Press Release

Hong Kong, 14th March 2011

Orient Overseas (International) Ltd
Announces 2010 Full Year Results

• Group Turnover increased by 39% to US$6,033 million
• Record Profit After Tax from Continuing Operations of US$870 million
• Profit Attributable to Equity holders of US$1,867 million
• Earnings per share of US298.3 cents
• Final Ordinary Dividend of US23.0 cents (HK$1.79) per share
• Special Dividend of US209.3 cents (HK$16.33) per share



• Net profit on sale of OODL of US$1,005 million
• Lifting increased 14.6% to 4.8 million TEU
• OOCL revenue per TEU was up 27.5% to US$1,178
• Delivery taken of four 8,063 TEU and five 4,578 TEU new-build vessels
• Operating capacity rose 22.6% to 383,855 TEU
• Load factor was 81% in 2010 versus 74% in 2009

• EBIT margin improved from -6% in 2H09 to 18% in 2H10
• Lifting rose by 17.6% from 2.16 million TEU in 2H09 to 2.54 million TEU in 2H10
• OOCL revenue per TEU increased from US$935 in 2H09 to US$1,217 in 2H10
• Load factor was 79% in 2H10 versus 78% in 2H09

• Total equity rose by US$1,611 million in 2010
• Total debt increased principally as a result of the financial obligations incurred upon the deliveries of new container vessels in 2010
• Liquid assets exceeded US$4.13 billion as at 31st December 2010
• Net cash of US$1,469 million as at year end of 2010

Orient Overseas (International) Limited and its subsidiaries (the “Group”) today announced a profit attributable to shareholders for 2010 of US$1,866.8 million, compared to a loss of US$402.3 million reported for 2009.

This result includes the net profit of US$1,004.6 million from the sale of OODL, the Group’s former PRC property development business.  The profit attributable to shareholders from the OOCL container transportation and logistics business was US$841.6 million, compared to a loss of US$376.9 million for the equivalent activities in 2009.  Management of the Group’s liquidity and investments at the OOIL level contributed the remaining US$20.6 million of profit attributable to shareholders.

The Board of Directors is recommending the payment of a final ordinary dividend of US23.0 cents (HK$1.79) per share to shareholders for 2010.  Combined with the 2010 interim dividend, this represents a total ordinary dividend payout of 25% of the Profit Attributable to Shareholders excluding the profit from the sale of OODL.  The ordinary dividends for 2010 reflect the return to profitability of the business in 2010, its present liquidity position, and its ongoing funding needs.  The dividend will be paid on 20th May 2011 to those ordinary shareholders whose names appear on the register on 3rd May 2011.

In addition, having considered the level of capital needed to support growth and expansion of the business, the Board of Directors is recommending a further special dividend of US209.3 cents (HK$16.33) per ordinary share from the proceeds of the OODL sale.


The Chairman of OOIL, Mr C C Tung, said, “2010 was another extraordinary year for the container shipping industry.  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.”

OOCL lifting increased 15% year-on-year.  Volume and revenue increases were amplified in the last three quarters of 2010 due to the very low base of the previous year.

“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,” noted Mr. Tung.

“Following the sale of OODL in 2010, the Group is now focused solely on its container transportation and logistics business under the OOCL brand.  The Group is well positioned to grow the OOCL business - enhancing its market position and maintaining superior profit margins through ongoing development and delivery of products and services to meet customer needs.  To remain competitive in both the provision of services to our customers and on an operating cost basis, the Group will continue to invest in the expansion of the OOCL vessel and box fleets, and in the terminal infrastructure needed to support anticipated demand growth.  Capital expenditure will be made progressively to match our financial capacity, and will be undertaken only where it supports or enhances our profitability,” Mr. Tung continued.

Near the end of 2010, OOCL placed an order for two additional vessels with capacity of 8,888 TEU each from Hudong-Zhonghua Shipyard (Group) Co. Ltd. in China.  With this new order, it has a total of eight new buildings of 8,888 TEU each from Hudong for delivery between 2011 and 2014, with the first two vessels due in the first half of 2011.

In view of the rising fuel price, OOCL focused intensely on its bunker saving program, which included initiatives covering technology, route selection, continuously optimized speeds, minimum ballast, trimming and terminal productivity.  Close coordination among OOCL’s crews, regions, service centres and corporate departments has been a key contributor to the success of the program.

“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.  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 normalised seasonal pattern in volumes and freight rates in 2011 compared to 2009 and 2010.  The Group remains operationally robust and financially strong being well capitalised and with sufficient liquidity and funding to meet future needs.  Given the strong financial condition that the Group is in, and with the unflagging efforts of our outstanding staff, we are confident of our ability to continuing growing and meeting our goals,” Mr. Tung concluded.

Mr. Kenneth Cambie, the Group Chief Financial Officer, commented, “As at 31st December 2010, the Group had total liquid asset balances of US$4,132.9 million compared with debt obligations of US$247.8 million repayable in 2011.  Debt to equity ratio changed from 0.31: 1 at end of 2009 to a net cash position at end of 2010 with the receipt of proceeds from the OODL sale.”

OOIL owns one of the world’s largest international integrated container transport businesses which trades under the name “OOCL”.  With more than 270 offices in 60 countries, the Group is one of Hong Kong’s most international businesses.  OOIL is listed on The Stock Exchange of Hong Kong Limited.

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Issued by: Orient Overseas (International) Limited

For further information contact

Internet address: http://www.ooilgroup.com/