Singapore's NOL Posts $3 million Profit for Q2 2015 Outside of APL Logistics Sale

by Ship & Bunker News Team
Friday July 31, 2015

Singapore-based Neptune Orient Lines (NOL) Group Thursday announced that it had achieved a net profit of $3 million outside of the $887 million it gained in the $1.24 billion sale of its supply chain management business, APL Logistics Ltd. (APL Logistics).

Including the sale, the overall 2Q 2015 net profit was $890 million.

This is the first time in six quarters that the company has posted a profit, but notes that the company's container business is still facing a challenging market "characterised by over-capacity and weak market demand."

Ng Yat Chung, President and CEO of NOL Group, commented on the results saying, "we remain focused on improving our cost competitiveness, yield optimization and service reliability to return the liner business to sustained profitability."

NOL reported that it gained $100 million in cost savings during the second quarter of 2015 and an overall total cost savings of $255 million during the first six months of 2015.

"There is room for further cost savings with another nine vessels scheduled for expiry in the second half of this year," said Ng.

Last week, NOL issued a statement downplaying reports that majority shareholder Temasek Holdings Pte. Ltd. (Temasek) is looking to sell the business for $1.7 billion.

On Tuesday, it was reported that Drewry had pointed to a lack of suitable buyers, unattractive assets, and no apparent urgency to push through as reasons that NOL is unlikely to be sold.

Ship & Bunker News Team
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