OOIL

Companies

Liners Are Set to Lift Their FY2024 Earnings Guidance

ONE is scheduled to report its calendar Q3 results on October 31, 2024, marking the start of the reporting period for major liners. ONE has projected its Q3 2024 net profit to increase by 88% quarter-on-quarter, while COSCO recently indicated that its Q3 2024 EBIT is expected to rise by 154% quarter-on-quarter. Other liners have not provided guidance for Q3, but those that have offered FY2024 projections suggest their second-half earnings could vary from a decline quarter-on-quarter to an incre

Markets

Carriers on track for bumper 3Q 2024 earnings

Carriers remain on track to report bumper 3Q earnings with COSCO Shipping setting the early pace after it issued a profit alert on 7 October showing 3Q 2024 net income improved by 286% YoY to RMB 21.3 Bn. COSCO subsidiary OOCL also released its 3rd quarter trading update with revenue rising by 74% compared to a year ago, and is also up 35% compared to the 2nd quarter led by increased rates on the Asia-Europe route (up 51%) and Transpacific (up 29%).

Companies

COSCO 2Q 2024 earnings

COSCO concluded the 1H 2024 interim reports for the publicly listed carriers with its EBIT earnings of $566m for its container shipping business for a margin of 25%, down from the 32% margin in the same quarter last year due mainly to higher unit costs during 2Q 2023. Average freight rates were 13% higher for COSCO against the CCFI’s 53% gain, while container volumes increased marginally by just 1%. Aggregated revenues of the 12 main listed carriers increased by 10% YoY while volume increased 8

Companies

OOIL 3Q revenue fell 11% QoQ while EMC 3Q revenue up 5% QoQ

OOIL’s top line breakdown for 3Q 2023 saw total revenue slip by 11% QoQ and 65% YoY driven primarily by the drop in average freight rates. The fall is larger than market forecasts with OOIL’s average freight rates falling by more than CCFI levels on a QoQ basis, even after excluding the impact of the sharp fall in Transatlantic rates which is outside of the CCFI scope. OOIL’s Transpacific freight rates fell by 2% despite the rate increases in July and August. OOIL’s 3Q23 EBIT is expected to rec

Companies

COSCO, OOCL and Wan Hai reverse earnings decline

Carriers reported a mixed 2nd quarter 2023 performance, with 3 carriers able to reverse their earnings decline despite the weak market conditions. OOCL and COSCO jumped to the top of the carriers earnings table with their outsized 2Q earnings despite weaker revenue and freight rates. OOCL and COSCO’s EBIT margins at 31.8% and 24.8% are more than 3 times higher than the average of the next 8 carriers which stands at just 6.7%. COSCO reported at the group level a $5.7 Bn improvement in its equ

Companies

OOIL earnings drop mitigated by costs reduction

OOIL’s 1H23 earnings fell 74% HoH. Earnings are still very good comparing to historical average.  RoE was still stayed close to 20% despite of the large sum of idle assets (e.g. cash) on balance sheet. 74% sequential drop in earnings are a touch better than the industry average which is 83% HoH fall. OOIL’s unit costs fell 17% HoH relative to the industry’s average 11% HoH fall.

Companies

OOIL top line down but still suggest 2H20 level earnings for 1H

OOIL reported 2023 Q1 top line breakdown overnight (5 July) where its revenue dropped 9% QoQ and 63% YoY. More importantly, overall average freight rates for OOIL fell 15% QoQ and 63% YoY, comparing to CCFI's 14% QoQ and 70% YoY drop. And all four routes registered decline in average freight rates both QoQ and YoY where Transatlantic route suffered bigger sequential fall. OOIL has earned $530mn in EBIT during 1Q23 as per our computation from COSCO's disclosure. The sequential drop in average fr

Companies

OOCL 1Q top line dropped 31% QoQ

OOIL's 1Q 2023 shipping top line and breakdowns came out after Asian market on Thursday (6 Apr), being the first container liner to provide 1Q 2023 top line report. Revenue dropped 31% QoQ on average freight rate fall, which is in line with CCFI's 33% fall during the same period. Overall 1Q 2023 volume was flat QoQ.  Transpacific volume being up 11% QoQ suggested OOCL, the shipping liner of OOIL, may have gained market share during past quarter as the US import from Asia was down during 1Q 202

Companies

OOIL's OPEX dropped in 22H2

OOIL reported FY2022 results after market close. The drop in earnings during 2022 H2 was within the range of the earnings drops reported by the other liners. A large dividend was consistent with OOIL's historical pay-out track record. Where this set of results stand out for us happened in the unit operating expense that fell 11% YoY and 10% HoH while the industry still experienced rise in operating expenses during 2022 H2. OOIL has previously made provisions for future operating expenses, noti

Companies

OOIL 4Q revenue dropped $1.8bn or 37% QoQ

OOIL reported 4Q 2022 top line breakdown after Hong Kong market close yesterday (11 Feb). 4Q revenue was down by 37% QoQ and 35% YoY, driven by lower freight rates. Most of the routes, except for Transatlantic, were hit similarly and the fall in average freight rates was broadly in line with the fall in CCFI. OOIL only reports full set results semi-annually. On the $2.2bn or 21% HoH fall in revenue, OOIL's 2H 2022 net profit may also fall about $2bn or 38% HoH. OOIL usually reports past year's

© 2024 Linerlytica (ver. 1.0.19). All rights reserved.
Liner Analytics Pte. Ltd.