News
Ocean Network Express (ONE) managed to remain profitable despite significant decreases in revenue and profit in fiscal 2023 (April 2023-March 2024).
On a revenue of ¥14.54 billion (US$92.38 million), down 50% from the previous fiscal year, it had an EBITDA of ¥2.04 billion (US$12.99 million), down 87%; an EBIT of ¥392 million (US$2.49 million), down 97%; and a net profit of ¥974 million (US$6.19 million), down 94%.
Freight rates developments remained weak until late 2023 due to adverse pressure on supply resulting from slow container movement and newbuilding completions. In the fourth quarter (January-March 2024), space oversupply was eased as services had been rerouted to the Cape of Good Hope to avoid Middle East passages, bringing about steep freight rate increases. However, they were still adversely impacted as sluggishness persisted through the third quarter (October-December 2023).
In fiscal 2023, ONE handled 12.61 million tons of shipments, which improved 8% thanks to demand recoveries, while the average bunker price was $592 per ton, down 22%.
Projecting the ongoing economic and geopolitical circumstances will remain unchanged for a while, ONE expects to earn a revenue of ¥17 billion (US$107.97 million), up 14.5%, on which EBITDA will amount to ¥2.7 billion (US$17.15 million), up 24.3%; EBIT, ¥800 million (US$5.08 million), up 51%; and net profit, ¥1 billion (US$6.35 million), up 2.6%.
ONE anticipates that in fiscal 2024, container demand will mildly pick up, mainly in the U.S., but will not recover on a full scale due to geopolitical instabilities and continued inflation. ONE also projects that supply will continue to exceed demand as newbuilding completions will reach a peak. In the first half, however, ONE sees that there will be powerful space demand, as an increase in the number of services via the Cape of Good Hope will increase resulting from uncertainties in the Middle East situation.
