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Tankers

We take great pride in the MOL tanker fleet crude oil tankers (mainly VLCCs), petroleum product tankers, chemical product tankers, and LPG carriers and its global leadership in all related fields. As an expert in energy transport, we have developed a comprehensive safe operation system covering our entire lineup of vessels. With one of the world's largest tanker fleets, the MOL group can take advantage of business opportunities on a global scale. In addition, we founded the VLCCs and LR1 product tankers pool management company to enable us to cater more precisely to our customer's requirements and to maintain the high quality of our services.

Business Performance of FY2017

Consolidated Revenues Breakdown (Results in FY2017)The very large crude oil carrier (VLCC) market did not rise over the winter demand period and dropped below the previous fiscal year’s levels, even for the entire full year against a backdrop of a surplus of vessels brought about by factors such as a steady pace of new vessel deliveries, delays in the progress of the retirement of aged vessels, and permeating adverse effects of decisions by OPEC countries to reduce oil production. The product tanker market proceeded weakly due to factors such as a slowdown in cargo movements between East and West along with increased pressures of supply arising from new vessel deliveries, despite a brief surge in the market caused by hurricanes striking the U.S. in the summer. Even in the winter, despite cold snaps in the U.S. and Europe, the effect of this on boosting the market was limited and overall, the product tanker market remained weak compared with the previous fiscal year. As for the LPG carrier market, the market followed a downward trend in the first half of the fiscal year with a reduction of arbitrage-trading from the U.S. to Asia due to diminishing LPG price variations between regions. On the other hand, during the period from autumn through winter, the market trended upwards owing to firm LPG shipments mainly from the U.S., despite temporary fluctuations due to changing circumstances in the vessel supply and demand balance. As a result, LPG carrier market for the entire full year was roughly the same level as the previous fiscal year.

Operating in such a business environment, the tanker division experienced a profit decrease year on year, but nevertheless achieved a certain profit for the fiscal year as a result of stable fulfilment of long-term contracts, such as charter contracts, and the steady implementation of contract extensions, as well as ceaseless efforts to improve operating efficiency through pool operations and cost reduction.

Highlights & Strategy

Highlights & Strategy by Operating Segment - from Annual Report
Annual Report 2017: Energy Transport Business-TankersPDFPDF(80KB)

LNG Carriers/Offshore Businesses


FPSO (Offshore Businesses)

MOL, which has one of the world's largest fleets of LNG carriers, plays a leading role in a wide range of liquefied natural gas (LNG) projects worldwide. Underpinned by decades of transport know-how and technical expertise, as well as a long and close relationship with leading figures in the LNG business, MOL has made, and continues to make a major contribution to the various LNG projects on the globe. Natural gas is drawing increased attention around the world as an abundant, environmentally friendly energy source, and demand is expected to increase sharply, particularly in economically emerging countries such as China and India. Moreover, active developments of shale gas in USA is expected to produce new trade pattern of LNG, boosting demand for more LNG carriers. MOL continually provides safe and stable LNG transport services, and works hard to maintain its leadership in the LNG sector and its place as a key worldwide LNG transporter. Also, in the future, we will be participating actively in "FPSO"(Floating production, storage, and offloading system) and "FSRU"(Floating storage and regasification unit) and other offshore businesses.

Business Performance of FY2017

Fleet Scale at the end of March, 2016The LNG carrier division, benefiting from stable revenues from long-term contracts, was able to secure a profitable operation overall. During the fiscal year, the division received delivery of five new vessels, including one for the world’s first ice-breaking LNG carrier project. The offshore business division also continued its performance of the previous fiscal year and recorded a stable ordinary profit, brought about by operations of one new FPSO and one new FSRU during the fiscal year in addition to the existing projects.

Highlights & Strategy

Highlights & Strategy by Operating Segment - from Annual Report
Annual Report 2017: Energy Transport Business-LNG Carriers/Offshore BusinessesPDFPDF(55KB)

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