OOIL H1 profit down 19.4pc to US$102m despite 3.9pc rise in revenue
ORIENT Overseas International Line (OOIL), the parent company of Orient Overseas Container Line (OOCL) and a subsidiary of Cosco, has posted a profit attributable of equity holders of US$102
ORIENT Overseas International Line (OOIL), the parent company of Orient Overseas Container Line (OOCL) and a subsidiary of Cosco, has posted a profit attributable of equity holders of US$102.1 million for the first half of this year, 19.4 per cent down from the profit of $139.0 million in the same period last year.
Total revenue for the six-month period amounted $3.43 billion, a rise of 3.9 per cent from $3.30 billion in the same period in 2019. Total volumes carried by OOCL's vessels were down 2.6 per cent year on year to 3.29 million TEU.
'Compared to the first half of 2019, OOCL total liner liftings decreased by 2.6 per cent, but revenue per TEU increased by 6.0 per cent. Negative market growth occurred on several trades, but in some cases this drop in liftings was outpaced by an improvement in the freight rates.'
The Hong Kong-based company explained that faced with dire predictions, OOCL reacted 'by paying careful attention to customer demand and reviewing and calibrating our services accordingly on a timely basis.'
OOIL financial outcome was also helped by a fall in fuel prices and the low interest rate environment. The company said in its statement that it 'continues to benefit from its co-operation with the wider Cosco Shipping group'.
Looking ahead, the Hong Kong-based shipping company said: 'The pandemic will have long-lasting effects, and the epidemic prevention and control measures adopted in many countries have become part of daily life.
'Thanks to the tremendous efforts of all parts of society, as well as economic stimulus packages, many economies have re-emerged from lockdowns and have restarted activity. Against the difficult backdrop, China has managed to expand its GDP 3.2 per cent year on year in the second quarter of 2020, a sign that production activity is steadily improving, which gives us some degree of hope for a more widespread recovery.
'While the pandemic could continue to bring uncertainties in the rest of the year, tensions in global trade relationships or other factors such as oil prices could also have an impact on our business in the coming months. In this situation, the only rational response is to remain cautious.'