NOL Reports Half Profit of $1M

Monday, October 08, 2001
The tough economic situation and business environment has not prevented Neptune Orient Line from first half profits, as the company announced $11 million profits (albeit down 78 percent from 1H 2000 profits) on revenues of $2.3 billion (up 6 percent from 1H 2000 revenues.)

In summarizing his company's results, Flemming R. Jacobs, NOL Group president and CEO, said "We have achieved much. We came from a difficult past and we are on the right track to return to full health, but we are not there yet. We would have preferred a little more time to consolidate all we have achieved and are achieving before having to deal with a severe downturn in the economic environment like this one. We will continue our strategy, but it will take us a little longer to reach our goals."

"Today the NOL Group is clearly focused on building its three core businesses: APL, the Liner business; APL Logistics (APLL); and the tanker business, American Eagle Tankers (AET).

APL Liner

Volumes in Europe were up 14 percent and rates up 1 percent, while in Asia/Middle East rates were up three percent. These gains were undermined particularly by a significant reduction in both rates and volumes in trades touching the Americas (rates down 4 percent, volumes down 5 percent). The overall result for the first half of 2001 was a drop in APL Liner revenues of 2 percent to $1.77 billion and a drop in Earnings Before Interest and Tax (EBIT) of 68 percent to $31 million.

"We are in the process of rejuvenating our fleet, and the vast majority of the newbuilds are chartered in, which provides flexibility without taxing the balance sheet. We are dealing with low growth by returning other chartered in vessels to their owners as new vessels that are more cost efficient come on line," Jacobs said.

Chartering

Chartering revenues increased 24 percent to $180 million in 1H01. EBIT rose 268 percent from $13 million to $48 million. "Our tanker business, American Eagle Tankers (AET), continues to be a bright spot, contributing well to both revenue and the bottom line," said Joseph Kwok, COO, CEO and president of AET and the Chartering Division.

A marked improvement in Aframax crude oil tanker rates of 40 percent, from $22,000 to more than $30,000 per day over the same period in 2000, contributed to the improved result. "We added a further two Aframax tankers through time charter in the first half of this year, taking our fleet to 24," Kwok said. "We are on track to have an entirely double-hulled fleet as planned by 2003." None of the current fleet is single-hulled.

"We disposed of another dry bulk carrier during the first half of this year, leaving four modern Panamax bulk carriers," Kwok said. "Our intention is still to exit this business over time."

Overall, expectations for the Chartering Division for the full year are positive and better than the solid results of 2000.

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

Finance

U.S. Drillers Add Rigs Despite Crude Collapse

U.S. energy firms added 5 oil rigs this week after putting 21 rigs into service last week, the most in over a year, despite a collapse in U.S. crude prices from recent highs in June,

DryShips Reaches Agreement with Ocean Rig

DryShips Inc. (NASDAQ: DRYS), a global provider of marine transportation services for drybulk and petroleum cargoes, and through its subsidiary, Ocean Rig UDW Inc.

South China Sea Hotline in the Works

China and Southeast Asian nations have agreed to set up a foreign ministers' hotline to tackle emergencies in the disputed South China Sea, a senior official of

Maritime Security

South China Sea Hotline in the Works

China and Southeast Asian nations have agreed to set up a foreign ministers' hotline to tackle emergencies in the disputed South China Sea, a senior official of

Three Rescued on Lake Tahoe

The Coast Guard and multiple agencies rescued three people Wednesday evening after they were reported missing on Lake Tahoe. At 9:45 p.m., Coast Guard Sector

Fond Farewell to HMAS Tobruk

The Governor-General, His Excellency General the Honourable Sir Peter Cosgrove, AK, MC (Retd), together with the Assistant Minister for Defence Stuart Robert, MP,

 
 
Maritime Security Naval Architecture Offshore Oil Pipelines Port Authority Salvage Ship Electronics Shipbuilding / Vessel Construction 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: 0.1596 sec (6 req/sec)