The company recorded 24.4 billion yen of equity in earnings of unconsolidated subsidiaries and affiliates for the first quarter of this fiscal year and OCEAN NETWORK EXPRESS PTE. LTD. (hereinafter referred to as “ONE”) accounted for 23.0 billion yen of this amount.
Since the beginning of this fiscal year, The Company partly changed the allocation method of corporate expenses to present the condition of each segment in a more appropriate manner. Segment information in the first quarter of both fiscal year 2023 and 2022 are presented based on the changed allocation method.
Dry Bulk Business
In the Cape-size sector, market rates initially recovered due to the robust transportation demand against the backdrop of the expectations for economic recovery in China, however, market rates weakened as a result of delay in recovery of actual demand in China, which loosened the vessel supply-demand balance along with the easing of port congestion. In the medium and small vessel sector, market rates were sluggish because of the decrease in the transportation of coal and steel products to Europe against the backdrop of the increase in inventory at the points of demand, and the decline in transportation demand for China against the backdrop of hesitant buying due to the decline in grain futures prices. Under these circumstances, the Group strived to manage the market exposures appropriately and reduce operation costs and improve vessel operation efficiency. The overall Dry Bulk Segment recorded a year-on-year decrease both in revenue and profit.
Energy Resource Transport Segment
LNG Carrier, Electricity Business, Tanker Carrier and Offshore Business Concerning LNG carriers, thermal coal carriers, large crude oil tankers (VLCCs), LPG carriers, drillship and FPSO (Floating Production, Storage and Offloading system), the business stayed firm for mid- and long-term charter contracts and contributed to secure stable profit. On the other hand, partly due to reorganizations of operating ships conducted last year, the overall Energy Resource Transport Segment recorded a year-on-year decrease both in revenue and profit.
Containership Business
The business performance of “ONE”, the affiliate company accounted with the equity method, weakened as a result of decrease in short-term freight market rates due to sluggish transportation demand, in addition to the normalization of supply chain disruptions. The overall Product Logistics Segment recorded a year-on-year increase in revenue but decrease in profit.
Total assets at the end of the consolidated first quarter of this fiscal year were ¥2,136.1 billion, an increase of ¥83.5 billion from the end of the previous fiscal year as a result of an increase in Cash and deposits and other factors. Total liabilities increased by ¥28.2 billion to ¥534.1 billion as a result of an increase in Long-term loans, less current portion and other factors compared to the end of the previous fiscal year. Total net assets were ¥1,602.0 billion, an increase of ¥55.3 billion compared to the end of the previous fiscal year as a result of an increase in Foreign currency translation adjustments and other factors.
