Cargo Business Newswire

Tuesday, March 10, 2015

Orient Overseas net profits increase on global trade recovery

Orient Overseas (International) Limited, holding company of Orient Overseas Container Line, announced 2014 net profits that increased more than five-fold year over year to $270.5 million, as operating costs fell and gains from its property business rose.

OOIL slashed operating costs 10 percent in 2014 as oil prices fell and fuel efficiency increased. Wall Street Plaza, an office building it owns in New York, contributed $119.4 million to its operating income, almost double the level of a year ago. A $9.7 million net fair value gain on the property was also posted in the past year.

Revenue at OOIL grew 4.7 percent to $6.5 billion as

global trade recovered.

"Seaborne trade growth for the liner industry was better than expected during 2014," said the OOIL statement. "East-West trades recorded healthy volume growth while the intra-Asia trade posted positive growth. In aggregate terms, global demand grew 5.3 per cent, an improvement from 4.0 per cent in 2013. The industry as a whole performed better than that of 2013, though freight rates across trades were mixed."

For more of the South China Morning Post story: www.scmp.com