Nippon Yusen K.K. says development of deep-sea Brazilian oil and Australian gas will boost drill-ship and shuttle-tanker demand, helping the energy business post its first annual profit.
The shipping line's energy unit, excluding liquefied natural gas vessels, will report an operating profit of about ¥5 billion in the year starting in April 2015 after turning positive this fiscal year, Hitoshi Nagasawa, energy division head, said in an interview in Tokyo this week. He declined to give a specific profit forecast for this year.
Nippon Yusen, Japan's largest shipping line, is expanding into oil and gas development and has added a drill ship, production vessels and tankers that bring crude ashore to drive growth. While prices for transporting commodities have slumped as competition increases, demand for oil services has grown as energy companies explore in more remote and complex areas.