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 Reporter August 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Evergreen Upgrades its Intra-Asia Service Network

Evergreen Line announced it will partner with Mariana Express in launching a joint South China- East Malaysia (SEM) Service. The new initiative will give a boost

Bureau Veritas Diversifies with MatthewsDaniel Acquisition

Bureau Veritas announced today that it has acquired MatthewsDaniel Ltd, a global provider of loss adjusting and risk assessment services for the offshore industry.

Fogal Retires from Zentech After 57 Years in O&G

Robert “Bob” “Sonny” Fogal, Jr., one of the icons in the offshore oil and gas industry, has decided to retire from front-line work as Zentech’s Director of Business Development.

Finance

Master Fined After Wind Farm Collision

The master of a wind farm support vessel has today been made to pay £3,000 in fines and costs after pleading guilty to breaches of maritime collision regulations.

Statoil, DNV GL Drive Subsea Factory Interface Standardization

Statoil has entered into an agreement with DNV GL to establish an industrial cooperation to introduce an international industry standard for subsea process technology.

Halliburton to Settle US Gulf Spill Claims for $1.1b

Halliburton Co said it reached a $1.1 billion settlement for a majority of claims against the company for its role in the BP oil spill in the Gulf of Mexico in 2010.

 
 
Maritime Careers / Shipboard Positions Naval Architecture Pipelines Pod Propulsion Salvage Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1722 sec (6 req/sec)