2019-09-18 08:38Financial Performance - Orient Overseas (International) Limited reported a net profit attributable to shareholders of $138.978 million for the first half of 2019, compared to a loss of $10.320 million in the same period of 2018[10]. - The company's earnings per share for the first half of 2019 was 22.2 cents, a significant improvement from a loss of 1.6 cents per share in the previous year[10]. - The group achieved a pre-tax profit of $124.362 million, compared to a pre-tax loss of $10.139 million in the same period last year[13]. - Revenue for the six months ended June 30, 2019, was $3,300,533 thousand, an increase of 5.9% from $3,115,056 thousand in 2018[53]. - Operating profit rose significantly to $198,283 thousand compared to $50,538 thousand in the previous year, reflecting a substantial improvement in operational efficiency[53]. - Profit attributable to shareholders for the period was $138,978 thousand, a turnaround from a loss of $(10,320) thousand in 2018[55]. - The company reported a total comprehensive income of $129,784 thousand for the period, compared to a loss of $(32,795) thousand in the previous year[55]. - The company reported a significant increase in interest payments, totaling $95.651 million, compared to $63.184 million in 2018[58]. - The company reported a net loss of $10,320,000 for the period, compared to a loss of $77,171,000 in the previous year, showing a reduction in losses[111]. Revenue and Volume Growth - Container shipping volume increased by 3.2% compared to the first half of 2018, while revenue rose by 6.5%[14]. - The Pacific route experienced a 2% decrease in cargo volume year-over-year, while revenue increased by 5.8%[15]. - The Asia-Europe route saw an 8.5% increase in cargo volume compared to the same period last year, with revenue rising by 5%[16]. - Revenue from the Asia region for the ongoing business was $2,359,599,000, representing a year-over-year increase from $2,251,962,000[115]. - The company’s total revenue for the first half of 2019 was $68,620,000, compared to $62,668,000 in 2018, representing an increase of approximately 8.4%[87]. Dividends and Share Capital - The company announced an interim dividend of 6.66 cents per share for the first half of 2019[10]. - The company has a total issued share capital of 625,793,297 ordinary shares as of June 30, 2019[32]. - The company declared an interim dividend of 6.66 cents per share for 2019, while no dividend was declared in 2018[86]. Cost Management and Efficiency - The collaboration with COSCO Shipping Holdings has generated significant synergies, leading to substantial cost savings and a reduction in unit costs[14]. - The group is on track to meet its established synergy targets by the end of the year, focusing on areas such as vessel and service network planning, procurement, and IT[14]. - Average fuel price in the first half of 2019 was $441 per ton, up from $403 per ton in the same period of 2018, leading to a 3% increase in fuel costs[19]. - The logistics business reported a 2.1% decline in revenue and a 6.9% decrease in profit contribution year-over-year[20]. Assets and Liabilities - Total assets as of June 30, 2019, amounted to $10,692,189 thousand, an increase from $10,053,860 thousand at the end of 2018[57]. - Non-current liabilities decreased to $3,431,233 thousand from $3,805,861 thousand, indicating improved financial stability[57]. - The company’s total liabilities were $5,013,612,000 as of June 30, 2019, compared to $5,318,730,000 at the end of 2018, indicating a decrease in liabilities[112]. - The company recognized a lease liability of $862,576,000 as of June 30, 2019, under the new accounting standards, indicating a significant commitment to long-term leases[91]. Corporate Governance and Compliance - The company has adopted a customized corporate governance code, which includes principles from the Listing Rules and local and international best practices[42]. - The group has achieved ISO 27001 certification for its global data processing center, ensuring compliance with international information security management standards[26]. - The company has established a comprehensive training program for employees on cybersecurity awareness and phishing attack prevention[27]. Strategic Initiatives and Future Outlook - The company is actively pursuing digital transformation through partnerships in the Global Shipping Business Network (GSBN) and exploring blockchain technology[11]. - The group plans to focus on developing yard operations and enhancing logistics capacity in the Indian subcontinent and Europe to create profit opportunities[20]. - The company continues to focus on expanding its global container transportation and logistics services across major trade routes[109]. Employee and Workforce Management - The group employs a total of 10,276 full-time employees globally, with competitive compensation and benefits, including medical insurance and retirement plans[25]. - The company has committed to supporting the United Nations Sustainable Development Goals through its business operations and corporate culture[27].