NOL Reports $50 Million Profit

Press Release
Thursday, October 25, 2012

Increased operational efficiency, better market conditions boost Group’s performance.

 
NOL Group  reported net earnings of $50 million for the third quarter of 2012, a $141 million turnaround from the $91 million net loss in the third quarter of 2011. It was the first time since the fourth quarter of 2010 that the global container shipping and logistics group posted a net profit.

Singapore-based NOL attributed the improvement in financial performance to increased cost efficiencies, stable rates and volume growth. APL Logistics, NOL’s supply chain management business, reported double digit revenue growth, with a third quarter Core EBIT (Earnings Before Interest and Taxes) of US$19 million.

“Our efforts to improve the Group’s competitive position are paying off,” said NOL Group CEO Ng Yat Chung. “Going forward, maintaining focus on the fundamentals of our business – service quality, operational efficiency and cost discipline – will be key to improving performance.”

The company said that it has achieved $360 million through its cost and efficiency drive in the first three quarters of 2012 toward a full-year goal of $500 million.


The Group’s Core EBIT for the third quarter was $74 million compared to a Core EBIT loss of $72 million in the same quarter a year ago .


Financial Performance
          YTD12    YTD11    Change %         3Q12    3Q11    Change %
Revenue (US$m)         7,013    6,808    3         2,302    2,213    4
Core EBIT (US$m)         (143)    (100)    43         74    (72)    n.m.
Net (loss)/profit (US$m)         (321)< /p>    (158)    104         50    (91)    n.m.
 

Business Segments
NOL’s liner shipping business – APL – reported a Core EBIT profit of $55 million in the third quarter, compared to a loss of $88 million in the same period a year ago. APL achieved revenue of $6 billion for the three quarters in 2012, a year-on-year increase of 2%, on the back of a 3% rise in volumes transported. The company said it continued to benefit from efficiency gains in its operational network.

“We were able to move more with a smaller fleet capacity, and reduced bunker fuel consumption,” said APL President Kenneth Glenn. “These efficiency gains, coupled with our fleet modernization program, are the reasons our unit costs have improved significantly. We believe these initiatives position us well into the future.”

NOL’s supply chain management business, APL Logistics, reported third quarter revenue of $365 million, up 10% from a year ago. Contract Logistics achieved year-to-date revenue of $740 million, a 16% increase, due mainly to strong demand for rail and land-based logistics services. International Logistics Services revenue improved 1% amidst a soft retail and apparel environment. APL Logistics reported third quarter Core EBIT of $19 million, up 19% from the last quarter a year ago .


“Even as our logistics business continues to grow organically, we are also expanding our market footprint through strategic investments,” said APL Logistics President Jim McAdam. “Our acquisition of the APLL-Zhiqin Group will significantly increase APL Logistics’ domestic footprint in China. Our service network will expand to nearly 80 offices and hub facilities nation-wide. With an extensive network of trucking and distribution services, we are better able to serve international customers seeking to penetrate China’s fast-growing consumption markets.”


The Group turned in an improved third quarter result due mainly to cost savings and improved business efficiencies. However, the macro-economic outlook remains weak and the container shipping industry continues to face overcapacity and high fuel prices. The Group posted weak first quarter results. While the Group will continue to extract further operational efficiencies and strengthen its competitive position, it expects to post a full year loss.
 

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

People & Company News

Tanker Backlog Builds at Basra

Ships face up to a three week wait; bad weather in February delayed loading, created backlog. * April intake to be reduced to clear backlog By Keith Wallis SINGAPORE,

U.S. Port Delay Boost February Air Freight

Global air freight volumes rose 11.7 percent year-on-year in February, driven by the Chinese New Year, the International Air Transport Association said on Wednesday.

S.Korea to Pay $380,000 to Ferry Victims Families

The South Korean government said on Wednesday it would pay about 420 million won ($380,000) as compensation for each of the 250 students who died or remain missing from last year's ferry disaster,

Finance

Tanker Backlog Builds at Basra

Ships face up to a three week wait; bad weather in February delayed loading, created backlog. * April intake to be reduced to clear backlog By Keith Wallis SINGAPORE,

U.S. Port Delay Boost February Air Freight

Global air freight volumes rose 11.7 percent year-on-year in February, driven by the Chinese New Year, the International Air Transport Association said on Wednesday.

S.Korea to Pay $380,000 to Ferry Victims Families

The South Korean government said on Wednesday it would pay about 420 million won ($380,000) as compensation for each of the 250 students who died or remain missing from last year's ferry disaster,

Container Ships

U.S. Port Delay Boost February Air Freight

Global air freight volumes rose 11.7 percent year-on-year in February, driven by the Chinese New Year, the International Air Transport Association said on Wednesday.

Largest Vessel to Call ICTSI, Rijeka

Adriatic Gate Container Terminal (AGCT), International Container Terminal Services, Inc.’s (ICTSI) container handling facility in the Port of Rijeka, Croatia, recently

MOL President Reports Slack Performance

MOL President, President, Koichi Muto reported that the performance of the company was slack.   Muto reported, "I am sad to report that our business performance fell short,

 
 
Maritime Contracts Maritime Standards Naval Architecture Offshore Oil Pod Propulsion Port Authority 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: 0.1837 sec (5 req/sec)