OOIL turns around to a US$181m profit
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.
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.
