Hong Kong's OOCL Slides From Profit to Loss in H1 2013

Marine Link
Tuesday, August 13, 2013
OOCL Shenzhen: Photo courtesy of OOCL

Orient Overseas (International) Limited and its subsidiaries announce a loss attributable to equity holders, after tax and non-controlling interest, of US$15.3 million for the six-month period ended 30th June 2013 compared with a profit of US$116.5 million for the same period in 2012.

Financial & operational highlights
•    Operating profit decreased to US$3 million
•    OOCL liftings decreased 1.5% to 2.55 million TEUs
•    OOCL Freight Revenue per TEU was down 2.2%
•    Liquid Assets exceeded US$2.37 billion as at 30th June 2013

The Chairman of OOIL, Mr. C C Tung, said, “The global economy continued to be uncertain during the first half of 2013, and the container transportation industry faced the challenges of weak cargo growth, capacity oversupply and high bunker costs. Market growth across major trades grew only by approximately 2.2% during the first half of 2013. While the markets expect a more robust second half on the demand side, the industry is still expecting a full year newbuilding supply increase of 10% in TEU terms or 270 new ships in 2013. These factors culminated in a disappointing first half for the Group.”

“The operating environment in the first half of 2013 was characterised by the deterioration of freight rates from the last quarter of 2012, especially on the Asia-Europe trade, and the extremely competitive freight rates recorded in both the Trans-Pacific trade and the Intra-Asia trade. A series of rate increases during the second quarter in the market on the East West trades generally could not be sustained”, added Mr. Tung.

OOCL’s total liftings for the first half of 2013 were down 1.5% compared to the corresponding period last year. Average freight revenue per TEU for the period was US$1,088, a decrease of 2.2% over the 2012 first-half average of US$1,112 per TEU. The slow growth in volume and the competitive freight rate environment resulted in reduced contribution for the Group.

During the first half of 2013, the Group took delivery of two 8,888 TEU ‘SX’ Class vessels and five 13,200 TEU ‘Mega’ vessels. Mr. Tung said, “As part of our retonnage program, we ordered ten 13,200 TEU mega newbuildings in 2011 and disposed of six mid 1990s built 5,400 TEU vessels in 2011 and 2012. Out of the ten newbuildings, four are chartered to our alliance partner on a short term basis.

All ten vessels, the remaining five to be delivered in the second half of 2013 and 2014, are expected to improve our cost structure given their size and design. In addition, we will take delivery of our remaining four 8,888 TEU vessels in 2014 and 2015. These vessels, originally contracted for delivery this year, were delayed as part of our joint initiative with the shipyard to improve main engine efficiency. In total, we expect enhanced competitiveness in the trades where all these vessels are deployed.”

 


People & Company News

Hellenic Petroleum Profits Rise on Higher Exports

Hellenic Petroleum, Greece's biggest oil refiner, posted a 20 percent rise in second-quarter core profit on Thursday, with higher exports offseting lower refining margins.

MN100: TPG Marine Enterprises, LLC

The Company: TPG Marine Enterprises, LLC is an operations, logistics and consulting company that specializes in all aspects of cargo movement on the Inland Waterways System.

MN100: R.W. Fernstrum & Company

The Company: R.W. Fernstrum & Company set the standard in marine heat exchangers over 65 years ago, building a reputation focused on innovation. Today, its commitment is to continual improvement,

Finance

Hellenic Petroleum Profits Rise on Higher Exports

Hellenic Petroleum, Greece's biggest oil refiner, posted a 20 percent rise in second-quarter core profit on Thursday, with higher exports offseting lower refining margins.

China COSCO Falls to H1 Net Loss

China COSCO Holdings Co Ltd fell to a first-half loss hurt by a persistent slump in the global container market, the world's fourth largest container shipper said on Thursday.

Weak Freight Rates push Grindrod to H1 loss

Africa's biggest shipping group Grindrod reported a first-half loss on Thursday, pressured by low global growth and declining dry bulk shipping rates but it expects

Container Ships

SMM 2016: World Premieres from around the Globe

Some 50,000 trade visitors from the whole of the world are expected in Hamburg for the start of SMM in less than two weeks. And once again, it is fully booked – with a total of more than 2,

China COSCO Falls to H1 Net Loss

China COSCO Holdings Co Ltd fell to a first-half loss hurt by a persistent slump in the global container market, the world's fourth largest container shipper said on Thursday.

New Container Equipment Prices to Fall to Record Lows

Cheaper production and material costs as well as weaker demand has driven the price of new container equipment down to record lows and is forecast to fall  further during 2016,

 
 
Maritime Contracts Naval Architecture Offshore Oil Pipelines Pod Propulsion Port Authority Salvage Ship Electronics Ship Repair Ship Simulators
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1124 sec (9 req/sec)