# IINO Lines raises earnings outlook despite Middle East shipping disruptions - **Source:** https://pelavox.com/iino-lines-raises-earnings-outlook-shipping-disruptions/ - **Publisher:** pelavox. (The voice of shipping) - **Author:** Jason Nicholson - **Published:** 2026-11-07T13:00:00+00:00 - **Updated:** 2026-11-06T12:27:35+00:00 - **Section:** Business / Company Results - **Type:** News - **Topics:** Chemical Tankers, Dry Bulk Shipping, IINO Lines, Shipping Earnings, Strait of Hormuz, Suez Canal IINO Lines has raised its full-year earnings forecast for fiscal 2026, supported by firm shipping markets and a weaker yen, despite operational restrictions affecting its chemical tanker fleet amid continuing disruptions in the Middle East. The Japanese shipping group now expects operating profit of ¥14 billion for the financial year ending March 2027, compared with its previous forecast of ¥12 billion. Its revenue projection has been increased from ¥136 billion to ¥149 billion, while anticipated net income has been revised upward from ¥14 billion to ¥15.8 billion. The revised outlook follows improved results for the six months ended September 30, 2026. Revenue increased 22.7% year on year to ¥75 billion, while operating profit rose 15.7% to ¥6.7 billion. Net income increased 62% to ¥12.1 billion, largely reflecting gains from vessel sales during the first quarter. Ordinary profit, however, declined 10% to ¥5.9 billion, illustrating the differences between operating performance and the company’s broader earnings results. ## Middle East disruptions reshape chemical tanker operations The company’s chemical tanker business remained under pressure from restrictions affecting vessel deployment around the Strait of Hormuz. According to IINO Lines, chemical tanker operating profit declined by ¥1.6 billion year on year during the first half, despite efforts to secure alternative long-haul cargoes and improve fleet utilisation. The company reported that all its vessels were operating outside the Persian Gulf as of November 5, while its fleet continued to avoid the Suez Canal. Chemical tankers previously deployed on Middle East routes have been redirected to alternative trading areas, including routes connecting North America, Europe, India, Asia and South America. Alternative employment includes chemical cargoes moving from the US Gulf to Europe and Asia, shipments from India to North America, and ethanol and vegetable oil cargoes moving from South America towards Asian markets. IINO Lines has based its revised financial forecast on the assumption that the effective closure of the Strait of Hormuz will continue throughout fiscal 2026. The company expects chemical tanker market conditions to remain firm, although it acknowledges continuing uncertainty surrounding Middle Eastern routes. The group also identified the continued diversion of vessels around the Cape of Good Hope and changes in cargo sourcing as factors supporting longer voyage distances and transport demand. ## Dry bulk performance supports shipping earnings The dry bulk carrier business provided a stronger contribution during the first half, with operating profit increasing by ¥0.9 billion year on year. IINO Lines attributed the improvement to firm demand for grain, coal and other commodities, alongside longer-distance shipments associated with Panama Canal congestion. The company expects dry bulk market conditions to remain favourable during the second half of fiscal 2026, supported by changing trade routes, geopolitical risks and restrictions affecting major shipping corridors. Oil tanker operating profit also increased by ¥0.6 billion during the first half, benefiting from favourable contract renewals. In contrast, large gas carrier operating profit declined by ¥0.5 billion, partly because the conversion of freight rate-linked contracts into fixed-rate arrangements limited the benefits of stronger markets. At September 30, IINO Lines operated 88 vessels across its shipping businesses, comprising 54 owned vessels and 34 chartered vessels. The fleet included 32 chemical tankers, 21 dry bulk carriers, 11 oceangoing gas carriers and three oil tankers, alongside smaller gas carriers. The company’s investment programme includes a methanol dual-fuel oil tanker, additional chemical tanker capacity and new gas carriers, with deliveries and deployment scheduled across the coming financial years. ## Higher dividend forecast Alongside the improved earnings outlook, IINO Lines increased its planned annual dividend for fiscal 2026 from ¥53 to ¥60 per share. The revised distribution comprises an interim dividend of ¥30 and a projected year-end dividend of ¥30, reflecting the company’s policy of targeting a 40% payout ratio. The group expects the combination of shipping earnings, fleet investment and its real estate business to support its medium-term growth strategy through fiscal 2030. Nevertheless, its revised forecasts remain dependent on market conditions, currency movements and the operational consequences of the Middle East situation. The company continues to prioritise vessel and crew safety, with any resumption of transit through affected routes subject to further assessment. --- Cite as: "IINO Lines raises earnings outlook despite Middle East shipping disruptions", pelavox., 7 November 2026, https://pelavox.com/iino-lines-raises-earnings-outlook-shipping-disruptions/