Hong Kong, 22nd March 2023

Orient Overseas (International) Limited
Announces 2022 Full Year Results

– Group Revenue of US$19,820 million

– Group EBIT of US$10,089 million

– Group EBITDA of US$10,950 million

– Operating Cash Flow of US$11,253 million

– Profit Attributable to Equity Holders of US$9,965 million

– Recommended Dividend for Full Year 2022 is approximately 70% of the Profit Attributable to Equity Holders at approximately US$6,974 million.  Proposed Final Dividend of US$2.61 per ordinary share and Second Special Dividend of US$1.95 per ordinary share


Our logistics business, OOCL Logistics, performed very well during 2022.  Furthermore, co-operation between our logistics business and our liner side will be a key driver in our plans to develop more and more end-to-end business with our customers.


The business outlook is mixed, and while we do not foresee any material change in the first half, the timing of any improvement depends on a long list of macro-economic factors as well as on the evolution of the relative growth of supply and demand.  What is certain is only that there will be challenges ahead.

At the time of writing, it appears that this unmistakable downwards trend of freight rates may have started to stabilise.  Even if we may reasonably expect occasional further falls during the seasonally quieter two to three months following the Chinese New Year holidays, weekly movements in spot rates are no longer as dramatic as they were during much of the second half of 2022, and load factors on some routes show clear signs of improvement.  However, it seems unlikely that the general environment for the industry will change materially during the first half of 2023.  Thereafter, once importers in countries such as the US have made further progress in reducing their inventories, then if the economic outlook has improved, for example if inflation has started to peak and if employment data remains strong, then we may see some improvement during the second half of 2023.  There can, however, 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. 

In 2023 and 2024, further supply increase will be created through the delivery of new ships – this could delay any improvement in the container shipping markets, even if the economic situation is more benign than anticipated.  While mitigation of this risk from increasing supply most certainly does exist, through increased likelihood of vessel scrapping for example, and much more significantly from new environmental regulations, these will take time to be felt, and as such will not provide much counterbalance until the second half of 2023 at the earliest.  In the meantime, during the first half, it may be that shipping companies will look at expected levels of demand, and re-calibrate their services in line with the potentially reduced requirements of their own customer portfolio. 

Be assured, no matter the challenges, OOIL will adapt and be ready to serve its customers.  We will continue to work tirelessly and diligently to be at the forefront of our industry, as a Vital Link to World Trade.



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