Japan’s Mitsui OSK Lines would like to boost its bulging LNG carrier newbuilding orderbook of over 30 vessels but is aware of the tightening berth situation at shipyards for this sector.
Speaking to reporters in Japan following the announcement of the company’s first quarter results, MOL president and chief executive Takeshi Hashimoto said: “I would like to keep in close contact with shipyards and increase the number of ships a little more if the berths become available.”
Hashimoto cited the tightening demand for LNG shipping capacity that has been seen in the last few years.
He said a recent charter contract concluded by MOL is “more profitable than at any point in the past”.
The CEO also indicated that he expected the sector to make profit contributions to MOL’s financial figures for 2024 and beyond.
Hashimoto said that at the end of March 2023, MOL’s LNG fleet numbered 94 vessels. The company usually includes ships in which it has partnership stakes in this total.
“New investments have been steadily accumulating and have reached more than 30 ships,” he said, in a reference to the company’s LNG newbuilding orders.
“I am looking forward to the return on investment in the future.”
MOL has already ordered two LNG carrier newbuildings at Daewoo Shipbuilding & Marine Engineering to date this year. The more recent vessel booked in was priced at $257.5m and will be delivered by August 2027.
The experienced LNG industry executive pointed out that LNG charter deals are becoming shorter with MOL’s recent business deals being for five, 10 and 15-year terms.
“Over the next five to 10 years we will be able to accumulate a large number of contracts with high profit margins, and the department will be in a much better position,” he said.
Hashimoto also added that he would like to do more LNG carrier fleet maintenance but said shipyard capacity for this is “extremely tight”.
