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"K" Line

“K” Line : Change of Executive Officer

Kawasaki Kisen Kaisha, Ltd. (“K” Line) has decided in a board meeting held on 30 April 2020 on changes of Executive Officer.

Name: Atsuo Asano

New Position: Representative Director, Vice President Executive Officer

Current Position: Representative Director, Senior Managing Executive Officer

Please see the full list of responsibilities of Executive Officers scheduled on and after June 23, 2020 on the website : https://www.kline.co.jp/en/

“K” Line to participate in the United Nations Global Compact

Kawasaki Kisen Kaisha, Ltd. (“K” Line) is pleased to announce that it has signed the United Nations Global Compact (the “UNGC”), an initiative proposed by the United Nations, and has been registered as a participating company on April 20, 2020. We have also joined Global Compact Network Japan, which is UNGC’s local network in Japan.

The UNGC is a voluntary initiative in which companies and organizations act as good members of society and participate in the creation of a global framework for sustainable growth by demonstrating responsible and creative leadership. Signatory companies and organizations are required to support and implement the UNGC’s 10 principles on human rights, labour, environment, and anti-corruption.

“K” Line has defined ESG (Environment, Social, Governance) initiatives as an important management issue. On the occasion of participating in the UNGC, we will further strengthen our efforts so as to contribute to the realization of a sustainable society, hence strive to improve our corporate value.

The Ten Principles of the United Nations Global Compact

HUMAN RIGHTS   

Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and

Principle 2: make sure that they are not complicit in human rights abuses

LABOUR               

Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;

Principle 4: the elimination of all forms of forced and compulsory labour;

Principle 5: the effective abolition of child labour;

Principle 6: the elimination of discrimination in respect of employment and occupation.

ENVIRONMENT

Principle 7: Businesses should support a precautionary approach to environmental challenges;

Principle 8: undertake initiatives to promote greater environmental responsibility; and

Principle 9: encourage the development and diffusion of environmentally friendly technologies.

ANTI-CORRUPTION

Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.

“K” Line response to COVID-19 in Japan

Since February 2020, “K” Line has implemented/expanded remote work programs in response to the spread of COVID-19 to ensure the safety of company employees as first priority.

In case of a stay-at-home requirement by the Local Government, followed by a state of emergency issued by the Japanese government, “K” Line will implement remote work program for all employees whose working offices/homes are located within the requested area in Japan until the requirement lifted.(*)

The “K” Line Group will implement every possible measure to ensure the health and safety of our employees as first priority, and taking appropriate action following Government guidelines.

Thank you for your understanding and support as we make our best efforts to maintain the global supply chain and provide safe and stable service during this unprecedented situation.

(*) Due to anniversary of foundation, our offices in Japan will be closed on April 8th.

“K” Line : Notice on the Planned Recording of Extraordinary Loss on Valuation of Investment Securities

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) announces that it is planned to record the extraordinary loss on valuation of investment securities in the consolidated financial results for the fiscal year ending March 31st, 2020

  1. Recording the extraordinary loss

“K” LINE plans to record the loss on valuation of investment securities by the impairment accounting process during the fourth quarter of the fiscal year ending March 31, 2020, for investment securities classified as “available-for-sale securities” where market value showed no prospects for recovery as a result of significant declines.

The total amount of the loss on valuation of investment securities during the fourth quarter of the fiscal year ending March, 31 2020 (January 1, 2020 to March 31, 2020) : 5,260 Million Yen

2. Expected financial results for the fiscal year ending March 31st, 2020

 By recording above, it is forecasted that the financial results for the fiscal year ending March 31st, 2020 is to be adjusted downward compared to the previous forecast announced on January 31st, 2020, however, the other events shall be taken into consideration, the final consolidated financial results are scheduled to be announced on May 11th, 2020.

