NS UNITED KAIUN KAISHA, LTD.

Business Details

This segment engages in the transport of iron ore, coal, steel products, non-ferrous ore, etc. via dry bulk vessels (Capesize, Panamax, Handy, and small-size), the transport of LPG etc. via tankers (VLGC), and vessel chartering. It accounts for approximately 90% of consolidated net sales. The segment's revenue strategy is centered on securing stable earnings through long-term and medium-to-long-term transport contracts, together with cargo collection through cross trades among third countries. Subsidiaries such as NS UNITED BULK PTE. LTD. function as overseas bases.

Recent Overview

Despite yen appreciation and lower sales, consolidated net profit rose 29.4% year on year on gains from sale of aged vessels

In FY2026 (ending March 2026), Ocean Shipping Business net sales were ¥197,062 million (down 8.9% year on year), and segment profit was ¥15,489 million (down 4.8% year on year). The main reason for the sales decline was the yen's appreciation compared to the prior period (12-month average of ¥150.33/US$ versus ¥152.83 in the prior period). On the other hand, the company steadily executed the planned sale of aged vessels as originally planned, recording a gain on sale of fixed assets of ¥7,037 million (versus ¥2,539 million in the prior period), which resulted in consolidated net profit attributable to owners of the parent of ¥24,095 million (up 29.4% year on year). The Capesize market was firm for the full year, the small/medium-size market trended toward recovery from the middle of the period onward, and the VLGC market also generally trended firmly.

Key Products

Growth Drivers

• Stable earnings base through long-term and medium-to-long-term transport contracts (for domestic and overseas customers including Nippon Steel)
• Tightening of supply-demand conditions for Capesize dry bulk vessels due to restrained newbuilding supply (owing to elevated vessel prices and cautious stances toward environmental regulation compliance)
• Expected increase in iron ore transport demand accompanying the start-up of the Simandou mine in Guinea
• Firm trend supported by stable LPG transport demand in the VLGC market
• Cost reduction effect from the decline in fuel oil prices (average of US$481/MT in FY2026, ending March 2026, down 14.7% year on year)
• Asset turnover and recording of gains on sale through planned sale of aged vessels

Risks

• Foreign exchange risk: erosion of yen-denominated earnings due to yen appreciation (12-month average of ¥150.33/US$ in FY2026, ending March 2026)
• Dry bulk market volatility risk: slowdown in cargo movements due to uncertainty over the Chinese economic outlook and sluggish real estate market
• US trade policy risk: impact of trade policies including tariff measures and other countries' responses to them on cargo transport demand and trade patterns
• Vessel oversupply risk: increase in newbuilding completions centered on small/medium-size vessels of Panamax class and below
• Geopolitical risk: impact of navigation restrictions on certain routes on transport demand and trade patterns
• Risk of tightening environmental regulations: cost increases and operational constraints from the introduction of medium-term measures such as the IMO's GFI regulations and expanded application of environment-related systems such as the EU-ETS