Orient Overseas (International) Ltd announces 2017 interim results
Orient Overseas (International) Limited and its subsidiaries today announced a profit attributable to equity holders of US$53.6 million for the six-month period ended 30th June 2017, compared with loss of US$56.7 million for the same period in 2016.
The profit attributable to equity holders for the first six months of 2017 included investment income of US$21.2 million from Hui Xian and a net fair value gain of US$27.7 million on the revaluation of Wall Street Plaza.
Earnings per ordinary share for the first half of 2017 were US8.6 cents, whereas loss per ordinary share for the first half of 2016 was US9.1 cents.
Compared to the first half of 2016, OOCL liner liftings increased by 7% and load factor by 1%. Revenue levels per TEU increased by 8%.
The average price of bunker recorded by OOCL in the first half of 2017 was US$306 per ton compared with US$186 per ton for the corresponding period in 2016. Both the fuel oil and the diesel oil price have rebounded from their lowest levels, leading to the increase in bunker costs by 64% in the first half of 2017 compared with the corresponding period of 2016.
During the first half of 2017, the Group took delivery of the first of its 21,413 TEU series of newbuildings from Samsung Heavy Industries in South Korea, namely the ‘OOCL Hong Kong’, marking an important milestone for the Group. With her carrying capacity of 21,413 TEU, she is the largest container vessel in the world. The delivery of the remaining five newbuildings of the same series is expected to be completed by the end of the first quarter of 2018. No orders for newbuildings were placed in the first half of 2017.
OOCL Logistics revenue and contribution for the first half of 2017 increased by 5% and 6% respectively compared with the same period last year. Due to improving global market conditions, the contribution from International Supply Chain Management Service increased by 13% and the contribution from Import/Export Services increased by 1%. Competition in the transportation sector in China remains very challenging, but we were able to counter the contribution drop in transportation with great business improvement in the long-term leased warehouses sector in China, resulting in only a 3% contribution drop of overall Domestic Logistics business.
As at 30th June 2017, the Group had total liquid assets amounting US$2.3 billion and a total indebtedness of US$4.2 billion. Net debt as at 30th June 2017 was therefore US$1.9 billion, which remains at the same level as in 2016 year-end.
OOIL owns one of the world’s largest international integrated container transport businesses, which trades under the name “OOCL”. With more than 330 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.
