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The Japanese shipping firm said in its results report it had 100 LNG vessels at the end of September 30, 2024.
This is one more LNG carrier than in the previous quarter and three more LNG carriers than in the first quarter.
MOL previously said it expects to have 104 LNG carriers in its fleet by March 31, 2025.
However, the company now added two more vessels and expects to have 106 LNG carriers in its fleet by the end of March 2025.
This includes LNG carriers owned and/or operated by joint venture companies.
Also, MOL previously said that it had more than 30 LNG carriers on order.
As of September 30, 2024, MOL’s fleet included seven FSUs/FSRUs, three LNG bunkering vessels, one LNG powership, and six ethane carriers.
Singapore LNG, the state-owned operator of the country’s first LNG import terminal on Jurong Island, recently signed a deal with MOL to charter one FSRU for Singapore’s second LNG terminal.
MOL ordered this 200,000-cbm FSRU at Hanwha Ocean for about $413 million.
Earlier this year, MOL also signed an FSRU charter deal with Poland’s Gaz-System for the planned LNG import terminal in Gdansk.
MOL booked this FSRU order at HD Hyundai Heavy for about $364 million
As part of its plans to reduce emissions, MOL has also set a target to operate 90 LNG-powered and methanol-fueled vessels by 2030.
Russian LNG carrier charters
MOL also said on Thursday it needs to modify the contract schemes of the charter contract of the three LNG carriers and one condensate tanker with ice-breaking capabilities, which is part of its Russia-related business.
This is due to the strengthening of sanctions from the US and Europe.
MOL signed charter deals for these vessels in 2020 and 2022 for the Novatek-operated Arctic LNG 2 project in Russia, which is now under sanctions.
The company invested 105 billion yen ($688 million) in the four vessels.
According to MOL, negotiations with the relevant parties on the charter agreements have started.
“Should the negotiation encounter difficulties, we may be unable to perform these charter agreements,” MOL said.
“In the event that the charter agreements are discontinued, we will seek to sell the vessels to third parties. However, due to the difficulty of converting them for use in other businesses, as they have ice-breaking capabilities, it may be challenging to achieve sale prices we intend,” MOL said.
LNG earnings “stable”
MOL reported revenue of 900.6 billion yen in the first half of fiscal 2024, up 14 percent from the year before, while operating profit of 89.1 billion yen and net income of 246.6 billion yen rose 80.9 percent and 63.6 percent respectively.
The company’s energy business, which includes the liquefied gas segment, reported revenue of 277.4 billion yen and profit of 62.7 billion yen, both up compared to the year before.
MOL said its LNG carrier business “continued to generate stable profit as a result of existing long term charter contracts and the delivery of new vessels but reported lower profit than a year earlier due to a temporary increase in expenditure for dry-docks.”
The LNG infrastructure business increased profit year-on-year due to the stable operation of existing projects, it said.
During the fiscal year 2024, MOL expects the LNG carrier business to “maintain stable profit as a result of the continuation of long-term charter contracts and the delivery of new vessels slated to enter service under new contracts.”
“The LNG infrastructure business projects stable operation of new and existing projects,” it said.