Tokyo-listed NYK bagged JPY 43.0bn ($346m) in the three months to the end of June, beating the JPY 10.2bn of a year ago.
Its performance was stronger than forecast with operating profit of JPY 17.46bn beating the JPY 14.33bn consensus.
“In conditions surrounding the shipping industry, the introduction of new built tonnage in the container shipping business exerted extremely strong supply pressure, driving down spot freight rates on some routes to unprecedentedly low levels,” its quarterly report said.
“Amid the generally severe environment surrounding the dry bulk carrier division, market conditions were stagnant owing to a decrease in lifting volumes bound for China.
“Nevertheless, we continued efforts to improve profitability by decreasing costs through heightened fleet assignment rationalization and reduced fuel consumption. In the liquid division, market conditions remained favorable and performance improved over the previous fiscal year.”
NYK described the dry cargo market as sluggish but notes the stagnant market conditions may finally be improving as scrapping helps close the supply demand gap.
In the tanker and gas sectors, it explains returns from its VLCCs and products tankers have increased, its LPG carriers enjoyed a strong market and its LNG fleet performed well, underpinned by long-term contracts.
