NYK Returns To Profit

Fleet-wide slow-steaming, lower bunker prices and the stronger yen all combined to enable NYK to make a profitable start to fiscal 2013.


Net income was JPY8.5bn ($87.7m) versus the JPY1.3bn loss reported in the corresponding period twelve months ago.


Revenue at Japan’s largest shipowner showed a year-on-year gain of 10.6% to JPY528.5bn, figures released Wednesday show.


NYK’s bulk division – which includes bulkers, car carriers and tankers – posted a healthier result versus a year ago.


Operating income for the segment rose by over 60% to JPY10.9bn, while revenues increased by 10.5% to JPY230.4bn.


Its liner arm, in contrast, saw operating income go from JPY300m to a loss of JPY2.bn despite revenues rising by 7.7% to JPY148.5bn.


“Markets remained in a slump during the period due to the continued supply-demand imbalance caused by excess supply,” NYK said.


“In this environment, we strove to reduce costs by expanding slow-steaming to our entire fleet and implementing other group-wide measures to further reduce fuel consumption.”


Bunker prices during the quarter were down over 10% on a year ago to $643.5 per mt, while the yen strengthened by about 21% to average JPY97.7 to the US dollar.


NYK said it now anticipates reporting full year net profits of JPY30bn on revenues of just over JPY2.1 trillion.