OOIL enjoys 15% increase in lifting first half 2002

Orient Overseas (International) Limited ("OOIL") Group announced on August 16th a profit before taxation of US$4.1 million compared with US$54.7 million for the same period last year. After taxation and minority interests, the Group reported a profit of US$1.0 million, a decrease of US$48.1 million from the US$49.1 million earned during the first half of 2001.
OOIL Chairman and Chief Executive Officer, Mr. C C Tung, said "The dramatic fall in overall performance has been due almost entirely to a severe deterioration in the comparative performance of the Group? core international containerised transportation business. It was the result of the very steep drop in the general level of freight rates resulting from the significantly adverse changes in the balance between the rates of growth of container volumes carried and the introduction of new tonnage into service".
"The slowdown in the world? economies had its greatest impact upon the industry from early 2001 onwards as it coincided with the almost unprecedented increase in the rate of delivery of new building container vessels. Whilst rates have indeed fallen significantly, the growth in container volumes carried has been at a somewhat higher rate than first forecast. On the Trans-Pacific routes to the U.S. West Coast, for example, while our total liftings have increased by 17.1% during the first six months of 2002, as compared with the same period last year, average revenues per TEU have fallen by 15.8%. Our organic growth plans have been met on all our trade routes except by the Asia to Europe trades on which we experienced a 3.7% fall in total liftings for the first six months of 2002 as compared with last year," added Mr. Tung.
"Our terminal operations have enjoyed mixed fortunes during the first half of 2002. Both Deltaport and Vanterm in Vancouver have benefited from increased throughput resulting in performances significantly ahead of budget. However, the competitive situation and current overcapacity in the Port of New York and New Jersey has led to below budget performances by our Howland Hook Terminal on Staten Island and Global Terminal in New Jersey," Mr. Tung said.
"The Group? property investment and development businesses have continued to perform well during the first half of the year. Our investment property, Wall Street Plaza, in the city of New York has produced a result ahead of budget. In Shanghai, the strong residential housing market has resulted in a performance by our property development activities ahead of budget for the period. Selling prices for our Century Metropolis project on Ziyang Lu have strengthened and Phases 1A and 1B are now either handed over or virtually 100% presold and the sales programme for Phase 2A is to begin shortly," said Mr. Tung.