Orient Overseas (International) Limited (“OOIL”) announced that the Group’s revenue for the six-month period ended 30th June 2024 reached US$4,646 million, EBIT – US$841 million, EBITDA – US$1,277 million, operating Cash Flow was US$959 million, reports OOIL.
Profit attributable to equity holders – US$833 million. Dividend for the first half of 2024 is approximately 50% of the profit attributable to equity holders – at approximately US$416 million, with interim dividend of US$0.63 per ordinary share.
EBIT margin
Container Transport and Logistics business reported EBIT of US$878 million, representing an EBIT margin of approximately 18.9%. Liner liftings grew to 3.7 million TEU. Earnings per ordinary share for the first half of 2024 was US$1.26, whereas earnings per ordinary share for the first half of 2023 was US$1.71.
Red sea situation
The recent supply chain disruptions were primarily due to the ongoing situation in the Red Sea. In order to maintain schedule reliability, the additional distance to circumnavigate through the Cape of Good Hope instead of going through the Red Sea meant that liners had to deploy additional capacity. Other factors such as poor weather, backlog of cargo, arrival of delayed vessels together and surge in the transshipment volume, resulted in different level of congestions at some ports, which have made more capacity stuck there.
On the demand side, the US economy showed resilience and the European economy has also been recovering. Unlike the first half of 2023 where consumption was primarily on services, we saw consumers were more willing to buy goods in 2024, the positive sentiment resulted in importers raising their import expectations.
Dual-brand strategy
The dual-brand strategy continues to play a pivotal role, not only in dealing the Red Sea disruption and port congestions where we realised cost minimisation and efficiency gain through synergies, but also in emerging market and niche market, in the form of the dual-brand and Ocean Alliance, allowing us to rapidly extend our network and to better serve our customers. We believe that the Company will continue to achieve greater results under this strategy.
For the first half of 2024, OOCL Logistics revenue and contribution witnessed steady increment as compared with the same period last year. The revenue of the International Business Units presented healthy growth due to the growing demand and exploring new market of international logistics services.
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Source: OOIL
