OOIL sails back to profit in the first half on industry recovery
The company’s improved performance is due to economic growth recovery and a consolidation of the sector that also saw the collapse of Hanjin Shipping
Orient Overseas (International) said it had returned to profit in the first half of the year as the industry recovers on improved global economic growth, posting a net profit of US$53.6 million, compared with a US$56.7 million loss for the same period in 2016.
The profit from operating activities reached US$25.3 million, compared with the loss of US$81.4 million for the corresponding period last year, the company said in its results announcement filing to the Hong Kong stock exchange on Monday.
The company’s improved earnings was also attributable to an increased revaluation of its investment in Wall Street Plaza in New York to US$27.7 million.
First-half revenue rose to US$2.9 billion, up from US$2.6 billion in the first half of 2016.
OOIL shares closed flat on Monday at HK$72.20.
“In the first half of 2017, we have begun to see a slow and steady recovery from the tough market conditions that characterised 2016,” said chairman Tung Chee-chen in the results announcement.
“Following a wave of M&A, corporate reorganisations, a corporate collapse…the industry continues to evolve. Over time, this may help to provide a more stable context for the industry…ultimately to benefit liner companies and their customers.”
