2024-04-15 01:22:44 ET
Summary
- Orient Overseas (International) Limited experienced a significant decrease in profit for FY 2023 compared to the previous year.
- The company's freight revenue per TEU also decreased from 2022 to 2023.
- The disruption in the Red Sea caused by the Houthis poses a risk to OROVY's operations and the overall freight rate.
- It will take at least one to two years to absorb new supply to the world's fleet of container vessels.
Investment Thesis
Six months ago, we downgraded Orient Overseas (International) Limited ( OROVY ) ( OROVF ) from a Hold stance to a Sell, on the back of a weakening freight environment and expectations of more pain to come....
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For further details see:
Orient Overseas (International): Lack Of Earnings Power Makes It A 'Sell'