English Arabic Armenian Azerbaijani Chinese (Simplified) Chinese (Traditional) Czech Danish Dutch Estonian Filipino Finnish French Galician Georgian German Greek Hindi Hungarian Icelandic Indonesian Italian Japanese Korean Latvian Lithuanian Malay Maltese Norwegian Persian Polish Portuguese Russian Slovak Slovenian Spanish Swedish Thai Turkish Ukrainian Vietnamese

NOL still losing money despite sale

SINGAPORE: NOL Group, majority owned by Singapore's sovereign wealth fund Temasek, reported a net profit of US$879 million on revenue of US$3.5 billion for the first six months of 2015.

Excluding the US$887 million net gain on the sale of its APL supply chain management business to Kintetsu World Express, the company posted an overall net loss of US$8 million for H1 compared to a loss of US$152 million year-on-year.

NOL said it experienced "severe freight rate erosion" with rates in major trade lanes falling to some of the lowest levels it has seen in recent years. Average freight rates fell 17 percent in the second quarter because of over-capacity, it added. As a result, revenue for Q2 fell 24 percent to US$1.5 billion; EBIT was US$29 million and net profit excluding the Kintetsu sale, US$3.0 million.

NOL "The Group's container shipping business continued to face a challenging environment characterized by over-capacity and weak market demand. Nonetheless, APL reversed a core EBIT loss in the second quarter last year to a positive position this year," said NOL Group president and CEO Ng Yat Chung. "We remain focused on improving our cost competitiveness, yield optimization and service reliability to return the liner business to sustained profitability."

NOL reported US$100 million in cost savings in 2Q 2015, bringing its total cost savings for the first half of the year to US$255 million. "There is room for further cost savings with another nine vessels scheduled for expiry in the second half of this year," added Ng.

Commenting on speculation that the shipping group is up for sale, Drewry Maritime Research said: "There are several obstacles to a full sale of NOL: its parent company is not under pressure to sell and is unlikely to accept a low price, there are few willing buyers, and its fleet is not an attraction. More likely, Temasek will remain as a substantial shareholder after either a direct stake sale or indirect stake sale through [its investor subsidiary] Lentor.

"There is one good reason for Temasek to stick with NOL," Drewry added. "As full owner of container terminal operator PSA International it could use NOL, and its G6 Alliance partners, to utilize Singapore's new 65 million TEU per annum capacity mega-port at Tuas. The first-phase (25 million TEU capacity) is scheduled to be ready in six years."

News

Written on 22/09/2017, 18:52
air-and-sea-aid-response-to-irma-and-mariaTORTOLA: September 22, 2017. With Hurricane Maria causing structural damage and power outages as it passes the Turks & Caicos islands, Royal Navy...
Written on 22/09/2017, 14:44
turkish-airlines-to-order-40-dreamlinersNEW YORK: September 21, 2017. Boeing and the Turkish government plan to develop Turkey's aerospace industry with the launch of a National Aerospace...
Written on 21/09/2017, 21:28
fedex-q1-results-hit-by-tnt-cyberattackMEMPHIS/MIAMI: September 20, 2017. FedEx Corporation has reported adjusted first quarter (Q1) revenue of US$15.3 billion, up from US$14.7 billion...
Written on 21/09/2017, 19:28
colorado-to-consider-hyperloop-one-link-with-wyomingLOS ANGELES, September 21, 2017. Hyperloop One is partnering with the Colorado Department of Transportation (CDoT) to determine the feasibility of...
Written on 21/09/2017, 18:15
rail-freight-up-19-percent-between-russia-and-chinaMOSCOW: September 20, 2017. Russian Railways' president Oleg Belozerov has reported a 6.9 percent increase in rail freight revenue year-on-year for the...
Written on 16/09/2017, 03:38
panam-provides-canada-rail-link-to-bostonPORT ST JOHN, Canada: September 13, 2017. Port operator DP World and PanAm Railways are launching an intermodal rail service between the New Brunswick...
Written on 13/09/2017, 21:01
cma-cgm-to-deliver-irma-humanitarian-aidMARSEILLE, September 13, 2017. The French government has asked CMA CGM to ship 46 modular living containers, food and vehicles from Marsellie on September...
Written on 10/09/2017, 21:27
u-s-department-of-defence-responds-to-irmaMARCO ISLAND, Florida: September 10, 2017. Hurricane Irma has become the second Category 4 hurricane to make landfall on the continental U.S. in less than...
Written on 08/09/2017, 19:53
iata-warns-of-airfreight-peakGENEVA: September 06, 2017. IATA reports an 11.4 percent increase in freight tonne kilometers (FTKs), in July over the same period a year ago. The...
Written on 08/09/2017, 19:21
alibaba-signs-third-government-mou-in-latin-americaHANGZHOU, China: September 06, 2017. The Alibaba Group has signed an MoU with Mexico to provide the country's SMEs with global e-commerce, digital...
Written on 06/09/2017, 21:07
mars-to-invest-nearly-us-1-billion-on-sustainabilityMCLEAN, VA.: September 06, 2017. Family-owned candy and pet-food manufacturer Mars is to spend nearly US$1billion on a sustainability plan to tackle...
Written on 06/09/2017, 18:43
europe-s-intermodal-rail-network-loses-billionsBRUSSELS: September 05, 2017. Over 20 European rail and logistics organizations are warning Europe's intermodal network is "about to collapse" following...
Written on 05/09/2017, 17:39
new-joint-venture-for-us-mexico-rail-ferryDARIEN, CT/FORT LAUDERDALE, FL: September 05, 2017. Railroad operator Genesee & Wyoming (G&W) is investing in a four-day rail ferry service...
Written on 03/09/2017, 22:17
audi-opts-for-green-rail-logisticsINGOLSTADT, Germany: September 01, 2017. Audi says it is the first company in Germany to be CO2-neutral using DB Cargo's 'DBeco plus' rail service. The...
Written on 30/08/2017, 23:14
public-private-partnerships-respond-to-harveyHOUSTON/BATON ROUGE: August 30, 2017. As UPS and FedEx join other US$1 million-donors in responding to what is described as the worst flooding disaster...
Written on 28/08/2017, 16:42
new-uk-garbage-transport-planLONDON: August 28, 2017. The British government is offering £22 million to develop low carbon waste-based fuels to power commercial aircraft and...
Written on 25/08/2017, 15:37
qantas-plans-profitable-nonstop-to-new-yorkSYDNEY: August 25, 2017. Qantas chairman Alan Joyce has challenged Boeing and Airbus to build an aircraft that can fly non-stop with a full payload...
Written on 24/08/2017, 22:04
walmart-launches-a-googlemart-to-compete-with-amazonBENTONVILLE, AK: August 23, 2017. Walmart is partnering with Google to launch voice shopping for its U.S. customers via Google Assistant starting in late...
Written on 24/08/2017, 19:33
nepal-forwarders-recognize-qatarKATMANDU: August 23, 2017. The Nepal Freight Forwarders Association has given Qatar Airways Cargo an award for carrying the most export tonnage out of...
Written on 23/08/2017, 17:30
panama-handles-largest-box-carrierPANAMA CANAL: August 22, 2017. The CMA CGM Theodore Roosevelt, with a capacity for 14,855 TEU, has become the largest box ship to traverse the expanded...

- powered by Quickchilli.com -