NOL Reports Shipping Business EBIT Turnaround in Q2 2012

Press Release
Thursday, August 09, 2012

Singapore's Neptune Orient Lines (NOL) Group reports US$57 million Year-on-Year improvement in Core EBIT.

Excerpts from the financial report follow:

NOL Group report second quarter 2012 Core EBIT (Earnings Before Interest and Taxes) of US$16 million, a US$57 million turnaround in the key profitability measure from a year ago. 

NOL’s container shipping line, APL, reported second quarter Core EBIT of US$7 million.  It was the first time since the fourth quarter of 2010 that the shipping business has been profitable.

NOL attributed the result to improved freight rates and its efforts to control expenses and improve efficiency. 

APL Logistics, NOL’s supply chain management business, reported second quarter Core EBIT of US$9 million.

The charges were for organizational restructuring and the sale of obsolete vessels to make room for more efficient ships and to reset vessel slot costs.  NOL said that without the non-recurring charges, the second quarter net loss would have been US$6 million.

The one-time charges were difficult but necessary,” said Group CEO Ng Yat Chung.  “We need a more efficient organization and a more modern, cost-competitive fleet to deal with the oversupply situation in the container shipping industry.”

NOL reported an 8% revenue increase in the second quarter compared to the same period a year ago.  The company said that through two quarters of 2012 it has achieved US$225 million in expense reductions toward a full-year goal of US$500 million.

Improved fuel efficiency accounted for much of the cost savings, the company said.  Fuel use was reduced by 7%, in the first half of 2012 from a year ago in spite of a 4% increase in cargo volume.
 

 

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

People & Company News

Baltic Mercur II makes maiden voyage to Antwerp

This week Atlantic Ro-Ro Carriers (ARRC) celebrates the maiden voyage of the Baltic Mercur II via the port of Antwerp as part of their regular transatlantic service to the US Gulf.

USCG Provides Safety Tips to Paddlesports Enthusiasts

As the boating season unofficially begins, the 9th Coast Guard District is reminding paddlesport enthusiasts to take precautions to ensure safe trips and increase

USS George Washington Completes Carrier Qualifications

Carrier Air Wing (CVW) 5 and the Nimitz-class aircraft carrier USS George Washington (CVN 73) completed its carrier qualifications (CQ), May 23. CQ allows

Finance

Vinalines Plans Ports Divestment

The Vietnam National Shipping Lines (Vinalines) and the Ministry of Transport (MOT) hope the plan to reduce the state’s ownership ratio in the big shipping firm

Dubai Establishes Maritime Arbitration Centre

The Dubai Maritime City Authority (DMCA) is in the final stages of completing the rules for the first maritime arbitration centre in the Middles East: the Emirates

Gener8 Maritime to Go Public

Private equity-backed tanker operator Gener8 Maritime filed with the U.S. Securities and Exchange Commission (SEC) to proceed with an initial public offering worth up to $100m.

Container Ships

Dortmund Port's Throughput Up

In 2014, Dortmund’s combined goods throughput on ships and trains amounted to 5.7 million tonnes, compared to 5.3 in the previous year. 2.9 million tonnes (+600,000) of this was ship related.

KPCT Launches New Gulf Service

Containerized volumes are steadily increasing on the East Coast of India. Keeping pace with the growth, Krishnapatnam Port Co. Ltd. (KPCT) now offers a new service to the Gulf sector.

Shipping Freight Rates Drop Amidst Overcapacity

Shipping freight rates on the world's busiest route, from Asia to Northern Europe, fell by the largest percentage amount since 2008, reflecting wild volatility

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Navigation Offshore Oil Pipelines Port Authority Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | 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: 0.2145 sec (5 req/sec)