Kawasaki Kisen Kaisha, Ltd (KAKKF) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Financial highlights brief report for third quarter fiscal year 2025. A, financial highlights for third quarter fiscal year 2025. A1, financial results for third quarter fiscal year 2025. First, I will explain the results through the third quarter of fiscal year 2025. Operating revenues were 767.7 billion yen. down 37.2 billion yen year-on-year. Operating income was 68.7 billion yen, a decrease of 23.5 billion yen year-on-year. Ordinary income was 88.6 billion yen, a decrease of 200.2 billion yen year-on-year. Net income attributable to owners of parent was 102.6 billion yen, a decrease of 182.1 billion yen year-on-year. The average exchange rate was 148.52 yen per U.S. dollar, and the bunker price was $535. With regard to the cumulative performance through the third quarter compared with the same period of the previous year, operating income declined due to several factors. These include an average yen appreciation of 3.75 yen, higher operating expenses resulting from an increase in the number of vessels deployed in the car carrier business, and weak market conditions in the dry bulk business in the first quarter. In container ship business, cargo transport volume increased in the first half, particularly in the second quarter, due to front loaded shipments to North America. However, transport volume has since struggled to grow. Freight rate market conditions have remained at low levels from the latter half of the second quarter through the third quarter, partly due to the entry of newly built vessels into the market. As a result of the factors just mentioned, the performance of equity method affiliate Ocean Network Express, ONE, saw a significant decline in both revenue and profit. Accordingly, K-Line's equity method income also decreased. In addition to the declin...