The prospect of a profit plummet is full of uncertainty. The Japanese shipping company plans to cut
- Author:Josie
- Source:Souair
- Release Date:2020-08-07
The profit of Japanese shipping company K Line plummeted in the second quarter. Due to the new crown epidemic, the company lowered its full-year expectations. Like MOL, the shipping company now plans to significantly reduce the number of ships in the next few years, starting with a reduction of 20 ships this year.
K Line is struggling under the influence of the new crown epidemic.
The shipping company lost 955 million yen ($9 million) in the first quarter of this year, which is a significant drop from the 7.7 billion yen profit in the same period last year.
The shipping company wrote in its earnings update on Wednesday that its revenue for the quarter fell from 183.3 billion yen in 2019 to 152.1 billion yen.
At the same time, K Line lowered its forecast for the full-year deficit as of March 31, 2021 to 27 billion yen.
K Line wrote: "With the spread of COVID-19, the company is expected to face a severe operating environment, and the operating environment around the company will also be full of uncertainties." And said that a series of measures will be taken to alleviate the severe market environment. The impact.
In addition, K Line plans to significantly reduce the number of ships in the next few years. As a start, K Line will cut more than 20 ships in 2020 and 52 ships in 2025.
K Line’s fleet is mainly composed of dry bulk carriers and car carriers. The company's container business is located in ONE, and the company cooperates with Mitsui OSK lines and NYK Line, two other major container shipping companies in Japan.
The prospect of a profit plummet is full of uncertainty. The Japanese shipping company plans to cut 52 ships
K Line stated in a briefing, “By reducing the size of the fleet, rationalizing the allocation of ships, and suspending the laying of ships to reduce operating costs to compensate for the decline in freight volume. In addition, while selling assets to ensure the capital base, it can also ensure Have enough liquidity on hand."
A few months ago, its rival, Mitsui OSK Lines, also announced a similar move. At the group's annual meeting held in late June, the Japanese shipping company decided to reduce its fleet by up to 40 ships. At the same time, MOL will re-evaluate its investment plan and increase its focus on LNG.
K Line is struggling under the influence of the new crown epidemic.
The shipping company lost 955 million yen ($9 million) in the first quarter of this year, which is a significant drop from the 7.7 billion yen profit in the same period last year.
The shipping company wrote in its earnings update on Wednesday that its revenue for the quarter fell from 183.3 billion yen in 2019 to 152.1 billion yen.
At the same time, K Line lowered its forecast for the full-year deficit as of March 31, 2021 to 27 billion yen.
K Line wrote: "With the spread of COVID-19, the company is expected to face a severe operating environment, and the operating environment around the company will also be full of uncertainties." And said that a series of measures will be taken to alleviate the severe market environment. The impact.
In addition, K Line plans to significantly reduce the number of ships in the next few years. As a start, K Line will cut more than 20 ships in 2020 and 52 ships in 2025.
K Line’s fleet is mainly composed of dry bulk carriers and car carriers. The company's container business is located in ONE, and the company cooperates with Mitsui OSK lines and NYK Line, two other major container shipping companies in Japan.
The prospect of a profit plummet is full of uncertainty. The Japanese shipping company plans to cut 52 ships
K Line stated in a briefing, “By reducing the size of the fleet, rationalizing the allocation of ships, and suspending the laying of ships to reduce operating costs to compensate for the decline in freight volume. In addition, while selling assets to ensure the capital base, it can also ensure Have enough liquidity on hand."
A few months ago, its rival, Mitsui OSK Lines, also announced a similar move. At the group's annual meeting held in late June, the Japanese shipping company decided to reduce its fleet by up to 40 ships. At the same time, MOL will re-evaluate its investment plan and increase its focus on LNG.