Orient Overseas (International) announces loss of US$56.7 million for H1 2016
Orient Overseas (International) Limited and its subsidiaries today announced a loss attributable to equity holders, after tax and non-controlling interests, of US$56.7 million for the six-month period ended 30th June 2016, compared with profit of US$238.6 million for the same period in 2015.
The loss after tax and non-controlling interests attributable to equity holders for the first six months of 2016 included investment income of US$25.2 million from Hui Xian and a net fair value gain of US$9.7 million on the revaluation of Wall Street Plaza (after capital expenditure net off).
Loss per ordinary share for the first half of 2016 was US9.1 cents, whereas earnings per ordinary share for the first half of 2015 were US38.1 cents.
The average price of bunker recorded by OOCL in the first half of 2016 was US$186 per ton compared with US$352 per ton for the corresponding period in 2015. In the first half of 2016, fuel costs decreased by 41% when compared to the corresponding period in 2015.
In the first half of 2016, no new-build vessels were delivered, and no new orders were placed by the Group. For six 20,000 TEU class new-build vessels contracted with Samsung Heavy Industries Co. Ltd. in South Korea, they are expected to be completed by the end of year 2017.
Compared to the first half of 2015, OOCL liner liftings increased by 5% and load factor by 1%, but revenue dropped by 17%. Average revenue levels in some trade lanes reached new post-Global Financial Crisis lows, with an average revenue per TEU drop of 21% in the first half.
As at 30th June 2016, the Group had total liquid assets amounting US$2.3 billion and a total indebtedness of US$4.0 billion. Net debt as at 30th June 2016 was therefore US$1.7 billion compared with US$1.6 billion as at the 2015 year end.
OOIL owns one of the world’s largest international integrated container transport businesses, which trades under the name “OOCL”. With more than 320 offices in 70 countries, the Group is one of Hong Kong’s most international businesses. OOIL is listed on The Stock Exchange of Hong Kong Limited.
