NYK Cashes In on Weak Yen, Lower Oil Prices
Japanese shipping and logistics company Nippon Yusen Kabushiki Kaisha (NYK) improved its annual net profit by 44% in the fiscal year ended March 31, 2015.
NYK ended the FY2014 with YPY 47.6 billion (USD 400.8 million), YPY 14.5 billion more than what the company had made in FY13.
The improved results were attributed to a weaker yen and lower oil prices, which counteracted the constant vessel oversupply in container and dry bulk shipping markets.
NYK’s containerised cargo shipping segment saw a 12.8% increase in annual revenues, which stood at YPY 696.3 billion. The company managed to improve its annual revenues in dry bulk shipping sector by 0.7%, despite global overcapacity and plummeting rates.
The company expects the weak yen and lower fuel prices to be a larger factor in driving overall performance next fiscal year compared to this fiscal year.
In the container shipping business, NYK expects weak market conditions as excessive vessel supply capacity continues with completion and delivery of large vessels, mainly on European routes. The company plans to combat the oversupply by improving slot utilization and reorganizing routes.
The dry bulk market is expected to remain stagnant, however, NYK expects favorable operations to continue in the car carrier and liquid divisions.
As a result of this, NYK expects to achieve higher revenues and improve its net profit to YPY 55 billion.