OOCL’s parent company, OOIL, reported a 40% increase in annual net profit for 2022 to $9.9bn, after revenue rose nearly a fifth to $19.8bn. The Hong Kong-based line posted an operating profit (EBIT) of $10.1 billion.
Container movements fell to 7.1 Mteu for the year, down from 7.6 Mteu a year earlier. However, average freight rates rose 26% to $2,619 per teu, despite a collapse in the last quarter to just $1,822.
OOCL did not disclose quarterly financials, but second-half operating profit fell 25% from the first half of the year, while revenue fell a fifth.
The COSCO subsidiary was cautious throughout the rest of the year, predicting no change in the weak market conditions during the first half of 2023, although rates appeared to have ‘leveled off’.
The reduction of inventories and better economic conditions could continue in the second semester, although the deliveries in 2023 and 2024 could “delay” this improvement.
This month, OOCL took delivery of its first newbuild since 2018, the 24,188 teu OOCL ESPAÑA, and has a further 28 vessels due for delivery over the next five years. Seven of the new ships will be dual-fuel methanol. The group has already committed to adding 150,000 TEU to its fleet every year until 2030.
At the end of the year, the Group had cash and bank balances of USD 11.2 billion and total debt of USD 2.1 billion, yielding a net cash position of USD 9.1 billion. The group recommends an annual dividend of 70% of profits, equivalent to USD 6,970 million.
Source: Alphaliner
