Loss risk from failure to meet the investment plan, vessel sales and charter contract terminations
First written in FY2016. 17 of 22 entries say "Materialised", first in FY2016. Latest entry: FY2026.
Kawasaki Kisen moved to the "Worse" side of this theme in 2016.
1 other company's latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「In addition, regarding the disposal and sale of major facilities during the consolidated fiscal year, the Group scrapped 2 vessels held in the dry bulk segment, with a combined carrying amount of ¥2,097 million, sold 4 vessels held in the same segment, with a combined carrying amount of ¥8,129 million, and sold 2 vessels held in the product logistics segment, with a combined carrying amount of ¥1,958 million.」
As part of fleet optimization and asset disposal, the Group scrapped 2 vessels and sold 4 in the dry bulk segment, and sold 2 vessels in the product logistics segment. - FY2025MaterialisedAnnual report
「Regarding the disposal and sale of major facilities during the consolidated fiscal year, the Group sold 1 vessel held in the energy resources segment, with a carrying amount of ¥0 million.」
Measures associated with fleet optimization and asset disposal continued during the period, with 1 vessel sold in the energy resources segment. - FY2024MaterialisedAnnual report
「Regarding the disposal and sale of major facilities during the consolidated fiscal year, the Group scrapped 1 vessel held in the dry bulk segment, with a carrying amount of ¥268 million, and sold 1 vessel held in the product logistics segment, with a carrying amount of ¥710 million.」
The fleet review through vessel sales and scrapping continued during the period, with 1 vessel sold in the product logistics segment. - FY2023MaterialisedAnnual report
「Regarding the disposal and sale of major facilities during the consolidated fiscal year, the Group sold 4 vessels held in the energy resources segment, with a combined carrying amount of ¥10,392 million, and 3 vessels held in the product logistics segment, with a combined carrying amount of ¥1,854 million.」
As part of fleet optimization and asset sales, the Group sold a total of 7 vessels, comprising 4 in the energy resources segment and 3 in the product logistics segment. - FY2022MaterialisedAnnual report
「In addition, regarding the disposal and sale of major facilities during the consolidated fiscal year, the Group sold 3 vessels held in the dry bulk segment, with a combined carrying amount of ¥92 million; 17 vessels held in the energy resources segment, with a combined carrying amount of ¥24,688 million; and 2 vessels held in the product logistics segment, with a combined carrying amount of ¥232 million.」
As part of fleet optimization and disposal, the Group sold 22 vessels during the full fiscal year. The sales, including 17 vessels in the energy resources segment, materialized as a response to the risk of losses from vessel sales and other measures. - FY2022-Q3MaterialisedAnnual report
「At a meeting of the Board of Directors held on 17 December 2021, the Company decided to sell all vessels owned by its consolidated subsidiary K LINE OFFSHORE AS and liquidate the company.」
The newly disclosed decision to sell vessels and liquidate a subsidiary as part of the fleet and business review indicates that measures to dispose of vessels progressed to actual management decisions. - FY2022-Q2MaterialisedAnnual report
「Impairment losses 1,014 332 Charter cancellation fees 812 6,181」
During the first six months, the Group recorded ¥6,181 million in charter cancellation fees, indicating that losses associated with the fleet review and charter contracts continued to materialize. - FY2021MaterialisedAnnual report
「In addition, regarding the disposal and sale of major facilities during the consolidated fiscal year, the Group sold 7 vessels held in the dry bulk segment, with a combined carrying amount of ¥3,895 million; 5 vessels held in the energy resources segment, with a combined carrying amount of ¥13,628 million; and 9 vessels held in the product logistics segment, with a combined carrying amount of ¥1,134 million.」
The risk of losses associated with fleet sales and the review of charters materialized through the sale of 21 vessels during the period. - FY2021-Q3MaterialisedAnnual report
「As a result, across the dry bulk segment, the Group worked to reduce operating costs and improve fleet deployment efficiency, while actively optimizing the fleet size, primarily by disposing of older vessels. In the car carrier business, demand for ocean transport declined as COVID-19 caused a global slump in vehicle sales and production shutdowns at factories in various countries. Although the Group implemented measures including suspending vessel operations, temporarily reviewing services and reducing costs through the disposal of surplus vessels, revenue declined year on year and the business recorded a loss.」
The Group disposed of older vessels in the dry bulk business and surplus vessels in the car carrier business, indicating that measures to optimize and reduce fleet size continued to materialize in the results. - FY2021-Q2MaterialisedAnnual report
「Extraordinary losses Impairment losses 289 1,014 Charter cancellation fees － 812」
During the first six months, the Group recorded ¥812 million in charter cancellation fees as extraordinary losses and incurred ¥807 million in payments associated with charter cancellations. Losses and cash outflows associated with the fleet review continued. - FY2020MaterialisedAnnual report
