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NYK sees full year profit fall 61%

NYK sees full year profit fall 61%
Nippon Yusen Kaisha (NYK) The only one of Japan’s “big three” shipowners to make money in the financial year ended 31 March 2016, but still reported a 61% fall in profits.

NYK reported a JPY18.2bn ($168m) profit for FY2015, a drop of 61.7% on the JPY47.6bn it made in the previous year. Revenues fell 5.4% to JPY2.27trn in FY2015 compared to JPY2.4trn a year earlier.

Looking ahead the Japanese shipowner said it expected the operating environment financial year ended 31 March 2017 to be “extremely challenging”.

“Although cargo volume is projected to increase in the container shipping market, the oversupply of tonnage is forecast to persist due to the entry of newly built ultra-large container ships, and spot freight rates are expected to remain stagnant,” NYK said.

“In the dry bulk transport market, while steady growth is projected, the market is expected to weaken as newly built tanker vessels are launched.”

NYK said it expected solid performances from its car carrier, LNG and offshore businesses and expected a “strong result” from its logistics segment.

As a result it is forecasting a slightly lower profit for FY2016 of JPY15bn, with a decline in revenues to JPY2.18trn.