21 Agustus 2013

[210813.EN.SEA] OOCL Has Strong Balance Sheet, Ready To Order More Fuel-efficient Ships

GIVEN the conflicting factors at play including global over capacity and rock bottom prices for newbuildings, Hong Kong's Orient Overseas Container Line (OOCL), is still in the market for new ships,

"Having competitive fuel-efficient tonnage is very important to us. If this can only be obtained by newbuildings, I don't see a reason why we don't order," OOCL executive director and acting chief financial officer Alan Tung.

"We ordered the new ships in 2011. Looking at the records, certainly the price has come down since that time - and I'll leave it there," he said.

Mr Tung also told a press conference said four 8,888-TEU vessels would be delivered by mid-2014 from Hundong Zhong.

"The whole purpose for us to have a strong, liquid balance sheet is that management can get newbuildings using its own initiative and not to be held hostage of financing or other things," he said.

OOCL parent, Hong Kong listed Orient Overseas (International) Ltd, had US$1.9 billion in cash reserves.

In early 2011, the carrier ordered ten 13,200-TEU mega-ships at Samsung Heavy Industries for US$136 million each, almost the same price for China Shipping Container Lines' giant 18,000-TEUer at Hyundai Heavy Industries earlier this year.


Source : HKSG.

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