Japan’s NYK slumped to a near $2 billion loss in the first nine months of FY2016 as it took massive impairments on cancelled charter contracts.
NYK reported a JPY226bn ($1.99bn) loss for the nine-month period compared to a JPY22.82bn profit in the same period a year earlier.
Revenues declined 19.9% for the period to JPY1.41trn compared to JPY1.76trn a year earlier,
“Profit attributable to owners of the parent fell JPY248.9bn year-on-year, largely due to an extraordinary loss of approximately JPY200bn comprised of an impairment loss and provision for losses related to contracts associated with container ships, dry bulkers, and cargo aircraft,” NYK said.
NYK’s loss forecast for the full year ended 31 March 2017 remained at JPY245bn.
Looking ahead NYK commented: “We foresee the recovery in the container shipping department to continue in the fourth quarter. The slump in automobile shipping demand to resource-rich countries is expected to continue for some time.
“Dry bulk department is recovering from historic lows. In the liquid department, oil-products and LPG shipping market may take some time to recover, but LNG and off-shore businesses with long-term contracts are expected to continue to produce stable profits,” it added.
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