OCEAN Network Express saw increases in revenues and profits across the board over the second quarter of 2022, according to its most recent financial results statement.
The shipping line saw revenues of US$9.4 billion for the quarter, up 24% on the same period last year. The company’s EBITDA and EBIT increased 28% and 29% to US$5.8 billion and US$5.5 billion, respectively.
The company reported a profit of US$5.5 billion for the quarter – that is an increase of 31% on second quarter profits in 2021.
In its commentary on the results, ONE said steady cargo movements continued in July, but there was a sudden decline in transport demand in August and September.
“Despite the ongoing deterioration in market conditions, freight rates remained higher throughout the second quarter than the same period last year, supporting profit figures,” the company said.
ONE said liftings on the Asia to North America eastbound trade remained unchanged from the first quarter, but decreased compared with the same period last year.
“Vessel utilisation decreased due to higher service frequencies following a reduction in port congestion on the US West Coast,” ONE said.
“Both lifting and vessel utilisation on Asia-Europe [westbound] remain unchanged from FY 2022 1Q, but decreased in comparison to the same period of the previous year.”
While revenue and profits remained higher during the second quarter of this year, ONE expects the full year results to be less stellar.
The company expects the decline in transport demand to continue throughout the second half of this year, resulting in a decrease in revenues and profits for the full year.
