Japan’s three largest shipping companies, which have agreed to merge their container divisions, have reported their financial results for the first six months of the fiscal year ending March 31, 2017.
Japan’s three largest shipping companies – Mitsui O.S.K. Lines (MOL), Nippon Yusen Kaisha (NYK) and Kawasaki Kisen Kaisha (“K” Line) – have reported their financial results Monday.
The three companies all have fiscal years that run from April 1 to March 31, and today they reported their earnings for the first six months of the fiscal year ending March 31, 2017.
Overall, the carriers posted sluggish results for the period, resulting from the container shipping segment being plagued with overcapacity and lower freight rates, along with the weak dry bulk and oil segments, with NYK noting how oil and gas projects have been delayed due to the low price of crude oil.
MOL
MOL had profits attributable to the owners of the parent company of 16 billion yen (U.S. $152 million) for the first six months of its fiscal year 2016, up from a loss of 241 million yen from the corresponding period a year prior.
Revenues totaled 713.5 billion yen, down from 904.6 billion yen.
NYK
NYK reported a net loss attributable to the owners of the parent company of 231.8 billion yen, for the first six months of its fiscal year 2016, down from a 54.7 billion yen gain for the same period a year prior.
The carrier attributed the decline largely to a loss of around 200 billion yen comprised on an impairment loss and provision for losses on contracts associated with containerships, dry bulkers and cargo aircraft.
Consolidated revenues reached 928.5 billion yen, down from 1,189.2 billion yen a year prior, reflecting the yen’s appreciation and the slump in the container shipping and dry bulk markets, along with the result of the group’s reduction of its fleet of dry bulkers, NYK said.
“K” Line
“K” Line reported a loss attributable to the owners of the parent of 50.4 billion yen for the first six months of the company’s fiscal year 2016 compared to profits of 11.6 billion yen from the same period a year prior.
Operating revenues tumbled down to 491.1 billion yen, down from 668.2 billion yen a year prior.
Looking ahead, the three carriers also revealed Monday they have agreed to combine their container divisions effective July 1.