World News
OOIL Points to Higher Bunker Prices in 2016 H2 for Difficult Operating Environment
Orient Overseas (International) Ltd (OOIL) today, in its financial results for the 2016 year, says a rise in fuel prices in the second half of the year coupled with poor freight rates to make industry performance challenging.
In the context of an "extremely challenging operating environment," the company reports a 2016 loss attributable to equity holders of $219 million, down from a $284 million profit the previous year.
Meanwhile, group revenue was $5,298 million in 2016, down from $5,953 million during the previous year.
"As fuel prices rose in the second half of the year, industry performance was badly affected by freight rates that frequently sank below the levels seen in 2009," said C C Tung, Chairman of OOIL.
In January, OOIL and China Cosco Shipping Corporation Limited (Cosco Shipping) denied reports that they were in negotiations for Cosco Shipping to take over OOIL subsidiary Orient Overseas Container Line (OOCL).
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 647.50 | 1.00 | 770.00 | 3.50 |
| Rotterdam | 601.50 | 2.50 | 754.00 | 2.00 |
| Houston | 619.00 | 11.50 | 795.50 | 3.00 |
| Fujairah | 651.50 | 1.00 | 895.00 | 2.00 |
| Global 20 Ports Average | 664.00 | 1.50 | 856.50 | 2.00 |
| Global 4 Ports Average | 630.00 | 3.00 | 803.50 | 2.50 |
| Global Average Bunker Price | 718.00 | 0.50 | 914.50 | 0.50 |
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