Orient Overseas (International) (OOIL) has announced a profit attributable to shareholders from the OOCL container transportation and logistics business of US$841.6 million, compared to a loss of US$376.9 million for the equivalent activities in 2009.
The group as a whole reported a 2010 profit of US$1,866.8 million, compared to a loss of US$402.3 million reported for 2009. This result includes the net profit of US$1,004.6 million from the sale of OODL, the group's former China property development business.
"2010 was another extraordinary year for the container shipping industry," said the Chairman of OOIL, Mr C C Tung. "From the depths of the industry crisis in 2009, the extent of the rebound has been beyond all expectations. Unusually strong demand in the first half of 2010, and positive trading conditions throughout the remainder of the year, saw our lifting volumes nearing 2008 levels. Improvements in freight rates across all trades, combined with cost savings implemented in 2009, have produced a record profit for our liner operation in 2010."
"While the ongoing improvement in trade volumes and freight rates is good news, fuel and other cost pressures are again re-emerging as the global economic recovery continues," added Mr Tung. "Continued focus on operational efficiency and pricing discipline will accordingly remain important in the current year.
"Following the sale of OODL in 2010, the group is now focused solely on its container transportation and logistics business under the OOCL brand. The group is well positioned to grow the OOCL business – enhancing its market position and maintaining superior profit margins through ongoing development and delivery of products and services to meet customer needs. To remain competitive in both the provision of services to our customers and on an operating cost basis, the group will continue to invest in the expansion of the OOCL vessel and box fleets, and in the terminal infrastructure needed to support anticipated demand growth."
Near the end of 2010, OOCL placed an order for two additional vessels with capacity of 8,888TEU each from Hudong-Zhonghua Shipyard in China. With this new order, it has a total of eight new buildings of 8,888TEU each from Hudong for delivery between 2011 and 2014, with the first two vessels due in the first half of 2011.
