Japanese shipping major K Line delivered a net profit of JPY 10.4 billion for the fiscal year ended March 31, 2018, compared to a net loss of JPY 139.4 billion seen a year earlier.
The company’s operating revenues for the period were at JPY 1.16 trillion, up from JPY 1.03 trillion reported a year earlier.
In the shipping industry, cargo movements in the East-West services remained firm throughout the year in the containership business and freight rated remained on a recovery track, “but the supply-demand balance did not improve in earnest,” according to K Line.
In the dry bulk business, market rates in the Capesize sector continued to recover from the historic low due to robust cargo movements of iron ore and coking coal bound for China. Market rates in the medium and small vessel sector also continued to recover moderately due to robust cargo movements especially of grain and coal.
In addition to the structural reforms carried out in the previous two fiscal years in order to enhance competitiveness, the group implemented measures to improve its profitability, including continued cost reduction and improvement of vessel allocation efficiency.
Despite negative effects of a rise in fuel oil prices, business performance improved, recording in the first annual profit in all stages of operating profit, ordinary profit and profit attributable to owners of the parent in two years.
The company’s containership sector delivered a profit of JPY 3.4 billion, compared to a loss of JPY 31.5 billion reported in the previous fiscal year, while the bulk shipping sector ended the year with a profit of JPY 3.2 billion, against a loss of JPY 9.5 billion seen a year earlier.
For the fiscal year ending March 31, 2019, the company is projecting operating revenues of JPY 754.5 billion and a profit of JPY 7 billion.