OOIL’s CFO is projecting a better year for the shipping industry as he once again dismissed rumours of a Cosco bid.
Alan Tung told a Hong Kong conference that the first two months of 2017 are showing a better market sentiment that the last quarter
Tung was speaking after OOIL reported its first annual loss since 2009, amid the depressed liner shipping market.
OOIL saw its red ink come to $219.2m in 2016, against a profit of $283.8m in 2015.
Analysts were expecting the company to post a $45m loss due to weak freight rates and supply overhang,
Tung noted reports of asset sales to Chinese giant Cosco are “not true”.
It has been reported that Cosco was preparing a $4bn bid for OOIL as consolidation is rife in the liner market.
This is the second time OOIL has dismissed sale rumours after releasing a statement on the matter in late January.
