OOCL achieves higher full year revenues and gross profit in 2024
Hong Kong-based shipping company Orient Overseas Container Line (OOCL) generated revenues totalling US$10.702 billion in 2024, compared to US$8.344 billion in 2023.
Operating profit in 2024 also increased to US$2.625 billion from US$1.406 billion in the previous year.
Container Transport and Logistics business reported operating income of US$2.666 billion, representing an operating income margin of approximately 25 per cent.
Liner liftings grew to 7.6 million TEUs in 2024, compared to 7.3 million TEUs in 2023.
OOCL said its group financial position remains one of the most robust in the industry, net cash of US$6.5 billion as of December 31, 2024. Cash and bank balances meanwhile stood at US$7.9 billion as of December 31, 2024.
Earnings per ordinary share in 2024 was US$3.90, whereas earnings per ordinary share in 2023 was US$2.07.
The board of directors has recommended that the dividend for full year 2024 is approximately 50 per cent of the profit attributable to equity holders at approximately US$1.288 billion, with proposed payment of a final dividend of US$1.32 per ordinary share for 2024.
The final dividend will be payable in cash in either US dollars, Hong Kong dollars (converted according to the exchange rate of US$1 to HK$7.8) or Renminbi (converted at the average of middle exchange rate between US dollars and Renminbi as announced by the People's Bank of China for the five business days after the date and excluding the date of the annual general meeting of the company).
OOCL said that in 2024, the global economy continued its path towards recovery, with strong import demand from developed economies and rapid trade growth in emerging markets. The impact from the Red Sea situation had been felt in container shipping market throughout 2024.
Geopolitical uncertainties not only shifted the dynamics between supply and demand for the entire industry but also affected people's expectations and behaviours. Industry's concerns regarding potential oversupply were temporarily subsided with the Cape of Good Hope detour absorbing some level of capacity.
However, the detour caused other problems to surface. The unstable schedule at the beginning, as well as ongoing poor weather that disrupted port operations, caused congestion, and raised customers' concerns over the vulnerability of the supply chain and led to frontloading shipments, which put further pressure on the supply chain.
OOCL said these interconnected factors helped push freight rates to a post-pandemic peak around the middle of the year, especially on the Trans-Pacific routes, which has attracted many new entrants. Their entry intensified market competition, which in turn pushed rates down.
However, due to the impact of the upcoming tariffs from the US administration and the potential labour strikes along the US East Coast and the Gulf, in combination with the cargo volume upsurge prior to Chinese Lunar New Year holidays, the market averted its traditional slack season.
"Although the outlook is full of uncertainties, with the support of the dual-brand strategy, we are well prepared to embrace opportunities and respond to challenges with highly efficient vessel utilisation and excellent cost control, as well as in an innovative, prudent and flexible manner," said OOCL.
