BUNKER INDEX :: Price Index, News and Directory Information for the Marine Fuel Industry



« News Home
:: Monthly Archive

News Topics
:: Air Pollution
:: Agreements & M&A's
:: Alternative Fuels
:: BunkerBlog
:: Cargoes & Storage
:: Company News
:: Efficiency, Costs & Charges
:: Environment
:: Events
:: Financial
:: Fuel Quality & Testing
:: Lubes & Additives
:: Oil Spills
:: People
:: Port News
:: Projects
:: Regulation, Legal
:: Services, Products,Technology
:: Statistics & Research
:: Vessels

Regional Archive
:: Americas
:: Asia/Oceania
:: Europe
:: M.East/Africa


BUNKER INDEX :: Price Index, News and Directory Information for the Marine Fuel Industry
Home » News





OOIL swings into profit ahead of Cosco takeover despite 64.5% jump in bunker costs

07 Aug 2017 11:50 GMT

Chairman voices support for Cosco $6.3 billion deal.



Orient Overseas (International) Ltd (OOIL) - the parent company of Orient Overseas Container Line (OOCL) - reports that it managed to achieve a H1 swing into profit despite a year-on-year increase in bunker costs.

For the first six months of 2017, the average bunker price paid by OOCL rose by $120, or 64.5 percent, to $306 per tonne, up from $186 per tonne during the corresponding period last year.

"Both the fuel oil and the diesel oil price have rebounded from their lowest levels, leading to the increase in bunker costs by 64% in the first half of 2017 compared with the corresponding period of 2016," OOIL explained.

Despite the increase, OOIL posted a H1 net profit of $53.6 million - a positive swing of $111 million compared to last year's $56.7 million loss.

Revenue during the period rose by $337 million, or 13.2 percent, to $2,898 million.

Chairman of OOIL, C.C. Tung, said: "This steady improvement in the supply demand balance is not a sign of a booming market - we are far from that. However, it does mean that for the first time since the onset of the global financial crisis, the supply demand balance is not worsening year on year. This is a significant shift, and if it holds, then the industry will at least have the chance to start to absorb some of the excess capacity that exists."

Takeover

Commenting on the $6.3 billion takeover offer made last month by Cosco Shipping Holdings Co., Ltd and Shanghai International Port Group Co., Ltd (SIPG) to acquire OOIL in a deal that would make Cosco the world's third biggest shipping company with more than 400 vessels, Tung said: "The controlling shareholder, who currently holds 68.7% of OOIL has irrevocably undertaken to accept the offer. On completion, Cosco Shipping Holdings will hold 90.1%, while SIPG will hold 9.9% of the total amount of OOIL shares tendered."

"As the industry consolidates at speed, with the largest players now having millions of TEU in carrying capacity, the capital base necessary to operate successfully, and to establish a place among the leading industry participants, is becoming increasingly sizeable," Tung explained.

Voicing his support for the takeover offer, Tung observed: "My view is that the offer provides an opportunity for OOIL to continue to operate the OOCL brand, but as part of the China COSCO Shipping Group, and to bring together our operating model and our corporate culture with the competitive advantages of COSCO, including its size and scale, capital base, growing fleet and extensive port investments, to name but a few. This would create a combined group that would have a very strong chance of maintaining and building a status as one of the very best performers in an industry now entering a new phase."

As at June 30, OOIL had total liquid assets amounting $2.3 billion and a total indebtedness of $4.2 billion. Net debt as at June 30 was therefore $1.9 billion, which remains at the same level as in 2016 year-end.




Related Links:

OOIL posts $219m loss, highlights higher H2 bunker prices
OOIL denies takeover bid
OOIL posts loss as low bunker prices 'provide some element of cushion'
Hong Kong

Latest News:

Another first for Wartsila as wireless charging for hybrid coastal ferry is 'successfully' tested
Scandlines hails bunker-saving summer for hybrid ferries
BHP, GoodFuels to collaborate on biofuel bunker project in Singapore
The OPEC / non-OPEC meeting takes centre stage
Oil and fuel oil hedging market update
Fluxys focuses investment on Zeebrugge's fifth LNG tank and second jetty
Rolls-Royce and Inmarsat sign ship energy management agreement
Bullish market sentiment remains, short-term dark horse could be meeting comments
Oil and fuel oil hedging market update
Dorian LPG and ABS to conduct feasibility study of LPG as marine fuel
CO2 reduction addressed at ECSA seminar
World's first dual-fuel boxship conversion completed




Page Links:

Prices
Africa
Asia
Latin America
Middle East
North America
North Europe
South Europe
Index Summary
Price Highlights
Commentaries
Futures
Prices
Antwerp
Busan
Cape Town
Fujairah
Houston
Istanbul
Kaohsiung
Las Palmas
Maracaibo
New Orleans
Piraeus
Rio de Janeiro
Rotterdam
Santos
Singapore
Directory
Africa
Asia
Central America
Middle East
North America
North Europe
Oceania
South America
South Europe
Directory
Germany
Gibraltar
Greece
Hong Kong
Italy
Japan
Netherlands
Panama
Russia
Singapore
South Africa
South Korea
Spain
Turkey
United Arab Emirates
United Kingdom
United States
News
Latest News
Blogs
Archive
Americas
Asia
Europe
Middle East
News
Air Pollution
Agreements & M&A's
Alternative Fuels
Cargoes & Storage
Efficiency, Costs & Charges
Environment
Events
Financial
Fuel Quality
Lubes & Additives
Oil Spills
People
Port News
Projects
Regulation/Legal
Services, Products, Technology
Statistics & Research
Vessels
Events
Upcoming Events