NYK has posted a full-year loss of JPY 44.5bn ($400m) as restructuring costs took their toll at one of Japan’s biggest shipowners.
Revenue for the full-year was down 16.2% year-on-year to JPY 1.83 trillion, which was partially offset by a similar reduction in costs to JPY 1.63 trillion.
NYK’s liner exposure proved to be the biggest blight on the shipowner’s results with revenue down almost 60% to JPY 286.3bn, while it went from a recurring profit of JPY 10.8bn a year ago to a loss of JPY 26.4bn for the latest financial year.
“In the container shipping market, the high level of new supply remained ongoing from last year, but spot rates were favorable on the back of strong shipping volumes,” NYK said.
However, NYK incurred significant one-time costs mainly in the first quarter following the termination of the container shipping business and the formation of ONE.
At the same time, an extraordinary loss was recorded for provisions for contract losses regarding terminated containership charters.
NYK’s bulk division provided a more palatable result with a recurring profit of JPY 33.7bn, more than triple the JPY 9.6bn seen a year ago.
The division, which combines dry bulk, tankers and LNG, saw revenue increase by 5.8% year-on-year to JPY 841.3bn.
“In the dry bulk shipping market, the pace of new capacity completion is steadily slowing down, and although shipment volumes of iron ore, coal and grain were firm in the first half, shipping traffic to China was sluggish in the second half, resulting in the market average for the full year being roughly the same as the previous year,” NYK said.
However, the division was hit by an impairment loss and provisions for contract losses following the fundamental revisions to its dry bulk business.
