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. The results for the period reflect this.”
“It seems that healthier demand growth has reappeared, at least to some extent. While we must wait to see how enduring this will be, this is a very welcome change from recent years. Improving data, and moreover improving sentiment, in many of the large economies gives us some comfort as to the sustainability of this better environment”, added Tung.
“In tandem with this gradual improvement in demand, we note the slowdown in supply side growth. Scrapping occurred at a record rate in 2016, continuing at approximately the same pace in 2017 year to date. Orders of newbuildings have been notably absent this year so far”, commented Tung.
“This steady improvement in the supply demand balance is not a sign of a booming market – we are far from that. However, it does mean that for the first time since the onset of the Global Financial Crisis, the supply demand balance is not worsening year on year. This is a significant shift, and if it holds, then the industry will at least have the chance to start to absorb some of the excess capacity that exists”, added Tung.