ONE Reports Quarterly Revenue and Earnings Growth, Expects Full-Year Earnings to Decline
Ocean Network Express (ONE) reported improved financial results in the third quarter of the year (the company’s second fiscal quarter) amid lower container volumes, compared to same period last year.
In particular, for the July-September period, the Singapore-headquartered shipping company achieved a 31% increase in profit, exceeding $5.5 billion, and a 24% growth in revenue. , exceeding $9.3 billion. Additionally, ONE recorded increases of 28% and 29% in EBITDA and EBIT, respectively, reaching US$5.8 billion and US$5.5 billion.
Over the same period, the global carrier moved fewer containers, reporting 2.9 million TEUs, translating to a 9% drop from the same period in 2021. ONE said it there was a steady freight movement in July, but a sudden drop in transport demand. during the months of August and September.
Despite continued deterioration in market conditions, freight rates remained higher throughout the quarter than at the same time last year, supporting earnings numbers, the company noted.
However, ONE said results for fiscal 2022 (April 2021 – March 2022) are expected to show after-tax profit of $15.26 billion, which is a decrease of about $1.5 billion from to the previous year, reflecting the drop in demand and the deterioration of the freight market.
“Continued supply chain disruptions and rising inflation are driving up costs, particularly in cargo handling and inland transportation,” the company noted, adding that “due to the inventory buildup in North America and Europe entering a recession, it is expected to take some time for freight movements and short-term freight rates to recover.”
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