138 million) year on year. Crude oil tanker and LPG carrier earnings rose on increased ton-miles as cargoes shifted away from Middle East origins, but the LNG and Ethane Carrier Business and Gas Infrastructure Business declined due to the absence of one-time refinancing gains and contract terminations.

Chemical Logistics, a newly established segment combining product tankers, chemical tankers, methanol tankers, and tank terminals, earned ¥8.4 billion ($53 million), up ¥1.3 billion ($8 million) from ¥7.0 billion ($44 million). Waterfront Shipping Limited, an equity-method affiliate, performed solidly, while higher U.S. Gulf freight rates and a six-month consolidation of MOL Chemical Tankers Pte. Ltd. boosted chemical tanker results.

The Product Transport Business saw ordinary profit collapse to ¥7.0 billion ($44 million) from ¥30.7 billion ($193 million), a 77% drop. Ocean Network Express, the group’s containership affiliate, recorded lower profit despite rising freight rates from May onward, as higher fuel costs from Middle East diversions eroded margins. Vehicle transport suffered from the suspension of Persian Gulf deployments and port congestion. The segment’s revenue still rose 39% to ¥208.5 billion ($1.31 billion) from ¥150.0 billion ($942 million).

The Wellbeing & Lifestyle Business turned a ¥1.9 billion ($12 million) profit, up from ¥0.6 billion ($4 million), on contributions from newly acquired real estate, including properties in Melbourne and the United Kingdom. Daibiru Corporation, the real estate core, saw occupancy rates of 98.9% in Osaka and 99.9% in Tokyo.

MOL upgraded its fiscal year 2026 forecasts across all profit lines, citing firm market rates for Capesize bulkers, crude oil tankers, LPG carriers, chemical tankers, and containerships. The group now expects revenue of ¥2,230 billion ($14.24 billion), operating profit of ¥135 billion ($862 million), ordinary profit of ¥225 billion ($1.44 billion), and net income of ¥240 billion ($1.53 billion). The previous forecast, issued April 30, had penciled in ordinary profit of just ¥145 billion ($926 million).

The revision assumes the yen will average ¥156.55 to the dollar for the full year, weaker than the ¥150.77 previously forecast, and that VLSFO bunker prices will average $676 per metric ton. MOL said it expects the Red Sea to remain effectively closed throughout the fiscal year.

The company maintained its dividend plan of ¥205 ($1.31) per share for the year, comprising a ¥100 ($0.64) interim and ¥105 ($0.67) year-end payment, under its BLUE ACTION 2035 Phase 2 shareholder return policy targeting a total payout ratio of approximately 40%.

During the quarter, MOL took delivery of 12 vessels, including the Capesize RURI PLANET, LNG carrier GREENERGY WIND, crude oil tanker HIMALAYASAN, and heavy-lift deck carrier WIND WHALE. The group’s fleet stood at 947 ships as of June 30, up from 930 at the end of March.

Total assets grew to ¥6,202.4 billion ($38.97 billion), while the net gearing ratio improved to 1.06 from 1.11 at fiscal year-end 2025. Return on equity rose to 8.1% from 7.7%.