NOL Apologizes For Share Suspension, Price Drop

Thursday, August 16, 2001
Neptune Orient Lines Ltd (NOL), the world's sixth largest container shipping group, apologized to shareholders in a Singapore newspaper advertisement on Thursday for its recent one-day share suspension and price drop.

"It is regrettable if the suspension has caused you concern and inconvenience," Flemming Jacobs, NOL Group president and CEO, said in a Business Times announcement.

"I am sure you were as disappointed as I was at the suspension and the subsequent drop in the share price after the suspension was lifted."

The Singapore Exchange suspended NOL shares last Friday after Jacobs said in an interview carried in local newspapers that the Singapore-based company's reults would be lower this year.

"The expectations now are for much lower results than what we saw last year," he was quoted as saying.

Jacobs said in the advertisement concerns were expressed in Singapore and overseas about the suspension and that "there was uncertainty over what it meant" for the company.

NOL shares, which drifted to a 17-month low of S$1.01 on Thursday morning in active trade, have shed about 13 percent of their value from the pre-suspension price.

NOL said it had been informed by the stock exchange of concerns it gave the media information about its business outlook that was not generally available and that the firm should have issued an announcement.

"We filed a statement basically reiterating information that has been in the public domain and the suspension was lifted," the ad said.

Some institutional investors said the warning was not surprising as the group had guided down analysts' expectations as freight rates had been drifting lower since March on the back slowing global economies.

"Expectations have been tuned down for a while," said a fund manager with a European asset management group.

Separately, several brokerages - including G.K. Goh, ING Barings and Daiwa Institute of Research - have downgraded their earnings forecasts and ratings for NOL in the last two months on concerns over the sharp drop in freight rates.

NOL said the global downturn in the spring months of this year was more severe than originally anticipated and that it would not be able to meet earlier expectations.

"We have consistently, frequently and publicly highlighted this point previously," it said.

The shipping firm said it still expected a profit for the full year despite significant challenges facing its liner and logistics businesses.

"We understand that the Singapore Exchange (SGX) were genuinely concerned and we recognise that they do have a responsibility to ensure the regulations relating to public disclosure are upheld," NOL said.

"However, the suspension in the trading of our shares on Friday, 10 August was unexpected. We are working closely with SGX to avoid a similar occurrence."

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter February 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

SunEdison Restrained from 'Unusual' Asset Transfers

Solar company SunEdison Inc said a U.S. court has restrained the company from making any unusual asset transfers until a hearing in a lawsuit brought on by investors

Maersk to Scrap Ships at India's Alang Beaches, NGO Dismayed

Maersk Line said on Friday it had chosen four shipbreaking yards along India's Alang beaches to handle an increase in vessels that need to be scrapped, to the dismay

Teknotherm Marine Moves HVAC Arm to Bergen

Maritime heating, ventilation and air conditioning (HVAC) firm Teknotherm Marine has established a new subsidiary is established with the name Teknotherm Marine HVAC AS.

Finance

Brazil's CEEE to sell stakes in Wind Farms, Dams

Brazil's Companhia Estadual de Energia Elétrica (CEEE), a power utility controlled by the state of Rio Grande do Sul, will sell assets including stakes in wind farms,

DP World Bolsters Investment in India

DP World Pvt. Ltd, the world’s fourth biggest container port operator majority owned by the Dubai government, has plans to invest over $1 billion in India for augmenting its port-related operations.

SunEdison Restrained from 'Unusual' Asset Transfers

Solar company SunEdison Inc said a U.S. court has restrained the company from making any unusual asset transfers until a hearing in a lawsuit brought on by investors

 
 
Maritime Careers / Shipboard Positions Maritime Standards Navigation Offshore Oil Pipelines Pod Propulsion Salvage Ship Simulators Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0936 sec (11 req/sec)