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 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Syncrude Uncertain about Plant Fire Affecting Production

The operator of Canada's largest synthetic crude project said on Saturday it is investigating the causes of an early morning fire at an upgrading plant. Firefighters extinguished the blaze,

Hurricane Ignacio Gains Strength but Expected to Bypass Hawaii

Hurricane Ignacio intensified as it blew across the Pacific on a route likely to bypass Hawaii on Saturday, said the Central Pacific Hurricane Center of the National Weather Service.

United Heavy Lift Gears up for the Asian Boom

All set to expand its footprint in the South Asian market significantly, Hamburg based, United Heavy Lift (UHL) appointed strategically placed Lexicon Overseas Pvt Ltd.

Finance

TASI Acquires SignalFire Telemetry

TASI HOLDINGS INC. announced today it has completed the acquisition of all shares of SignalFire Telemetry, located in Hudson, Massachusetts.  This new acquisition

DP World Profit Up 22%

Global marine terminal operator DP World today announced strong financial results from its global portfolio of marine terminals for the six months to 30 June 2015,

Med Crude-Russian Urals Edges Lower in Med, Baltic

Russian Urals crude weakened in the Mediterranean and in the Baltic on Friday, while trading activity was limited ahead of a long holiday weekend in Britain, traders said.

 
 
Maritime Careers / Shipboard Positions Maritime Standards Navigation Offshore Oil Pod Propulsion Port Authority Ship Repair Ship Simulators Shipbuilding / Vessel Construction Winch
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: 0.3240 sec (3 req/sec)