Good afternoon. I am NYK Line President Hitoshi Nagasawa. Thank you for joining us for today's presentation of the financial results for the second quarter of the fiscal year ending March 2022. I would like to take this opportunity to express my gratitude for your broad support of our group's activities. NYK Line CFO and Managing Executive Officer, Hiroshi Kubota, will provide the detailed explanation today. Currently, our group has achieved outstanding results and is performing extremely well. Almost every division achieved increased profit on higher revenue, and without a doubt, we will likely set a new record high for profits again this year. I think most of you are interested in gaining insight into how long the main drivers of these results will continue, including the strength in general consumer goods, specifically container ships, as well as the air cargo and logistics businesses.
I will touch briefly on the outlook for our dividend policy, preferably by answering specific questions. In particular, as stated in the materials provided today, we will issue an interim dividend of JPY 200 and plan to issue a year-end dividend of JPY 600. Along with this, we will consider additional stockholder returns, including buybacks after May 2022. The year-end dividend will be issued at a consolidated payout ratio of 25% or at a level equal to or exceeding a payout ratio of 25% in the event of a buyback, including the amount allocated to the buyback. This will be further discussed by the board of directors, and we will issue an announcement at a later date. Moving on, Managing Executive Officer Kubota will now provide a detailed explanation of the financial results. Thank you.
I am Hiroshi Kubota, Managing Executive Officer and CFO of NYK Line. My explanation of the financial results for the second quarter of the fiscal year ending March 2022 will cover three main points. The first half results, the full year forecast, and the progress of the medium-term management plan. In addition, I will also discuss shareholder returns and the dividend. In the first half, we achieved revenue of JPY 1,051.4 billion, operating profit of JPY 117.9 billion, recurring profit of JPY 397.2 billion, and net income of JPY 411.3 billion. It was the first time for half-year revenue to exceed JPY 1,000 billion since the transfer of the container shipping business to ONE in fiscal 2017.
In addition, the last time half-year operating profit exceeded JPY 100 billion was even further back in the second half of fiscal 2007 and first half of fiscal 2008 during the dry bulk shipping boom prior to the collapse of Lehman Brothers, when we achieved operating profit of JPY 110 billion and JPY 130 billion respectively. The recurring profit and net income during the first half of this year are both record highs on a half-year basis. For the full year, we expect revenue of JPY 2,000 billion, operating profit of JPY 220 billion, and recurring profit and net income of JPY 710 billion. These will be new record highs for operating profit, recurring profit, and net income.
Concerning the dividend policy and shareholder returns, we arrived at the current proposal following various internal considerations and discussions. I will provide a more detailed explanation later. Turning to page 3, I will provide an overview of the first half results in comparison with the same period last year. Simply stated, we achieved revenue of JPY 1,050 billion in the first half. Compared to the same period last year, this is an increase of JPY 330 billion. Higher revenue in the logistics business and rising dry bulk market levels each contributed about JPY 140 billion, accounting for the majority of the increase.
Recurring profit was JPY 397.2 billion, an increase of about JPY 350 billion, mainly due to the significant profit increase in the liner and logistics business, which includes the liner segment with ONE, air cargo segment with NCA, and logistics segment with YLK. Also, the bulk shipping segment recorded a profit of JPY 0.1 billion in the first half last year. It was an extremely challenging period due to the impact of COVID-19, including lower automobile shipping volumes and weak markets. During the first half of this year, profits rose to JPY 47 billion. Net income exceeded JPY 400 billion, due in part to the extraordinary profit from the partial transfer of shares of a subsidiary in the real estate business, specifically shares of the Yusen Real Estate Corporation.
Concerning the interim dividend, it will be issued in compliance with the regulations and restrictions on distributions set forth in the Companies Act, so it remains unchanged from the previous forecast of JPY 200. A resolution concerning the dividend was passed during the board of directors meeting held this morning. Moving on to the next page. Shown here is an overview by segment. As already explained, Ocean Network Express has performed extremely well, and first-half profit increased from $682 million last year to $6,760 million this year. Based on our share in the company, profit in the liner segment increased from less than JPY 30 billion last year to more than JPY 280 billion this year after converting to Japanese yen.
