Orient Overseas (International) Ltd. (OOIL) announced robust financial results for 2024 driven by its OOCL ocean container business, with profit attributable to equity holders reaching $2.58 billion, up from $1.37 billion in 2023.
The Hong Kong-based company owned by China’s Cosco Shipping reported revenue increased to $10.7 billion for calendar 2024 from $8.34 billion in 2023. Operating profit rose to $2.62 billion from $1.41 billion, while earnings per share grew to $3.90 from $2.07.
OOIL (0316.HK) will recommend a dividend of $1.32 per share at its annual meeting in May.
The OOCL container transport and logistics segment drove the strong performance, with profit before tax of $2.64 billion. The company said that it benefited from continued recovery in global trade, though market dynamics remained complex.
The liner operator took delivery of seven new large container vessels in 2024 and chartered six 13,000-TEU (twenty-foot equivalent unit) vessels for future deployment. It strengthened cooperation with Ocean Alliance partners Cosco, CMA CGM of France and Taiwan’s Evergreen Marine, the largest such agreement in maritime shipping.
“While the outlook remains uncertain, we are well-prepared to embrace opportunities and respond to challenges,” said OOIL Chairman Wan Min, in a release. “We will consistently fulfill our commitment to customers and offer high-quality, reliable services.”
Looking ahead, OOIL noted potential headwinds including geopolitical tensions, economic uncertainties and industry overcapacity concerns. Major shipping lines have yet to return to the Red Sea-Suez Canal route where Houthi rebels based in Yemen targeted violent attacks at merchant shipping throughout 2024. Diversions of ships from Asia to Europe, the Mediterranean and the United States on longer voyages around Africa’s Cape of Good Hope took some capacity out of the market, added to regional congestion and drove up rates. But the specter of a Red Sea reopening along with deployment of new tonnage are already challenging carriers’ hopes to implement general rate increases.
However, the company expressed confidence in its dual-brand strategy with Cosco, operational efficiency and ability to adapt to changing market conditions.
The company will hold its annual general meeting on May 15. The final dividend, if approved, will be paid on June 27 to shareholders of record as of May 28.
Find more articles by Stuart Chirls here.
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