OOCL nets $922 million ?10 operating profit

OOCL nets $922 million Æ10 operating profit    Hong Kong-based liner carrier OOCL made a record $922 million operating profit in 2010, recovering from a loss of $301 million in 2009.
   OOCL's revenue surged 39 percent to $6.3 billion, on a container volume increase of 14.6 percent to 4.8 million TEUs. Revenue per TEU rose 27.5 percent to $1,178, with a load factor for the year of 81 percent, compared to 74 percent in 2009.
   The company also netted more than $1 billion from the sale of most of the assets in its property development division in 2010.

Tung

   '2010 was another extraordinary year for the container-shipping industry,' said C.C. Tung, chairman of OOCL parent company OOIL. 'From the depths of the industry crisis in 2009, the extent of the rebound has been beyond all expectations. Unusually strong demand in the first half of 2010, and positive trading conditions throughout the remainder of the year, saw our lifting volumes nearing 2008 levels. Improvements in freight rates across all trades, combined with cost savings implemented in 2009, have produced a record profit for our liner operation in 2010.
   'While the ongoing improvement in trade volumes and freight rates is good news, fuel and other cost pressures are again re-emerging as the global economic recovery continues. Continued focus on operational efficiency and pricing discipline will accordingly remain important in the current year.'
   The company said its divestment of its property portfolio, and an earlier sale of it container terminals business, will allow it to focus on its container shipping and logistics divisions.
   'The immediate outlook for 2011 remains positive though the level of demand growth seen in 2010 on the east/west trades is unlikely to be repeated in 2011,' Tung said. 'While global economic growth in 2011 is likely to be muted, we do expect supply and demand to be in near-balance. This should see a return to a normalized seasonal pattern in volumes and freight rates in 2011 compared to 2009 and 2010. The group remains operationally robust and financially strong, being well-capitalized and with sufficient liquidity and funding to meet future needs.'