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

People & Company News

Cruise Ship Gets Within 298-miles of the N. Pole

Hapag-Lloyd Cruises say that their expedition ship 'Hanseatic' has set a new record for passenger ships in the Northeast Passage, when the 122.8-metre-long ship reached the northernmost point at 85°,

MNZ & AMSA Award McMurdo COSPAS-SARSAT Contract

McMurdo Group’s Techno-Sciences Inc. says it has been chosen by the Australia Maritime Safety Authority (AMSA) and Maritime New Zealand (MNZ) to deploy their next-generation

Panama Canal Infrastructure to be Valued by VRC

Leading provider of independent valuations, Valuation Research Corporation (VRC) says it has been engaged by the Panama Canal Authority to value the locks, dams,

Finance

Panama Canal Infrastructure to be Valued by VRC

Leading provider of independent valuations, Valuation Research Corporation (VRC) says it has been engaged by the Panama Canal Authority to value the locks, dams,

Box Ships on Slippery Containership Slope in Q2

"The reduced charters on the 'Box Queen', 'CMA CGM Marlin' and 'CMA CGM Kingfish' were the contributing factors to the 24% decline in our adjusted time charter revenues year over year,

Norwegian to Buy Prestige Cruises in $3b Deal

Norwegian Cruise Line Holdings Ltd (NCLH.O) said it would buy Prestige Cruises International Inc from its owner Apollo Global Management LLC (APO.N) in a $3 billion

Container Ships

Box Ships on Slippery Containership Slope in Q2

"The reduced charters on the 'Box Queen', 'CMA CGM Marlin' and 'CMA CGM Kingfish' were the contributing factors to the 24% decline in our adjusted time charter revenues year over year,

Fuel-saving Modifications for Containerships’ Engines

Mitsui Engineering & Shipbuilding Co., Ltd., and 100% owned subsidiary MES Technoservice Co., Ltd., have received an order from a Taiwan shipowner for fuel-efficiency

Evergreen Upgrades its Intra-Asia Service Network

Evergreen Line announced it will partner with Mariana Express in launching a joint South China- East Malaysia (SEM) Service. The new initiative will give a boost

News

USCG Cutter Eagle to Open for Tours in Yorktown

Coast Guard Cutter Eagle, America's tall ship and seagoing classroom for future officers in training, is scheduled to be open for tours Saturday at Coast Guard Training Center Yorktown.

30 Rosneft Subsidiaries in All-Russian Environmental Cleanup Day

Thirty Rosneft subsidiaries in most of the regions of the Company presence, from Sakhalin in the east to the Arkhangelsk Region in the west, took part in the

Newport International Boat Show Highlights

Newport Exhibition Group, owners and producers of the Newport International Boat Show, announced today activities and amenities for those planning to attend its 44th boat show season,

Logistics

Shell CEO: US Should Export Oil, Embrace Global Markets

The head of energy company Royal Dutch Shell said on Tuesday that U.S. policymakers should lift the crude oil export ban because allowing the shipments would make global energy system more stable.

Evergreen Upgrades its Intra-Asia Service Network

Evergreen Line announced it will partner with Mariana Express in launching a joint South China- East Malaysia (SEM) Service. The new initiative will give a boost

Logistical Scenario Analysis for Hydrodynamic Applications

To calculate the operability of the whole logistics chain, rather than only individual operations, MARIN has developed the hydrodynamic scenario analysis program ScenSim.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Naval Architecture Navigation Pipelines Port Authority Ship Repair 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: 0.1897 sec (5 req/sec)