Asia/Pacific News
NOL Says Bunker Savings Helped Cut Losses
Singapore-based Neptune Orient Lines (NOL) said bunker efficiency helped it reduce its loss to $33.7 million in the second quarter of 2013 after losing $116.2 million in the same quarter last year.
The company's revenues fell to $1.9 billion from $2.1 billion, but NOL said its cost initiatives have saved it $240 million so far this year, with bunker efficiency and network optimisation accounting for more than half the savings.
NOL also achieved higher productivity at terminals and reduced empty repositioning.
"Market conditions have worsened in the second quarter of this year compared to a year before," said NOL Group CEO Ng Yat Chung.
"Our container shipping business managed to deliver an improvement in its operating result in spite of difficult trading conditions, which is a good achievement."
The CEO added that the company will continue efforts to strengthen its long-term competitiveness.
NOL said it achieved a profit of $41 million for the first half of the year, but only because of the $200 million sale of its Singapore headquarters building.
When it first announced plans for the sale last year, the company said it would free up capital for strategic investment.
NOL's efforts at reducing fuel use include the addition of the APL Temasek, which the company called its most environmentally friendly vessel, in March.