This is an increase of more than JPY 250 billion, and most of this increase is attributable to the higher profits at ONE. Continued robust transportation demand, mainly on the North America trade, combined with reduced supply from the lower fleet turnover rate caused by supply chain disruptions, resulted in short-term freight rates remaining high and the current outstanding results. The terminals in Japan and overseas benefited as handling volumes recovered. In the air cargo segment, the results indicate the ability of Nippon Cargo Airlines to harness the tailwind resulting from the reduced supply caused by the suspension and cancellation of international passenger flights, strong cargo volumes, mainly from Japan, and the shifting of some ocean cargo to air freight due to the shortage of space aboard container ships. Also in the logistics segment, profits increased by JPY 20 billion.
In relation to the ocean cargo at ONE and air freight at NCA, improved profit levels on the ocean freight and the strong efforts in relation to shifting ocean cargo to air freight were the main drivers of the higher profits. At the same time, the logistics business was supported by continued strong demand for consumer goods. The bulk shipping segment, as stated earlier, was affected by COVID-19 during the first half last year, including lower automobile shipping volumes and weak dry bulk markets. However, this year, automobile shipping volumes greatly increased year-on-year from 1.45 million last year to 2.05 million this year. The shortage of semiconductors and automotive components due to localized COVID-19 rebounds had, at the very least, only a limited impact through the second quarter. The dry bulk market has trended at higher levels compared to regular years.
Last year, the BDI was 770 in the first quarter and 1,520 in the second quarter. This year, the BDI trended at the extremely high levels of 2,800 and 3,700 respectively during the first half this year, having a positive impact on the bottom line. On the other hand, in the energy division, although the VLCC market was weak compared to last year, the impact on our company was limited, and the performance of mainly the LNG and offshore businesses was stable. Please turn to page 6 for a summary of the second quarter results. As stated in my opening remarks, revenue in the first half exceeded JPY 1,000 billion, and operating profit was slightly less than JPY 120 billion. Recurring profit and net income were both at extremely high levels, around JPY 400 billion.
The detailed figures for each segment can be found on the following page. Recurring profit increased by JPY 350 billion year-on-year, and of this amount, the Liner Segment accounted for JPY 260 billion. Air Cargo and Logistics each accounted for around JPY 20 billion, and Bulk Shipping accounted for slightly less than JPY 50 billion. Each segment achieved extremely strong results through the second quarter. Shown on page 8 is a waterfall graph of the change in recurring profit compared with last year. As you can see, the higher overall profit is the result of the greatly higher profit in the Liner Segment and ONE, as well as the solid profits at NCA, Logistics, and Bulk Shipping. Moving on, the full year forecast for the fiscal year ending March 2022 is shown on page 9.
I would like to explain this forecast in comparison with the previous forecast. Revenue is forecast to be JPY 2,000 billion, an upward revision of JPY 150 billion from the previous forecast. The revised forecast incorporates the favorable dry bulk market trends in the bulk shipping segment and the higher freight rates in the logistics business. Recurring profit and net income are both forecast to be JPY 710 billion. This upward revision of JPY 210 billion is due mainly to the significant upward revision of JPY 190 billion for liner and logistics. This amount, combined with the upward revision for bulk shipping following the improved dry bulk market outlook, led to the current recurring profit forecast of JPY 710 billion.
Net income is forecast to be on the same level as recurring profit, and both are expected to be new record highs. Concerning the dividend, as President Hitoshi Nagasawa stated, we plan to issue a full year dividend of JPY 800. The interim dividend is JPY 200, and the year-end dividend has been increased by JPY 100 to JPY 600. It will be a matter for resolution at the ordinary general meeting of shareholders, but we intend to consider shareholder returns, including share buybacks, after May 2022. I would like to explain more about this later. The forecast for each segment can be found on page 10. In the liner segment, ONE is expected to achieve outstanding results.
Profit in the first half was $6,760 million and is expected to be $5,000 million in the second half, and our share of 38% has been incorporated into the forecast for the liner segment. Recently, transportation demand remains strong. Port and inland congestion remain ongoing, and it is difficult to foresee how the supply and demand balance will move going forward. However, the current forecast is based on the assumption it will gradually normalize from the latter part of the second half. Regarding the terminals, handling volumes will decline to a certain extent as overseas container demand eases. In the air cargo segment, Nippon Cargo Airlines will enter the seasonal demand period in the third quarter, and the trend of shifting ocean cargo to air freight is expected to continue.
