NOL Reports $20m 3Q Profit

MarineLink.com
Wednesday, October 30, 2013
Ng Yat Chung, CEO of NOL Group

NOL Group reported net profits of $20 million for the third quarter of 2013, and year-to-date net profits of $61 million. The Group posted year-to-date Core EBIT improvement of 33% or $42 million, from a $127 million deficit in the same period last year.

Singapore-based NOL attributed the better showing so far this year to its continuing focus on operational efficiency and cost management. Its two operating companies – APL and APL Logistics – both delivered better 2013 year-to-date performances at the Core EBIT level compared to the same period in 2012.

“This is one of the weakest peak seasons we have seen in recent years, characterized by depressed freight rates and industry over-capacity,” said NOL Group CEO Ng Yat Chung. “Nevertheless, our business units delivered encouraging results. We improved our operational performance significantly from last year. Our focus on operational efficiencies is putting us in good stead for the long term.”

The group’s Core EBIT in the third quarter of 2013 was $22 million, compared to a Core EBIT of $80 million in the same quarter a year ago. Its net earnings of $20 million this quarter is down from the $50 million recorded in 3Q 2012.

General market conditions have not improved in the third quarter, resulting in a muted peak season. Volatile freight rates and over-capacity will continue. In spite of difficult conditions, NOL has delivered better year-to-date performance through its focus on operating efficiencies. The Group remains on track to deliver a better performance than in 2012.

Business Segments

APL, NOL’s container shipping business, reported a 2013 year-to-date Core EBIT improvement of 23%, compared to a $168 million deficit in the same three quarters in 2012. Its 3Q 2013 Core EBIT stood at $3 million. APL registered third quarter revenue of $1.7 billion, sliding 13% from last year due to capacity management and a steep decline in freight rates.

“We are taking decisive actions to trim capacity and reconfigure our service networks to better align to the lower demand levels,” said APL President Kenneth Glenn. “We continue to strengthen our competitiveness, evidenced by our ability to generate positive operating results despite a difficult market. We believe that our improved cost structure will position us well in a low growth and volatile freight rate environment.”

APL’s headhaul utilisation stayed above 90% in the first three quarters of 2013. Over the same period, APL’s average revenue per forty-foot-equivalent unit (FEU) dropped 7%, while operational efficiencies helped reduce cost of sales per FEU by 7%.

NOL’s supply chain management business, APL Logistics, maintained its 3Q 2013 Core EBIT at $19 million, with Core EBIT margin staying steady at 5.1%, compared to the same quarter last year. APL Logistics’ year-to-date Core EBIT improved 10% over the same three quarters of 2012, aided by business expansion coupled with operating efficiency and productivity growth. The business reported a 3% year-to-date improvement in revenue to $1.2 billion compared to last year.

In the third quarter of 2013, International Logistics Services revenue improved 8% year-on-year to $143 million, driven by business expansion within emerging markets in Asia/Middle East. International Logistics Services Core EBIT stood at $12 million. Over the same period, APL Logistics’ Contract Logistics business registered a slight 2% drop in revenue to $228 million, with Core EBIT at US$7 million, largely due to an extended plant slowdown in the North American automotive segment.

“In a tough marketplace, APL Logistics has improved our overall margins. We will continue to drive profitability by focusing on cost and service delivery to our customers,” said APL Logistics President Jim McAdam. “APL Logistics’ business expansion in the emerging markets remains firmly on track, and our recent acquisitions in the U.S. and China are contributing to our earnings.”

Outlook
General market conditions have not improved in the third quarter, resulting in a muted peak season. Volatile freight rates and over-capacity will continue. In spite of difficult conditions, NOL has delivered better year-to-date performance through its focus on operating efficiencies. The group said it remains on track to deliver a better performance than in 2012.
 

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

People & Company News

NV Charts Relocates US Headquarters

NV Charts has moved its offices and warehousing facilities to centrally-located Deale, Maryland, U.S. In announcing the move, Hasko Scheidt, CEO, said, “As we’ve grown and need room for expansion,

Royal IHC Merges Four Units into IHC IQIP

Royal IHC (IHC) has integrated four of its business units – IHC Hydrohammer, IHC Handling Systems, IHC Sea Steel and IHC Fundex Equipment – into one new organization,

Statoil: Johan Castberg, Snorre 2040 Timelines Changed

The licensees in the Johan Castberg and Snorre 2040 licences have decided to spend more time on the projects. “Castberg and Snorre 2040 are two major and important projects in our portfolio,

Finance

Wärtsilä, CME Offer ‘Scrubber Finance’

Funding concept promotes installation of scrubber systems by offering financing to shipowners, with returns taken from fuel price spread   In a move intended

Statoil: Johan Castberg, Snorre 2040 Timelines Changed

The licensees in the Johan Castberg and Snorre 2040 licences have decided to spend more time on the projects. “Castberg and Snorre 2040 are two major and important projects in our portfolio,

Wärtsilä, Clean Marine Energy Offer "Scrubber Finance"

Wärtsilä and Clean Marine Energy (Europe) Ltd (CME) today announced the landmark signing of the shipping industry's first collaboration agreement that will provide

Container Ships

Are Megaships Game Changers?

Bragging rights for the world’s largest container ship have changed hands four times in as many months and keep on shifting again, says a report in the Bloomberg.

Port of San Pedro Seeks to Fund Upgrades with European Roadshow

Ivory Coast's second largest port of San Pedro will hold a roadshow in France and Britain next month as it seeks to raise 180 billion CFA francs ($300 million) to fund upgrades,

Navis to Deploy Its N4 TOS to France's Largest Container Terminal

Navis has reached an agreement to deploy its N4 terminal operating system (TOS) to the largest container terminal in France, the company announced today.   The license agreement was with EUROFOS,

News

NV Charts Relocates US Headquarters

NV Charts has moved its offices and warehousing facilities to centrally-located Deale, Maryland, U.S. In announcing the move, Hasko Scheidt, CEO, said, “As we’ve grown and need room for expansion,

Wärtsilä, CME Offer ‘Scrubber Finance’

Funding concept promotes installation of scrubber systems by offering financing to shipowners, with returns taken from fuel price spread   In a move intended

Alphatron Marine VSAT Systems for 11 Workboats

Alphatron Marine has signed a lease contract with Seacontractors for no less than 11 vessels to provide satellite hardware and data solution packages.   Alphatron

Logistics

Statoil: Johan Castberg, Snorre 2040 Timelines Changed

The licensees in the Johan Castberg and Snorre 2040 licences have decided to spend more time on the projects. “Castberg and Snorre 2040 are two major and important projects in our portfolio,

Hapag-Lloyd Warn About Verification by German Customs

Hapag-Lloyd has informed that for all import cargo to be discharged at the German ports of Hamburg and Bremerhaven the carrier is responsible to send a complete

Richmond Ferry Service to Become a Reality

At its meeting of March 5, the Board of Directors of the Water Emergency Transportation Authority (WETA) approved a Cooperative Agreement with the Contra Costa

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Naval Architecture Offshore Oil Pipelines Pod Propulsion 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: 0.3261 sec (3 req/sec)