Singapore-headquartered carrier Ocean Network Express (ONE) has recorded a skyrocketing increase in profit of 418% year-on-year, during the third quarter of the financial year (FY) 2021, which started on 1 April 2021 and ends on 31 March 2022.
This increase, which translates to a profit of almost US$4.89 billion, was mainly driven by the rise in the spot freight market, according to the liner operator.
ONE’s strong performance is followed by a climb of 384% in earnings before interest and taxes (EBIT) in Q3, compared to the same period of FY20, which surpassed US$5 billion.
During the same period, ONE has achieved year-on-year growth of 309% in earnings before interest, taxes, depreciation, and amortisation (EBITDA), totalling more than US$5.28 billion.
Furthermore, the Singaporean box line’s revenue exceeded US$8.33 billion during FY21’s third quarter and recorded a rise of 122% over the corresponding period of the previous financial year.
In the meantime, ONE handled 2,939,000 TEU, representing a decline of 8% year-on-year in container throughput, “due to blank sailings caused by port congestion, despite the continuing strong cargo demand.”
However, the world’s sixth-busiest shipping line has registered an increase of 3% in container volumes from the start of FY21, having moved 9,224,000 TEU.
At the same time, ONE achieved revenue growth of 124% compared to the FY20 1Q-3Q period, surpassing US$21.66 billion.
The liner operator expects US$3.75 billion profit in FY21Q4 due to the continued cargo demand, “although there are going to be some seasonal factors, such as Chinese New Year and blank sailings due to supply chain disruptions,” explained a company’s representative.
Regarding the FY21 full year, ONE anticipates more than US$15 billion profit, mainly driven by the strong cargo demand and improvements in the freight market, while the company’s previous forecast was about US$11.7 billion profit.
