orient overseas (international) limited - ooil - · pdf file · 2017-08-08orient...

2014Annual Report
(Incorporated in Bermuda with Limited Liability)Stock code: 316
Orient Overseas (International) Limited

Orient Overseas (International) Limited Annual Report 2014
Corporate profileOrient Overseas (International) Limited (OOIL), a company with total revenues in excess of US$6.5 billion, has principal business activities in container transport and logistics services. Listed on The Stock Exchange of Hong Kong, the OOIL Group has more than 320 offices in 70 countries.
Orient Overseas Container Line and OOCL are trade names for transportation provided separately by Orient Overseas Container Line Limited (OOCLL) and OOCL (Europe) Limited and both are wholly-owned subsidiaries of OOIL. OOCL is one of the worlds largest integrated international transportation, logistics and terminal companies, and is an industry leader in the use of information technology and e-commerce to manage the entire cargo transport process. OOCLs modern fleet today includes some of the youngest, largest, fuel efficient, and environmentally friendly vessels carrying cargoes on hundreds of trade routes around the world, providing a vital link in Global Trade.

Orient Overseas (International) LimitedAnnual Report 2014 1
1 Contents 2 Financial Highlights 3 Significant Events 2014 6 Chairmans Letter 10 Operations Review 15 Major Customers and Suppliers 20 Corporate Responsibility 28 Financial Review 44 Board of Directors 48 Senior Management 49 Shareholder Section 49 Financial Calendar 50 Shareholder Information 52 Corporate Governance Report 73 Report of the Directors
80 Index Financial Information 81 Independent Auditors Report 82 Financial Statements 82 Consolidated Profit and Loss Account 83 Consolidated Statement of Comprehensive Income 84 Consolidated Balance Sheet 86 Balance Sheet 87 Consolidated Cash Flow Statement 88 Consolidated Statement of Changes in Equity 89 Notes to the Consolidated Accounts 145 Principal Subsidiaries, Associated Companies and Joint Ventures 155 Other Information 155 Fleet and Container Information 158 Terminal Information 159 10-Year Financial Summary 160 Corporate Information
Contents

2 Orient Overseas (International) LimitedAnnual Report 2014
Financial Highlights
US$M 2014 2013Increase/
(decrease) %
Consolidated profit and lossRevenue 6,522 6,232 5%Operating profit 329 90 266%Revaluation of Wall Street Plaza 10 (7) N/MFinance costs (54) (41) 32%Profit for the year 270 47 474%
Consolidated Balance SheetLiquid assets 2,690 2,411 12%Property, plant and equipment 5,609 5,320 5%Total assets 9,633 8,990 7%Borrowings 3,985 3,534 13%Total liabilities 4,999 4,514 11%Ordinary shareholders equity 4,635 4,471 3.7%
Consolidated Net Cash flowOperating activities 479 413 16%Investing activities (183) (479) (62%)Financing activities (76) 191 N/MNet increase in cash and cash equivalents 220 125 76%
Key ratiosOperating profit margin 5% 1% 4%Gross debt to equity 0.86 0.79 7%Net debt to equity 0.28 0.25 3%Return on average ordinary shareholders equity 6% 1% 5%Earnings per ordinary share (US cents) 43.2 7.5 476%Net asset value per ordinary share (US dollar) 7.41 7.14 3.8%
2013 2014201220112010
2,000
1,500
1,000
0
US$M
15%
10%
5%
0%
Operating profit margin (R.H.S.)
Profit for the year (L.H.S.)
2013 2014201220112010
10
8
6
4
2
0
US$
50%
40%
30%
20%
10%
0%
Return on Average Ordinary Shareholders Equity (R.H.S.)
Net Asset Value per Ordinary Share (L.H.S.)

