Ocean Network Express (ONE) has reported a plunge in its revenue, earnings and profits for FY 2022 (April 2022 – March 2023). In particular, the Singapore-headquartered ocean carrier reported a 10% decrease in its yearly profit, compared with FY21 levels, falling to approximately US$15 billion.
Additionally, ONE’s revenue shrunk by 3% to US$29.3 billion, the company’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) dropped by 11% to US$16.3 billion and the Earnings Before Interest and Taxes (EBIT) declined by 13% to US$15 billion.
At the same time, ONE’s container vessels moved fewer boxes with the overall container volume of the company falling by 8% to around 11 million TEUs.
“A decline in demand became more pronounced in the fourth quarter, against a backdrop of a high goods inventory ratio in the US and falling consumption in Europe due to rising inflation,” said ONE in a statement.
The sixth-largest container line in the world noted that “it is extremely difficult to announce a reasonable business forecast at this time” and, therefore, the company’s full-year forecast for FY2023 is yet to be determined.
“Following the Covid-19 pandemic, the containership market is in the midst of major changes, such as the aftermath of global supply chain disruption, changes in consumer behavior and shifts in trade patterns due to increasing international tensions,” said ONE.
The ocean carrier closed its financial year 2022 with 209 container vessels and a total box capacity of 1,557,099 TEUs.
