Ocean Network Express (ONE) has released its financial results for the fiscal year 2023, revealing a significant downturn in revenue. The company’s revenue for FY2023 amounted to US$14,536 million, representing a 50% decrease compared to the previous year. Despite the challenging market conditions, ONE managed to maintain a net profit of US$974 million for the fiscal year.
The decline in revenue can be attributed to various factors, including sluggish cargo movements and pressure from the supply side due to ongoing new vessel deliveries. However, there was a slight silver lining in the fourth quarter as freight rates experienced an uptick, driven by geopolitical uncertainty surrounding the situation in the Middle East.
The financial breakdown for FY2023 indicates a substantial decline across key financial metrics. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) decreased by 87%, while EBIT (Earnings Before Interest and Taxes) and net profit experienced declines of 97% and 94%, respectively.
Looking ahead to FY2024, ONE anticipates a slight increase in profit, with expectations set around US$1,000 million. This forecast takes into account the prevailing economic and geopolitical environment, which is expected to persist in the near term.
Jeremy Nixon, CEO of Ocean Network Express, emphasized the company’s commitment to adaptability in navigating challenging market conditions. He stated, “We will continue to monitor the situation carefully, focusing on maximizing profit by flexible tonnage deployment and efficient equipment control based on demand.”
Appendix Change of Demand and Freight index
before/after COVID-19
ONE’s financial results underscore the resilience of the company in the face of unprecedented challenges in the maritime industry. Despite the downturn in revenue, ONE remains focused on optimizing operational efficiency and delivering value to its stakeholders.