“K” Line enters into Long-Term Time Charter with Petronas LNG Ltd. for Two Newbuilding LNG vessels

Signing Ceremony in Kuala Lumpur, Malaysia

Kawasaki Kisen Kaisha, Ltd. (“K” Line) is pleased to announce the signing of a long-term Time Charter contract of 12 years plus 12 years(Extension Option) from 2022, which have been concluded with PETRONAS LNG Ltd., a subsidiary of Petroliam Nasional Berhad (PETRONAS). “K” Line has also executed Shipbuilding contracts for 79,960m3 LNG carriers with Hudong-Zhonghua Shipbuilding (Group) Co., Ltd. (Hudong).

These are the first long-term Time Charter contracts between PETRONAS and “K” Line with new-building vessels. These two vessels will be equipped with X-DF() engine.

PETRONAS, a fully integrated oil and gas company and also a global LNG producer with over 35 years of experience, provides an uninterrupted supply of LNG to more than 25 countries around the world. PETRONAS is also the first global energy player to introduce the floating LNG concept in 2016. These two newbuilding vessels will engage in transportation of LNG from Malaysia (Bintulu) to Shenergy (Group) Co., Ltd., China, from 2022.

Since the delivery of S.S. “Bishu Maru” in 1983, the first LNG carrier owned by any Japanese shipping company, “K” Line has been establishing safety/expertise on LNG transportation and developing its worldwide network over the past 37 years.

“K” Line will further expand stable earning structure from long-term contract and contribute to stable supply of energy. 

()X-DF engine is dual-fuel engine which uses gas admitted at low pressure.

〔Main Particulars of the Vessel〕

Shipyard Hudong-Zhonghua Shipbuilding (Group) Co., Ltd.
Delivery The second quarter of 2022
LOA About 239m
Beam 36.6m
Tank Type Membrane
Tank Capacity 79,960m3
Propulsion System X-DF (dual fuel engine which uses gas admitted at low pressure)
Speed 17.5knt

“K” Line : Delivery of Coal Carrier “TOHOKU MARU” for Tohoku Electric Power Co., Inc.

Kawasaki Kisen Kaisha, Ltd., Tokyo, (hereafter called “K” Line) is proud to announce the delivery of “TOHOKU MARU,” an 91,000 DWT-type special coal carrier at Oshima Shipbuilding Co., Ltd. on 6 February 2020.

TOHOKU MARU is same type as “K” Line’s specialized fleet for transport of thermal coal known as the “Corona-series”. The “Corona-series” consists of epoch-making coal carriers equipped with wide beam and shallow draft, which are the most suitable type to enter ports of Japanese Thermal Power Stations to discharge cargo.

TOHOKU MARU is equipped with latest energy-saving and ecological technology such as Advanced Flipper Fins and Rudder Fin which promote her propeller efficiency. She also has the latest ecological technology such as ballast water management system which protects marine ecosystems, and SOx Scrubber which eliminates sulfur oxides from exhaust gas of engine and enables her to comply with the Global regulation of SOx which started in January, 2020.

TOHOKU MARU will be principally involved in carrying thermal coal to Thermal Power Plants for Tohoku Electric Power Co., Inc..

Vessels’s Specifications:

     
LOA 234.99 M Deadweight Tons 91,818 MT
Beam 43.00 M Gross Tons 52,458 T
Depth 18.40 M Net Tons 28,945 T
Full Draft 12.885 M Hold/Hatch 5/5

“K” Line Press Release : Announcement of Financial Highlights for 3rd Quarter FY2019

January 31, 2020

Please click the following addresses to read our reports.

・Financial Highlights for 3rd Quarter FY2019

https://www.kline.co.jp/en/news/ir/ir20200131e/main/0/link/2019_3_report_e.pdf

This is also available on “K” Line’s website:

http://www.kline.co.jp/en/

“K” Line to Provide Support for Those affected by the Australian Bushfires

January 30, 2020

Kawasaki Kisen Kaisha, Ltd. announced that it will provide a monetary donation in the amount of 10 thousand Australian dollars through the Australian Red Cross toward relief efforts in the areas damaged by the Australian Bushfires.

We would like to express our deepest sympathy to those in the disaster areas and sincerely wish for the earliest recovery from this most unfortunate event.

