OOIL suffers $232m loss in H1 2009
Orient Overseas International Limited (OOIL), the parent of Orient Overseas Container Line, posted heavy losses in the first half, albeit better than its peers. The Hong Kong liner suffered a $232m in the first half contrasting poorly with 2008’s $258m interim performance. Yesterday, Singapore’s NOL posted $391m in interim losses.
Revenue at OOIL fell 35% year-on-year (versus NOL's 37% decline), mainly driven by the 17% reduction in container volumes and 24% fall in average freight rates. Asia-Europe/transatlantic routes were the hardest hit, with revenues down 50% y/y while transpacific and intra-Asia/Australasia revenues fell 27% and 33% respectively.
Capacity was reduced by 14%. Management said rising bunker prices are a concern.
Its property portfolio has also struggled in the first half.
The Chairman of OOIL, C C Tung, said, “Market conditions in the first six months of 2009 have been extraordinarily difficult for the core business of Container Transportation and Logistics, resulting in a trading loss for the Group for the half year. With industry capacity continuing to increase, and continued weakness in the US and European economies, I expect trading conditions for the remainder of the year to remain difficult. While there are signs that the worst of the downturn may be behind us, a rebound in the global economy is expected to be subdued.”
Revenue at OOIL fell 35% year-on-year (versus NOL's 37% decline), mainly driven by the 17% reduction in container volumes and 24% fall in average freight rates. Asia-Europe/transatlantic routes were the hardest hit, with revenues down 50% y/y while transpacific and intra-Asia/Australasia revenues fell 27% and 33% respectively.
Capacity was reduced by 14%. Management said rising bunker prices are a concern.
Its property portfolio has also struggled in the first half.
The Chairman of OOIL, C C Tung, said, “Market conditions in the first six months of 2009 have been extraordinarily difficult for the core business of Container Transportation and Logistics, resulting in a trading loss for the Group for the half year. With industry capacity continuing to increase, and continued weakness in the US and European economies, I expect trading conditions for the remainder of the year to remain difficult. While there are signs that the worst of the downturn may be behind us, a rebound in the global economy is expected to be subdued.”