Ooil News

Cosco-owned  Hong Kong containerline  Orient Overseas (International) Limited (OOIL)  said its chief executive Huang Xiaowen has resigned and Wang Haimin will succeed him.Executive director Zhang Wei has also resigned. OOIL said Huang and Zhang resigned due to "work commitments."Wang Haimin, aged 47, comes from Cosco, which recently acquired the Hong Kong-based company.Wang was elevated to the top management as a vice-president of Cosco Shipping in February, and became the vice-chairman of Shanghai-and Hong Kong-listed Cosco Shipping Holdings, parent of OOIL.Wang graduated from Shanghai Maritime University, major in Transport Economics…

Hong Kong-based Orient Overseas International Ltd. (OOIL) said that it will sell Long Beach Container Terminal (LBCT) to a consortium led by Australia’s Macquarie Group for $1.78 billion.OOIL, which is majority-owned by Cosco Shipping Holdings, was the terminal operator under a lease agreement with the port. It has entered into a Sale and Purchase Agreement to sell 100% of LBCT  to the consortium led by Macquarie Infrastructure Partners (MIP). LBCT LLC operates the container terminal in the Port of Long Beach, California, United States.The sale is undertaken pursuant to the National Security Agreement entered into by OOIL, Faulkner Global Holdings Limited, a subsidiary of COSCO SHIPPING Holdings Co., Ltd, and the U.S. Department of Homeland Security and the U.S.

Gold Talent, Cosco Shipping Logistics and JD Logistics  entered into a cooperation agreement to jointly invest in online logistics platform EShipping through a joint venture (JV) formation.Gold Talent is a wholly-owned subsidiary of Hong Kong-based logistics major Orient Overseas (International) Limited (OOIL). Cosco Shipping Logistics is an affiliate of Chinese state-owned Shipping and logistics services supplier company China Cosco Shipping Corporation Limited. JD Logistics is the delivery arm of Chinese e-commerce giant JD.com.The JV formation will involve the injection of the JD Onshore Company into the JV by JD Logistics and the acquisition of the JD Offshore Company by the JV funded by JD Logistics…

China's COSCO Shipping Holdings Co Ltd on Thursday said first-half profits fell 97.8 percent as it grappled with higher costs and a slide in freight rates.China's largest shipping group, which has bought a Hong Kong peer to become the world's third-largest container liner, said January-June net profit was 40.8 million yuan ($6 million), down from 1.86 billion yuan in the same period last year.After a prolonged slump, the global container shipping industry entered a period of recovery last year. However, COSCO said the delivery of a number of new large ships had worsened the industry's current oversupply of vessels, pressuring rates.In July, a key U.S.

The merger of Orient Overseas (International) Limited (OOIL) and COSCO Shipping Holdings offers can effectively combine the respective strengths of both and optimize our global network, thereby achieving greater economies of scale and synergies,  incoming Chairman of OOIL, Captain Xu Lirong, said commenting on the deal.This transaction is a common choice for both sides to follow the development trend of container shipping industry and realize sustainable development, he added."I would like to extend a warm welcome to OOIL for joining COSCO SHIPPING and express my heartfelt gratitude and great respect to Tung Chee Chen for his leadership and significant contributions to the impressive results achieved by OOIL over the past years.

China’s Cosco Shipping Holdings Co received the clearance  of a U.S. national-security review body, removing a major overhang of the USD 6.3 billion deal of taking over Orient Overseas International Ltd (OOCL). According to a Reuters' report, the U.S. Committee on Foreign Investment in the United States had notified it that it does not have any outstanding security issues following an agreement with the U.S. government to divest the Long Beach container terminal business to a third party. Cosco said the U.S. regulator has cleared its planned takeover of the Hong Kong-based container shipping operator, after Cosco agreed to place a large container terminal in Long Beach, Calif., into a U.S.-run trust and put it up for sale.

A U.S. national security review has raised concerns about a takeover by China's COSCO Shipping Holdings Co of a large container terminal in Long Beach, California, the Wall Street Journal reported on Friday.The terminal is part of COSCO's planned $6.3 billion deal to buy shipping firm Orient Overseas International Ltd (OOIL) , the Journal reported, citing people familiar with the matter.COSCO executives met with officials at the Committee on Foreign Investment in the United States (CFIUS) this week and proposed to divest or carve out the Long Beach terminal to ease U.S.

Orient Overseas International (OOI) has announced a profit attributable to equity holders for 2017 of US$137.7 million, compared to a loss of US$219.2 million in 2016. Earnings per ordinary share in 2017 was US22.0 cents, whereas loss per ordinary share in 2016 was US35.0 cents. The Chairman of OOIL, C C Tung, said, “The economic backdrop for 2017 was more robust than forecasters had expected. Following a decade of low growth, we saw healthier performance in both GDP and trade volumes across most of the world’s major economies. “This synchronicity of growth, a rare phenomenon in recent memory, may bode well for the sustainability of the recovery,” noted Tung. “However, growth on the supply side continues across the trade lanes.