“K” LINE Awarded CDP’s “A List 2019” on Climate Change : Earning Highest Rating “A” for Four Consecutive Years

“K” LINE is proud to announce that the company was recognized as “A List,” the top rating, on climate change from CDP, which is a non-profit global organization (NGO) engaging in activities for realizing sustainable economy, in “CDP 2019 Japan Report Launch ” held on January 20 in Tokyo. The “A List” is awarded to companies that are evaluated as global leaders in their response to climate change.

From among the companies that disclosed their climate change information in response to a questionnaire sent from CDP on behalf of 525 institutional investors with total assets of over 96 trillion US dollars, 179 companies whose measures against climate change such as emissions reduction activities in the reported year were regarded as outstanding were recognized in the A List last year. Japanese companies number 38 among these and only 6 companies were selected for more than four consecutive years.

In our medium-term management plan, we have set ESG (Environment, Society and Governance) initiatives as a key management issue. As for the field of the environment, we are advancing measures in accordance with “K” LINE Environmental Vision 2050 – Securing Blue Seas for Tomorrow -*. In particular, promotion  of a framework “DRIVE GREEN NETWORK” for continually promoting environmental preservation activities while ensuring environmental compliance throughout the entire “K” Line Group bore fruit to gain the 4th  straight year to receive the A List rating.

As an environmental front runner, we will continue to aim for the realization of business – marine transportation being more environmentally low-loaded and highly efficient from which more people throughout the world can benefit.

Representative Director, Senior Managing Executive Officer, Atsuo Asano,
speaking at the debriefing session.

* : Please see the following for details of our “K” LINE Environmental Vision 2050  –  Click here

2020 New Year Message from the President

“Moving forward with the aim of being customers’ first choice through enhanced Safety, Environment, and Quality”

The New Year Message delivered by Yukikazu Myochin, President & CEO at “K” Line Tokyo Head Office on January 6 is posted below.

Yukikazu Myochin , President & CEO

To everyone throughout the entire “K” Line Group, I extend my very sincerest Happy New Year wishes. We have reached the first year of the 2020 decade. This is also the year during which the company kicks off its new medium-term management plan. As we stand at this new starting line, I would like to take this opportunity to share a few words with you.

Looking back on 2019

Last year, the company celebrated the major milestone of its 100th anniversary while Japan entered the new Reiwa era. Looking back on the global situation, although the US maintained a relatively strong economy, the resurgence of an “our country first” approach impacted multilateral free trade. Besides prolonged trade friction between the US and China, there are also concerns about conflicts arising in non-tariff areas. Other developments such as growing geopolitical tension in the Middle East and the issue of Brexit resulted in 2019 being a year of uncertainty.

In FY2019, the Group strove together as one toward our resolute goal of achieving profit in the black. Efforts and execution were made to tackle three issues raised at the beginning of the fiscal year, namely, recovering the fleet’s cost competitiveness through structural reforms set into motion by former President Murakami at the end of FY2018, improving profitability in our car carrier business, and driving a turnaround of OCEAN NETWORK EXPRESS (ONE). As a result of these efforts, as well as efforts to accumulate profits based on our medium and long-term contracts and reduce operating expenses, we were able to achieve more progress in the first half of the year than originally planned. I am grateful to the unremitting efforts of our officers and employees that made this possible.

A new starting line

Unfortunately, during the three years of our medium-term management plan starting in FY2017, financial indicators fell short of target due to factors including structural reforms in response to unexpectedly poor market conditions and a temporary deterioration in the bottom line caused by the teething problems of ONE’s first year of operation. However, we were able to steadily improve the foundations of our business in preparation for next steps, such as by rebuilding our business portfolio and introducing a business risk management system. We have so far been progressing as planned in the current fiscal year—let’s all work together to ensure that the remaining fourth quarter finishes well and achieve profit in the black for the full year.

In April of this year, the company will launch a new medium-term management plan. Although specific details of the plan are still under discussion, there will be no change in our core philosophy of facing customers head-on and providing high-quality services that meet their needs. We will further refine our strengths and increase competitiveness in our four core business operations of dry bulk, energy transportation, car carrier, and logistics/shortsea-coastal services. Having overcome the teething problems of operation, ONE is now at the stage where it can achieve more synergy through best practices and expect further improvements in meeting the bottom line.

