Japan’s K Line has reported a 25-fold increase in first-half net profit on the back of a blockbuster second-quarter performance.
The smaller of Japan’s "big three" public owners made ¥246bn ($2.1bn) in the six months to 30 September 2021. Twelve months earlier, the figure was just ¥9.6bn.
The shipowner said revenue increased 19.1% year-on-year to ¥357.6bn, in financial results released on Thursday.
The strong performance came despite the shipowner having to contend with a year-on-year increase in bunker prices of more than 40% to a six-month average of $497 per tonne.
Contributions from Singapore-based liner subsidiary Ocean Network Express (ONE) contributed ¥238.1bn to K Line’s first-half profit.
At the end of October 2021, Jeremy Nixon-led ONE reported a first-half profit of more than $6.7bn on the back of a stellar second-quarter performance.
K Line’s dry bulk was the only other major segment that saw a meaningful profit of ¥5.9bn on revenue of ¥131.6bn, reversing a year-ago loss of ¥9.3bn.
K Line’s energy resource transport segment, which includes tankers and LNG carriers, saw its profit shrink to ¥800m against the ¥3.4bn 12 months earlier.
Looking ahead, K Line expects to post a full-year profit of ¥370bn but warned that forecasts were difficult due to the uncertainty surrounding the spread of Covid-19.
K Line said it will not be paying shareholders an interim dividend but said it currently plans to pay a year-end dividend of ¥300 as it has judged that “prospects are good for the resumption of dividends”.
Earlier on Thursday, K Line confirmed that it was in line for a $523m dividend courtesy of ONE and the red-hot liner markets.
Separately, K Line announced that it would look to delist its shares from the Nagoya Stock Exchange and the Fukuoka Stock Exchanges.
The shipowner said the move was designed to streamline administrative operations in association with its multiple listings. However, the company will remain listed on the Tokyo Stock Exchange.
