Recognition of extraordinary gain
Consolidated subsidiary KYOEI TANKER SINGAPORE PTE. LTD. (KTS)
Mexico; oil products tanker "CHALLENGE PROCYON"
After completing cargo unloading in Mexico on 21 March 2025, the vessel continued to be unable to obtain permission to leave port from the local authorities, with no clear prospect of resuming operations or departing.
Approximately ¥2.4 billion (extraordinary income after deducting the vessel's carrying amount and related expenses from the insurance proceeds)
Second quarter (interim period) of the fiscal year ending March 2027, consolidated accounting period (1 April 2026 to 30 September 2026)
The company expects to revise upward its consolidated earnings forecasts for the second quarter cumulative period and the full year. The specific revisions are scheduled to be disclosed around the time of the first-quarter earnings announcement scheduled for 5 August 2026.
Related procedures
Local authorities in Mexico (name Not disclosed)
Company response
The vessel has been unable to resume operations or leave port (since completing cargo unloading on 21 March 2025)
While continuing to maintain the vessel, the company will give top priority to efforts aimed at securing its early departure and will continue working toward the appropriate recovery of the related maintenance and other costs.
The company plans to promptly disclose the specific revisions to its earnings forecasts around the time of the first-quarter earnings announcement scheduled for 5 August 2026.
| Item | Details |
|---|---|
| Event name | Recognition of extraordinary gain |
| Subject Entity | Consolidated subsidiary KYOEI TANKER SINGAPORE PTE. LTD. (KTS) |
| Target Locations / Products | Mexico; oil products tanker "CHALLENGE PROCYON" |
| Cause | After completing cargo unloading in Mexico on 21 March 2025, the vessel continued to be unable to obtain permission to leave port from the local authorities, with no clear prospect of resuming operations or departing. |
| Amount of Impact on Business Performance | Approximately ¥2.4 billion (extraordinary income after deducting the vessel's carrying amount and related expenses from the insurance proceeds) |
| Accounting period in which recognized | Second quarter (interim period) of the fiscal year ending March 2027, consolidated accounting period (1 April 2026 to 30 September 2026) |
| Impact on Earnings Forecast | The company expects to revise upward its consolidated earnings forecasts for the second quarter cumulative period and the full year. The specific revisions are scheduled to be disclosed around the time of the first-quarter earnings announcement scheduled for 5 August 2026. |
| Court or authority | Local authorities in Mexico (name Not disclosed) |
| Suspended operations | The vessel has been unable to resume operations or leave port (since completing cargo unloading on 21 March 2025) |
| Outlook | While continuing to maintain the vessel, the company will give top priority to efforts aimed at securing its early departure and will continue working toward the appropriate recovery of the related maintenance and other costs. |
| Planned follow-up disclosure | The company plans to promptly disclose the specific revisions to its earnings forecasts around the time of the first-quarter earnings announcement scheduled for 5 August 2026. |
Items this document does not state (14)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.After completing cargo unloading in Mexico on 21 March 2025, the vessel continued to be unable to obtain permission to leave port from the local authorities, with no clear prospect of resuming operations or departing. Accordingly, it was recognized as a constructive total loss under its marine insurance policy, and the company reached an agreement with the insurer regarding receipt of the insurance proceeds.