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

People & Company News

Shipping Confidence Hits 2.5 Year Low

Overall confidence levels in the shipping industry fell to their lowest level for two-and-a-half years in February 2015, according to the latest Shipping Confidence

U.S. DoI Upholds 2008 Shell Arctic Lease

The U.S. Interior Department on Tuesday upheld a 2008 lease sale in the Chukchi Sea off Alaska, moving Royal Dutch Shell a step closer to returning to oil and gas

All American Marine Delivers Ferry to Seattle

All American Marine, Inc. (AAM) today announced the delivery of a new passenger ferry that will serve the city of Seattle.    The vessel, MV Sally Fox, was dedicated

Finance

Hermes Unit, Canadian Fund to Buy $2.4B Stake in UK Ports Group

The Canada Pension Plan Investment Board (CPPIB) and Hermes Infrastructure are prepared to buy a 30 percent stake in Associated British Ports for about 1.6 billion pounds ($2.

Baltic Sea Freight Index Up on Higher Capesize Rates

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, rose on Tuesday, mostly on higher capesize rates.   The index,

Direct Le Havre to Charleston LCL Import Service

CaroTrans has announced the addition of an expedited Le Havre, France to Charleston LCL import service.    This is the only direct, weekly Le Havre to Charleston LCL service available in the market.

 
 
Maritime Standards Naval Architecture Navigation Offshore Oil Pipelines Pod Propulsion Ship Repair Ship Simulators Shipbuilding / Vessel Construction 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: 0.1424 sec (7 req/sec)