Financial highlights brief report for Second Quarter, fiscal year 2025. A. Financial highlights for Second Quarter, fiscal year 2025. A.1. Financial results for Second Quarter, fiscal year 2025. The results through the Second Quarter of fiscal year 2025 are as follows: Operating revenues totaled JPY 500.5 billion, down JPY 37.4 billion Year-on-Year. Operating income was JPY 42.9 billion, a decrease of JPY 18.1 billion Year-on-Year. Ordinary income was JPY 59.6 billion, a decrease of JPY 127.6 billion Year-on-Year. Interim net income, loss attributable to owners apparent, was JPY 68.6 billion, a decrease of JPY 114.5 billion Year-on-Year. The average exchange rate was JPY 146.18, and the average bunker price was $547. Segment information is shown on the slide on the next page.
Operating income for the Second Quarter of fiscal year 2025 results was lower Year-on-Year due to the impact of foreign exchange rates, which appreciated 7.71 Yen Year-on-Year, higher car carrier operating expenses, and a favorable dry bulk market, but lower Year-on-Year. In the containership business, transport volume remained at the same level as in the same period of the previous fiscal year due to factors such as pre-term rush order demand, but short-term freight rates decreased compared to the same period of the previous fiscal year due to the impact of delivery of new vessels, etc. As a result, equity method income of Ocean Network Express, ONE, and equity method affiliates decreased, and ordinary income or loss and interim net income or loss also declined Year-on-Year.
Extraordinary income, such as gain on sale of owned vessels and gain on sale of a portion of subsidiary shares, was recorded. Key financial indicators are shown in the lower left-hand corner of the slide. Equity capital was JPY 1,683.9 billion. Interest-bearing liability was JPY 312.2 billion. Debt-Equity ratio was 18.5%, and the Equity ratio was 75.6%. Off-Balance Sheet Assets and Liabilities, such as charter hire, amount to approximately JPY 600-700 billion, and after taking these into account, the consolidated equity ratio will be 58-60%. A.2. Financial results for Second Quarter, fiscal year 2025 by segment. Results by segment through the Second Quarter. Here are some key points. In the dry bulk segment, the market for both Cape Size and Panamax and smaller sizes recovered and remained firm in the Second Quarter.
On the other hand, for the first half of the year as a whole, market conditions were weaker than in the same period last year, and ordinary income or loss was also lower Year-on-Year. Meanwhile, in the energy resource transport segment, LNG carriers, LPG carriers, thermal coal carriers, VLCCs, drill ship, and FPSOs, among others, continue to operate, steadily backed by medium to long-term contracts. The absence of one-time losses recognized in the same period last year also contributed to a profit increase Year-on-Year. In the product logistics segment, the car carrier business saw limited impact from U.S. tariffs through the Second Quarter, and the number of vehicles transported slightly increased Year-on-Year, supported by solid demand in countries around the world. However, profit decreased Year-on-Year due to exchange rate impacts and increased operating costs, etc.
In the containership business, cargo transport volume remained at the same level as the previous fiscal year, including pre-term rush order demand, but profit declined as market conditions were sluggish due to increased supply of new vessels and equity method investment income from ONE decreased. B. Forecasts and initiatives for fiscal year 2025. B.1. Forecasts for fiscal year 2025 and key factors. This is the forecast and key factors for fiscal year 2025. First, the forecast assumes that in fiscal year 2025, both K Line's own businesses and containership business will not transit through the Suez Canal, but via the Cape of Good Hope. In light of the recent U.S.-China talks, we have not factored in the impact of U.S. TR's port entry fees for car carriers.
At the U.S.-China talks on October 30th, it was agreed to postpone or partially cancel the imposition of additional tariffs for one year, etc. However, the impact on cargo movements, etc., cannot be clearly ascertained, so we will keep an eye on future developments. The average exchange rate for fiscal year 2025 is JPY 145.91, and the bunker price is $536. Please refer to the appendix on the slide for market conditions and volume forecasts. Based on these assumptions, our forecasts for fiscal year 2025 are: operating revenues of JPY 984 billion, down JPY 63.9 billion Year-on-Year; operating income of JPY 86 billion, down JPY 16.8 billion Year-on-Year; ordinary income of JPY 100 billion, down JPY 208 billion Year-on-Year; and net income attributable to owners apparent was JPY 105 billion, a decrease of JPY 200.3 billion Year-on-Year.
Operating income decreased Year-on-Year due to a decline in profits from car carriers and dry bulk, as well as yen appreciation. On the other hand, at the ordinary income or loss level, a decline in equity method income derived from ONE and other factors also contributed to the decrease in income. A one-yen change in the yen-dollar exchange rate is estimated to affect profit by plus or minus JPY 1 billion, while a $10 change in the bunker price is estimated to impact profit by plus or minus JPY 10 million. The annual dividend forecast for 2025 remains unchanged from the previous announcement in August and is expected to be JPY 120 per share, including a basic dividend of JPY 40 per share and an additional dividend of JPY 80 per share.
