NOL Reports $208m Year-On-Year Improvement

Press Release
Friday, February 22, 2013

Group’s 4Q 2012 performance improves 75%; meets cost saving goal of US$500 million

Global container shipping and logistics group Neptune Orient Lines (NOL) reported fourth quarter 2012 Core EBIT (Earnings Before Interest and Taxes) loss of US$69 million, a 75% improvement in the key profitability measure from a year ago. The Group posted a full year net loss of US$419 million, mainly due to a first quarter net loss (before non-recurring items) of US$255 million and one-time charges of US$108 million. Singapore-based NOL also said that its efficiency programme delivered US$504 million of cost savings, which is in line with its 2012 target. The savings were primarily achieved through reduced fuel consumption, network optimization and increased terminal productivity.

“General market conditions in 2012 remained challenging. But thanks to our focus on increasing efficiencies throughout the Group, we are in a better competitive position than before,” said NOL Group CEO Ng Yat Chung. “We have improved our cost base, renewed our fleet and expanded our logistics business. We are starting 2013 on a stronger footing than a year before.”

NOL said 2012 revenue increased 3% to US$9.5 billion. NOL’s supply chain management business, APL Logistics, reported record revenue of US$1.6 billion. Its fourth quarter Core EBIT margin was the highest recorded in nine consecutive quarters.

Business Segments


APL, NOL Group’s liner shipping business, improved its performance in 2012 by US$167 million to report a Core EBIT loss of US$279 million. APL shipped 3.02 million FEUs in 2012, a 1% growth in volume, achieved with a smaller and more efficient fleet. APL reduced its fleet capacity by 8% and total fuel consumed by 10% during the year. A series of freight rate hikes across most trade lanes steadied average revenue per FEU (forty-foot equivalent unit) at US$2,509, which remained relatively unchanged from 2011. APL said that headhaul vessel utilization remained above 90% in 2012. The company said it continued to benefit from fuel, operational and other cost efficiencies.

“APL’s improved competitiveness has contributed to a better 4Q performance despite it being a traditionally weak season,” said APL President Kenneth Glenn. “We have continuously reduced our costs per FEU and will continue to focus on optimizing yield while delivering a high level of service to our customers.”

NOL’s supply chain management business, APL Logistics, reported record revenue of US$1.6 billion, up 11% from 2011. Its fourth quarter Core EBIT stood at US$26 million, up 34% from the same period last year. APL Logistics continued to be profitable in 2012, posting a full year Core EBIT of US$67 million.

“A 15% year-on-year growth in our contract logistics business, bolstered by strong demand in Asia for our international services, contributed to the results,” said APL Logistics President Jim McAdam. “We will continue the momentum gained through our strategic investments made in China, India and the US during 2012, for further growth in 2013.”

Outlook

The global economy has shown some signs of improvement. However, the container shipping industry continues to face severe oversupply, causing considerable container freight rate uncertainty. Notwithstanding these challenges, the Group will start 2013 with a better cost base as a result of a modern fleet and more efficient processes. Barring unforeseen circumstances, the Group expects a better performance than in 2012.

FY12 Operating Performance (vs FY11)


Liner Shipping

• Revenue US$8.1 billion, up 2%
• Core EBIT loss of US$279 million, compared to US$446 million Core EBIT loss in FY11
• Average revenue per FEU US$2,509
• Volume 3.02 million FEUs, up 1%

Logistics

• Revenue US$1.6 billion, up 11%
• Core EBIT US$67 million, down 2%
• Core EBIT Margin 4.3% compared to 4.9% previously

4Q12 Operating Performance (vs 4q11)


Liner Shipping
• Revenue US$2.1 billion, up 2%
• Core EBIT loss US$95 million compared to US$297 million Core EBIT loss previously
• Average revenue per FEU US$2,419, up 3%
• Volume 0.8 million FEUs, down 3%

Logistics

• Revenue US$435 million, up 12%
• Core EBIT US$26 million, up 34%
• Core EBIT Margin 6% compared to 5.1% previously

www.nol.com.sg

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

People & Company News

Cove Point LNG Export Facility Gets US FERC Approval

U.S. federal regulators on Monday approved construction of Dominion Resources Inc's liquefied natural gas export project in Cove Point, Maryland. Cove Point is the fourth U.

Aker Evaluating Future of US Shipyard, ASC

Norway's Aker ASA may decide to merge or otherwise restructure two listed units that have seen strong benefits from the U.S. shale oil energy boom, Aker's Converto

MAN Propulsion Packages for New Icelandic Trawlers

MAN Diesel and Turbo inform that Icelandic owners, HB Grandi, Vinnslustodin hf. and Hradfrystihusid Gunnvör, have ordered newbuildings based on two different ship

Finance

Brent Holds Above $97, Eyes Worst Quarter Since 2012

Brent crude futures hovered above $97 a barrel on Tuesday, aided by firm U.S. and Chinese data, but the oil benchmark was on track for its deepest quarterly drop

Aker Evaluating Future of US Shipyard, ASC

Norway's Aker ASA may decide to merge or otherwise restructure two listed units that have seen strong benefits from the U.S. shale oil energy boom, Aker's Converto

300th Tug Brokered by Marcon Int'l

Marcon International, Inc. of Coupeville, Washington reported the sale of the U.S. flag, twin screw tug “Pacific Patriot” (ex-Pacific King) from Kirby Marine Offshore to U.

Container Ships

DMR Examines Container Terminal Congestion Issues

Container port congestion has been hitting the headlines recently, but the reasons for it vary widely and in many cases it is only a short term issue. Certain world

FSL Trust Appoint Esben Poulson Independent Director

FSL Trust Management Pte. Ltd. (“FSLTM”), as Trustee- Manager of First Ship Lease Trust (“FSL Trust” ) informs it has appointed Esben Sofren Poulsson as Non-Executive Independent Director of FSLTM,

Hamburg Süd Christens “Cap San Antonio”

On Friday, Hamburg Süd celebrated the christening of its container ship “Cap San Antonio” at the Cruise Terminal of Le Havre, France, with customers and business partners.

Logistics

DMR Examines Container Terminal Congestion Issues

Container port congestion has been hitting the headlines recently, but the reasons for it vary widely and in many cases it is only a short term issue. Certain world

Signet Transports Second LLOG Rig to GofM

On September 14, five Signet Maritime ASD/Z-Drive tugboats, the SIGNET ENTERPRISE, SIGNET RELIANCE, SIGNET MAGIC, SIGNET WEATHERLY, and SIGNET VOLUNTEER successfully

Fire at Milazzo Refinery Impacts Docks

Inchcape Shipping Services  is advising of extensive disruption after a fire broke out Friday afternoon (27 September) at Italy’s energy giant Eni and Kuwait Petroleum’s

 
 
Maritime Careers / Shipboard Positions Maritime Standards Naval Architecture Navigation Offshore Oil Salvage Ship Simulators Shipbuilding / Vessel Construction Sonar 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: 0.2183 sec (5 req/sec)