Significant Events 2014
January 1ooCl announced a new cooperation with two partner lines on three existing far east to indian Subcontinent services, the China india express Services (CiX and CiX3) and far east indian Subcontinent Service (fi3), which commenced in february 2014.
february 2Members of the G6 Alliance released details on port rotations for the proposed service expansion to the Asia-North America West Coast and Trans-Atlantic trade lanes in December 2013.
1
1
2
MarchOrient Overseas (International) L i m i t e d a n d i t s s u b s i d i a r i e s announced that the Group was profitable for the year 2013 by recording a profit attributable to shareholders of US$47.0 million, representing earnings per ordinary share of US7.5 cents.
april 3The naming of the m.v. OOCL Korea, the ninth 13,208 TEU newbuilding received, was held on Geoje Island in South Korea on April 11, 2014. The vessel was named by Mrs. Shirley Peng to join the OOCL fleet in providing quality and competitive services in the Asia-Europe trade lanes.
May 4 5ooCl celebrated the christening of the final and the tenth 13,208 teU containership from the previous round of Mega Class newbuilding order. the m.v. OOCL Singapore was named by Mrs. Brenda lo, Managing Director, asia, of permal (Hong Kong) limited, who was joined by her husband and our Guest of Honor Mr. Weber lo, Citi Country officer and Chief executive officer of Citi Hong Kong and Macau, on 20th May 2014. the vessel will be deployed in the asia-europe loop 6 service.
3
4

The Port of Long Beach presented an award to OOCL for Environmental Achievement in contributing to the steady decline of pollution at the port.
June 6 7 8OOCL was ranked the top carrier for 2014 in the Ocean Performance Survey conducted by the Agriculture Transportation Coalition, USA. OOCL was awarded the top three carriers for the last six years and this is the third win at the very top spot.
OOCL completed its environmental reporting and disclosure assurance by using both the Clean Cargo Working Group (CCWG) and ISO 14064-1 standards to certify the transparency, accuracy, completeness, consistency and relevance of OOCLs data disclosure on vessel emissions.
ooCl Global Data Center was successfully certified with the new iSo/ieC 27001:2013 standard that puts more emphasis on measuring and evaluating how well an organizations information Security Management System (iSMS) conforms to risk assessment requirements and meets the high corporate it Security management, planning and control standards.
7
8
July 9OOCL opened its Integrated Management and Service Center for North America in South Jordan, Utah, to enhance customer service capabilities.
OOCL Logistics expanded its service network in Central America, including Honduras, El Salvador and Nicaragua.
5
6
9

august 10 11ooCl logistics was honored by the China federation of logistics & purchasing (Cflp) as an aaaaa logistics enterprise.
OOCL received two sustainability awards for Carbon Footprint Accounting and Best Business Eco-Efficiency by the World CSR Congress and CMO Asia at the Asian Sustainability Leadership Awards 2014.
September 12 13 14OOCL announced details of a new joint service to the market, the China New Zealand Service (CNS), to commence in November, offering customers a competitive product that helps improve supply chain management efficiency and productivity through comprehensive southbound and northbound network connections.
OOCL won The Best Container Liner Award from The Thai National Shippers Council that recognizes outstanding contributions to improving service quality and supply chain efficiency in Thailand.
In Asias first sustainability ranking f o r b u s i n e s s e s , t h e C h a n n e l NewsAsia Sustainability Ranking p l a c e d O O I L i n t h e To p 1 0 0 companies index, celebrating leading firms in corporate sustainability across ten key Asian economies.
october 15In recognition of outstanding individuals for their leadership and achievements in international trade, the Port of Long Beach presented its highest honor, the Honorary Port Pilot Award, to the OOCL Chief Executive Officer, Mr. Andrew Tung.
November 16 17C a r g o S m a r t a n d t h e s h i p p i n g consultancy, Drewry, expanded their cooperation agreement to cover a broader exchange of market intelligence data on the container shipping market.
O O C L l au nche d t he f i r s t an nu a l Worldwide Cyber Security Awareness Training program to demonstrate our commitment to IT security and best pract ices to protect company and customer information.
December 18powered by CargoSmarts superior information technologies, a new online version of Drewrys Carrier performance insight reporting tool was launched.
OOCL Logistics launched the Russia Express Intermodal product to provide a c o s t e f f e c t i v e a n d e x p e d i t i o u s transportation alternative to move cargoes from Asia/China into Russia.
10
11
12
13
14
15
16
17
18

Chairmans Letter
Against an uncertain backdrop, the industry as a whole performed better in 2014 than it did in 2013. It is expected that trade growth in 2015 will outperform that of 2014. We are cautiously optimistic that global economic demand is on a positive trajectory. Notwithstanding the larger order book for delivery in the year 2015, we anticipate gradually improving industry dynamics and margin.
Tung Chee ChenChairman and CEO

Chairmans Letter
The global economic environment saw mixed but encouraging results during 2014. The U.S. recorded a GDP growth of

orient overseas (international) limited - ooil - · pdf file · 2017-08-08orient...

Documents