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

People & Company News

Diana Shipping Invests in Diana Containerships

Diana Shipping Inc., a global shipping company specializing in the ownership of dry bulk vessels, has announced that it has entered into an agreement to purchase

North Sea Atlantic Joins the Technip fleet

On Saturday July 26, 2014, a ceremony was held in Bergen to officially name the latest new subsea construction vessel to join the Technip fleet, the North Sea Atlantic.

Coast Guard Responds to Grounded Freighter in Lake St. Clair

The Coast Guard has responded Sunday to a 656-foot freighter that was hard aground in the downbound shipping channel of Lake St. Clair. Initial reports indicate

Finance

Diana Shipping Invests in Diana Containerships

Diana Shipping Inc., a global shipping company specializing in the ownership of dry bulk vessels, has announced that it has entered into an agreement to purchase

Coast Guard Responds to Grounded Freighter in Lake St. Clair

The Coast Guard has responded Sunday to a 656-foot freighter that was hard aground in the downbound shipping channel of Lake St. Clair. Initial reports indicate

Leighton HY14 net margin Up to 2.7%

Leighton Holdings announced its results for the six months to 30 June 2014.   * Total revenue of $11.9 billion, up on HY13 * EBITDAiii of $843 million. Comparable EBITDAiv of $945 million,

Container Ships

Diana Shipping Invests in Diana Containerships

Diana Shipping Inc., a global shipping company specializing in the ownership of dry bulk vessels, has announced that it has entered into an agreement to purchase

Location of New Port Expansion Projects: Analysis

When it comes to port development, many governments now favour letting the market decide where expansion should take place, whereas most other transport infrastructure,

Port Metro Vancouver’s Re-opens to Inbound Containers Trucks

Port Metro Vancouver has re-opened its Clark Drive access gate to inbound container trucks destined for the Centerm container terminal. Inbound access had been

Logistics

Private Buyers in Iran Look to Boost Grain Market

One sign of change in Iran as it works toward a nuclear deal with world powers is the way it is feeding itself, with private grain firms beginning a slow return

Location of New Port Expansion Projects: Analysis

When it comes to port development, many governments now favour letting the market decide where expansion should take place, whereas most other transport infrastructure,

GAC North America Passes the Helm to Schensema

GAC says it  has moved Claus Schensema to Houston, Texas, where he will take up the post of Managing Director of GAC North America Logistics. Schensema brings

 
 
Maritime Careers / Shipboard Positions Maritime Security Naval Architecture Offshore Oil Pod Propulsion Port Authority Salvage Ship Electronics Ship Simulators 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: 0.1656 sec (6 req/sec)