NS United, a Japanese owner of large bulkers and tankers, is preparing to take impairment hits from the effects of coronavirus.
In a profit warning, the company said that through most of the financial year that ended on 31 March, it had developed the fleet and signed new transshipment contracts as scheduled, with the dry bulk market remaining steady until December.
It would have left forecasts unchanged, but said that "considering the sharp drop in crude oil prices and decline in share prices brought by the concern that Covid-19 may affect global economy", it will log a ¥1bn hit ($9.3m) from a drop in the value of its bunker inventory and another ¥1bn in the value of investment securities.
NS is forecasting revenue will fall from its previous estimate of ¥151bn to ¥148bn for the year.
Dividend to fall
Net profit will be around ¥250m, against its last forecast of ¥331m.
The annual dividend is likely to be reduced from ¥95 to ¥80 per share, against a payout of ¥115 in the year to 31 March, 2019, it added.
The company also warned: "The actual results of operating performance could be substantially different from this forecast, depending on various factors."
NS United is pushing back the release of its annual result from the end of April to mid May.
Last year, the shipowner said it was combining its tanker and gas carriers operations with some of its bulker business.
The idea was to "strengthen its energy services", the company said.
Two coal carrier and bulker teams handling domestic and general services were merged with its oil and gas team carrying out services and fuel procurement.
The mixed fleet of 75 ships is mainly VLOCs and other bulkers, but includes VLCCs, two LPG carriers and three LNG carriers.
Capesize, tramp and near-sea operations remain separate.
The company announced net profit of ¥9.34bn for the year ended 31 March, 2019, against ¥6.61bn in the previous 12 months.
Revenue rose to ¥151bn from ¥139bn.
This month it emerged that the owner had sold a 15-year old VLCC to Greek owner George Procopiou.
Initially, Charalambos Mylonas-led Transmed Shipping was believed to have acquired the 302,000-dwt Yugawasan (built 2005) for $33.3m.
