Asia/Pacific News
NOL: Bunker Cost Control Efforts Helped Q1 Bottom Line
Singapore's Neptune Orient Lines Limited (NOL) said efforts to control fuel costs helped it improve its position in the first quarter of the year.
"The delivery of our new and more fuel-efficient vessels has helped us reduce our vessel slot costs," said Kenneth Glenn, president of NOL container shipping division APL.
"We continue to reap benefits from fuel, operational and other cost efficiencies.
The company posted a $76 million net profit for quarter, thanks to $200 million in proceeds from the sale of its headquarters building.
The company's revenues fell slightly, to $2,371 million from $2,378 million in the same period last year, while its earnings before interest, taxes and non-recurring items (EBIT) remained in the red at negative-$85 million but improved greatly from negative-$233 million in Q1 2012.
"Our cost base has improved as we continue to build a more competitive NOL," said NOL Group CEO Ng Yat Chung.
"We have improved operational performance considerably from one year ago, so we know we are on the right track.
"But there is still more work to be done, especially when macro-economic conditions remain challenging, and the container shipping sector continues to face an oversupply situation."
Looking ahead, NOL said its cost base will continue to improve as it takes delivery of newer and more efficient ships while extracting further operational efficiencies, but expects the container shipping industry to remain saddled with overcapacity.
"The Group will continue its focus on cost efficiency, yield and capacity management," it said.
The company announced in March that it was receiving what it called its most environmentally friendly vessel, the 14,000 twenty-foot equivalent unit (TEU) containership APL Temasek.
