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Shipping giant OOIL delivers interim US$56m loss, against US$239m profit last time

Chairman Tung Chee Chen says falling consumer demand and investment meant cargo volume growth ‘has been uninspiring’

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The christening ceremony of vessel OOCL Hong Kong at Hong Kong International Terminals, the largest container vessel to go on Hong Kong's ship register. OOIL has recorded a loss of US$56.66 million in six months ended June 2016, compared to a profit of US$238.63 million in the same period last year. Photo: SCMP
Celia Chenin Shenzhen
Shipping giant Orient Overseas International has announced a slump in first-half profit, which it blamed on global weak economic growth and sluggish investment sentiment.
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OOIL, owned by the family of former chief executive Tung Chee-hwa, recorded a loss of US$56.66 million in six months ended June 2016, compared to a profit of US$238.63 million in the same period last year.

The interim loss per share was 9.1 US cents, compared with interim earnings per share of 38.1 US cents for the first half of 2015.

“Weak economic growth in many key economies has constrained consumer demand, and

global uncertainty seems to have given rise to some level of slowdown in corporate and

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government investment,” the company’s chairman Tung Chee Chen said in the result statement.

“Consumer demand and investment are the key drivers of demand in our industry, and in this context it is no great surprise that cargo volume growth has been uninspiring.”

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