Navigating through market shifts, OOCL’s first half of 2023 reveals profit decline and operational insights. The container-news source.
- OOCL reports $1.13B H1 2023 profit, down from $5.66B last year.
- Revenue and EBIT decline, stable container movements; revenue per TEU drops.
- Freight rates decline continues, new 24,188 TEU ships delivered in H1 2023.
Profits Decline Amidst Market Changes
OOCL, a key player in the container shipping industry, reported a profit attributable to equity holders of US$1.13 billion for the first six months of 2023. This marked a significant decrease from the US$5.66 billion profit recorded during the same period last year.
Financial Figures and Operational Performance
The company’s revenue for the first half of 2023 dropped to US$4.54 billion, accompanied by a decline in earnings before interest and taxes (EBIT) to US$1.14 billion, both showing a contrast from the figures of the corresponding period in 2022. Furthermore, OOCL’s earnings before interest, taxes, depreciation, and amortization (EBITDA) fell to US$1.57 billion, while the operating cash flow reached US$548 million.
Stable Container Movements, Shift in Revenue
Despite challenges, OOCL maintained stability in container movements, reporting a comparable 3.6 million TEUs moved in the first half of 2023, mirroring the same period in the previous year. However, the total liner liftings decreased by 1%, contributing to a 60% reduction in total revenue, which had a direct impact on revenue per TEU.
OOCL acknowledged the prolonged decline in freight rates since the middle of the previous year, continuing into the first half of 2023. This decline, while remarkable in terms of absolute value and percentage, was attributed to the exceptionally high freight market levels witnessed in the preceding years. The report also highlighted that current freight rates have stabilized around pre-Covid levels, suggesting a return to a more conventional market landscape.
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