Risk of Surging Fuel Oil Prices

「On the cost side, the burden of operating costs increased due to revisions to fixed-term charter fees, persistently high fuel costs and other factors.」

「With fuel and raw material prices continuing to rise due to the weaker yen, the situation in the Middle East and other factors, and costs continuing to increase because of higher labor expenses and other factors, the Company needs to collect appropriately adjusted fees that pass on these cost increases in order to continue growing steadily,」

「Although revenue was maintained at approximately the same level as in the same period of the previous year, chartering expenses and fuel costs also increased, resulting in a year-on-year decline in operating profit.」

「Fuel oil prices fluctuate with global crude oil supply and demand, developments among oil-producing countries and other factors, while a significant surge in fuel oil prices could affect the Company's performance and financial position. To address these risks, the Company has asked its major customers to introduce a bunker surcharge system and will continue working to expand its application.」

「Although operating costs increased, including persistently high fuel oil prices, and administrative expenses also rose, the company worked to improve its profit margin by operating its owned vessels and barges efficiently. As a result, operating profit increased 35.0% year on year to ¥258 million.」

「In the domestic shipping business, the cost burden continues to increase due to persistently high vessel fuel oil prices and higher labor costs for seafarers.」

「Although costs increased and fuel oil prices remained high, efforts to deploy vessels efficiently resulted in operating profit of ¥88 million, up 18.4% year on year.」

「Persistently high fuel oil prices and higher vessel maintenance costs put pressure on profit.」

「In addition to higher operating costs, including increased charter hire and persistently high fuel oil prices, administrative expenses also rose, resulting in a 6.1% year-on-year decline in operating profit to ¥191 million.」

「In the domestic shipping business, tonnage handled increased, but higher costs continued, including elevated marine fuel prices, higher dock expenses and upward revisions to charter hire payments.」

「Although the company revised upward the charter hire paid to shipowners and fuel oil prices remained high, operating profit was ¥74 million, up 51.7% year on year.」

「Fuel prices continued to rise, and costs also increased following revisions to the charter hire for owned vessels. However, more efficient vessel deployment improved operating utilization and boosted earnings.」

「Although costs increased due to revised charter hire and persistently high fuel oil prices, growth in transport volumes led to more efficient vessel deployment, and operating profit increased 158.5% year on year to ¥203 million.」

「Although charter hire and persistently high fuel prices pushed up costs, this was offset by higher total volumes, resulting in a 172.5% year-on-year increase in operating profit to ¥112 million.」

「Although the company raised fuel oil prices and revised upward the charter hire paid to shipowners, operating profit was ¥49 million, compared with ¥1 million in the same period of the previous year.」

「To address these issues, we have asked our major business partners to introduce a bunker surcharge system and will continue working to expand its application.」

「Although fuel prices remained lower than in the previous fiscal year, adverse weather conditions caused by typhoons and other factors reduced operating efficiency, resulting in operating profit of ¥159 million, down 25.6% year on year.」

「Meanwhile, fuel prices were trending lower and costs were reduced as the number of chartered vessels declined, but this was insufficient to offset the reduction in profit caused by lower sales. Operating profit declined 16.3% year on year to ¥115 million.」

「At the same time, although conditions have become increasingly challenging due to persistently high fuel prices and rising transportation costs caused by labor shortages, revenue increased to ¥5,112 million, up 7.6% year on year, and operating profit increased to ¥213 million, up 34.2%, as a result of actively pursuing freight rate revision negotiations.」

「Meanwhile, conditions have become more difficult as transport costs rise due to persistently high fuel prices and labor shortages, and the Company has been actively pursuing negotiations to revise freight rates.」

「As a result, despite persistently high fuel oil prices, revenue was ¥1,723 million, up 13.3% year on year, and operating profit was ¥93 million, up 134.1% year on year.」

「Although higher fuel unit prices increased costs, the increase in transportation volume and improved operating efficiency more than offset the impact, allowing the company to improve profitability.」

「In the coastal shipping business, transportation volumes for steel products and raw-material scrap, the principal cargoes handled, showed a gradual recovery from the second half of the previous fiscal year as steelmakers increased production in response to higher domestic demand supported by construction investment. As a result, revenue was ¥4,751 million, up 9.0% year on year. Despite higher fuel unit prices, operating profit was ¥159 million, up 47.5%, helped by improved fleet allocation efficiency resulting from higher volumes handled.」

「Crude oil production cuts since the end of last year pushed up fuel prices, while the yen also weakened, resulting in vessel fuel unit costs rising by approximately 15% year on year and increasing costs, although the increase in revenue offset this.」

「The chronic shortage of transport labor and the shift in fuel oil prices from a bottoming phase into a recovery phase are expected to push up transport costs and make negotiations to pass these increases on through pricing more difficult.」

「In the domestic shipping business, production cuts and inventory adjustments at steelmakers following weak domestic demand had run their course, and volumes of steel, the main cargo handled, began to recover gradually in the third quarter. However, reflecting weakness through the first half, revenue was ¥4,359 million, down 1.2% year on year, and operating profit was ¥107 million, down 15.2%, as higher chartering fees and administrative expenses more than offset the decline in fuel costs.」

「Fuel costs were stable, with vessel fuel prices remaining steady, but」

「Marine fuel prices fluctuate based on global crude oil supply and demand, trends in oil-producing countries and other factors. A significant surge in fuel oil prices could affect the group's operating performance and financial position.」