In the first quarter of the 2023 fiscal year, ONE realized operating income of 3.765 billion US dollars, down 58% from the same period last year. Achieve after-tax net profit of 0.513 billion US dollars.
On July 31, the ocean network shipping (ONE) announced the 2023 fiscal year first quarter (April 1, 2023 to June 30) performance report.
During the reporting period, ONE achieved operating income of $3.765 billion, down 58% YoY; EBITDA (EBITDA) of $0.77 billion, down 87% YoY; after-tax net profit of $0.513 billion, down 91% YoY.
In addition, during the reporting period, ONE achieved a volume of 2.825 million TEU, down 4%.
Among them, the cargo volume of the Asia-North America eastward route is 578000 TEU, and the space utilization rate is 82%. The cargo volume of the Asia-North America westward route is 291000 TEU, and the space utilization rate is 44%. The cargo volume of the Asia-Europe westward route is 385000 TEU, and the space utilization rate is 94%. The cargo volume of the Asia-Europe eastward route is 240000 TEU, with a space utilization rate of 54%.
For the decline in performance, ONE believes that there are two main reasons: First, global freight demand from April to June this year was significantly lower than the same period last year, and retail consumption in Europe and the United States stagnated due to inflation. Second, with the relief of port congestion and the increase of market capacity, the imbalance between supply and demand is very obvious.
Looking ahead, ONE said that since the new coronary pneumonia epidemic, the container market is facing significant changes, especially due to heightened geopolitical tensions, leading to consumer behavior and trade patterns shifting.
ONE says it is adapting to new changes, but with changes in transport demand and trade patterns, future market prospects are more difficult to predict. But ONE remains committed to steady performance while maintaining operational flexibility.
the company also emphasized that it will position its green strategy as a top management priority and continue to address industry challenges including decarbonization. In addition, we will continue to improve the level of digitalization, operational efficiency and risk management to achieve sustainable development.
ONE's measures to improve profitability include: expanding port coverage; reducing fuel consumption by reducing speed; advancing the deployment of large ships on east-west routes; and demand-driven services to improve operational efficiency while maintaining service quality.
Source: China Shipping Weekly