July 31, 2023 : First Quarter Financial Results Report
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1. Overview of First Quarter Financial Results
International Shipping Amid concerns of a global economic slowdown due to rising inflation and interest rates, expectations for the Chinese economy, which had ended its zero-corona policy, supported the market at the beginning of the period, but the market softened from May onward due to a slow recovery. Although the yen's depreciation against the U.S. dollar accelerated against the backdrop of the widening interest rate gap between Japan and the U.S., pushing up operating income, income decreased by approximately 5.7 billion yen year-on-year.
Dry Bulk ：The normalization of port regulations concerning the coronavirus infection caused a decrease in the number of vessels staying at ports, which has been a substantial factor in increasing the
supply of shipping capacity. In addition, uncertainty about the Chinese economy, including a
sluggish real estate market and slow growth in crude steel production, put downward pressure on marine transportation demand, and market conditions remained on a downward trend. Although market conditions were lower than expected, the Company secured stable earnings by promoting medium- to long-term transportation contracts.
Tanker ：The supply-demand balance for large LPG tankers remained relatively tight, as a certain number of cargo movements were seen for both Middle East and U.S. loading, and prices remained at high levels throughout the period.
Coastal Shipping While the transportation of steel raw materials was firm, the transportation of steel products for automobile production and electric power-related cargoes decreased, and marine transportation demand remained almost flat, but operating income increased about 400 million yen due to a decrease in expenses caused by lower fuel prices.
Dry Bulk：Although the transportation of steel products and electric power-related cargoes showed a downward trend, the transportation of steel raw materials, mainly coke, remained strong, and we were able to capture spot transportation demand by focusing on communication with shippers.
Tanker ：Despite efforts to operate more efficiently, transport volume declined year-on-year due to a drop in domestic demand for LPG.
As a result, operating income decreased by approximately 5.4 billion yen, ordinary income decreased by 5.3 billion yen, and net income decreased by 4.3 billion yen in the first quarter of this fiscal year.
July 31, 2023 : First Quarter Financial Results Report
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2. Forecasts for FY2023
(Consolidated)
FY2022
Full year
[100 mil. yen]
(Result)
Revenues
2,508
Operating Income
325
Ordinary Income
334
Profit Attributable to
276
Owners of Parent
FY2023 (Forecast)
1H2H Full year
1,047
894
1,941
99
57
156
102
44
146
82
41
123
Changes
Y-o-Y
Full Year
567
169
188
153
Compared to Previous Forecast Full Year
+151
+9
+14
+13
FY2022
Full year
Exchange Rate
¥134.67
Bunker Price
（Average of all oil
$655
types）
Marke Capesize
$14,726
Panamax
$17,677
Small Handy
$17,637
FY2023
1H Forecast
2H Forecast
Full Year
¥136.33
¥130.00
¥133.17
$543
$549
$546
$15,000
$13,000
$14,000
$11,000
$10,500
$10,750
$9,500
$9,500
$9,500
Previous Forecast Full year of FY 2023
¥130.00
$587
$18,000 $14,625 $12,500
Exchange rate depreciation of 1 yen will result in recurring profit of approx. 300 million yen(2Q-4Q)
Fuel oil prices are the average price of all types of oil, including high-sulfurC-fuel oil consumed by vessels equipped with desulfurization equipment (Scrubber).
July 31, 2023 : First Quarter Financial Results Report
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NS United Kaiun Kaisha Ltd. published this content on 31 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 August 2023 02:30:09 UTC.
NS UNITED KAIUN KAISHA, LTD. is a Japan-based company mainly engaged in the marine business. The Company operates through two business segments. The International Marine Transportation segment is engaged in the transportation of iron ore, coal, steel products and nonferrous ore by bulk carriers, the transportation of crude oil and liquefied petroleum gas (LPG) by tanker, as well as the leasing of ships. The Domestic Marine Transportation segment is engaged in transportation of iron product, limestone, and cement by bulk carriers in domestic waters, the transportation of LPG and liquefied natural gas (LNG) by tankers, as well as the lending of vessels. The other business provides land transportation and information service.
NS UNITED KAIUN KAISHA, LTD. 