As we stand at this new starting line, it is critical that we keep our antennas up and remain alert and prepare to respond flexibly to any changes. Market fluctuations are inevitable in the shipping business. From a medium to long-term perspective, we can see that the automotive industry is entering a once-in-a-century period of transformation, and that the energy industry is also moving toward low carbon and decarbonized alternatives. I believe that constantly reviewing conventional methods of doing things to see through to the heart of the matter, enhancing individual strengths, and then acting based on these insights, will lead to certain progress.

Being a first-choice company

Engaging in business that allows us to clearly see each of our customers face-to-face will be main business in our efforts to further strengthen the company’s four core operations of dry bulk, energy transportation, car carrier and logistics/shortsea-coastal business. Our customers are leading companies in infrastructure and pillars of industry at home and abroad. Our ability to grasp these customers’ needs and respond by providing unique value and services will be a key theme in our efforts to continue being our customers’ first choice.

The pillars supporting this theme are Safety, Environment, and Quality. These are our company’s strengths, cultivated over 100 years of history, and their importance will further increase in the future as sustainability becomes increasingly emphasized across society. By promoting research and development of various leading technologies and introducing and utilizing AI and IoT in our business to meet customers’ needs, we will further enhance our strengths of Safety, Environment, and Quality in both tangible and intangible applications.

Safety is at the root of our Group’s business as a comprehensive logistics company grown from shipping. I believe it is our mission to achieve a vision of “reliable and excellent services” by making continuous efforts in increasing safety – the foundation of society’s trust – while maintaining a top-class operational safety worldwide using advance technologies. The K-IMS platform we developed jointly with Kawasaki Heavy Industries is an integrated ship operation and performance management system that can collect, monitor, and analyze up to 2,000 items of operational data every 30 minutes. The platform, which has already been installed in 170 of our ships, will be utilized in selecting optimal routes, preventing serious accidents, and predicting failures.

Another theme that we must address head-on is environmental conservation, especially since we are a company that utilizes nature for its business. Compliance with the tightened regulation on emissions of sulfur oxides (SOx) that began this year is significant change to our industries. As a shipping company entrusted with our customers’ valuable cargo, we meticulously prepared each member of at-sea and on-land personnel under the slogan of “Never stop the ship”. An even greater challenge lies ahead in reducing greenhouse gases (GHG). As stated in the company’s Environmental Vision 2050, we announced the construction of an LNG-powered car carrier at the end of last year. We also announced our participation in an LNG fuel supply business in Singapore with Shell in addition to the launch of a joint venture in the Chubu Region. However, we cannot reach IMO’s 2030 targets by simply switching diesel oil to LNG fuel; on top of that, we must continue to study new technologies as “LNG + (plus)”, such as the self-flying energy kites announced last year that utilize wind power. Furthermore, in order to reach our 2050 goals, we will accelerate research in alternative fuels such as ammonia, and methanation fuels in addition to hydrogen, participated in demonstration of shipping liquefied hydrogen through HySTRA (*) in last November.

Regarding our efforts toward advanced business management, we are establishing risk measures and investment guidelines for each business division based on our actual data on shipping market conditions and shipbuilding prices from over the past decade. Going forward, we will make investments that correspond to our customer strategy based on a quantitative understanding of risk levels and commensurate return.

According to the Chinese Zodiac, 2020 is the year of the Metal Rat (Kanoe Ne), which is said to indicate a state of transformation into a new form while inheriting previous methods. Now that we have taken a step of profitability, I hope that all of the officers and employees of the Group will move steadily forward as one and strive to further refine the three pillars of Safety, Environment, and Quality, and improve our customers’ trust, which will build a stable profit base and make a fresh start for the next 100 years.

In closing, I wish all of you, the members of the entire “K” Line Group and your families, good health and prosperity as we celebrate the New Year and pray that all our ships will navigate safely throughout 2020.

Yukikazu Myochin , President & CEO

(*) HySTRA: CO₂-free Hydrogen Energy Supply-chain Technology Research Association – http://www.hystra.or.jp/en/