Japanese shipowners profits soar, but forecasts cut
Japan’s big three shipowners all reported soaring profits for the first half of the financial year, but both Mitsui OSK Lines and K Line cut their full year profit forecasts.
NYK Line reported a first half net profit for the period ending 30 September 2008 of Yen91.3bn up 66% year-on-year, with revenues up 13% at Yen1.42tr.
“This growth was due mainly to high levels of demand in the market for dry bulk transport though the market entered a correction phase,” NYK said.
Mitsui OSK Lines reported a first half net profit of Yen124bn up 43% year-on-year powered by its dry bulk shipping business. Revenues were up 16% for the period at Yen1.095tr.
K Line reported a first half net profit of Yen51.2bn compared to Yen44bn in the same period last year, with revenues rising to Yen 735.5bn compared to Yen 646.6bn in the previous year.
However both Mitsui and K Line cut their full profit forecasts due the uncertainties in shipping demand created by the global financial crisis.
Mitsui cut its full year profit forecast for the year ending 31 March 2009 to Yen195bn compared to Yen210bn forecast previously. With the shipowner having already earned Yen124bn in the first half, this puts forecast second half earnings at Yen71bn.
K Line cut its net profit forecast for the year as a whole to Yen71bn, 9% lower than previously.
Only NYK did not cut it’s profit forecast for the year ending 31 March 2009, citing a mix of factors with lower costs offsetting lower revenues, and including a claim at odds with most others in the market container freight rates were recovering.
“Dry bulk market levels have plummeted since the latter half of the second quarter, and we face concerns of a slowdown in container transport volumes due to the worldwide economic downturn as well as uncertainty regarding the effect of that downturn on non-shipping segments such as logistics, and air freight,” NYK said.
“Meanwhile, bunker oil prices are trending downward and freight rates for containerships have recovered to a certain degree. Given these factors, we expect full-year results to remain mostly unchanged compared to last fiscal year.”
NYK kept a forecast of a full year recurring profit of Yen210bn and a net income of Yen140bn.
NYK Line reported a first half net profit for the period ending 30 September 2008 of Yen91.3bn up 66% year-on-year, with revenues up 13% at Yen1.42tr.
“This growth was due mainly to high levels of demand in the market for dry bulk transport though the market entered a correction phase,” NYK said.
Mitsui OSK Lines reported a first half net profit of Yen124bn up 43% year-on-year powered by its dry bulk shipping business. Revenues were up 16% for the period at Yen1.095tr.
K Line reported a first half net profit of Yen51.2bn compared to Yen44bn in the same period last year, with revenues rising to Yen 735.5bn compared to Yen 646.6bn in the previous year.
However both Mitsui and K Line cut their full profit forecasts due the uncertainties in shipping demand created by the global financial crisis.
Mitsui cut its full year profit forecast for the year ending 31 March 2009 to Yen195bn compared to Yen210bn forecast previously. With the shipowner having already earned Yen124bn in the first half, this puts forecast second half earnings at Yen71bn.
K Line cut its net profit forecast for the year as a whole to Yen71bn, 9% lower than previously.
Only NYK did not cut it’s profit forecast for the year ending 31 March 2009, citing a mix of factors with lower costs offsetting lower revenues, and including a claim at odds with most others in the market container freight rates were recovering.
“Dry bulk market levels have plummeted since the latter half of the second quarter, and we face concerns of a slowdown in container transport volumes due to the worldwide economic downturn as well as uncertainty regarding the effect of that downturn on non-shipping segments such as logistics, and air freight,” NYK said.
“Meanwhile, bunker oil prices are trending downward and freight rates for containerships have recovered to a certain degree. Given these factors, we expect full-year results to remain mostly unchanged compared to last fiscal year.”
NYK kept a forecast of a full year recurring profit of Yen210bn and a net income of Yen140bn.