Freight rates Loaded: Middle East, Unloaded: Far East (WS)* 150. April 2010

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1 Segment Overviews KIHO Oil Tanker Group Fiscal year Market Overview Freight rates Loaded: Middle East, Unloaded: Far East Although an upturn was seen at the end of the fiscal year due to alternative oil arrangements stemming from the embargo on Iranian oil by Western nations, large oil tanker freight rates generally weakened during fiscal year due to supply pressure from newbuildings. Although there was a steep increase in freight rates on certain routes as a result of seasonal factors, petrochemical product tanker market generally remained soft due to an increase in tonnage supply of newbuildings. (WS)* Oil tanker(vlcc)* * WS Worldwide Tanker Nominal Freight Scale * VLCC Very Large Crude Carrier Product tanker (LR2) 212 Fiscal year Performance In an aim to avoid the impact of volatile market, the Oil Tanker Group secured the majority of their shipping tonnage under control deployed on medium- to long-term contracts spanning more than several years. As a result, this division maintained stable earnings during the period. Many people are of the opinion that a full recovery in oil tanker and product tanker market will probably be after 213. The main reasons for the delay are the European debt crisis on top of the global economic downturn precipitated by the Lehman Brothers bankruptcy in 28 and the excessive tonnage supply due to a lot of the deliveries of newbuildings. Amid this environment, the Iino Group will continue to strive to secure stable profits by maintaining existing long-term contracts, and will actively enhance the fleet ahead of higher petroleum demand from emerging market economies, especially in Asia and India, where economic growth is expected. Oil tanker Group Members We operate oil tankers and product tankers to transport oil and clean petroleum products, etc. 15

2 CHEMROUTE BRILLIANT Chemical Tanker Group Iino Shipping Asia Pte. Ltd. O v e r v i e w Fiscal year Market Overview Chemical tanker freight rates increased at times during the fiscal year, as frequent stoppages of petrochemical product plants in the Middle East and Asia resulted in an increase in long-distance transport from Europe and the US to Asia. However, a tight monetary policy in China and the deterioration of the European debt crisis caused a decline in shipping demand, resulting in generally soft freight rates. Fiscal year Performance time, aim to further increase profits by using larger vessels, cultivating new routes, and expanding our business area. Chemical tanker freight rates 1, tons burden ($/t) Loaded: Middle East, Unloaded: Far East Loaded: Middle East, Unloaded: Europe Special Features Safety and Environment In the Chemical Tanker Division, in order to compensate for the decline in revenues due to the appreciation of the yen and higher costs caused by soaring fuel oil prices, vessels were operated at reduced speeds, and chemical tankers were chartered in for short Society periods from market at cheaper rate, along with other measures to reduce overall operation costs. Furthermore, stable shipping volumes were secured and profits were increased by renewing existing contracts for the principal Middle East-to-Asia and Middle East-to-Europe routes on favorable terms, securing new contracts of affreightment, and proactively executing new deployments of vessels to South America. Management Framework We foresee limited growth in the chemical tanker tonnage supply, as completion of newbuilds has begun to decline after peaking in, and the scrapping of over aged vessels is expected to continue. With many new petrochemical product plants scheduled to be launched through 215, the tonnage supply-demand balance is expected to tighten on our key Middle East routes going forward. Amid this environment, the Group will continue to secure stable profits by maintaining and expanding its dominant position on key Middle East routes, and at the same Ryuichi Osonoe, Managing Director of Iino Singapore Pte. Ltd. and General Manager of Chemical Tanker Group concurrently (center of front row) with Kenji Tougasaki, from a joint venture in the US, and the Chemical Tanker Group members. One for all, All for one. Based in Singapore, and teaming with offices in countries around the world for trading chemical tankers. Corporate Information Communication 16

