Japan’s Shipping Heavy Hitters Post Improved Quarterly Results
Three largest Japanese shipping companies – Mitsui O.S.K. Lines (MOL), Nippon Yusen Kaisha (NYK) and Kawasaki Kisen Kaisha (”K” Line) – have all posted improved net profit for the quarter ended June 30.
The biggest winner was NYK, reporting JPY 43 billion (USD 346 million) net profit in its 1QFY2016, a 321.3% jump compared to JPY 10.2bn net income recorded in 1QFY2015, largely due to the USD 550 million sale of Crystal Cruises to Genting Hong Kong.
NYK’s quarterly revenues increased by just 1.1% at JPY 588.7bn, compared to JPY582.4bn reported a year earlier. The modest rise in net revenue was attributed to yen depreciation, lower bunker oil prices, and cost reduction, which helped cushion the blow caused by weakness in container and dry bulker market.
”K” Line was the second biggest earner in the quarter ended June 30, recording JPY10.19bn net profit for the period, over two times more compared to JPY 4.28bn reported for the 1QFY2014. The company’s quarterly revenue increased to JPY 335.46bn, compared to JPY 319.8 bn net revenue posted a year earlier.
”In the business environment for shipping there were some negative factors, such as declines in market conditions in the containership and dry bulk business. However, as a result of slow steaming and other ongoing cost saving along with the effect of the recovery of the oil tanker market, the Yen’s further depreciation, and the decline in oil prices, business performance improved year-on-year,” said ”K” Line.
MOL posted JPY 12.8bn net profit for the quarter, up around 50% from JPY 8.5bn the company had earned in the same period a year earlier. The company’s quarterly revenue was JPY 449.4bn, compared to JPY443.91bn in 1QFY2014.
World Maritime News Staff