Name: SCMP
Telephone: +852-2680-8888

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

helpersCheckIsPostiesArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

moreOnThisArticles

urlAlias

commentCount

sponsorType

authorLocations

authors

paywallTypes

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

socialHeadline

headline

flag

firstTopic

glossary

flattenTypeIds

publishedDate

additionalInfoBoxes

images

image

relatedLinks

relatedNewsletters

__typename

createdDate

sponsor

factSheets

series

knowledgeQuestion

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

copyrighted

customTimezone

liveContents

Jasper Moiseiwitsch

Jing Yang

Orient Overseas (International) Ltd (OOIL) returned to the black in the first half of the year on the back of a pickup in the container shipping industry and stringent cost controls.
The holding company of Orient Overseas Container Line, one of the world's largest container shipping lines, said profit attributable to shareholders in the first months to June was US$181.3 million, against a loss of US$15.3 million in the same period last year.
Sales rose 7 per cent to US$3.2 billion. Revenue at subsidiary OOCL rose 4 per cent.
The outlook for the container shipping industry, in the doldrums for some time, is on course for a mild recovery. OOCL said it expected demand for ships to grow 5.2 per cent this year and supply rise 5.6 per cent.
"The company's results are above our expectations," said Rahul Kapoor, the equity research director at maritime consultancy Drewry. "The current peak season is turning out to be a robust one, so I expect the second half to be even better.
"We are medium-term positive on the outlook of the container shipping industry and OOCL, which we see as the best play in Asia shipping on the back of recovery in container shipping markets."
Still, OOCL, which industry consultant Alphaliner ranks as 11th largest in the world by fleet size, is treading with caution and urging competitors not to cut prices.
"All carriers should take stock and look for better ways to improve their cost structures and service quality. It is only through product quality that carriers can achieve differentiation in pricing," it said.
Company spokesman Stanley Shen said OOCL was looking to order new mega vessels, but declined to elaborate. The company has four 8,888 teu vessels on order after taking delivery of two 13,000 teu vessels in the first half.
The industry expects the G6 alliance, in which OOCL is a member, to order container ships capable of carrying 18,000 teu or more as part of the growing trend for larger vessels.
OOIL's income from property holdings also improved sharply. Hui Xian property trust contributed US$41.4 million to profit, compared with US$9.1 million a year earlier.
OOIL proposed an interim dividend of 7.5 US cents per share. There was no payout for the same period last year.
Last month, a French court found OOCL guilty of involuntary manslaughter in the death of Courtenay Allan, a 37-year veteran of the company who fell into a lift shaft aboard OOCL Montreal in the French port city of Le Havre 11 years ago.
Shares of OOIL yesterday closed 4.65 per cent higher at HK$42.80 in a market that rose 1.29 per cent.


SMIC, Orient Overseas included in Hang Seng Index revamp as compiler falls short of mid-2022 stocks expansion target

Hong Kong shipping giant Orient Overseas weathers US-China trade war, steers to US$139 million first-half profit

US security concerns force Cosco-owned Orient Overseas to sell Long Beach port in California

OOIL sails back to profit in the first half on industry recovery

Orient Overseas

OOIL turns around to a US$181m profit

OOCL has urged industry players to look for better ways to improve their cost structures and service quality. Photo: Bloomberg

Business

Companies

Shipping giant remains cautious on outlook after swinging back from a loss to surprise the market with a first-half gain of US$181.3 million


Orient Overseas (International) Ltd (OOIL) returned to the black in the first half of the year on the back of a pickup in the container shipping industry and stringent cost controls.
