Daiichi Chuo link sends MOL into the red

Daiichi Chuo link sends MOL into the red

Mitsui OSK Lines (MOL), Japan’s largest shipping line, was plunged into the red in interim results out today thanks to its links to bankrupt bulker firm Daiichi Chuo Kisen Kaisha.

Daiichi Chuo filed for court protection last month, another exclusive story from Splash, with top shareholder MOL refusing to put more money into the loss making organisation. MOL said in its interim results it had taken a Y26.2bn ($21.7m) hit on the valuation of shares of subsidiaries and affiliates, largely thought to be Daiichi Chuo.

As a result of this write-down MOL slipped into the red for the six month period ending September 30, recording a Y0.2bn net loss.

MOL, owner of the world’s most valuable fleet according to Maritime CEO’s annual Rich List survey carried out in conjunction with VesselsValue.com, had earlier revised down its full year financial expectations.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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