HONG KONG's Orient Overseas (International) Ltd (OOIL), the parent company of container carrier Orient Overseas Container Line (OOCL) parent company records a smaller profit in 2018 than the year before
HONG KONG's Orient Overseas (International) Ltd (OOIL), the parent company of container carrier Orient Overseas Container Line (OOCL) parent company records a smaller profit in 2018 than the year before. OOIL reported a profit attributable to equity holders of US$108.2 million in 2018 compared to $137.7 million the previous year despite higher operating profits and revenues.OOIL reported an operating profit of $262.94 million on revenues of $6.57 billion in 2018, compared to $238.16 of operating profit on $5.98 billion in revenues in 2017.
Compared to 2017, OOIL in 2018 had more than $100 million in additional business and administrative expenses ($550.73 million), nearly $46 million more in finance costs ($143.2 million) and about $46 million more in taxation ($58.62 million), but it made $32.72 million from discontinued operations in 2018 compared to an almost $10 million loss the previous year.
'Looking back to 2018, the global economy continued to recover, but growth momentum slowed down,' OOIL said in a press release.
'Several negative economic factors, such as the concentration of vessel deliveries in the first half of the year, the significant rise of the oil price and escalating trade frictions, resulted in a decrease in the overall financial performance of the container liner industry as compared to 2017, especially in the first half of the year.'
OOIL was acquired by COSCO in July, which made the combined companies the world's third-largest container carrier. The combined group operated a fleet of 477 containerships with a total shipping capacity of 2.76 million TEU.
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