Asia/Pacific News
Singapore's NOL Reports Improved Performance for 2012
Singapore-based Neptune Orient Lines (NOL) has posted a full year net loss of US$419 million for 2012, which represented a 12 percent improvement on the $478 million loss it made in 2011.
"General market conditions in 2012 remained challenging. But thanks to our focus on increasing efficiencies throughout the Group, we are in a better competitive position than before," said NOL Group CEO Ng Yat Chung.
NOL said revenue for the period was up 3 percent to $9.5 billion.
APL, the group's liner shipping business, reported a Core EBIT loss of $279 million, but it was a $167 million improvement on 2011.
Volume shipped grew 1 percent to 3.02 million forty-foot equivalent units (FEU), which is said was achieved with a "smaller and more efficient fleet" that had 8 percent less total capacity.
Bunker consumption over the year dropped by 10 percent.
NOL's supply chain management business, APL Logistics, reported record revenue of $1.6 billion, an 11 percent imporvement over 2011.
The division was boosted in November last year with the acquisition of U.S. Customs brokerage and trade compliance firm Carmichael International Service.
Looking ahead, NOL said the global economy has shown some signs of improvement but the container shipping industry continues to face severe oversupply, causing considerable container freight rate uncertainty.
"Notwithstanding these challenges, the Group will start 2013 with a better cost base as a result of a modern fleet and more efficient processes. Barring unforeseen circumstances, the Group expects a better performance than in 2012," it said.
