[301012.EN.SEA] NOL Credits New Efficiency, Rate Stability For First Profit Since 2010

SINGAPORE's NOL Group, which owns APL container shipping line, has posted a third quarter profit of US$50 million after suffering a $91 million net loss in the corresponding period last year - its first quarterly profit since the fourth quarter of 2010.

The company attributed the improvement to increased efficiencies, stable rates and volume growth. APL Logistics, NOL's supply chain unit, APL Logistics, reported a 10 per cent year-on -year increase in third quarter revenue to $365 million, up 19 per cent to provide an operating profit of $19 million.

"Our efforts to improve the group's competitive position are paying off," said NOL chief executive Ng Yat Chung. "Maintaining focus on the fundamentals of our business - service quality, operational efficiency and cost discipline - will be key to improving performance."

The company's cost-efficiency drive gained $360 million in the first three quarters and managements expects it will achieve the full-year goal of $500 million, the NOL statement said.

APL reported an operating profit of $55 million in the third quarter, compared to a loss of $88 million in the same period a year ago, drawn on a two per cent increase in revenue and a three per cent rise in volume.

"We were able to move more with a smaller fleet capacity, and reduced bunker fuel consumption," said APL president Kenneth Glenn. "These efficiency gains, coupled with our fleet modernisation, are the reasons unit costs improved. "

Contract logistics achieved a 16 per cent year-to-date revenue increase to $740 million, due mainly to strong demand for rail and land-based logistics services.

International logistics services revenue improved one per cent in a soft retail and apparel market. APL Logistics posted a year-on-year 19 per cent increase in third quarter operating profit to $19 million.

"Even as our logistics business continues to grow organically, we are also expanding our market footprint through strategic investments," said APL Logistics president Jim McAdam. "Our acquisition of the APLL-Zhiqin Group will significantly increase APL Logistics' domestic footprint in China. Our service network will expand to nearly 80 offices and hub facilities nation-wide. With an extensive network of trucking and distribution services, we are better able to serve international customers seeking to penetrate China's fast-growing consumption markets."

Source : HKSG, 29.10.12.