ONE Q3 net loss at $83mn, revenue down 46%

Ocean Network Express (ONE) reported a net loss of $83 million for the third quarter of financial year 2023 compared to a profit of $2.8 billion in the same period last year.

Revenue declined 46 percent to $3.4 billion compared to $6.2 billion in Q3FY2022, says an official release.

While liftings increased 17 percent to 3.1 million, operating costs increased due to higher charter hire and increased fuel consumptions, the release added.

"The North America Eastbound liftings decreased from 2Q due to low-season and blank sailings in winter. Utilisation rates remained at the same level as the 2Q. However, both liftings and utilisation rates improved significantly year on year. Europe Westbound liftings and utilisation rates decreased due to low-season and stagnant consumption from 2Q, while year on year, lifting slightly increased and utilisation rates remained at the same level, supported by results in Mediterranean trade."

Lars Jensen writes in his LinkedIn post: "As we also saw with Hapag-Lloyd, EBIT turned negative to -248 million USD, which is not surprising given the sharp drop in freight rates. If we look at EBIT per TEU then ONE has a loss of -80 USD/TEU in Q4 which is slightly better than Hapag-Lloyd which had a loss of -100 USD/TEU in Q4."

2023 outlook
Full-year results for FY2023 are expected to show a profit after tax of $856 million, "a decrease from the previous year due to the deterioration of the freight market caused by the softening of supply and demand."