HONG KONG's Orient Overseas (International) Ltd (OOIL), parent of OOCL, posted a first half net profit of US$181.3 million, drawn on revenues $3.23 billion, which increased seven per cent.
This compares to a year-on-year first half loss of $15.3 million in 2013.
"The global economic environment seems to be positioning for a shift in the right direction despite the disappointing headline figures in the first half," said OOIL chairman CC Tung.
"Despite disappointing figures, consumer spending in the US continued to recover during the first quarter, and the economy is expected to have performed better during the second quarter," he said.
"In Europe, despite the weak GDP figures, the European Central Bank is responding in a proactive manner by cutting lending rates to 0.15 per cent, and preparing a stimulus programme," said Mr Tung.
He said the industry saw a disappointing first half and a more encouraging second half in 2013.
OOCL's lifting for the first half year increased 10 per cent and load factor increased five points, thereby generating an overall revenue increase of four per cent over the same period last year, the company said.
While rates across various trade lanes were mixed against first half last year, additional liftings made up for the revenue shortfall. The first half saw a robust growth in cargo demand in European and US markets.
OOCL achieved eight per cent reduction in bunker cost against a three per cent increase in capacity and 10 per cent increase in lifting.
During the first six months of 2014, OOCL took delivery of two newbuildings, both of which are 13,208-TEU vessels.
"We expect to take delivery of another four 8,888-TEU SX Class vessels in 2015. These newbuildings represent the end of our last round of newbuilding orders," said Mr Tung.
On box shipping prospects, Mr Tung said: "Despite the gradual recoveries of the developed economies, demand growth is not expected to return to the pre-global financial crisis levels over the short to medium term.
"Unless bunker prices can decline to a more reasonable level, the drive for scale and fuel efficiency will translate into continued newbuilding projects. As a result, overcapacity will likely persist over the short to medium term," he said.
MARKETS
12 August 2014 - 20:20
OOIL first half profit up US$181.3 million after $15.3 million loss
HONG KONG's Orient Overseas (International) Ltd (OOIL), parent of OOCL, posted a first half net profit of US$181.3 million, drawn on revenues $3.23 billion, which increased seven per cent.
MARKETS
12 August 2014 - 20:20
OOIL first half profit up US$181.3 million after $15.3 million loss
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