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ONE reports US$120m loss in Q1 but expects $110m profit in fiscal year
来源： 编辑：编辑部 发布：2018/08/02 09:09:35
THE Ocean Network Express (ONE) and the three Japanese shipping companies that formed it - NYK, MOL and"K" Line - all have reported a loss in the first quarter of their current fiscal year, which began April 1 and runs through March 31, 2019.
ONE reported a loss of US$120 million in the first quarter on revenue of $2.07 billion. However, it's still forecasting a profit of $110 million for the full 12 months ending next March 31, but has reduced its revenue projection from $13.16 billion to $12.25 billion.
The company attributed the loss "mainly to lower lifting caused by operational teething problems that affected service quality during the operation start-up period and higher bunker price than originally forecast."
"Considering that service quality has already stabilised, overall business is expected to be back to a normal situation from the second quarter onwards," said ONE. It said its unchanged profit forecast of $110 million is "underpinned by steady realisation of integration synergy ahead of schedule as well as the change in accounting for lease contracts while higher bunker price will have a negative impact.
ONE has said it expects to achieve integration synergies of $1.05 billion per year as a result of NYK, MOL and "K" Line combining their liner operations.
ONE said it carried 530,000 TEU of containerised cargo on the Asia-North America eastbound transpacific trade route in the first quarter.
"Both demand and supply are expected to grow by around 6 per cent on a year-on-year basis. Major alliances have already announced their service rationalisation plan, and it is expected that demand and supply situation will be stabilised."
ONE said its headhaul transpacific business only achieved 73 per cent utilisation in the first quarter, but said utilisation in July is expected to improve to 90 per cent and that it forecasts utilisation will recover back to the level of its original outlook from the second quarter onward.
From Asia to Europe, ONE said it carried 312,000 TEU in the headhaul westbound trade in the first quarter. Utilisation also was only 73 per cent in the first quarter.
ONE said from Asia to Europe, "supply has grown by 5 per cent on a year-on-year basis. The demand growth has not matched the supply growth so far, but a steady cargo growth is expected towards the cargo peak season."
It said utilisation in July is expected to improve to 92 per cent and said it forecasts utilisation will recover back to the level of its original outlook from the second quarter onward.
At the end of the first quarter it was operating a fleet of 230 ships with capacity of about 1.56 million TEU.
ONE reported a loss of US$120 million in the first quarter on revenue of $2.07 billion. However, it's still forecasting a profit of $110 million for the full 12 months ending next March 31, but has reduced its revenue projection from $13.16 billion to $12.25 billion.
The company attributed the loss "mainly to lower lifting caused by operational teething problems that affected service quality during the operation start-up period and higher bunker price than originally forecast."
"Considering that service quality has already stabilised, overall business is expected to be back to a normal situation from the second quarter onwards," said ONE. It said its unchanged profit forecast of $110 million is "underpinned by steady realisation of integration synergy ahead of schedule as well as the change in accounting for lease contracts while higher bunker price will have a negative impact.
ONE has said it expects to achieve integration synergies of $1.05 billion per year as a result of NYK, MOL and "K" Line combining their liner operations.
ONE said it carried 530,000 TEU of containerised cargo on the Asia-North America eastbound transpacific trade route in the first quarter.
"Both demand and supply are expected to grow by around 6 per cent on a year-on-year basis. Major alliances have already announced their service rationalisation plan, and it is expected that demand and supply situation will be stabilised."
ONE said its headhaul transpacific business only achieved 73 per cent utilisation in the first quarter, but said utilisation in July is expected to improve to 90 per cent and that it forecasts utilisation will recover back to the level of its original outlook from the second quarter onward.
From Asia to Europe, ONE said it carried 312,000 TEU in the headhaul westbound trade in the first quarter. Utilisation also was only 73 per cent in the first quarter.
ONE said from Asia to Europe, "supply has grown by 5 per cent on a year-on-year basis. The demand growth has not matched the supply growth so far, but a steady cargo growth is expected towards the cargo peak season."
It said utilisation in July is expected to improve to 92 per cent and said it forecasts utilisation will recover back to the level of its original outlook from the second quarter onward.
At the end of the first quarter it was operating a fleet of 230 ships with capacity of about 1.56 million TEU.