Orient Overseas (International) Limited made a return to profitability today, turning a US$230 million loss in the first half last year into a net profit of $1.3 billion this time around.

A large portion of the revenue was realised from the sale of its mainland property development division earlier this year, but strong demand and solid freight rates on all major trades serviced by the group's liner division, Orient Overseas Container Line (OOCL), also contributed to the bulging coffers.

However, OOIL group chief financial officer Ken Cambie was cautious in his outlook for the second half, with market visibility beginning to cloud over from September.

"There has been a significant rebound from 2009 but the volumes and average revenue are below where they were in 2008," he told reporters at the group's Hong Kong headquarters.

OOCL reported an 11.6 percent increase in liftings, and with a 24 percent increase in revenue per TEU, the line saw revenue soar by 38.5 percent to $2.5 billion.

Load factors on all trades were particularly strong with an average of 83 percent in the first half, up 14 percent on the same period last year.

In the first quarter, OOIL sold Orient Overseas Developments Limited, a wholly owned subsidiary engaged in property development and investment in the mainland, to CapitaLand China for $2.2 billion in cash, emerging from the deal with a profit of $1 billion.

But rising bunker fuel prices added to the container line operating costs. The average price of bunker fuel ($463) was almost 60 percent higher than in the first half of 2009.
(Source:www.cargonewsasia.com)