NOL posts bigger Q3 net loss, sees full-year loss

Monday, 7 November 2011 00:00 - - {{hitsCtrl.values.hits}}

Reuters: Neptune Orient Lines (NOL) , the world’s seventh-largest container shipping firm, has reported a wider than expected third-quarter loss and warned for a possible full year loss for the year ended December 2011.

The economic slowdown has badly hurt the global shipping industry this year as freight rates sink, derailing the recovery it saw in 2010 following heavy losses in 2009 due to the global recession.

NOL repeated its warnings made in August that it “expects to report a loss for the full year in 2011” as global economic conditions have not improved and freight rates continued to remain low while trade demand slowing.

Prior to the third quarter results, analysts are expecting the liner to post a net loss of around $160 million this year, compared to a net profit of more than $460 million last year.

“The liner shipping industry is faced with slowing trade demand, excess capacity and fuel costs that are significantly higher than a year ago,” said NOL Group CEO Ng Yat Chung.

“Our urgent priority is to drive down costs and increase efficiency,” he added.

The company, around two-third owned by Singapore state investor Temasek Holdings, posted a third quarter net loss of $91 million, compared to a net profit of $282.3 million a year ago. The loss was wider compared to an average analysts forecast of $48.4 million loss.

Its revenue for the quarter ended September 30 fell by nine per cent to $2.2 billion.