Movement Alert|OOIL Falls 6.73% in Regular Trading, H1 Profit Drops 23.7% as Rising Costs Erode Margins

Market Focus08-28

On August 28, OOIL fell 6.73% in regular trading to HK$157.4, with turnover of HK$49.90 million, as the market reacted to the company's weaker-than-expected interim results released the prior evening.

OOIL reported H1 profit attributable to shareholders of $728 million, down 23.7% year-over-year, with EPS declining to $1.10 from $1.44. Revenue rose 6.1% to $5.17 billion, but operating expenses surged 10.9% to $4.34 billion, compressing gross margin from 19.87% to 16.2% and operating margin from 20.06% to 13.91%. Operating cash flow fell approximately 27%. The board declared an interim dividend of $0.55 per share, down from $0.72 a year ago.

While the company achieved record first-half liftings exceeding 4 million TEU and liner revenue reached the highest level outside the pandemic era, cost inflation and freight rate normalization significantly weighed on profitability. Management cited uncertainties from Middle East conflicts, oil price volatility, and inflation expectations as headwinds to operating costs.

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