HONG Kong's Orient Overseas (International) Limited, whose principal holding is Orient Overseas Container Line (OOCL), suffered a 320 per cent year-on-year decline in net profit to US$1.36 billion drawn on revenues of $19.82 billion, which fell 627 per cent.
'The exceptionally robust market we witnessed during the pandemic is now far behind us, and we have returned to a rather normal yet uncertain 2023,' said the statement accompanying the results.
Despite this, OOIL, now a Casco unit, said its financial position remains one of the most robust in the industry with net cash of $5.3 billion as at December 2023.
The board recommended that the dividend for full year 2023 be 50 per cent of the profit attributable to equity holders.
'The cargo demand recovery was not as strong as many anticipated, affected by high inflation, slowdown in economic growth of advanced economies, as well as the consumer spending patterns shifting in the post-pandemic,' the statement said.
'As carriers' schedule became more reliable, retailers opted towards a just-in-time approach when restocking, thereby delaying demand to a certain extent. On the supply side, with the alleviation of bottlenecks, and the continuous delivery of new ships, the change in supply has undoubtedly exceeded in demand and the continuous decline of freight rates,' it said.
'So far, we have taken delivery of seven newly built 24,188 TEU container ships. The delivery of these new ships will not only help to increase the capacity and also realize the group's endeavours to modernize its fleet.
SeaNews Turkey
'The exceptionally robust market we witnessed during the pandemic is now far behind us, and we have returned to a rather normal yet uncertain 2023,' said the statement accompanying the results.
Despite this, OOIL, now a Casco unit, said its financial position remains one of the most robust in the industry with net cash of $5.3 billion as at December 2023.
The board recommended that the dividend for full year 2023 be 50 per cent of the profit attributable to equity holders.
'The cargo demand recovery was not as strong as many anticipated, affected by high inflation, slowdown in economic growth of advanced economies, as well as the consumer spending patterns shifting in the post-pandemic,' the statement said.
'As carriers' schedule became more reliable, retailers opted towards a just-in-time approach when restocking, thereby delaying demand to a certain extent. On the supply side, with the alleviation of bottlenecks, and the continuous delivery of new ships, the change in supply has undoubtedly exceeded in demand and the continuous decline of freight rates,' it said.
'So far, we have taken delivery of seven newly built 24,188 TEU container ships. The delivery of these new ships will not only help to increase the capacity and also realize the group's endeavours to modernize its fleet.
SeaNews Turkey