Inui Steamship returns to profit as Handysize market strengthens

Japanese shipping company Inui Steamship has reported a sharp recovery in profitability for the six months ended 30 September 2026, supported by stronger Handysize dry bulk market conditions, increased tonne-mile demand and favourable foreign exchange movements.

Consolidated revenue increased by 40.8% year on year to JPY 22.1 billion, while operating income reached JPY 3.1 billion, reversing an operating loss of JPY 71 million in the corresponding period of 2025. Net profit attributable to shareholders stood at JPY 1.94 billion, compared with a small loss a year earlier.

The improvement was primarily driven by the company’s ocean-going shipping business, which benefited from higher freight market levels and changes in global trading patterns. The stronger first-half performance also prompted Inui Steamship to raise its earnings forecasts for the financial year ending 31 March 2027.

Handysize shipping drives earnings recovery

Revenue from ocean-going shipping increased by 54.8% to JPY 18.16 billion during the six-month period, while the division generated a segment profit of JPY 2.34 billion, compared with a loss of JPY 775 million a year earlier.

According to the company, Handysize freight market conditions remained above the previous year’s levels, supported by resilient cargo demand and longer shipping distances associated with continuing geopolitical tensions in the Middle East.

Higher bunker fuel prices also contributed to increased slow steaming, potentially reducing effective vessel supply and supporting freight market conditions. Currency movements provided an additional benefit, with the company’s average exchange rate reaching JPY 160.18 per US dollar, compared with JPY 146.05 during the corresponding period of 2025.

The combination of stronger freight rates, longer transport distances and exchange rate effects substantially improved the performance of Inui Steamship’s international shipping activities.

The company’s other businesses recorded more moderate changes. Revenue from warehousing and transportation declined by 1.3% to JPY 1.96 billion, although segment profit increased by 7.5% to JPY 207 million. Its real estate division generated revenue of JPY 1.98 billion and segment profit of JPY 1.04 billion, supported by stable leasing conditions in Tokyo.

Higher freight assumptions support revised outlook

Following its first-half results, Inui Steamship revised its full-year consolidated revenue forecast from JPY 43.25 billion to JPY 46.46 billion, representing a 7.4% increase from its previous projection.

The company also raised its operating income forecast by 29.7% to JPY 7.32 billion, while expected net profit attributable to shareholders increased by 16.6% to JPY 4.46 billion.

The revised outlook reflects stronger-than-anticipated conditions in the Handysize market. Inui increased its freight market assumption from USD 13,372 to USD 14,505 per day, reflecting expectations that the favourable supply-demand environment will continue during the remainder of the financial year.

The forecast nevertheless remains sensitive to changes in freight rates, fuel costs and exchange rates. For the second half of the financial year, the company assumes an exchange rate of JPY 158 per US dollar and a bunker fuel price of USD 1,006.88 per metric tonne.

Inui Steamship also revised its annual dividend forecast from JPY 45.53 to JPY 57.05 per share, reflecting the improvement in its expected financial performance.

The company’s financial position strengthened during the first half, with total assets reaching JPY 80.86 billion and its equity ratio increasing to 50.1% from 47.5% at the end of March 2026. Operating cash flow rose by 74.4% to JPY 3.2 billion.

The results underline the improved earnings environment for Handysize dry bulk operators during 2026, although the sustainability of the recovery will depend on cargo demand, vessel availability and the evolution of geopolitical and fuel-market conditions.