Wed 12 Aug 2015 09:58

OOIL: $243 drop in average bunker price


Average H1 bunker price plummets as OOIL posts 32% rise in profit attributable to equity holders.



The average price of bunker fuel paid by Orient Overseas (International) Ltd (OOIL) fell by $243 per tonne, or 40.1 percent, during the first six months of 2015 compared with the corresponding period last year.

OOIL recorded an average marine fuel price of $352 per tonne in the first half of 2015 compared with $595 per tonne last year. According to the shipping firm, it led to a decrease in fuel costs of 38 percent.

Details of the company's bunker purchasing data were revealed this week during the publication of OOIL's financial results for the first half of 2015.

Profit attributable to shareholders rose by $58 million, or 32.0 percent, to $239 million, up from $181 million during the first six months of 2014.

Operating profit increased by $60 million, or 28.4 percent, to $271 million, up from $211 million last year.

Commenting on the first six months of 2015, C.C. Tung, chairman of OOIL, said: "The first half of 2015 was an eventful six months for the global economic environment. Greece's ongoing challenges, and the US / Iranian nuclear negotiations acted as a backdrop to a slow but improving global economy. At this time, the Eurozone had reached a preliminary agreement with Greece, and the US and Iran had concluded their negotiations, subject to respective domestic legislative approval, paving the way for the gradual reintegration of Iran into the global economic system.

"The industry experienced a volatile period during the first half. In the earlier months of 2015, the industry enjoyed a relative stable freight market. Through the combination of the normal seasonal cargo rush prior to Chinese New Year, capacity constraints arising from port congestion and disruptions in the US, and an improving cost structure created by lower oil prices, the industry made meaningful gains in margin performance. In the latter half of the reporting period, with idling ships reactivated and new build capacity delivering, freight rates moved rapidly downwards, forcing margins to narrow. It is likely that the industry as a whole will report mixed results for the half year.

"Oil prices have remained benign since the sharp drop in third quarter 2014. Despite some upward movements of oil price in the second quarter this year, the prospect of oil reverting to the highs of 2013 and 2014 seems increasingly unlikely."

OOIL has more than 270 offices in 60 countries. Orient Overseas Container Line Limited (OOCL) is OOIL's wholly owned subsidiary and is one of the world's largest integrated container transport businesses. The company is headquartered in Hong Kong.


European Union member state flags. Danish Shipping calls for EU to invest ETS revenues in green marine fuel production  

Industry body welcomes Commission's sustainable transport plan but urges concrete action on funding.

Illustration of green fuel production for ships and aircraft. Transport & Environment welcomes STIP but warns action needed by 2026 to secure e-fuels leadership  

EU transport plan takes steps to boost green fuel production for ships and planes.

Graphic announcing release of DNV Maritime Nuclear Propulsion White Paper. DNV claims nuclear propulsion could offer viable route to maritime decarbonisation  

Classification society publishes white paper examining technological, regulatory, and commercial challenges facing nuclear-powered merchant vessels.

Signatories of European Nuclear Maritime Cooperation Declaration. European nuclear declaration signed for maritime decarbonisation  

Over 30 companies sign cooperation agreement to advance small modular reactor technologies for shipping.

Victrol Omega vessel. Peninsula operates Omega barge for fuel supply in Belgian North Sea  

Victrol vessel said to be the only estuary barge of its size serving Belgian North Sea ports.

Sonan Energy Panama logo with white background. Sonan Energy Panama unveils new logo as part of sustainable energy transition  

Bunker firm introduces redesigned brand identity reflecting shift towards cleaner energy solutions.

Niclas Mårtensson, CEO of Stena Line. Stena Line to acquire Wasaline ferry operations in Baltic Sea expansion  

Swedish ferry operator signs deal to take over Umeå–Vaasa route with bio-LNG-powered vessel.

Arriva Shipping vessel Norbris. Berg Propulsion secures second Arriva retrofit after 10% fuel savings confirmed  

Norwegian shipowner orders second propulsion upgrade following verified efficiency gains on general cargo vessel Norjarl.

Dorthe Bendtsen and Anders Grønborg. Bunker Holding to absorb Baseblue into KPI OceanConnect by April 2026  

Integration follows earlier Hong Kong merger and aims to streamline operations and strengthen regional teams.

Chimbusco Pan Nation (CPN) new logo. CPN unveils new brand identity after 34 years in marine fuel supply  

Hong Kong bunker supplier launches rebrand centered on 'continuous evolution' and sustainable fuel solutions.





 Recommended