zoomImage Courtesy: NYK Line

Japan’s Nippon Yusen Kabushiki Kaisha (NYK Line) ended the first nine months of fiscal year 2017 with a net profit of JPY 16.8 billion, compared to a net loss of JPY 226.1 billion posted in the same period last year.

For the period from April 1, 2017 to December 31, 2017 consolidated revenues amounted to JPY 1.63 trillion, rising by 15.3 percent from JPY 1.41 trillion reported a year earlier. NYK Line posted an operating profit of JPY 24.8 billion for the nine months, compared with operating loss of JPY 15.5 billion.

Conditions in the maritime shipping market were positive overall during the nine-month period of the fiscal year ending March 31, 2018.

In the container shipping market, an upswing in spot freight rates stalled somewhat as the total supply of tonnage remained at similarly high levels as the previous year. While shipping traffic was brisk along transpacific and European routes, the upswing in spot freight rates largely came to a standstill due to the impact of growing shipping capacity, caused by the production of new ultra-large container ships.

In the dry bulk shipping market, although excess tonnage still exists, market conditions improved compared with the same period of the previous fiscal year owing to steady shipping traffic and the increased imports of iron ore to China.

For the year ending March 31, 2018, NYK Line said that it expects its net profit to be at JPY 11 billion, while the revenues are forecast to rise by 12.9 percent to JPY 2.17 trillion.

The company also revised its dividend forecast for fiscal year 2017 after determining that the company has sufficient prospects for regaining profitability. Although the payment of a fiscal year-end dividend had not been decided thus far, the company now plans to pay a year-end dividend of JPY 20 per share.

In a separate release, NYK Line that it adopted a resolution on the changes to its representative director, effective as of March 31, 2018. Naoya Tazawa would take up the position of Director, moving from its present position of Representative Director and Executive Vice-President Corporate Officer, due to the changes of the new positions and responsibilities scheduled as of April 1, 2018.