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Orient Overseas (International) Ltd (OOIL) - the parent company of Orient Overseas Container Line (OOCL) - has moved to deny reports of a takeover bid.

"The Company wishes to clarify that the Company and OOCL is not aware of, nor is it involved in any bid relating to the Company or OOCL," OOIL said in an announcement on Friday.

In a clear message to stakeholders, Hong Kong-listed OOIL stressed: "Shareholders and potential investors of the Company should exercise caution when dealing in the shares of the Company."

Between 17th and 19th January, shares in OOIL on the Hong Kong Stock Exchange (HKSE) rose by HKD 5.80, or 14.8 percent, from HKD 39.25 to HKD 45.05 per share at the close of trading on Thursday. At the time of writing, following OOIL's announcement, the share price has dropped to HKD 40.55.

Recent financial results and bunker costs

Bunker Index reported in August that OOIL had posted a loss after tax of US$57.7 million during the first six months of 2016, compared with a profit attributable to shareholders of $239 million during the corresponding period the previous year.

The average price of bunker recorded by OOCL in the first half of 2016 was $186 per tonne compared with $352 per tonne for the corresponding period in 2015. Fuel costs decreased by 41 percent during the six-month period compared to the previous year.

Commenting on the results at the time, OOIL said that the lower fuel costs during the first half of 2016 had provided "some element of cushion against the unsustainably low freight rates that have been seen in some trades". However, bunker prices in ports around the world increased during the last half of 2016; in Singapore, for example, December's monthly average for 380 cSt was $89 higher than in June, according to Bunker Index price data.

In its last financial update for the first nine months of 2016, OOIL reported that total revenue fell by 15.8 percent to $3,398.7 million, while revenue for the third quarter was down 13.8 percent to $1,148.9 million.