Japan’s Iino Kaiun Kaisha has reported a ¥3.2bn ($30.8m) net profit in the first half of this financial year, following a strong performance in its main trading markets.
In the same period last year the company, also known as Iino Lines, reported a net profit of ¥400m.
The profit boost comes despite a fall in revenue. In the six-month period to the end of September Iino reported revenue of ¥43.2bn compared to ¥44.9bn in fiscal 2019.
Iino, which is listed on the Tokyo Stock Exchange, said that the improved profit came from an upturn in the gas carrier and dry bulk markets.
The company also pocketed additional cost benefits from the postponement of dry docking caused by the coronavirus pandemic.
However, Iino said these benefits could be reversed in the third quarter when it expects a ¥2.7bn hit from downward pressure on its main trading markets and additional dry-docking costs.
The company was downbeat on the prospects for the third quarter.
“There are no signs of Covid-19 pandemic being contained, and conditions are expected to remain unpredictable overall,” Iino said.
The shipowner reported a ¥3.9bn operating profit, of which its shipping activities accounted for ¥2bn and its real estate activities ¥1.9bn.
Iino is forecasting a ¥4.7bn net profit for the full financial year, compared to a ¥3.8bn net profit in the second half of last year.
Lining up further investment
The company is also lining up further investment in its fleet. As TradeWinds earlier reported in September, Iino ordered a 91,000-cbm LPG carrier at Daewoo Shipbuilding and Marine Engineering in South Korea.
The company is taken delivery of one 310,000-dwt VLCC this year and is scheduled to take delivery of one more in 2020.
Iino said it plans to take acquire two 35,000-dwt chemical tanker newbuildings on a charter basis in 2022.
Iino operates a fleet of 110 ships including four VLCCs, 43 chemical tankers, 17 large gas carriers, 20 bulk carriers and 26 small gas carriers. Around 67% of the fleet is owned with the remaining operated on a charter basis.
