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2012 March 12   12:41

OOCL posts 2011 full year results

Orient Overseas (International) Limited and its subsidiaries (the “Group”) today announced a profit attributable to shareholders for 2011 of US$181.6 million, compared to a profit of US$1,866.8 million in 2010 which included the US$1,004.6 million profit on the sale of the Group’s former PRC property development business, the Group said on Monday.


With the lack of profit in OOCL in the second half of 2011 and the difficult trading environment expected in 2012, the Board of Directors is not recommending payment of a final ordinary dividend for 2011.


The Chairman of OOIL, Mr C C Tung, said, “While we started 2011 believing that the extremes of 2009 and 2010 were behind us and that we had a period of steady growth ahead, trading conditions in the container transportation industry over the past year became increasingly difficult. While overall global demand levels grew, the slow rate of economic growth in the United States and in Europe saw only muted volume growth for container trade to those markets. Demand growth proved inadequate for the orderly absorption of new-build capacity that delivered during the year.”


OOCL lifting increased 6% year-on-year. The peak cargo moving season was brief with only a moderate increase in volume in July and August. Average revenue per TEU was 7% lower overall for the year, mainly due to a 29% erosion in freight rate levels from Asia to Europe.


In view of the rising fuel price during 2011, OOCL focused intensely on its bunker saving programs. These programs included initiatives covering technology, optimal routeing, continuously optimized speeds, minimum ballast, optimal trim, and ensuring close communication between ship and shore colleagues regarding berthing arrangements and terminal productivity. The key contributor to the success of these programs has been the excellent coordination between OOCL’s crews, regions, service centres and corporate departments.


OOCL continued to operate the Long Beach Container Terminal in California and the Kaohsiung Container Terminal in Taiwan, with a total throughput of 1.7 million TEU in 2011. OOCL also have a 20% interest and management participation in the Tianjin Port Alliance International Container Terminal Co., Ltd. and the Ningbo Yuandong Terminal Ltd., with a combined throughput of 3.9 million TEU.


“Despite the poor performance in the second half of 2011, the Group remains operationally robust and well placed for the future with its alliance memberships and investment for growth. Our Group is financially strong, is well capitalised, and has sufficient liquidity and access to funding to meet its future needs. Our outstanding staff continue to be a key element of our superior performance and success, and through their continued efforts, together with our strong financial position, we are confident of our ability to continue developing our business and meeting our goals,” Mr. Tung said.


Mr. Kenneth Cambie, the Group Chief Financial Officer, commented, “As at 31st December 2011, the Group had total liquid asset balances of US$2,413.1 million compared with debt obligations of US$439.1 million repayable in 2012. Debt to equity ratio changed to 0.06: 1 at end of 2011 from a net cash position at end of 2010.


OOIL owns one of the world’s largest international integrated container transport businesses which trades under the name “OOCL”. With more than 270 offices in 60 countries, the Group is one of Hong Kong’s most international businesses. OOIL is listed on The Stock Exchange of Hong Kong Limited.

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