Tokyo Kisen revised its consolidated earnings forecast for the fiscal year ending March 2027 upward. It raised its first-half revenue and profit forecasts, expects to return to profitability in the first half, and also anticipates improvement for the full year. The company cited increased demand for alternative crude oil transport resulting from tensions in the Middle East.
The company raised its first-half earnings outlook, forecasting revenue of ¥6.624 billion, an operating profit of ¥38 million, ordinary profit of ¥29.5 million and net profit of ¥31 million. While the number of calls by vessels carrying hazardous materials declined due to the impact of tensions in the Middle East, demand emerged for alternative transport involving crude oil from domestic reserves and crude oil sourced from outside the Middle East.
The full-year revenue forecast was raised from ¥12.535 billion to ¥13.075 billion, although the company expects to remain in an operating loss. The ordinary profit forecast was revised to a profit, and the net profit forecast was also revised upward to a profit.
Changes in crude oil supply sources amid tensions in the Middle East are supporting demand for tugboats, although there is concern that the number of port arrivals and departures could decline if crude oil demand stabilizes. Fuel costs are expected to increase from the previous fiscal year and could put pressure on full-year earnings.
Additional updates may be issued in the future, but the key points at present are the expected return to profitability in the first half and for the full year, supported by expanded demand for alternative transport.