Neptune Orient Lines Logs Q2 Profit
Singapore's Neptune Orient Lines Ltd (NOL) swung to a tiny net profit in its second quarter after six straight quarters of losses but said it had seen severe freight rate erosion.
"The group's container shipping business continued to face a challenging environment characterised by over-capacity and weak market demand," NOL Group CEO Ng Yat Chung said in a statement on Thursday. (http://bit.ly/1MVRJnG)
The container shipping line, controlled by Singapore's state investor Temasek Holdings, reported a net profit of $3 million in the quarter ending June 30 versus a net loss of $54 million a year earlier.
People familiar with the matter told Reuters this month that Temasek had hired a bank to seek buyers for NOL. Temasek has declined comment, while NOL has said it not made any decision on a potential sale of the company.
NOL said that following the sale of its APL Logistics unit for $1.24 billion, it had used the proceeds to reduce its debt.
Reporting by Rujun Shen and Anshuman Daga