「Net cash used in operating activities was ¥2,179.7 million in the consolidated fiscal year, mainly due to payments associated with charter cancellations and other items, compared with net cash used of ¥680.8 million in the previous consolidated fiscal year.」
Payments associated with charter cancellations and other items drove full-year operating cash flow to net cash used of ¥2,179.7 million, indicating that the burden of the fleet review continued to materialize in the annual results. - FY2020-Q2MaterialisedAnnual report
「Net cash used in operating activities was ¥3,961.7 million, mainly due to payments of charter cancellation fees and other items, compared with net cash used of ¥2,625.0 million in the first six months of the previous consolidated fiscal year.」
Payments associated with charter cancellations reached ¥5,157.4 million, indicating that losses associated with the fleet review and charter cancellations continued to materialize as cash outflows. - FY2019MaterialisedAnnual report
「To achieve a fundamental improvement in profitability from the following fiscal year onward, the Group cancelled the charters of uneconomical vessels, including some container vessels and some small and medium-sized dry bulk vessels affected by market conditions, and recorded extraordinary losses.」
The Group cancelled the charters of uneconomical vessels and recorded extraordinary losses, including ¥49,326 million in charter cancellation fees. Large-scale losses arose from the fleet review. - FY2018MaterialisedAnnual report
「Regarding the disposal and sale of major property, plant and equipment during the fiscal year, 8 vessels held in the tramp shipping segment were sold, with a combined carrying amount of ¥7.501 billion.」
Vessel sales continued, and the Group also recorded ¥2,772 million in charter cancellation fees. The risk of losses associated with flexibly reviewing the fleet materialized during the period. - FY2018-Q3RestatedAnnual report
「Charter cancellation fees 1,322」
The Group recorded ¥1,322 million in charter cancellation fees during the nine-month period, indicating that losses associated with reducing vessel capacity and the structural reforms continued to arise. - FY2018-Q2AdvancedAnnual report
「During the second quarter of the consolidated fiscal year, the Group transferred all equity interests in SAL Heavy Lift GmbH, which operates the heavy-lift shipping business, and excluded the company from the scope of consolidation.」
The transfer of all equity interests in SAL Heavy Lift GmbH, which operates the heavy-lift shipping business, was completed on 27 July 2017, and the company was excluded from consolidation. - FY2018-Q1MaterialisedAnnual report
「We have decided to transfer all equity interests in our consolidated subsidiary SAL Heavy Lift GmbH (SAL) to SALTO Holding GmbH & Co. KG.」
As part of the structural reforms of the heavy-lift shipping business, the Group decided to transfer all equity interests in SAL Heavy Lift GmbH and completed the transfer on 27 July 2017. No loss on the transfer is expected. - FY2017MaterialisedAnnual report
「Regarding the disposal and sale of major facilities during the consolidated fiscal year, the Group sold 17 vessels held in the tramp shipping segment.」
In addition to vessel sales, the Group disposed of uneconomical vessels and incurred ¥7,943 million in charter cancellation fees and ¥27,885 million in payments associated with charter cancellations, indicating that the risk continued to materialize in actual results. - FY2017-Q3RestatedAnnual report
「The Group disposed of uneconomical vessels and worked to reduce operating costs and improve fleet deployment efficiency. However, revenue declined year on year and losses increased as a result of the prolonged market downturn.」
The Group continued to dispose of uneconomical vessels and improve operating efficiency. During the cumulative period, it recorded ¥4,880 million in charter cancellation fees and ¥18,535 million in payments associated with charter cancellations. - FY2017-Q2RestatedAnnual report
「Charter cancellation fees 4,979」
The Group recorded ¥4,979 million in charter cancellation fees associated with the structural reforms, while payments associated with charter cancellations reached ¥17,055 million, indicating that losses from reducing vessel capacity continued. - FY2017-Q1WorsenedAnnual report
「The Group worked to reduce free vessels and high-cost vessels through charter cancellations and vessel disposals as part of its structural reforms, while also reducing operating costs and improving fleet deployment efficiency. However, affected by weak market conditions, revenue declined year on year and a loss was recorded.」
Charter cancellations associated with the structural reforms continued, and in the first quarter the Group recorded ¥5,239 million in charter cancellation fees and ¥10,125 million in payments associated with charter cancellations. - FY2016MaterialisedAnnual report
「The Group strives to develop its fleet flexibly in response to market conditions. However, if the actual supply-demand balance for vessel capacity deteriorates or vessels become obsolete as a result of technological innovation, the Group may sell vessels it owns or cancel charter contracts for vessels it has chartered before their scheduled expiration. This could adversely affect the Group's financial condition and operating results.」
During the period, the Group sold vessels, terminated charters early and recorded impairment losses, indicating that the risk has materialized through actual measures and losses.