NOL Group Nets $100m in Q2

Wednesday, August 11, 2010

Global container shipping and logistics group Neptune Orient Lines (NOL) reported a net profit of $100m for the second quarter of 2010.  That was up from a net loss of $146 million in the second quarter of 2009. 
 
The Group’s Core EBIT (Earnings Before Interest and Taxes) for the quarter was $114 million compared to a Core EBIT loss of $131 million in the same quarter a year ago.  Second quarter 2010 revenue increased 53% to $2.1 billion.
 
“Continued strong container shipping volumes and improving freight rates have helped return us to profitability,” said Group President and CEO Ronald D. Widdows.  “The result for this latest quarter reflects significant progress as we turn around our performance from the economic downturn of 2009.” 
 
NOL reported Core EBIT (Earnings Before Interest and Taxes) of $40 million for the first half of 2010, compared to a $353 million Core EBIT loss a year ago.  Revenue in the first half increased 44% to $4.2 billion.  Net profit for the first half of 2010 was $1 million, compared to a net loss of $391 million in the first half of 2009. 
 
The Group said it will not pay an interim dividend to shareholders.  However, the Group will consider a final dividend to be paid based on its current policy of paying an annual dividend of 20% of net profits after tax.
 
BUSINESS SEGMENTS
As previously announced, NOL is presenting the financial results of Container Shipping and Terminals as one business unit, namely Liner.   
 
APL, NOL’s Liner shipping business, reported first half 2010 revenue of $3.7 billion, up 46% from $2.5 billion a year ago.  Volume in the first half increased 39% to 1.35 million FEUs (forty-foot equivalent units).  Core EBIT for the first half was $13 million, up from a Core EBIT loss of $372 million a year ago.   
 
“Vessels were effectively full during much of the first half of 2010 even though we reintroduced idled vessels to our network and added incremental capacity,” said APL President Eng Aik Meng.  “In the second half, we will continue to emphasize operational efficiency and service reliability to meet the needs of our customers.”  
 
APL Logistics, NOL Group’s supply chain management business, reported Core EBIT of $27 million in the first half of 2010, up 13% from 2009.  Revenue increased 33% to $578 million.  The improvement was attributed primarily to increased volume across various business lines, higher rates in the freight forwarding business and growth in the auto logistics sector.
 
“We are particularly encouraged that average weekly revenue in the second quarter of 2010 was the highest it has been since late 2008,” said APL Logistics President Jim McAdam. 

OUTLOOK
With further improvement anticipated in container shipping volume and rates, NOL Group expects significant improvement in third quarter profits.  NOL will continue to emphasize cost efficiency, improved productivity and service delivery.
 
1H10 OPERATING PERFORMANCE (vs 1H09)
Liner Shipping
• Revenue $3.7 billion, up 46%
• Core EBIT $13 million, compared to a loss of $372 million previously
• Average revenue per FEU $2,643, up 11%
• Volume 1.35 million FEUs, up 39%

Logistics
• Revenue $578 million, up 33%
• Core EBIT $27 million, up 13%
• Core EBIT Margin 4.7% compared to 5.5% previously
 
2Q10 OPERATING PERFORMANCE (vs 2Q09)
Liner Shipping
• Revenue $1.9 billion, up 54%
• Core EBIT $101 million, compared to a loss of $138 million previously
• Average revenue per FEU $2,778, up 22%
• Volume 646 thousand FEUs, up 32%

Logistics
• Revenue $282 million, up 45%
• Core EBIT $12 million, up 20%
• Core EBIT Margin 4.3% compared to 5.1% previously

Maritime Reporter March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Diamond Offshore Shares on the Rise

Diamond Offshore Drilling Inc, one of the world's top five offshore rig contractors, reported a better-than-expected quarterly profit as it cut drilling costs and hiked prices,

Ecochlor Raises $10m for BWT Maket

Ecochlor, Inc. announced that it has completed a $10 million equity financing to support its growth into the burgeoning ballast water treatment market. Since its formation in 2001,

Offshore O&G: Cuts, Delays in Norway as Costs Soar

More oil and gas projects in Norway could be put on hold because of rising costs, adding to a growing list of developments that have been delayed or called off,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Navigation Offshore Oil Pod Propulsion Port Authority Ship Repair Ship Simulators Sonar
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: 0.1291 sec (8 req/sec)