NOL Shares Sag On Continued Rate Woes

Thursday, July 19, 2001
Shares of Neptune Orient Lines Ltd (NOL), the world's sixth largest container shipper, sank as much as 2.5 percent on Thursday morning to their lowest level since March 2000 on freight rate concerns. By the midday break, NOL had crawled back to S$1.20, down one cent, from S$1.18 in moderate trade of 2.78 million shares. Analysts said there were increased worries for its earnings due to prolonged pressure in freight rates with no short-term recovery in sight for cargo demand due to slowing economies. "People are concerned over pressures in freight rates," said Albert Goh, an analyst at Kim Eng Securities. NOL scrapped a planned share flotation and U.S. listing of its oil transportation unit last month. GK Goh analyst Masya Spek downgraded the shipping group to sell on Tuesday on expectations of further downside to earnings, two weeks after the brokerage reduced NOL to hold from buy. Spek said NOL was reluctant to run off leases and cut back its fleet despite lower than expected volumes on concerns that it might not be able to get back capacity when the market turned. With global traffic on all routes weak, NOL was not deriving much benefit from its diversified trade and route management, she said. "We expect the stock to be sold down as expectations were further lowered. We would look to re-enter the stock at around S$0.80," Spek said in a research note. - (Reuters)
Maritime Reporter June 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Diana Containerships Q2 & 1H 2014 Financial Results

Greece-based Diana Containerships Inc., a global shipping company specializing in the ownership of containerships, has reported net income of $0.6 million for the second quarter of 2014,

Mercator Lines Profit Hit by Low Bulk Freight Rate

Mercator Lines (Singapore) reported a revenue of US$ 16.5 million for Q1 2015, an increase of 19% as compared to correspoding period in the previous previous year, however a net loss of US$ 7.

China Shipyards Bag the Week's Ocean-going Newbuild Orders

Reported ordering this week has been exclusively focussed on the Chinese yards, says Clarkson Hellas in their latest 'S&P Weekly Bulletin'. Dry bulk carriers COSCO

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Naval Architecture Navigation Pod Propulsion Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar
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: 0.1054 sec (9 req/sec)