OOIL’s FIRST-HALF PROFITS DOUBLE

OOILÆS FIRST-HALF PROFITS DOUBLE    Orient Overseas (International) Ltd., the parent of carrier Orient Overseas Container Line, reported first-half after-tax profit of $49.1 million, more than double the $24.2 million reported in the first half of 2000.
   The positive results came despite slowing volume growth and falling freight rates due to a growing overcapacity, said C.C. Tung, OOIL's chairman and chief executive officer. He attributed the improved profit to continued tightening of operating costs; a strong U.S. dollar against the euro, yen and other currencies; and lower fuel and interest costs.
   OOIL's turnover rose 2.3 percent to $1.19 billion. Liftings improved 8 percent
   The company's terminal activities “experienced a slight downturn in throughput during the first half of 2001 as a result of the slowdown of the U.S. economy,” Tung said. OOIL was also forced to “make provisions against the doubtful recovery of receivables due from one former customer together with certain other but unrelated costs.”
   Tung said OOIL's financial outlook is clouded by the continuing U.S. economic slowdown — which has spread to European countries, as well as economic uncertainties in Japan and throughout Asia — and the growing overcapacity problem.
   The company has placed orders for four 7,700-TEU containerships, and an ice-strengthened 4,100-TEU ship, to be delivered in 2003 and 2004.
   “The rate of new tonnage being introduced into service is at an all-time high,” Tung said.
   The industry uncertainly “is likely to continue until such time as the rates of GDP growth in the major economies of the world begin to recover towards former levels and the introduction of new tonnage has subsided in 2003 onwards,” he said.
   Besides OOCL, OOIL has interests in commercial property in New York, business interests in China and portfolio investment securities.