Recognition of extraordinary income and loss in connection with the determination of a constructive total loss for a vessel owned by a consolidated subsidiary and revision of the earnings forecast
KYOEI TANKER SINGAPORE PTE. LTD. (KTS)
Oil products tanker CHALLENGE PROCYON, Tamaulipas, United Mexican States
Determination of a constructive total loss under the vessel's marine insurance and maintenance expenses and other costs expected to arise before permission is obtained for the vessel to depart
Extraordinary income (gain on insurance proceeds): approximately ¥2.9 billion; extraordinary loss (loss related to the refusal of permission for the vessel to depart): approximately ¥2.2 billion; net amount after offsetting: approximately ¥700 million (gain)
Second-quarter (interim) consolidated financial results for the fiscal year ending March 2027
Revision of the full-year consolidated earnings forecast for the fiscal year ending March 2027 announced on 5 August 2026
Related procedures
Legal proceedings
Federal court in Tamaulipas, United Mexican States
KYOEI TANKER SINGAPORE PTE. LTD. (KTS)
Not disclosed
Company response
Considered with attorneys and other experts
The Company will continue to prioritize efforts to obtain permission for the vessel to depart at the earliest possible date and resolve the matter. If the matter is resolved earlier or later than expected, the provision recognized may be reviewed.
The Company will make a timely disclosure if the matter affects its results. The final confirmed amount will fluctuate depending on exchange rates and other factors as of the end of December 2026.
| Item | Details |
|---|---|
| Event name | Recognition of extraordinary income and loss in connection with the determination of a constructive total loss for a vessel owned by a consolidated subsidiary and revision of the earnings forecast |
| Date of occurrence | June 2025 (KTS commenced legal proceedings seeking permission for the vessel to depart) |
| Date recognized / date notice received | 26 June 2026 (date of publication of the notice regarding recognition of extraordinary income) |
| Subject Entity | KYOEI TANKER SINGAPORE PTE. LTD. (KTS) |
| Target Locations / Products | Oil products tanker CHALLENGE PROCYON, Tamaulipas, United Mexican States |
| Cause | Determination of a constructive total loss under the vessel's marine insurance and maintenance expenses and other costs expected to arise before permission is obtained for the vessel to depart |
| Amount of Impact on Business Performance | Extraordinary income (gain on insurance proceeds): approximately ¥2.9 billion; extraordinary loss (loss related to the refusal of permission for the vessel to depart): approximately ¥2.2 billion; net amount after offsetting: approximately ¥700 million (gain) |
| Accounting period in which recognized | Second-quarter (interim) consolidated financial results for the fiscal year ending March 2027 |
| Impact on Earnings Forecast | Revision of the full-year consolidated earnings forecast for the fiscal year ending March 2027 announced on 5 August 2026 |
| Type of litigation or proceeding | Legal proceedings |
| Court or authority | Federal court in Tamaulipas, United Mexican States |
| Plaintiff | KYOEI TANKER SINGAPORE PTE. LTD. (KTS) |
| Date of filing / date of action | June 2025 (legal proceedings commenced) |
| Investigation structure | Considered with attorneys and other experts |
| Outlook | The Company will continue to prioritize efforts to obtain permission for the vessel to depart at the earliest possible date and resolve the matter. If the matter is resolved earlier or later than expected, the provision recognized may be reviewed. |
| Planned follow-up disclosure | The Company will make a timely disclosure if the matter affects its results. The final confirmed amount will fluctuate depending on exchange rates and other factors as of the end of December 2026. |
Items this document does not state (9)
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.The Company determined that it was appropriate for accounting purposes to recognize a provision by comprehensively and conservatively incorporating future risks relating to maintenance expenses and other costs expected to arise before permission is obtained for the vessel to depart. The provision also reflects the earnings trend and other factors for the cumulative second quarter period.