ONE 2025 net profit likely to drop sharply; 2024 profit zooms to $4bn
"Baseline FY2025 full year profit after tax forecast stands at approximately $1.1 billion.";
Ocean Network Express (ONE) reported a net profit of $4.2 billion for 2024, an increase of 336 percent on higher liftings.
ONE carried 12.7 million TEUs in 2024 compared to 12 million in 2023, an increase of six percent, says an official release. Revenue increased 32 percent to $19.2 billion compared to $14.5 billion in 2023.
"Freight rates remained stable amid strong cargo demand. However, following the Lunar New Year, spot rates began to decline due to delayed demand recovery and vessel oversupply."
Jeremy Nixon, CEO, Ocean Network Express says: "We are pleased to report a profit of $4.2 billion million for FY2024 - an achievement realised despite ongoing geopolitical tensions and regional economic uncertainties. Through our participation in the newly established The Premier Alliance, launched in February, along with various other service partnerships, we have further expanded our global network and enhanced our service offerings to better meet customers’ evolving needs. We remain fully committed to delivering strong, reliable, and highly dependable end-to-end direct port container services to our valued customers."
2025 outlook
Considering the prevailing geopolitical landscape and the significant economic instability introduced by recent tariff developments in April, forecasting a precise full-year profit figure for FY2025 presents considerable challenges, the update added.
"In this context, our baseline FY2025 full year profit after tax forecast stands at approximately $1.1 billion, predicated on an assumption of a relatively stable business environment throughout the fiscal year (Case 1).
*However, recognising the heightened uncertainty, we have also conducted comprehensive sensitivity analyses. These analyses consider potential headwinds such as weakened cargo volumes in specific trade lanes and reductions in freight rates across global markets. The outcomes of these scenarios indicate a potential profit after tax in the range of approximately $250 million (Case 2)."