OOIL back in black with US$1.8 billion net profit

HONG KONG's Orient Overseas (International) Limited has posted a US$1.86 billion net profit in 2010 against a loss of $402.3 million in 2009, the company announced also declaring its container volumes had nearly returned to pre-downturn highs of 2008.


Results include $1 billion profit from the sale of OODL, the group's former mainland property business, the absence of which leaves the company free to focus on its core container business, increase market share and put more tonnage on the water.


Profit attributable to shareholders from Orient Overseas Container Line (OOCL) the OOIL Group's principal holding, was $841.6 million against a loss of $376.9 million in 2009.


Said OOIL chairman CC Tung: "2010 was another extraordinary year for the container shipping. The extent of the rebound has been beyond all expectations. Unusually strong demand and positive trading conditions saw our liftings near 2008 levels. Improvements in freight rates combined with cost savings produced a record profit."


OOCL box volume increased 15 per cent year on year. Volume and revenue increases were amplified in the last three quarters of 2010 due to the very low base of the previous year, said the OOIL statement.


"The group is well positioned to grow the OOCL business - enhancing its market position and maintaining superior profit margins. The group will invest in the expansion of box fleets and in terminal infrastructure to support demand growth," said Mr Tung.


Near the end of 2010, OOCL placed an order for two additional vessels with capacity of 8,888 TEU each from Hudong-Zhonghua Shipyard (Group) Co Ltd in China. With this new order, it has eight new buildings of 8,888 TEU each from Hudong for delivery between 2011 and 2014, with the first two vessels due with in a few months.


"The outlook for 2011 remains positive though the level of demand growth is unlikely to be repeated. While global economic growth in 2011 is likely to be muted, we do expect supply and demand to be in near balance," he said.
(Source:http://www.schednet.com)