finance
Three Major Japanese Shipping Companies Project Multi-Billion Yen Profits for Fiscal 2026
Nippon Yusen, Mitsui O.S.K. Lines and Kawasaki Kisen Kaisha projected lower earnings for fiscal 2026, citing rising fuel prices tied to tensions in the Middle East and the de facto closure of the Strait of Hormuz. Executives said the impact remains difficult to quantify even as they expect the strait to reopen as early as July. The forecasts follow near-halving of their net profits in fiscal 2025.
May 11, 7:26 AM·1m read1 source
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Three major Japanese shipping companies have projected net profit falls for fiscal 2026, due to rising fuel prices linked to tensions in the Middle East. 9% from the previous year to ¥195 billion.
6% to ¥95 billion. jp reported that the companies expect the de facto closure of the Strait of Hormuz to end as early as July. Nippon Yusen estimates that the situation in the Middle East could reduce its ordinary profit by nearly ¥20 billion.
"Fuel prices will greatly impact (the company's earnings)," Takaya Soga, president of Nippon Yusen, said at a news conference. " Takaya Soga noted that a prolonged closure of the Strait of Hormuz could decrease maritime traffic volume. "It's difficult to quantify (the impact of the situation) at this point," he added.
U.K. Lines is bracing for a negative impact of about ¥24 billion.
Lines, said at a news conference on April 30. 1 billion decrease in its ordinary profit to the blockade of the Strait of Hormuz, according to Takenori Igarashi, President and CEO of Kawasaki Kisen Kaisha. In fiscal 2025, which ended in March, the three shipping companies saw their respective net profits nearly halve.
The net profit decline in fiscal 2025 was partly due to falling freight rates caused by an increase in the supply of new container ships.
