OOIL announces operational update for Q2 2011

The board of directors of Orient Overseas International Limited (“OOIL”) has adopted a policy of announcing unaudited operational updates for Orient Overseas Container Line (“OOCL”) on a quarterly basis. This announcement sets out the unaudited operational update for OOCL for the second quarter of 2011 (ended June 30th, 2011).

The comparative figures for the second quarter of 2010 are also disclosed in the company’s announcement. For the second quarter of 2011, total volumes were 6.5% up on the same period last year. Total revenues increased by 1.4% to USD 1,410.9 million.

With an increase of 18.3% in loadable capacity, the overall load factor was 8.3% lower than the same period in 2010. Overall average revenue per TEU dropped by 4.8% compared to the second quarter of last year.

For the first six months of 2011, total volumes increased by 9.4% over the same period last year and total revenues recorded an 8.5% increase. Loadable capacity increased by 17.6%, and the overall load factor was 5.7% lower than the corresponding period in 2010. Overall average revenue per TEU decreased by 0.9% compared to the same period last year.

The difficult trading conditions seen in the first quarter of this year have continued in the second quarter, and the outlook for the full year is disappointing. Demand levels remain reasonable as reflected in an overall year-on-year increase in liftings.

However, freight rates on east-west trades have further deteriorated over the course of the second quarter, particularly on the Asia-Europe trades. The deterioration in freight rates has occurred despite the need for improved revenues to offset the significant increases in the price of bunker and other energy related costs that have occurred this year.

The OOIL board stated a reminder for investors that the operational update for the second quarter of 2011 is based on the Group’s internal records and management accounts and has not been reviewed or audited by the auditor.

They further cautioned investors to not rely unduly on the operational update for the second quarter and that investors are advised to exercise caution in dealing in the shares of the Company. <Korea Shipping Gazette>