OOCL's full-year net profit is US$2.58 billion
Ooil International (00316HK) announced its 2024 full year unaudited results on March 13. The Board of Directors declared a full-year 2024 dividend of $1.32 per common share, representing approximately 50% of net income or $1.288 billion.
For the full year of 2024, OOCL achieved operating income of 10.702 billion US dollars, an increase of 28.3%. Gross profit reached $2.821 billion, an increase of 144.2%. Operating profit was $2.625 billion, an increase of 86.7%. Net income attributable to the parent was $2.577 billion, up 88.4% year on year. The gross profit margin for the year was 26.4%. The operating margin for the full year was 24.6%.
Oocl said that the world economy will recover moderately in 2024, with strong import demand in developed economies and rapid trade growth in emerging markets. The impact of the Red Sea situation on the container market continued throughout 2024, with geopolitical risks changing not only the supply and demand of capacity across the industry, but also expectations and behavior. The detour to the Cape of Good Hope absorbed some capacity, easing industry concerns about oversupply. But with that came another problem. The unstable schedule of the initial detour and bad weather caused port congestion, and customers were worried about the stability of the supply chain and shipped ahead of schedule, which exacerbated the supply chain tension. Freight rates continued to rise, reaching the post-epidemic peak in the middle of the year, trans-Pacific routes attracted new participants, market competition intensified, and freight rates revised. However, affected by the US tariff policy, potential strikes and the surge in goods before the Spring Festival, the market is not weak.
In recent years, OOCL has followed the new development trend of green, low-carbon and intelligent shipping industry, actively promoted the construction of modern fleet, and the performance and configuration of vessels are more in line with the requirements of future green and scientific and technological development. In 2024, the company took delivery of six 24,188 TEU and one 16,828 TEU newly built container ships, all owned. In addition, the company has signed leases for six new 13,000-TEU container vessels, which will be operational from 2026 onwards. These ships have excellent navigation performance and can be flexibly deployed on different routes. Under the current situation of tight berth resources, this lease can ensure the further development of the fleet size, help Orient Overseas shipping to seize development opportunities, and add flexibility for future capacity adjustment.
Oocl will also continue to vigorously promote win-win cooperation with many industry partners. Continue to strengthen the synergies with the double brands of COSCO Shipping consolidation, and maintain close cooperation with other shipping companies through various ways such as shipping space exchange, to achieve maximum benefits. The smooth launch of Ocean Alliance Day 9 products, especially the Cape of Good Hope/Suez Canal version of the Asia-Europe route, demonstrates the confidence and determination of Alliance members to respond to market changes and prepare for them in advance.
While consolidating the liner business, the company gives full play to the advantages and capabilities of logistics companies in the whole supply chain solutions, warehousing and distribution services, and is committed to the information and intelligent construction of supply chain. The delivery capacity of supply chain products continues to improve, and the end-to-end business develops steadily.
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Looking to the future, the container market is facing more severe challenges. The evolution of geopolitical situations and trade patterns will make supply chain management more difficult. Unbalanced national or regional economic development and the emergence of structural risks will bring some uncertainties to the demand side. With the arrival of new ships, especially on the Red Sea, overcapacity will become a problem. At the same time, FuelEU Maritime will come into effect in 2025, and existing environmental regulations will be tightened to varying degrees, which may have some offsetting effect on capacity supply. The impact of the change in the alliance's operating model on the supply chain remains to be seen. All these factors are intertwined, adding complexity to the shipping market.
As we move into 2025, the situation changes further. The new policies of the US government have been introduced one after another, which have long - and short-term impacts on the global economy and supply chain. And the reshaping of global supply chains is bound to continue to have a profound impact on the shipping market.
Although the outlook is full of uncertainties, with the support of the dual-brand strategy, OOCL is ready to meet the opportunities and challenges with more efficient ship utilization and excellent cost control, and in a creative, prudent and flexible way. The company will consistently implement the commitment of people-oriented and customer-oriented, and build a green and intelligent bridge for world trade with high-quality services and reliable products.