3 Dry Bulker Group Iino Shipping Asia Pte. Ltd. AMAKUSA ISLAND Fiscal year Market Overview In the dry bulk market, although markets were stable at the beginning of the period, transport volume declined from autumn onward due to monetary tightening in China and fiscal recessions in Europe. In addition, ongoing mass completions of newbuildings caused a breakdown in the supply-demand balance between cargo and tonnage, which caused market to soften. Moreover, markets, particularly for small vessels, were at low levels in conjunction with the decline in transport volume to and from Southeast Asia due to the flooding in Thailand. production, and an increase in transportation miles, with the likelihood that the tonnage supply-demand balance will tighten. Amid this environment, the Iino Group will continue to earn stable revenues through medium- to long-term contracts as well as, contracts of affreightment, especially long-term contracts for dedicated vessels. In addition, the Group will deploy tonnage on short-term contracts for Panamax and Small Handy size vessels, which are heavily impacted by market, and thereby aim to increase profits by building a portfolio that allows the Group to earn revenues in line with market freight rates. Dry Bulker (panamax) charter rates Fiscal year Performance ($/day) 4, Pacific Ocean Round In the Dry Bulker Division, as basic resources of stable revenue, we have long-term contracts for vessels dedicated to transport woodchips to paper mills, and thermal coal to power plants. And additionally, we obtained contracts of affreightment for coal, fertilizers and so on. Moreover, in addition to working to improve profitability by increasing the allocation of vessels to the Middle East and South America, and the division lowered fuel costs by navigating at reduced speeds. Furthermore, last year, investments were made in the terminal operations business in Caofeidian Port, China, and a senior staff was sent to the city of Dalian in Liaoning Province as part of an effort to newly develop the business in the Chinese market. 3, 2, 1, 212 In the dry bulk market, the growth in coal transport to Europe is expected to slow slightly due to the impact of the economic downturn in Europe, but demand for the transport of iron ore and grains is expected to remain stable. In particular, we foresee that freight rates for the transport of feed grains to China will rise slightly after bottoming out in early 212, as we anticipate an increase in cargo from South America, where there is scope for an increase in Dry Bulker Group members We operate dedicated vessels carrying thermal coal to power plants and woodchips to paper mills, and other 3,DWT 8,DWT dry bulkers. 17

4 SK SUNRISE Gas Carrier Group O v e r v i e w Fiscal year Market Overview The LPG carrier Market was firm as new projects in Middle Eastern countries to boost production got underway in earnest, and there was an increase in tonnage demand as a result of the decline in the completion of newbuilds. Short-term charter market was at high levels during the period due to the tightening of tonnage supply-demand in conjunction with progress on LNG projects, especially in the Middle East, and the increase in LNG demand caused by the Great East Japan Earthquake from consumers in Japan and other parts of Asia who have a strong presence in the LNG market. a decline in charter rates, global LNG transport should increase over the long term. Amid this environment, we will maintain existing contracts and continue to focus on high-quality gas carrier vessel management and operational management, including safety, so as to achieve stable profits by expanding our business area. Very large gas carrier (VLGC) freight rates Loaded: Middle East, Unloaded: Far East ($/t) Special Features Safety and Environment Society 2 Fiscal year Performance The Large Gas Carrier Division secured stable revenues by deploying LPG carriers and LNG carriers on existing long-term contracts. Moreover, the division worked to win new, stable contracts as the gas carrier market are expected to remain firm. 212 Management Framework In LPG transport, we anticipate that market will remain firm, as despite the completion of newbuildings, the number of vessels is expected to be low, with the scrapping of old vessels likely to decrease tonnage supply, while the increase in new LPG production in the Middle East will result in increased tonnage demand. Market is expected to be firm for LNG transport, also. Supply is growing steadily as new projects besides those in the Middle East (Australia) are launched, and although speculative ordering of vessels without designated charter assignments will cause a temporary loosening of the tonnage supply-demand balance and Gas Carrier Group members We transport LNG, which is receiving attention as a form of clean energy, and LPG, which is used in a wide range of applications, from household fuel to a raw material for industrial use. Corporate Information Communication 18

