OOIL Improves Profit through Lower Bunker Bills

Hong Kong-based Orient Overseas (International) Limited, a parent company of Orient Overseas Container Line (OOCL), reported USD 238.6 million net profit for the six-month period ended June 30, 2015, a 32% jump compared with USD 181.3 million for the same period in 2014, despite a dip in revenue.

OOIL’s revenue for the first six months of 2015 was USD 3.04 billion, a 6% drop compared to USD 3.24 billion revenue for the same period a year earlier. However, the company says that the dip in revenue was offset mostly by OOCL’s lower bunker costs.

The average price of bunker recorded by OOCL in the first half of 2015 was USD 352 per ton compared with USD 595 per ton for the corresponding period in 2014, generating a decrease in fuel costs of 38%.

Lower bunker bills also helped offset OOCL’s drop in liftings and revenue. The container line handled 1,422,408 TEUs in 1HFY2015, a 2.1% drop compared to 1,453,193 TEUs handled in 1HFY2014. The company’s revenue dropped 9.3% for the period, from USD 1.5 billion in 1HFY2014, to USD 1.36 billion in 1HFY2015.

Average revenue levels in some trade lanes reached new post-global financial crisis lows, with an average revenue per TEU drop of 4% in the first half, OOIL says.

Commenting on the outlook in the container shipping market, the Chairman of OOIL C C Tung, said: ”The industry faces a large orderbook in the year 2015. Until sustainable demand growth is achieved, freight rates will continue to be under pressure. Looking into the second half and into next year, the industry takes comfort that scheduled new deliveries are relatively limited in 2016, and is hopeful that cargo growth, especially in Asia Europe and Intra Asia, will recover a more favourable trajectory. During the next six months, where revenue remains uncertain given the supply and demand imbalance, cost efficiency remains the critical factor for better margin performance. The industry is hopeful that positive trade growth, especially in the Trans-Pacific and Trans-Atlantic trades, and to a degree in the Intra-Asia trade, will provide support to the underlying market.” 

Share this article

Follow World Maritime News

In Depth>

Events>

<< Feb 2017 >>
MTWTFSS
30 31 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 1 2 3 4 5

9th Annual Coasts and Marine Structures 2017 Conference

Discover Best Practise Strategies for Design, Planning, Construction and Asset Management

To remain competitive, Australian port operators must plan, design, manage and maintain their assets more creatively and proactively to meet future demands and drive profitability.

With this in mind, the Coast and Marine Structures Summit 2017 will focus on key considerations relevant to ensuring your existing assets are maximised and prepared to accommodate bigger vessels.

Hear from 20+ global experts including Maritime/Coastal Engineers, Contractors, Port Authorities and more, including GHD (USA), Indonesian Port Corporation (Asia), G-Group Consulting (New Zealand), Ausenco (Australia), Port Authority NSW (Australia), to name a few.

By attending this 2-day conference, you’ll learn about:

– Innovative planning and design of ports to create efficiencies that drive profit
– Best practice asset management strategies and new PIANC design principles for bulk terminals
– Proactive asset management and maintenance to improve durability and maximise and extend asset lifecycles
– Alternative material and protection techniques trialled and tested in the US and Europe
– Strategies to shift organisational culture and mindset from asset management to asset maintenance
– How you can leverage technology to increase the efficiency of your marine structures
– Case studies on retrofitting, expanding and upgrading your ports in cost-effective ways

More info

read more >

Focusing on Solutions

The maritime industry is experiencing the most aggressive regulatory change in history, with the adoption of a global sulphur cap of .5%…

read more >

European Shipping Week 2017

European Shipping Week is intended to be a platform where policy-makers from the main EU institutions will meet and engage with European…

read more >

Seatrade Cruise Global

For more than 30 years, Seatrade Cruise Global has been the leading international exhibition and conference serving the cruise industry…

read more >