Meiji Shipping Group Co., Ltd.

Business Details

The Group operates vessel owner companies both domestically and overseas that hold tramper vessels such as tankers, car carriers, and bulk carriers, with the Vessel Chartering Business—generating charter fee income as its primary revenue source—as its core pillar, supplemented by ship management operations. In FY2026 (ending March 2026), sales stood at ¥50,489 million, accounting for approximately 82% of consolidated total, making it the core segment. During the period, both sales and profit declined significantly due to the exclusion of one consolidated subsidiary (SOLEIL TRANSPORT S.A.) from the scope of consolidation and reduced utilization following the sale of vessels; however, the sale of 4 vessels held by consolidated subsidiaries resulted in extraordinary gain of ¥10,197 million.

Recent Overview

Sales and profit declined significantly due to vessel sales and deconsolidation; extraordinary gain of ¥10,197 million recorded

In FY2026 (ending March 2026), due to the exclusion of consolidated subsidiary SOLEIL TRANSPORT S.A. from the scope of consolidation (partial share transfer effective January 15, 2025, transitioning to equity-method application) and reduced utilization following vessel sales, sales fell sharply to ¥50,489 million (down 12.3% year on year), and segment profit dropped to ¥3,789 million (down 64.3% year on year). Meanwhile, the sale of 4 vessels held by consolidated subsidiaries resulted in a gain on sale of vessels of ¥10,197 million recorded as extraordinary income. For the next fiscal year (FY2027, ending March 2027), while increased utilization is expected from 2 vessels scheduled for acquisition, a decline in charter fee income is anticipated due to a yen appreciation assumption (1 US$ = ¥145); the Ocean-going Shipping Business is forecast to post sales of ¥49,800 million (down 1.4% year on year) and profit of ¥6,180 million (up 63.1% year on year). Additionally, as a subsequent event, a Dutch consolidated subsidiary sold 1 bulk carrier, and a gain on sale of vessels of approximately ¥800 million is expected to be recorded as extraordinary income in FY2027 (ending March 2027).

Key Products

Growth Drivers

• Recovery in operating vessel capacity through increased utilization of 2 vessels scheduled for acquisition next fiscal year
• Sharp rise in the LNG carrier market against the backdrop of the worsening Strait of Hormuz situation in 2026
• Boost to the large bulk carrier market on African routes driven by solid bauxite transport from Guinea
• Maintenance of a stable revenue base centered on medium- to long-term charter contracts
• Improved profit margin through reduced dry-docking costs and lower vessel costs from vessel sales (forecast for next fiscal year)
• Continued firm trend in the car carrier charter market

Risks

• Risk of major fluctuations in the charter market (geopolitical risk, Chinese economic slowdown, US trade policy)
• Risk of renewed market slump due to LNG carrier oversupply
• Structural decline in sales due to reduced operating vessel capacity following vessel sales
• Foreign exchange risk (impact on charter fee income upon yen appreciation; next fiscal year assumes 1 US$ = ¥145)
• Softening trend in the container ship market (increased supply capacity from reopening of Red Sea routes)
• Risk of slowdown in car carrier cargo movement due to US tariff policy
• Increase in vessel costs (repair costs, etc.) due to increased number of dry-dockings
• Decline in equity-method investment income (reduced earnings contribution following the transition of SOLEIL TRANSPORT S.A. to equity-method application after deconsolidation)