Deal waiting for green light from CFIUS, China regulators; COSCO says keeping close eye on US-China trade tensions. COSCO Shipping's planned acquisition of Orient Overseas Container Line (OOCL) is on track to be completed by the end of June, the company's vice chairman Huang Xiaowen said on Tuesday. COSCO is still answering questions from the Committee on Foreign Investment in the United States on the deal, and is also awaiting a number of domestic approvals, Huang told a press conference in Shanghai. He said the deal needed U.S. approval as OOCL had some assets in that country. "Up to now we are quite confident to push forward this acquisition ... it's progressing normally," he said.

COSCO Shipping Holdings Co Ltd said it expects further growth in container shipping demand thanks to a continued recovery in global trade, after reporting it had swung to a net profit of $429.42 million for 2017. COSCO's optimism, which comes after Hong Kong peer Orient Overseas International Ltd (OOII) reported a profitable year, indicates that a recovery in the global container shipping industry could be here to stay. Shipping saw signs of improvement in 2017 after enduring its longest ever slump wrought by overcapacity and slow economic growth…

Orient Overseas International (OOIL) said it reported a profit attributable to equity holders of US$138 million for the year ended 31 December 2017, as compared to the loss of US$219 million for the previous financial year. Earnings per ordinary share in 2017 was US22.0 cents, whereas loss per ordinary share in 2016 was US35.0 cents. The Chairman of OOIL, C C Tung, said, “The economic backdrop for 2017 was more robust than forecasters had expected. Following a decade of low growth, we saw healthier performance in both GDP and trade volumes across most of the world’s major economies. “This synchronicity of growth, a rare phenomenon in recent memory, may bode well for the sustainability of the recovery,” noted Tung. “However, growth on the supply side continues across the trade lanes.

Orient Overseas (International) Limited (OOIL), a company with principal business activities in container transport (OOCL) and logistics services (OOCL Logistics), is delighted to announce its joining of the United Nations Global Compact (UNGC). "As a signatory, we are honored to be the first Hong Kong-based enterprise in the international transportation and logistics industry to take part in this important initiative," said a statement from OOIL. Through our business strategies, operation, corporate culture, and continual engagement in the Sustainable Development Goals (SDG) set out by United Nations, we are committed to supporting the Ten Principles of the UNGC that sets out fundamental responsibilities in areas such as human rights, labour, environment and anti-corruption.

Orient Overseas (International) Limited (OOIL) and its subsidiaries have announced a profit attributable to equity holders of US$53.6 million for the six-month period ended 30th June 2017, compared with loss of US$56.7 million for the same period in 2016. The profit attributable to equity holders for the first six months of 2017 included investment income of US$21.2 million from Hui Xian and a net fair value gain of US$27.7 million on the revaluation of Wall Street Plaza. Earnings per ordinary share for the first half of 2017 were US8.6 cents, whereas loss per ordinary share for the first half of 2016 was US9.1 cents. The Chairman of OOIL, C C Tung, said, “In the first half of 2017, we have begun to see a slow and steady recovery from the tough market conditions that characterised 2016.

Logistics entrepreneur Klaus-Michael Kuehne has raised his shareholding in German container shipping line Hapag-Lloyd to 17.15 percent from 14.1 percent, his Swiss-based Kuehne Holding said on Thursday. Kuehne was taking advantage of shares being sold by TUI , which on Tuesday completed the disposal of its remaining 7.9 percent of shares to focus on cruise ship acquisitions. TUI's move allowed Kuehne to expand its investment in Hapag-Lloyd, which it said it considered to be long-term. "The ongoing shipping industry consolidation offers Hapag-Lloyd new growth perspectives and strengthens its positions among the most important shipping companies across the world," Kuehne Holding executive chairman Karl Gernandt said.

Orient Overseas International (OOIL) and its container unit OOCL have a good track record for above-average profits in a challenging market and a reputation for being a very well-run company, earning the moniker “The Perfect Bride” by Drewry Maritime Financial Research. Retaining the management team, processes and systems is a wise move and could be of enormous value to Cosco Shipping Holdings (Cosco), Drewry said. OOCL has an owned-fleet of 66 containerships aggregating approximately 440,000 teu. It is a young and modern fleet with an average age of 7.1 years and average nominal capacity of 6,600 teu. It is introducing its first 21,000 teu vessel with five more to deliver and options for another six which it could easily exercise.

COSCO Shipping Holdings Co Ltd saw its stock climb on Monday after bidding $6.3 billion for a Hong Kong peer, a deal that would see it become the world's third-biggest container shipper and underline China's supply-chain ambitions. The offer for Orient Overseas International Ltd (OOIL) comes as China's government pushes to raise the country's profile in global shipping, which dovetails with its Belt and Road initiative aimed at increasing China's influence over distribution from Asia to Europe. Beijing merged two shippers last year to form COSCO Shipping which, after the latest deal, will rise from fourth to rank only behind Denmark's Maersk Line and Switzerland's Mediterranean Shipping Co (MSC).

