HONG KONG

ORIENT OVERSEAS INTERNATIONAL
ANNOUNCES RESULTS FOR 2007

• GROUP TURNOVER INCREASED BY 22.6% TO US$5,651 MILLION
  
  
• PROFIT ATTRIBUTIBLE TO SHAREHOLDERS WAS US$2,547 MILLION FOR THE YEAR, COMPARED TO US$580.6 MILLION FOR 2006
  
  
• RESULT INCLUDES THE NET GAIN OF US$1.99 BILLION FROM THE SALE OF TERMINALS DIVISION TO ONTARIO TEACHERS’ PENSION PLAN
   
  
• NET PROFIT FROM CONTINUING OPERATIONS WAS US$553.7 MILLION, AN INCREASE OF 29.3% OVER THE 2006 NET PROFIT OF US$428.3 MILLION (BEFORE REVALUATION OF THE WALL STREET PLAZA)
  
  
• NO NET VALUATION CHANGE FOR WALL STREET PLAZA FOR THE FULL YEAR VERSUS US$100 MILLION REVALUATION FOR 2006
  
  
• EARNINGS PER SHARE OF US407 CENTS (US92.8 CENTS LAST YEAR).  EXCLUDING DISCONTINUED OPERATIONS, EARNINGS PER SHARE FROM CONTINUING OPERATIONS OF US88.3 CENTS (LAST YEAR US84.4 CENTS)
  
  
  
• DIRECTORS RECOMMEND A FINAL DIVIDEND OF US13.5 CENTS (HK$1.05) PER SHARE
  
  
• DELIVERED :
  • 2 NEW VESSELS OF 8,063 TEU CAPACITY
  • 4 NEW VESSELS OF 5,888 TEU CAPACITY
  • 3 NEW VESSELS OF 4,578 TEU CAPACITY
    
    
• ORDERED :
  • 6 NEWBUILDINGS OF 4,500 TEU CAPACITY TO BE DELIVERED IN YEAR 2009
  • 6 NEWBUILDINGS OF 8,600 TEU CAPACITY TO BE DELIVERED IN YEARS 2010 AND 2011
    
    
• DISPOSED :
  • 1 OLD VESSEL OF 2,544 TEU CAPACITY BUILT IN 1979
    
    
• OUR OWNED FLEET PLUS LONG-TERM CHARTERS WITH PURCHASE OPTION IS ONE OF THE MOST MODERN, EFFICIENT AND YOUNGEST IN THE INDUSTRY WITH AN AVERGAE AGE OF 5.2 YEARS AND AN AVERAGE SIZE OF 5,780 TEU/SHIP
  
  
• SUCCESSFULLY BID AT AUCTION FOR THE TIANJIN INTERNATIONAL TRADE CENTRE LOCATED IN THE DOWNTOWN TIANJIN XIAOBAILOU CBD AREA, A HIGH RISE MIXED USE COMPLEX WITH A TOTAL GFA OF 190,000 SQ M
  

Orient Overseas (International) Ltd (“OOIL”) today announced a profit attributable to shareholders of US$2,547 million for the year ended 31st December 2007, compared to the profit of US$580.6 million recorded in 2006.  The reported profit for year 2007 included a gain of US$1.99 billion from the disposal of Terminals Division.

Excluding the profit from discontinued activities and investment property revaluation gains, the continuing operations reported a net profit of US$553.7 million for the year, compared with US$428.3 million for 2006 – an increase of 29.3%.

There was no valuation surplus on our investment property Wall Street Plaza for the full year 2007 but for 2006, a valuation surplus of US$100 million was included.  The Directors are recommending the payment of a final dividend of US13.5 cents (HK$1.05) per share.



“Last year I noted 2006 as being a momentous year with the sale of the Terminals Division and a solid result from the Group’s ongoing business in the face of difficult market conditions.  2007 has proven to be equally important, representing a watershed year for the Group following the completion of the Terminals’ sale.  Key events during the year have been the improved profit from operations in our Container Transportation and Logistics business without the Terminals Division; the special dividends paid to shareholders during the year; and the reaffirmation of the Group’s direction,” said Chairman, Mr C C Tung.

