According to the freight forwarding network, Orient Overseas (International) Co., Ltd. ("Orient Overseas International") today announced that the six months ended June 30, 2023 recorded a profit attributable to shareholders of 1.129 billion U.S. dollars, compared with the same period in 2022 profit of 5.664 billion U.S. dollars.
Group Revenue 4.541 billion US $
Group EBIT 1.14 billion USD
Group EBITDA $1.569 billion
Operating Cash Flow 0.548 billion US $
Profit attributable to shareholders $1.129 billion
2023 interim distribution shareholders should account for profit of about 50%, discount contract 0.568 billion US dollars as dividends, interim dividend common share 0.69 US dollars and special dividend common share 0.17 US dollars
First half 2023 common stock earnings per share of $1.71, compared to the first half of 2022 common stock earnings per share of $8.58.
The Board of Directors is pleased to declare that the profit attributable to shareholders for the 2022 interim distribution is approximately 50%, with a contract of 0.568 billion US dollars as a dividend, with an interim dividend of 0.69 US dollars per share of common stock and a special dividend of 0.17 US dollars per share of common stock.
, as everyone expected, the high market conditions of the past two or three years are over. From the middle of last year to the first half of 2023, freight rates are in the process of long-term and stable correction. Compared with the highs of 2020-2022, the reduction is undoubtedly staggering in both absolute and relative terms, but it only reflects the extent to which the freight market has risen. At the time of writing, freight rates are generally broadly similar to, or in some cases above, pre-epidemic levels, when extreme market conditions in the container shipping market for the next few years as a result of the epidemic had not yet developed.
These market conditions include:(1) better-than-expected demand; and (2) severe congestion on the shipping network, and significant downward pressure on the effective capacity available to customers despite the deployment of additional capacity by shipping lines. Unexpected demand resilience coupled with a reduction in effective capacity has driven up freight rates.
Market conditions changed significantly from mid -2022 through the entire reporting period. First, congestion at existing congestion points has been alleviated and effective capacity has been released, while new congestion that has a substantial impact has only occurred occasionally. Second, inventory levels in some major importing economies have risen. Although they have not reached historical levels, they are definitely higher than the levels of the previous two or three years. This has led importers in countries such as the United States and Australia to adopt a more cautious approach to procurement. Attitude, thereby reducing the demand for container transportation.
As a result, compared with the same period in 2022, OOCL's overall freight volume in the first half of 2023 decreased by 1% and total revenue decreased by 60%, resulting in a decrease in average revenue per TEU by 60%.
The average price of fuel oil for OOCL in the first half of 2023 is to be US $609 per ton, compared with US $729 per ton in the same period in 2022. Even though fuel consumption is nearly the same in both periods, overall fuel costs in the first half of 2023 are 17% lower than in the same period in 2022. "
dual-brand strategy continues to give us many advantages, not only in terms of cost efficiency and synergies, but also in capturing market opportunities for growth, and the ability to adapt to market needs without compromising customer service or facing unreasonable costs. We will build on the success of this innovation strategy.
In the first half of 2023, the Group received the first batch of two new vessels with a capacity of 24,188 TEUs from Nantong COSCO SHIPPING Kawasaki Ship Engineering Company Limited and Dalian COSCO SHIPPING Kawasaki Ship Engineering Company Limited, respectively. The first ship delivered by Nantong COSCO SHIPPING Kawasaki Ship Engineering Co., Ltd. was named OOCL Spain. The first ship delivered by Dalian COSCO SHIPPING Kawasaki Ship Engineering Co., Ltd. was named OOCL Piraeus. These two vessels with a capacity of 24,188 TEUs are the largest vessels currently accepted by the Group. The remaining new ships in the same series will be delivered from Q3 2023 to Q3 2024.
Despite more cautious consumers and slower product demand in the first half of 2023, OOCL Logistics has achieved success on many fronts. Our maritime business revenue returned to normal levels in previous years and also increased in TEU terms. In addition, the domestic business segment also recorded satisfactory growth. In order to maintain this good situation, all logistics business departments actively develop new services in breadth and depth through cooperation with different stakeholders within customers. These services include traditional logistics activities and digital supply chain management. The Group also explores and implements more synergies with shipping companies to create value for customers and save costs.
Source: OOCL official website