JAPANESE shipping giant NYKposted a 321 per cent second quarter net profit increase to JPY43.06 billion (US$34.69 million), drawn on revenues of JPY558.7 billion, which increased five per cent year on year.
"In Europe, the economy moved toward a mild recovery despite uncertainties regarding the future of Greece and other countries," said the NYK statement accompanying the mid-term results.
"In Japan, continuing from the last period, the yen continued to weaken amid signs of economic expansion. At the same time China's economy appeared to be slowing down as economies throughout the rest of Asia remained firm," said the statement.
Conditions surrounding the shipping industry, the introduction of newbuilds in the container shipping business, exerted extremely strong supply pressure, driving down spot freight rates on some routes to unprecedented low levels, said NYK.
"Nevertheless we continued efforts to improve profitability by decreasing cost through heighten fleet assignment rationalisation and reduced fuel consumption in the container shipping division," the company said.
Demand declined amid a space of ultra large containership deliveries on European routes and a weaker euro resulting in spot rates falling into historically low levels.
Regarding costs, in addition to lower fuel expenses due to a drop in bunker oil prices, the NYK group made efforts to reduce ship operation and navigation costs by returning uneconomical vessels and conducting vessel modifications aimed at improving fuel efficiency, the company said.
NYK also said efforts were made to further reduce costs and raise profits by expanding Eagle Eye, a yield management programme to reduce costs and maximise profits efficient container operations from North America to European and Latin American routes in the terminal division.
MARKETS
31 July 2015 - 20:26
NYK profit up 3 fold to US$83.5 million as revenues rise 5pc
JAPANESE shipping giant NYKposted a 321 per cent second quarter net profit increase to JPY43.06 billion (US$34.69 million), drawn on revenues of JPY558.7 billion, which increased five per cent year on year.
MARKETS
31 July 2015 - 20:26
NYK profit up 3 fold to US$83.5 million as revenues rise 5pc
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