OOIL breaks historical profit performance in 2020
Hong Kong-listed Orient Overseas (International) Limited continues the trend among liner companies of clocking up extraordinary profits during the year of Covid-19.
The Cosco Shipping majority-owned liner operation profited to the tune of US$903m in 2020, compared to US$195.2m in 2019 (not including profit from sale of Long Beach container terminal).
The 2020 results represent the largest profit OOIL has ever achieved from its liner operation and was earned off record revenue of US$8.19bn. Total container liftings hit 7.46m teu, up from 6.95m teu in the previous year.
OOIL lifted 7.46 million teu last year
OOIL sold off its port operation in Long Beach in 2019, which increased 2019 profit by US$1.19bn. During 2020 the company ordered 12 23,000 teu vessels, scheduled for delivery in 2023-2024.
“Looking ahead, despite current strong markets, we must recognise that the full impact of COVID-19 may not be known for some time,” OOIL said in a press release.
“By this, we mean not only the inevitable fluctuations of the freight rate markets and of the balance between shipping supply and global demand, but also that it remains to be seen how supply chains will evolve after the challenges of 2020.
We seek to serve our customers with ever greater end-to-end services and improved digitalised interfaces. However, it also creates challenges and risks, which we will address intelligently and proactively.”