In the light of the current business environment and other factors, we are continuing to review the timing and methods of the flexible additional return of JPY 50 billion or more announced in May. B.2. Forecasts for fiscal year 2025 by segment. I would like to explain the forecasts for fiscal year 2025 by segment. For the dry bulk segment, profit is expected to decrease Year-on-Year, mainly due to exchange rate impacts, but also due to the effects of accidents and disputes at loading ports, in addition to the market slump in the first quarter compared to the same period of the previous year. In the energy resource transport segment, LNG carriers, LPG carriers, thermal coal carriers, and VLCCs, etc., are operating stably backed by medium to long-term contracts, and we expect an increase in profit, partly due to the absence of one-time factors from the previous year.
In the car carrier business of the product logistics segment, the impact of U.S. tariff policy has been factored in as negative JPY 3.5 billion for the full year as before, but we believe the impact on the overall business is negligible. In general, transport volume is expected to increase slightly from the previous fiscal year, supported by solid demand in countries around the world. On the other hand, profit is expected to decrease Year-on-Year due to the impact of the strong yen, increased operating costs, and other factors. The impact of the U.S. TR port charges has not been factored in, as I explained earlier. In the containership business of the product logistics segment, we expect freight rates to be sluggish in the second half of fiscal year 2025 due to geopolitical risks and the impact of U.S.
tariffs, as well as an increase in supply due to the deliveries of new vessels. As a result, due to the decrease in equity method investment income derived from ONE, we expect ordinary income of JPY 21.5 billion, a decrease of JPY 184.5 billion Year-on-Year, and a decrease of JPY 17.5 billion from the previous announcement in August. In the August announcement, in the light of the business environment at that time, ONE's overall profit or loss was estimated to be just under $700 million, but this time, as stated in ONE's public announcement, ONE's overall profit or loss is expected to be approximately $310 million. B.3. Comparison of income and loss for fiscal year 2025 compared to the August 2025 announcement. The slide shows a comparison of income and loss for fiscal year 2025.
The left side of the slide shows the August forecast for ordinary income of JPY 120 billion, and the right side of the slide shows this latest forecast for ordinary income of JPY 100 billion. As for K Line's own businesses, the dry bulk segment has seen an increase of JPY 1.5 billion since the August announcement. On the other hand, in the car carrier business, there is no change in the negative JPY 3.5 billion impact of the U.S. tariffs, which was factored in at the time of the August announcement. However, a further negative impact of JPY 4 billion from the August announcement is expected due to a decrease in the number of units shipped to Europe as a result of the model changeover and the impact of production issues.
Overall, the forecast for K Line's own businesses is JPY 78.5 billion, a decrease of JPY 2.5 billion from the JPY 81 billion announced previously in August. In the containership business, we expect a decrease in profit of JPY 17.5 billion, mainly due to the effects of the factors I just explained, and we forecast ordinary profit of JPY 21.5 billion for the full fiscal year. C. Status and progress of the medium-term management plan. C.1. Capital policy. Capital policy progress and corporate value improvement. I would like to explain our current capital policy. In the area of enhancing earning power, as I explained earlier, we expect the full-year ordinary income for fiscal year 2025 to be down by JPY 20 billion from the August announcement to JPY 100 billion.
On the other hand, the operating cash flow forecast for the current medium-term management plan period through fiscal year 2026 remains unchanged from the previous announcement in August at around JPY 1.5 trillion. This leaves the starting line for the overall cash allocation unchanged. As for the investment plan, there is no change from the previously announced JPY 610 billion in investment cash flow through fiscal year 2026. We will continue to examine the optimal capital structure with the aim of achieving both financial soundness and capital efficiency. With regard to shareholder return policy, we will continue to be aware of the optimal capital structure, ensure the investments necessary to improve corporate value and growth, ensure financial soundness, and actively return to shareholders any portion of capital exceeding the appropriate capital based on cash flow.
Therefore, based on the latest cash allocation, the planned dividend for fiscal year 2025 is JPY 120 per share, consisting of a basic dividend of JPY 40 per share and an additional dividend of JPY 80 per share, and there is no change in the total amount of returns of JPY 800 billion or more over the medium-term management plan period. We are also continuing to consider the method and timing of the flexible additional shareholder return of JPY 50 billion or more, which we have already announced in the light of the business environment, and we plan to firmly implement it by fiscal year 2026, the current medium-term management plan period. We recognize that the current P/B ratio of less than 1.0 is a major challenge, and we will continue our efforts to be recognized by the market through the realization of an optimal capital structure and business growth.
C.2. Capital policy. Shareholders' return policy. Please refer to the slide that summarizes the overall shareholder returns during the medium-term management plan period through fiscal year 2026, as it details what we have explained in the previous slides. The following slide and beyond summarize the business environment, tariffs, and U.S. TR status, but we will not explain them here, as we hope you will refer to them again. This concludes my explanation.