MOL sees good year ahead after posting record profit: US$1.61 billion

JAPANESE multi-modal transport company MOL has announced that it achieved a record profit for FY2006, ending in March 2007, of JPY182.5 billion (US$1.61 billion).

This coming year appears to be on track to deliver a fifth consecutive set of record results for MOL, a company statement said. "The interim financial results for FY2007, ending March 2008, also marked a strong increase both in revenue and income from the same period of FY2006."

As a result, Standard & Poor strengthened its credit rating in August 2007 for MOL from BBB to BBB+, Moody's Investors Service upgraded its MOL rating from Baa1 to A3 in November, and JCR also upgraded its MOL rating from A+ to AA- in November.

The improved credit ratings and financial performance comes as the group over the course of the year reinforced its presence in growing global markets by establishing through its unit MOL (Europe) a Polish branch in March, followed by a wholly-owned agency in Italy in June, as well as wholly-owned agencies in four Nordic countries in December.

Furthermore, MOL Lines (Pakistan) was set up in April, MOL (China) opened its 27th office in Zhengzhou in July, MOL Lines (India) established branches in Chennai, Kochi, Tuticorin, and Kolkata in June, and MOL opened a St. Petersburg office in December.

In a bid to expand the group's container terminal business, MOL's solar power system at the Ohi Container Terminal, called Tokyo International Container Terminal Solar Power Station, became fully operational in March. MOL was awarded a contract to operate a new container terminal at Maasvlakte 2 in Rotterdam in July and the construction of a new American container terminal in Jacksonville, Florida in February.

These developments follow the March release of MOL's current three-year management plan, named MOL Advance, which calls for the shipping company to build a fleet of 1,000 vessels by March 2010.