K Line nearly doubles ordinary income to $749m in H1

Equity-method earnings from Ocean Network Express drove the gain.

Japan’s Kawasaki Kisen Kaisha, Ltd. (K LINE) reported a net income attributable to owners of parent of $788.4m (JPY124.5b) for the first half (H1) of 2026 ended in September 2026, up from $434.4m (JPY68.6b) in the previous year.

Ordinary income rose to $749.1m (JPY118.3b) from $377.4m (JPY59.6b) on higher equity-method income from Ocean Network Express, whilst extraordinary gains, including from sales of owned vessels, lifted net income above ordinary income.

Revenue increased to $3.81b (JPY602b) from $3.17b (JPY500.5b), whilst operating income rose to $324.2m (JPY51.2b) from $271.7m (JPY42.9b).

Operating income rose despite the bunker price climbing to $788 per metric tonne (MT) from $547 per MT a year earlier amidst the Middle East situation, helped by firm dry bulk markets.

In terms of segment ordinary income, containership rose to $471.1m (JPY74.4b) in H1 from $139.9m (JPY22.1b), on higher short-term freight rates from tighter vessel supply and port congestion.

Dry bulk increased to $101.3m (JPY16.0b) from $8.2m (JPY1.3b), with firm Capesize and Panamax and smaller-size markets and foreign exchange effects.

The car carrier segment nearly halved to $96.9m (JPY15.3b) from $190.6m (JPY30.1b), with the company linking the decline to Middle East disruption, with lower fleet utilisation and higher bunker costs.

Meanwhile, energy resource transport fell to $30.4m (JPY4.8b) from $34.2m (JPY5.4b), with the year-earlier figure including a one-off tax-effect gain.

K LINE’s H1 net income was $243.8m (JPY38.5b) above the $544.6m (JPY86.0b) forecast in the company’s August forecast, whilst ordinary income was $242.5m (JPY38.3b) above the $506.6m (JPY80.0b) forecast and operating income was $58.3m (JPY9.2b) above the $266.0m (JPY42.0b) forecast.

Equity capital was $11.06b (JPY1.75t), down from $11.42b (JPY1.80t), with an equity ratio of 75.5%.

The $775.7m (JPY122.5b) buyback of 44,429,000 shares is complete, and the shares were cancelled on 2 October.

The dividend plan stays at $0.76 (JPY120) a share for the year.

The company’s full-year ordinary income forecast is $1.20b (JPY190.0b), which was raised on 23 October and is unchanged in this release.

(US$1 = JPY157.92)