Mitsui O.S.K. Lines revised its ordinary profit forecast upward by ¥80 billion to ¥225 billion following its FY2026 first-quarter results. The expansion of alternative trade resulting from the closure of the Strait of Hormuz pushed up ton-miles and significantly improved the full-year outlook.
At its briefing on the first-quarter results for FY2026, Mitsui O.S.K. Lines explained that restrictions on routes through the Strait of Hormuz had instead become a tailwind, with more active alternative trade tightening the vessel supply-demand balance and driving results. Ordinary profit was ¥52.1 billion and net income was ¥61 billion, and the full-year forecasts were revised upward to ¥225 billion for ordinary profit and ¥240 billion for net income. The CFO explained that the company had anticipated an impact from fuel costs, but that the expansion of alternative trade had improved market metrics.
By segment, Dry Bulk, Energy and Chemical Logistics made significant contributions. Dry Bulk in particular posted a substantial year-on-year increase in profit, while Chemical Logistics, despite being a newly established segment, had its full-year forecast revised upward. In Energy, the full-year forecast was raised excluding the drop-off in one-off profit, and higher ton-miles resulting from alternative sourcing to North and South America provided a tailwind. The outlook for product transportation was revised upward, supported by ONE's contribution, although the company will continue to monitor the risk of higher fuel costs.
Regarding shareholder returns and its financial base, the company said it would maintain its progressive dividend at ¥205 while flexibly considering share buybacks with a 40% total payout ratio as a benchmark. Its financial base remains solid, with total assets of more than ¥6.2 trillion, equity of more than ¥2.97 trillion and an equity ratio of 48%. Investment plans for newbuildings, including long-term contract vessels, LNG carriers and ammonia carriers, are also progressing steadily. Wellbeing Life is expected to slow, as delays in attracting customers to the cruise business are having an impact, although factors including higher-than-expected office rents are also contributing.