“A key feature of the container shipping industry in recent years has been the rational allocation of capacity by carriers contributing to lower overall volatility for the industry.  With sensible allocation of capacity by the industry continuing in 2007, the stronger sentiment seen at the start of the year translated into maintenance of improving freight rates throughout the year.  With overall volume growth and an improvement in freight rates, our ongoing businesses reported an improved performance despite rising costs due to high oil prices.”

“For our Container Transport and Logistics businesses, 2007 proved a much stronger year than some were predicting at the end of 2006.  Despite the US housing sector continuing to slow throughout the year, the effect on the global consumption was muted.  The slower volume increase to the US West Coast was mitigated by the strong growth of cargo demand from Asia to Europe.  Efficient operation of vessels by carriers in reaction to the high cost of fuel also absorbed capacity.  Combined, these factors contributed to a much better balancing of supply and demand of capacity than was predicated for the year.  With the strong Euro likely to sustain the current pace of outsourcing to Asia, and the recently announced fiscal and monetary stimulus measures in the United States, we expect much of the same trade pattern and growth of 2007 will continue through 2008.”

“During the year, we took delivery of two 8,063 TEU and three 4,578 TEU vessels from Samsung Shipyard.  Four new 5,888 TEU ships under charter with purchase options were also introduced to the fleet.  We expect to take delivery of 3 x 4,506 TEU ships from Samsung in 2008.  In the fourth quarter of 2007, the Group placed orders with Hudong - Zhonghua Shipyard (Group) Co, Ltd for a total of six newbuild 8,600 TEU vessels scheduled for delivery from late October 2010 through to the end of 2011.  Based on the existing fleet and orders, these vessels will be the largest in the OOCL fleet when delivered.  These orders followed the placing of an order for six 4,500 TEU vessels with Samsung Heavy Industries Co Ltd in the first half of the year.  During the year our oldest vessel, the OOCL Envoy, was disposed for US$9 million.  Built in 1979, the ship had a capacity of 2,544 TEU,” said Mr Tung.

“For our property development and investment business, as at the end of 2007, the Group had 1.4 million square meters of Total Gross Floor Area under development.  Given the complexities of real estate development and investment business in the PRC, we have defined our business to be geographically focused on the Greater Shanghai and Greater Bohai (Beijing / Tianjin) areas over the medium term.  The focus of the property development division in the short to near term is on furthering progress of its existing projects, and resuming the earnings flow that should commence in 2010 as projects come to completion.  In total, the Group’s pipeline of real estate projects remains solid, and we continue to expect them to contribute positively and significantly to the Group’s real estate development and investment profits going forward.”

“The Group continues to hold an 8% interest in Beijing Oriental Plaza.  While the project is achieving modest profits at the project level, we do not expect it to contribute to Group profitability in the near term.  Wall Street Plaza, the Group’s investment property in New York City’s financial district, maintained an occupancy rate of 100% for the better part of the year and was fully leased going into 2008.  While the performance of Wall Street Plaza remains solid, the weakening of credit markets resulted in a year-end reversal of the US$25 million revaluation as at the half year – leaving the property valued at US$200 million as at year-end 2007,” concluded Mr Tung.
 
Mr Kenneth Cambie, the Group Chief Financial Officer, said that the Group was in a net cash position as at 31st December 2007, compared with a net debt to equity ratio of 0.33:1 at end of 2006, as a result of the disposal of Terminals Division.  Mr Cambie continued to say that the Group continues to maintain a prudent financial position with a strategic goal of maintaining a net debt equity ratio at a level below 1:1.  He also confirmed that sufficient resources had been set aside to ensure that no undue burden is placed upon the Group’s financial position as new vessels are delivered over the next few years.  “Indeed, the Group’s balance sheet and financial position get ever stronger and place the Group advantageously for the future,” he commented.

OOIL owns one of the world’s largest international integrated containerised transportation businesses and trades under the name OOCL.  Its investments are principally in international containerised transportation, logistics, property interests in the People’s Republic of China and New York, and portfolio investment securities.  With more than 230 offices in 58 countries the Group is one of Hong Kong’s most international of businesses.  OOIL is listed on The Stock Exchange of Hong Kong Limited.

Issued by: Orient Overseas (International) Limited

For further information contact

Kenneth Cambie Chief Financial Officer (852) 2833 3518
Stanley Shen Investor Relations (852) 2833 3167

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