Japan's MOL to continue LNG transportation from Russia
Japanese shipping major MOL will continue to transport LNG from Russia, the company’s CEO Takeshi Hashimoto said on January 4.
“Considering about strategic importance of energy supply under current circumstances, we will continue our energy transport business, mainly LNG, from Russia, as long as we can, and this is also in line with the direction of the Japanese government's policy,” he said. “Of course, at the same time, I pray that the situation will be brought to an end as soon as possible and that the people of Ukraine will return to safety and peace.”
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MOL in October last year signed a charter contract with Sakhalin Energy, the new operator of the Sakhalin 2 project in Russia, for the LNG carrier Grand Mereya through a 60%-owned subsidiary company. Japanese trading houses Mitsui and Mitsubishi Corp. hold stakes in Sakhalin Energy.
Record profits
Hashimoto expects MOL to achieve record-high profits for the current fiscal year that ends in March (FY2022), driven by strong demand for ocean going shipping and the surge in market rates.
The company’s performance in FY2023, however, is expected to get impacted due to factors such as high inflation and high interest rates.
“In the last two years, we have achieved fantastic financial results against the backdrop of a soaring shipping market. But due to the global inflation that has been rising since last year, high interest rates, and the resulting economic downturn, we expect our profits for the next fiscal year to be lower than in FY2021 and FY2022,” he said.
“This year, we may see the impact of inflationary measures in the U.S. and Europe, and a significant but temporary downturn in the economy, however, we expect a return to a moderate expansionary trend in the not-too-distant future, as the Chinese economy normalises and the pace of US interest rate hikes slows,” Hashimoto added.