SINGAPORE-HEADQUARTERED Japanese ocean carrier one has reported a record net profit of US$16.8 billion for its financial year ending March 31 - but for the full-year 2022, its outlook is beset with uncertainties, reports London's Loadstar.
Overall, liftings were flat, at 12.1 million TEU, mainly due to port congestion on the US west coast, which saw volumes from Asia to North America plunge by 412,000 TEU, to 2.35 million TEU.
However, this reduction in liftings on the transpacific was mitigated by increased carryings on other trades, including 156,000 more TEU on headhaul Asia to Europe routes, to reach 1.71 million TEU.
ONE's revenue soared by 109 per cent on the previous year, to $30.1 billion, for an average rate of $2,495 per TEU, on the back of continued high spot rates and 'significant' increases in its long-term contracts.
This produced an EBIT of $17.2 billion and a net profit of $16.8 billion, compared with a net of $3.5 billion for the previous year.
'Despite the impact of seasonal factors, including the Chinese New Year, Russia-Ukraine hostilities and China's recent lockdown, the strong cargo demand continued through January to March,' said ONE.
CEO Jeremy Nixon lauded the performance, particularly the fact that the carrier's EBIT margin was 'ahead of ONE's competitor industry peer group'.
Nevertheless, he was less bullish on the outlook, saying: 'It remains cautious, as there are still many trading uncertainties ahead in addition to further expected economic headwinds.'
He also expressed concern regarding cost increases, which, for example, saw ONE's average bunker price soar 54 per cent during the period, to $512/tonne.
'Additionally, there is still a strong need for further investment in decarbonisation and digitalisation over the course of 2022 and beyond,' said Mr Nixon.
ONE said it was 'extremely difficult to announce a reasonable business forecast for the coming financial year' and that its forecasts were 'yet to be finalised'.
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Overall, liftings were flat, at 12.1 million TEU, mainly due to port congestion on the US west coast, which saw volumes from Asia to North America plunge by 412,000 TEU, to 2.35 million TEU.
However, this reduction in liftings on the transpacific was mitigated by increased carryings on other trades, including 156,000 more TEU on headhaul Asia to Europe routes, to reach 1.71 million TEU.
ONE's revenue soared by 109 per cent on the previous year, to $30.1 billion, for an average rate of $2,495 per TEU, on the back of continued high spot rates and 'significant' increases in its long-term contracts.
This produced an EBIT of $17.2 billion and a net profit of $16.8 billion, compared with a net of $3.5 billion for the previous year.
'Despite the impact of seasonal factors, including the Chinese New Year, Russia-Ukraine hostilities and China's recent lockdown, the strong cargo demand continued through January to March,' said ONE.
CEO Jeremy Nixon lauded the performance, particularly the fact that the carrier's EBIT margin was 'ahead of ONE's competitor industry peer group'.
Nevertheless, he was less bullish on the outlook, saying: 'It remains cautious, as there are still many trading uncertainties ahead in addition to further expected economic headwinds.'
He also expressed concern regarding cost increases, which, for example, saw ONE's average bunker price soar 54 per cent during the period, to $512/tonne.
'Additionally, there is still a strong need for further investment in decarbonisation and digitalisation over the course of 2022 and beyond,' said Mr Nixon.
ONE said it was 'extremely difficult to announce a reasonable business forecast for the coming financial year' and that its forecasts were 'yet to be finalised'.
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