On the other hand, as international passenger flights return to the market in the fourth quarter and the supply and demand balance for container shipping space normalizes, freight volumes and rates are expected to decline. In the logistics segment, full year recurring profit is forecast to be JPY 48 billion. As stated earlier, although ocean cargo will gradually settle down in the second half, continued efforts will be made to execute nimble marketing with the goal of maintaining the profit levels. In the air freight business, seasonal demand is expected to decline, particularly in the fourth quarter. In addition, although several regions in the logistics business are contending with the issue of soaring personnel expenses due to the impact of COVID-19, efforts will be made to stabilize earnings through contract revisions and cost cutting.
The full year forecast for bulk shipping has been revised up by JPY 20 billion to JPY 100 billion. In the car carrier business, due to the impact of the semiconductor and automotive components shortage, shipping volumes are expected to be 2.06 million cars in the second half. This is 150,000 cars less than the previous forecast of 2.21 million cars. The majority of the impact will be during the third quarter, and according to hearings with our main partners, the Japanese automobile manufacturers, volumes are expected to recover in the latter part of the second half. In the dry bulk business, the market assumptions have been revised up.
In the previous forecast, the BDI assumption was set at 1,980 in the second half, but this assumption has been revised up to 2,945 in the current forecast. In reality, the BDI has fluctuated greatly since mid-October, sliding from 4,400 around October twentieth to slightly below 2,900 yesterday. This is a major shift, but the structural reforms carried out in the dry bulk business during the second quarter and third quarter last year have increased our ability to withstand market volatility. On the other hand, given the higher market levels compared to the second quarter and third quarter last year, the structural reform costs recorded last year for returning chartered vessels fluctuated depending on the timing, and this factor boosted earnings. This ends my summary of the full year forecast.
For the year, we are forecasting revenue of JPY 2,000 billion, operating profit of JPY 220 billion, and recurring profit net income of JPY 710 billion. Please turn to page 13. Shown here is a comparison with last year. Last year, consolidated recurring profit was JPY 215.3 billion. This year it is expected to increase by about JPY 500 billion to JPY 710 billion, due largely to the JPY 370 billion higher profits in the liner segment and ONE. Air cargo and logistics will each contribute more than JPY 20 billion. Bulk shipping, as explained earlier, was negatively affected by COVID-19 in the first half of last year and faced an extremely challenging business environment.
However, following the market recovery and increased automobile shipping volumes, profit was JPY 48 billion in the first half and is expected to be JPY 52 billion in the second half for a full year profit of JPY 100 billion. Moving on, please turn to page 14 for a comparison with the previous forecast. Recurring profit was forecast to be JPY 500 billion, but it has been revised up by JPY 210 billion to JPY 710 billion. The liner segment, which includes ONE, accounts for JPY 160 billion of this increase. Air cargo and logistics account for JPY 30 billion in total, and the bulk shipping segment will contribute JPY 20 billion as a result of the upward revision to the market assumptions in the dry bulk business.
Next, I would like to quickly discuss the progress of the medium-term management plan. We announced the medium-term management plan in fiscal 2018 as a five-year plan, and there are still 1.5 years remaining. The basic strategies are to optimize the business portfolio, accumulate stable freight rate business, and implement digitalization and green initiatives. These basic strategies will be evolved and carried out as planned through 2022. On the other hand, although the financial results last year and forecast this year generally achieve the earnings and financial targets set forth in the medium-term management plan, we do not yet have an investment-grade credit rating from a foreign credit rating agency, specifically Moody's, and we will aim to restore our investment-grade credit rating as a management issue.
As stated, while we will execute the current plan through fiscal 2022 as planned, we will also analyze the business environment from a long-term perspective to 2050 and create a roadmap which will be announced publicly at the appropriate time. The new medium-term management plan from fiscal 2023 will be based on the long-term roadmap, and we will announce this plan sometime next year. Looking at the long-term business environment, 2050 is a major issue for the maritime industry and our group. The Japanese government has announced the goal of becoming carbon neutral in international shipping by 2050. The Japanese Shipowners' Association will also aim to achieve net zero GHG emissions by 2050. We, too, will work to achieve net zero emissions by 2050. It is an extremely challenging major issue, but we will come together as a group and utilize our full capabilities to achieve this goal.
