Japan's Mitsui OSK Lines has revealed it is expecting a hugely bigger profit than previously forecast despite warning of softening earnings from red-hot containership markets in May.
The giant Tokyo-listed shipping company is now predicting a net profit of ¥170bn ($1.54bn) for the six months to 30 September, up from the previous forecast of ¥50bn made on 30 April.
By comparison, MOL posted earnings of ¥30bn in the same period the year before.
Revenue is expected to increase to ¥560bn from ¥540bn. Profit for the full fiscal year ending 31 March 2022 is now expected to be ¥210bn, against the ¥90bn previously forecast.
The revisions are due to more profit rolling in from its boxship venture Ocean Network Express (ONE), owned with compatriots NYK Line and K Line.
ONE is enjoying "considerably" better cargo movements and spot freight rates, MOL said.
But the group also said its other businesses are contributing to the improved outlook.
Dampening expectations?
The changes come just a month after Japan's big three shipping companies told investors to expect significantly lower profits from ONE in the current financial year.
MOL said in May that ONE's stable earnings would continue but "soften through the year".
The company added that it was expecting an ordinary profit in its liner business of ¥52bn in 2021, representing a drop of ¥65.1bn on financial 2020.
ONE, which reported a $3.4bn profit in financial year 2020, said it had not yet finalised its profit forecast for 2021.
In the venture's annual earnings report, ONE said that the current uncertainties of the pandemic made it "extremely difficult" to make a forecast.
