飯野海運 raises full-year earnings forecast as solid chemical tanker and dry bulk shipping markets contribute

In the second-quarter results highlights, revenue was ¥74.97 billion, operating profit was ¥6.68 billion, ordinary profit was ¥5.93 billion, and interim net profit was ¥12.11 billion. Revenue and profit exceeded the year-earlier period. The main factors behind the increase in revenue were solid shipping markets, particularly for dry bulk vessels, and higher freight rates resulting from soaring fuel oil prices. Although the increase in fuel costs was reflected in freight rates with a time lag, it was largely passed through, and the impact on profit was limited.

For the full-year outlook, revenue for fiscal 2026 is projected at ¥149 billion, operating profit at ¥14 billion, ordinary profit at ¥11.7 billion, and net profit at ¥15.8 billion, representing upward revisions from the previous forecasts. The revisions reflect results for the previous fiscal year that exceeded expectations, as well as expectations that market conditions for chemical tankers and dry bulk vessels will remain solid in the second half. The spot ratio for chemical tankers is high at 83%, well above the proportion seen under normal conditions.

Regarding the impact of and response to the situation in the Middle East, the company explained that it plans to continue operations, shifting Middle East-loading cargoes to other routes while focusing on highly profitable cargoes, taking into account the impact of a closure of the Strait of Hormuz. For dry bulk vessels, some vessels are being deployed on other routes, but the impact is expected to be less significant than for chemical tankers. In domestic real estate, rents in central Tokyo remain solid. The company also discussed progress under its medium-term plan to strengthen earnings through rent revisions on its real estate holdings and improve capital efficiency.

Going forward, the company plans to consider a real estate growth strategy, improve capital efficiency through a combination of holding and trading models, and eventually expand into an asset-management business. Regarding shareholder returns, it plans to maintain stable dividends, using a 40% dividend payout ratio as a guide and setting a minimum dividend.