Merchant Ship Mitsui Expects A Huge Loss In 2019

- Mar 27, 2020-

Mitsui expects a very large loss in its consolidated and unconsolidated financial statements for fy2019 (as of March 31, 2020).


Due to special losses totaling $146 million, Mitsui plans to reduce its consolidated financial performance forecast for fy2019. This forecast is based on the estimated excess loss of USD 71 million from the loan of mol bridge finance S.A., a subsidiary of Mitsui, to the bulk ship owner and operator Gearbulk Holding AG.


The novel coronavirus epidemic and other factors have caused the shipping market to remain weak. The business performance of these equity subsidiaries is expected to significantly delay the recovery, which may cause difficulties in the recovery of some loans.


Mitsui has planned to include a $71 million guarantee loss provision in its non consolidated financial statements for special losses as the joint guarantee has been included in the liabilities of its subsidiaries. However, the provision for guaranteed losses will not have an impact on the consolidated financial performance.


In terms of the charter contract for one container ship, Mitsui is expected to record a loss of US $75 million related to business restructuring as a special loss, as it is expected that rental trends and ship costs will cause additional losses.