[211010.EN.SEA] NOL Back In Black

SINGAPORE's Neptune Orient Lines, owner of the APL container line, has announced a 55 per cent third quarter profit increase to US$282 million, recovering from a year-on-year net loss of $139 million, an improvement credited to a 55 per cent revenue hike to $2.4 billion.

Net profit for the first three quarters of 2010 was $283 million compared to a net loss of $530 million during the same period last year.

"Strong demand and an improved rate environment have helped us turn around our performance," said NOL chief executive Ronald Widdows. "Our emphasis at this point is on operating efficiency and cost containment to ensure that we maintain momentum."

The group's third quarter pre-tax profit for the third quarter was $319 million compared to a year on year loss of $115 million. Pretax profit for the first three quarters was $359 million against a year on year loss of $468 million.

Third quarter revenue for APL, NOL's container unit, increased 60 per cent to $2.2 billion. For the first three quarters, its revenue rose 51 per cent to $5.9 billion.

APL pre-tax third quarter profit stood at $301 million against last year's $130 million loss while pre-tax profit for the three quarters of 2010 was $314 million against last year's nine-month loss of $502 million.

Shipping volume of the third quarter increased 12 per cent, while of the first three quarters rose 29 per cent.

"Volume and rates improved across most of our major trade lanes, and our ships were full," said APL president Eng Aik Meng. "At the same time, we were well-prepared with vessel capacity and container equipment to meet our customer commitments."

APL Logistics, NOL Group's supply chain management business, reported its third quarter revenue of $302 million, up 30 per cent year on year. Revenue for the first three quarters improved 31 per cent to $880 million.

Pre-tax profit in the logistics business rose six per cent in the third quarter to $18 million. For the first three quarters, pre-tax income increased 10 per cent to $45 million.

"Volumes increased in most of our business lines and freight rates improved in international logistics," said APL Logistics president Jim McAdam. "The result has been a continuation of the revenue growth we've realised throughout 2010, indicating a return to pre-economic downturn levels." 

Source : HKSG, 20.10.10.