Japan's NS United has reported a hike in profits thanks to the recent recovery in dry bulk markets.
In the first quarter of the current financial year, it reported net income of ¥3.5bn ($32.3m), compared with ¥2.1bn in the same period a year ago.
Revenue for the quarter ending in June also increased from ¥31.5bn in the first quarter of financial 2020 to ¥42.8bn in the first quarter of the current year.
NS United owns and operates a fleet of 125 vessels in all the main dry bulk sectors. It also owns a VLCC and three VLGCs.
The Tokyo-listed company credited the improvement in earnings to economic recovery following an easing of the coronavirus pandemic and an increase in trade volumes to China, which led to an 11-year high in the Baltic Dry Index (BDI).
NS United said there was also a tightening of tonnage supply due to a lack of newbuildings. It said charter rates for capesize bulk carriers hit $45,000 a day in May. NS United operates a fleet of 43 such ships.
Economic recovery
The company said the panamax market, in which NS United operates 24 vessels, was helped by China’s decision to switch from Australian-sourced coal to imports from Russia and Indonesia.
“Continuing from the first quarter, it can be expected that cargo volumes will increase as a result of economic recovery,” NS United said of the prospects for the current second quarter of its fiscal year.
“However, a further expansion of the coronavirus pandemic could restrict economic activity and have an effect on the business environment.”
The Tokyo-headquartered company forecast full-year net income of ¥15bn.
