K Line reported a 110.1% jump in net profit for the first three quarters of the financial year ending 31 March 2015. Revenues increased by 10.6% for the nine month period to JPY1.02trn, compared to JPY918bn a year earlier.
The more than doubling of profits came despite a mixed operating environment for shipping. “Although facing the sluggish market in dry bulk business, there was a further restoration of freight rates in Japan-North America routes and cost cutting in containership business,” K Line said.
“Car carrier business worked for the improvement of vessel navigation efficiency and the energy development services successfully increased the revenues against the backdrop of the market recovery. The depreciation of the yen against the US dollar and the price of fuel oil also contributed to the improvement of the profit.”
K Line also upped its annual profit forecast although to a level that is still below its nine month profit level, implying it expects a loss in the fourth quarter. K Line increased its annual profit forecast by 16.3% to JPY25bn.
Commenting on the reason for the increased profit forecast K Line said: “Although facing the sluggish market in dry bulk business, there was a further restoration of freight rates in Japan-North America routes and cost cutting in containership business.
“Car carrier business worked for the improvement of vessel navigation efficiency and the energy development services successfully increased the revenues against the backdrop of the market recovery. The depreciation of the yen against the US dollar and the price of fuel oil also contributed to the improvement of the profit,” K Line added.
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