SIMIC

HONG KONG's Orient Overseas Container Line (OOCL), now a Cosco unit, posted a 40 per cent net profit increase in 2022 to US$10 billion, drawn on revenues of $19.8 billion, an increase of 18 per cent.
OOCL shareholders will receive $6.9 billion in dividends, or 70 per cent of the carrier¡¯s 2022 net profit.
Despite such pleasing results, OOCL warned that today's low demand and excess capacity would change before mid-year and only in the second half could it hope for an upturn.
"Once importers in countries such as the US have made further progress in reducing inventories, we may see improvement during the second half of 2023," the carrier said.
"There can be no certainty about that outcome, given the extent of perfectly valid concerns about the future impact of inflation, interest rate rises and broader economic and geopolitical instability," said OOCL.
For now, OOCL is enjoying a balance sheet the carrier says "is strong enough to enable us both to withstand the challenges of cyclical markets and to allow us to provide attractive returns to shareholders."
Revenue per TEU rose 27 per cent year on year, despite falling sharply through the last few months of 2022 as demand declined. OOCL carried 7.1 million TEU last year, 500,000 fewer containers than 2021.
The carrier noted that rates declined rapidly in the fourth quarter to pre-Covid levels on several trade lanes, but said that should be seen in its proper context.