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

People & Company News

Matson Completes Horizon Lines Acquisition

Matson, Inc. has completed the acquisition of Horizon Lines, Inc. which includes Horizon's Alaska operations and the assumption of all non-Hawaii business liabilities.

Wärtsilä Acquires L-3 MSI

Wärtsilä completes acquisition of L-3 Marine Systems International    Wärtsilä Corporation announced that its acquisition of the Germany based L-3 Marine Systems

BWTS Newcomer Sees Early Success

Norwegian manufacturer of ballast water treatment systems MMC Green Technology reports it has sold more than 70 systems since going commercial with its MMC BWMS two years ago,

Finance

US Oil Contango Vanishing as Supply Glut Shifts Abroad

The U.S. oil market is on the brink of returning to a more bullish footing known as backwardation for the first time in six months, with the discount for prompt

Mexico Removes Bid Limit on Shallow Water Oil Tenders

Mexico's oil regulator voted on Friday to relax previously established rules on bidding terms and contracts that form the first step in an historic sector opening

Wärtsilä Acquires L-3 MSI

Wärtsilä completes acquisition of L-3 Marine Systems International    Wärtsilä Corporation announced that its acquisition of the Germany based L-3 Marine Systems

 
 
Maritime Security Naval Architecture Navigation Pipelines Pod Propulsion Port Authority Salvage Ship Electronics Sonar 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: 0.1945 sec (5 req/sec)