5 DAIMON Iino Gas Transport Co., Ltd. Iino Shipping Asia Pte. Ltd. Fiscal year Market Overview In the Regional Shipping segment, markets were soft as domestic transport of LPG and petrochemical gas declined versus the previous year due to the drop in domestic demand following the earthquake, as well as problems at petrochemical plants. In international short-haul transport volume was low as petrochemical companies reduced production in response to weak domestic demand, thereby causing a contraction in supply reserves, along with the drop in demand from China. Fiscal year Performance The Iino Group will maintain existing commercial rights in domestic waters, and optimize its fleet, both in terms of quality and quantity in order to earn stable profits in the future. Also, we will enhance our service providing vessels suitable for both domestic and oceangoing routes which connect China, South Korea and other neighboring countries, thereby providing services in line with shippers needs. In Asia and other adjacent waters, we will leverage our two bases in Tokyo and Singapore to consider new business, and construct new vessels and expand chartering operations at a time best suited to the Group. This, we decided to build new vessels to replace over aged molten sulfur carriers suitable for both domestic and oceangoing routes, with completion scheduled for next, 213. On the domestic transport side, the decline in capacity utilization of tonnage under our control was minimized by docking navigation tonnage during the summer months when demand for LPG is low. To combat soaring fuel oil prices, vessels were navigated at reduced speeds and fuel oil additives that increase fuel efficiency were used for better profit. Meanwhile, in the international short-haul market, the segment earned revenues by keeping most of the tonnage deployed on medium- to long-term contracts. Domestic LPG transport volume is expected to be low, as wholesalers streamline their distribution activities amid the ongoing decline in domestic demand. Moreover, petrochemical gas shippers are controlling their utilization rates of plants as the price of ethylene-derived products declines. Consequently, there are increasing shortages of certain products such as butadiene, for which there is robust demand. Shippers are expected to increase product flexibility and adjust supply-demand, so market will likely demand even more flexible and sophisticated distribution operations. Iino Gas Transport Co., Ltd. employees Let us take care of your liquefied gas transport needs in domestic and adjacent waters. Our services will surely meet your expectations. 19

6 Shiodome Shiba-Rikyu Building Property Business Group Iino Hall Co., Ltd. O v e r v i e w Fiscal year Market Overview In fiscal year, competition for tenants in the office leasing market intensified, as vacancy rates remained high from the previous fiscal year without any sign of an improvement. Although the decline in office rental rates contracted versus the previous period, they have yet to bottom out. Fiscal year Performance Amid this environment, the Real Estate and Leasing Division curbed the increase in vacancy rates at buildings by providing high-quality service to tenants. Furthermore, the rebuilt Iino Building opened as scheduled on 1, under full occupancy, and Iino Hall, which had been closed since 27, opened once ( / tsubo (one tsubo = approx. 3.3m2) 3, 25, 2, 15, 1, again in the new Iino Building, complete with new conference facilities Average office rents in central Tokyo (5 central wards) 5, (%) Tokyo s 5 central wards Newly built office buildings in Tokyo s 5 central wards 212 Tokyo s 5 central wards Newly built office buildings in Tokyo s 5 central wards *Based on Miki Shoji Co., Ltd. data. Office building vacancy rate in central Tokyo (5 central wards) 212 *Based on Miki Shoji Co., Ltd. data. Corporate Information Management Framework Society Safety and Environment Special Features Property Business Group members (in front of a model of the new Iino Building) The newly reconstructed Iino Building is a new symbol for the Kasumigaseki and Uchisaiwaicho area. Communication 2

7 Iino Hiroo Studio Property Business Group Iino Mediapro Co., Ltd. In fiscal year 212, office building supply volume in Tokyo appears to be at the third highest level in the past 3 years. Meanwhile, following the Great East Japan Earthquake, demand for space in new office buildings has risen, as in addition to the adjustment in office rental rates over the past couple of years, companies are increasingly in need of office space that is both safe and allows them to implement effective business continuity planning measures. Amid this business environment, the Iino Group will continue to endeavor to maintain and increase occupancy rates in Group-owned office buildings by providing high-quality services to tenants. Iino Hall staffs Iino Hall is reborn together with the new Iino Building. We look forward to seeing you here. Fiscal year Market Overview and Performance In the Real Estate Related Business Division, photo studio utilization rates in the Tokyo area were low, due to the cutting of corporate advertising spending and the sluggish sales of magazine and publication, as well as the impact of the earthquake. Iino Media Pro saw low photo studio utilization rates in the first half of fiscal year. However, due to the proactive efforts in the production business, including advertisement posters and movies as well as retouching, Iino Mediapro increased the revenue in the fiscal year compared with the previous fiscal year. Unit costs per customer utilizing photo studio have been suppressed due to the uncertain economic outlook, while there is also the increasing number of location shootings taking place outside of our photo studio. Under this environment, we aim to maintain earnings by enhancing our services to raise the level of customer satisfaction and customer-oriented bookings. In the retouch business, we will aim to increase new customers and the revenue by making our efforts to capture photo studio projects, while also expanding our scope of the business by building effective collaboration among design, movies, and overseas divisions, including the production of our own content. Iino Mediapro employee We provide a wide range of services including photo studios, retouching, design, and production services 21