Chinese Shipping Major Cosco Group has agreed in principle to buy its shipping rival and  Hong Kong’s No. 1 box mover, Orient Overseas Container Line (OOCL), in deal that could be valued around USD 6.3 billion. The takeover will catapult Cosco the world’s third-biggest container carrier after Denmark’s Maersk Line and Swiss-based Mediterranean Shipping Co. In a press release, the State-owned Cosco said that it will pay shareholders of OOCL,, HK$78.67 a share in cash, a 31 percent premium over the stock’s last closing price. According to Reuters,  OOIL's controlling shareholders had on Friday agreed to sell their 68.7 percent stake at that price to COSCO Shipping, which is making the offer with Shanghai Port International Group (SIPG) that will take 9.9 percent, they said.

Orient Overseas (International) Ltd (OOIL) whose principal holding is its container unit OOCL, posted a 10.3% fourth quarter year-on-year revenue increase in 2016 to US$1.3 billion. The total volumes were 20.2% up from the same period last year. Loadable capacity increased by 14.0%. The overall load factor was 4.4% higher than the same period in 2015. Overall average revenue per teu decreased by 8.2% compared to the fourth quarter of last year. For the full year of 2016 (ended 31st December 2016), total volumes increased by 9.1% over the same period last year and total revenues recorded a 9.9% drop. Loadable capacity increased by 5.9%. The overall load factor was 2.5% higher than the same period in 2015.

China Cosco Shipping Corporation Limited (Cosco Shipping) and Orient Overseas (International) Limited (OOIL)  denied reports that they are in negotiations for Cosco Shipping to take over OOIL subsidiary Orient Overseas Container Line (OOCL). Rumors about a deal for OOCL have grown over recent months, amid market consolidation and shake-up as the industry struggles to recover from a slump in freight rates linked to a glut of ships and slowing Chinese economic growth, reports Reuters. OOIL has denied knowledge of any potential bid for its container shipping business OOCL. Responding to reports in the Wall Street Journal and the Chinese media that Cosco Shipping was readying a bid in excess of $4bn for OOCL…

Orient Overseas (International) Ltd recorded an almost 5% increase in profit for the full year 2015, despite the weakness in the container shipping market, thanks in part to yield and cost management efforts. Though the year started well for the Hong Kong corporate, supply and demand imbalance eventually took its toll, say market analysts. OOIL said its profit attributable to equity holders for the year ended 31 December 2015 rose 4.9% year-on-year to US$284 million. Basic and diluted earnings per share were US45.4 cents. The revenue was US$5,953 million, a decrease of 8.7% from a year earlier. The Chairman of OOIL, C C Tung, said, “At the start of 2015, container shipping companies enjoyed unforeseen conditions that were, almost without exception, positive.

Orient Overseas (International) (OOIL), the parent company of Orient Overseas Container Line (OOCL), said its profit had risen 32 percent year on year (y/y) to $238.6 million in the first six months of 2015, due cheaper fuel costs helped it tide over a slump in freight rates. However, revenue declined 6 percent to US$3 billion during the same period as overcapacity and weak demand continued to plague the container shipping industry, a stock filing of OOIL said on 10 August. “The volatility of freight rates indicates how competitive the industry is. The theme of the industry this year is carriers’ efforts in cost-efficiency and yield management amid a weak market,” said acting chief financial officer Alan Tung Lieh-sing.

The downturn in the container industry has taken a toll on the half-year results from Hong Kong-based Orient Overseas (International) Ltd, the parent of Orient Overseas Container Lines (OOCL). OOCL turned to a $56.7m loss in the first half (for the six-month period ended 30th June 2016) compared with profit of US$238.6 million for the same period in 2015. There has been a 16% plunge in revenue to $2.56bn from $3.04bn previously as a weak market drove down revenue per teu. The loss after tax and non-controlling interests attributable to equity holders for the first six months of 2016 included investment income of $25.2 million from Hui Xian and a net fair value gain of $9.7 million on the revaluation of Wall Street Plaza (after capital expenditure net off).

Drewry’s Z-score carrier financial stress index sunk to its lowest ever point following the first-half 2016 results. After Hanjin’s bankruptcy shippers are demanding more financial transparency from carriers. There is still much work to be done to clean up the logistical chaos created by Hanjin’s bankruptcy, but even so there are lessons from the sorry mess that need to be learned to avoid a repeat occurring. Firstly, all stakeholders must understand that no carrier is too big to fail. The hitherto expectation that some white knight would rescue an ailing carrier has been erased forever. Secondly, while Hanjin’s financial position was at the extreme edges and its demise is not expected to create a domino effect…