Currently, various conferences are being held, including MEPC 77 and COP26 in Glasgow, and as a company, we will strongly promote ESG as a growth strategy. Today, I would like to introduce two of our initiatives. First, the reduction of methane slip in LNG-fueled vessels and the development of a hydrogen or ammonia-fueled vessel have been selected as part of the Green Innovation Fund. We were selected with our partners to develop an ammonia-fueled vessel equipped with a Japanese-made engine. We will aim to commission an ammonia-fueled tugboat in 2024 and an ocean-going ammonia carrier that uses ammonia fuel in 2026. Also, based on a grant from NEDO to conduct a demonstration project for the commercialization of vessels equipped with high-powered fuel cells. We will enter the detailed design phase with our partners this year or sometime next year, directed at building this vessel.
For both projects, we will utilize the full capabilities of our group, including our engineering team, with the aim of realizing the first zero emission vessel powered by hydrogen or ammonia fuel. The appendix provides an overview of each segment covered today. As you can see in the materials here, the dry bulk market assumption has been revised up. Also in the car carrier business, 980,000 cars were shipped in the second quarter, below the previous forecast of 1.06 million cars. In the second half, the previous shipping volume forecast of 2.21 million cars has been revised down by 150,000 to 2 million cars. Please turn to page 24 for an overview of our financial position. I would like to briefly explain three points.
First, interest-bearing debt was JPY 840 billion by the end of September 2021. We have made great strides in reducing interest-bearing debt since March. Shareholders' equity currently exceeds JPY 1,000 billion. Looking at cash flow over the past six months, cash flow from investing activities was positive. As a result of asset disposal, vessel sales, and partial share sale of Yusen Real Estate Corporation, cash flow was an inflow of JPY 5.6 billion. We used the cash flow from operating activities and cash flow from investing activities as the source of funds for reducing interest-bearing debt. At the same time, cash flow from operating activities is forecast to be slightly less than JPY 320 billion for the full year. This includes the dividend from ONE announced today as a timely disclosure.
In addition, cash flow from investing activities is expected to increase by about JPY 55 billion compared to the previous forecast. Nippon Cargo Airlines operates 8 747-8F aircraft. Of those, 1 is owned by the company, and it was decided to exercise the purchase option for 1 aircraft that will expire this year. In addition, given the improved financial position, we plan to receive approval from the lease company and purchase the remaining 6 aircraft this year, with the aim of strengthening the competitive position of NCA. Given this, cash inflow from investing activities is expected to be higher compared to the previous forecast.
As a result, looking at the expected financial position at the end of the current fiscal year, although interest bearing debt will not decline as much as it did in the first half, it is expected to be slightly under JPY 830 billion. Shareholders' equity is forecast to be slightly less than JPY 1,300 billion as a result of the higher profits. Shareholders' equity ratio will be 48% and the DER will be 0.64. Lastly, concerning the dividend, as President Nagasawa stated in his remarks, as a result of various internal considerations and discussion, we have decided to issue an interim dividend of JPY 200 and raise the year-end dividend by JPY 100 to JPY 600, and we will also consider share buybacks.
As explained in the full year forecast, profit is expected to increase by JPY 500 billion to a new record high of JPY 710 billion. In this extraordinary time during the COVID-19 pandemic and the accompanying difficulty in forming rational assumptions and making decisions based on those assumptions, profit will exceed expectations. Concerning the handling of these excess profits, the current proposal has been made with consideration for the total dividend amount and current dividend yield. The year-end dividend is a matter for resolution at the ordinary general meeting of shareholders, as stated earlier. According to the articles of incorporation, treasury shares are a matter for resolution by the board of directors. At the earliest, a resolution by the board of directors is needed in May next year. We need to first have the actual financial results.
The Companies Act contains regulations on distributions, and in accordance with these regulations, the board of directors meeting in May next year will be the earliest opportunity. On the other hand, we intend to provide an update at the appropriate time after comprehensively considering the forecast, financial position, and ESG growth investments. There is no change to our basic policy of providing stable shareholder returns at a payout ratio of 25%. Given the current situation, we will consider share buybacks while at the same time strengthening ESG management, formulating the new medium-term management plan, analyzing the business environment to 2050, and creating a roadmap. As CFO, we have established a foundation for stable profits, cash flow from operating activities, and a strong financial position, so we have the ability to procure additional funds.
Based on this foundation, we will allocate capital to shareholder returns, cash flow from investing activities, and other strategic uses, as well as potentially for green growth investments, strengthening the financial position and additional shareholder returns. We will find a good balance, and this strategic allocation will be included in the discussions when considering the new medium-term management plan. This ends my brief explanation. Thank you for your time.