Neptune Orient Lines (NOL)

[thinknotleft]

Nol shr price has been rising. Prob becoz of the expectations that container shipping will start recovering in 1h or 2h 2013. This is in various brokerage reports. I think only cimb is negative about nol.

[Musicwhiz]

The Straits Times
www.straitstimes.com
Published on Feb 23, 2013
NOL reports $121m loss for latest quarter
Industry still struggling with over-supply, says company

SINGAPORE - Neptune Orient Lines (NOL), South-east Asia's biggest container shipping company, reported a loss bigger than analysts had estimated as an economic slowdown in Europe dampened trade.

Net loss in the three months to Dec 28 was US$98 million (S$121 million), compared with the average US$12.6 million loss forecast of five analysts' estimates compiled by Bloom- berg.

A year earlier, the company had a US$320.4 million loss, according to a statement the shipping liner sent to the Singapore stock exchange yesterday.

NOL, which shed assets, selling older vessels and returning chartered ships, moved 802,000 40-foot equivalent cargo boxes in the quarter, 3per cent lower than a year earlier, because of trade between Asia and Europe.

The carrier expects a "better performance" this year, joining AP Moller-Maersk, owner of the world's biggest container shipping line, in forecasting an optimistic outlook this year.

"The container shipping industry continues to face severe over-supply," NOL said in the statement.

"The company will start 2013 with a better cost base as a result of a modern fleet. Barring unforeseen circumstances, the company expects a better performance than in 2012."

It said it had achieved its target of cutting costs by US$500 million last year.

NOL, whose businesses include container shipping, terminals and logistics operations, gained 0.4 per cent to close at $1.225 before the earnings announcement.

The stock has advanced 7 per cent this year, compared with a 3.8 per cent increase in the benchmark Straits Times Index.

The company is selling its headquarters to fund "strategic investments", it said in October without elaborating.

The ship operator is also adding larger and more fuel-efficient ships amid rising competition.

Maersk Line, which reported earnings yesterday, also reduced its fleet and slowed vessel speeds last year to curb over-capacity as falling worldwide consumer demand affects cargo volume and hurts freight charges.

Maersk Line said profit this year will be higher than the US$461 million reached last year as the company cuts costs and container demand-growth accelerates.

APL, NOL's container shipping arm, earned an average revenue per box of US$2,419, a 3 per cent increase.

The unit filled 92 per cent of capacity in the three-month period, unchanged from a year earlier.

Spot rates to haul a 20-foot container to Europe from Asia rose 5.2 per cent to US$1,218 in the fourth quarter, according to the Shanghai Shipping Exchange.

Those to the United States' west coast dropped 19 per cent to US$1,112. Lines need at least US$1,200 to make money, according to shipbroker Icap.

BLOOMBERG

[brattzz]

with demand in small increment, oversupply of tonnage, slow steaming, high bunker prices...
shipping biz now is really in negative terrorities...

Liner Trade is really a commodities now, high rising costs meeting oversupply = zero/negative margins...

[camelking]

The bright side is two shipping giants are looking forward to better days in 2013.
If NOL has a slight profit in 2013, the recovering story goes on ....
Vested....

[CityFarmer]

NOL is a good cyclical play? This stock is in The Edge's 2013 stock pick list.

NOL stays deep in the red

SINGAPORE — Neptune Orient Lines (NOL) yesterday reported a larger-than-expected loss as the anaemic European economy damped trade and hurt margins.

Net loss in the three months ended Dec 28 was US$98 million (S$121 million), compared with the average US$12.6 million loss forecast by analysts, as revenue grew 4 per cent to US$2.5 billion.

http://www.todayonline.com/business/nol-stays-deep-red

[felixleong]

NOL Group today reported first quarter 2013 core EBIT (Earnings Before Interest, Taxes and Non-Recurring Items) loss of US$85 million ($105 million), a 64% improvement or US$148 million, in the key profitability measure from a year ago.

NOL attributed the improvement to a continuing focus on operational efficiency and cost mitigation. It was the fourth consecutive quarter of year-on-year improvement posted by the Group on a Core EBIT level.

Including a non-recurring gain of US$200 million from the completed sale of the NOL headquarter building in Singapore, the group posted a first quarter 2013 net profit of US$76 million.

“Our cost base has improved as we continue to build a more competitive NOL. We have improved operational performance considerably from one year ago, so we know we are on the right track,” says NOL Group CEO Ng Yat Chung. “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.”

APL, NOL’s container shipping business, reported first quarter 2013 revenue of US$1.97 billion. Overall market demand continued to be frail, exacerbated by seasonal weakness and persistent overcapacity in the container shipping industry. Despite the prevailing challenges, APL registered an improved performance, with its Core EBIT loss at US$101 million, compared to a US$246 million deficit the same quarter last year.

Transpacific trade remained APL’s main driver this quarter, with a 4% year-on-year growth in volume backed by improving backhaul volumes. Intra-Asia trade stayed robust, while rate gains in the Asia-Europe trade were shortened by weak demand. APL’s headhaul and backhaul utilisation were above 90% across major trade lanes.

“The delivery of our new and more fuel-efficient vessels has helped us reduce our vessel slot costs,” says APL President Kenneth Glenn. “We continue to reap benefits from fuel, operational and other cost efficiencies. Profit prioritisation remains our target, as we keep our focus on optimising yield and adopting stricter capacity management as necessary.”

NOL’s supply chain management business, APL Logistics, continued its steady revenue and earnings growth. It reported first quarter 2013 revenue of US$427 million, up 8% from a year ago. Its Core EBIT improved 27% year-on-year to US$16 million. The strong performance put in by APL Logistics was boosted by business wins in its automotive, consumer and retail segments. With an expanding customer base, APL Logistics experienced broad-based growth in all business regions, bolstered by a 21% increase in the fast-growing Asia/Middle East sector.

“We are on track in our pursuit of profitable revenue growth in the attractive logistics space,” says APL Logistics President Jim McAdam. “The recent acquisitions in Asia and North America are integrating well into our service offerings and we continue to explore opportunities for further growth.”

NOL says the group’s cost base will continue to improve as it takes delivery of newer and more efficient ships while extracting further operational efficiencies. However, the container shipping industry remains saddled with overcapacity. The group will continue its focus on cost efficiency, yield and capacity management. Barring unforeseen circumstances and if freight rates do not deteriorate, the group says it remains on track to deliver a better performance than in 2012.

[Temperament]

AH...
This is a "BLUE/BLACK CHIP" highly cyclical stock. After expanding all these years, i think it is the "worst case" so far. They have to sell their Pasir Pangjang Neptune office after unsuccessful in trying to place preference shares in the market, not long ago. i think it would have closed shop long, long time ago if without AH KONG support. Anyone still waiting for shipping cycles to turn favorable?

[camelking]

AH...
This is a "BLUE/BLACK CHIP" highly cyclical stock. After expanding all these years, i think it is the "worst case" so far. They have to sell their Pasir Pangjang Neptune office after unsuccessful in trying to place preference shares in the market, not long ago. i think it would have closed shop long, long time ago if without AH KONG support. Anyone still waiting for shipping cycles to turn favorable?

Yes, i am still waiting....

[Temperament]

AH...
This is a "BLUE/BLACK CHIP" highly cyclical stock. After expanding all these years, i think it is the "worst case" so far. They have to sell their Pasir Pangjang Neptune office after unsuccessful in trying to place preference shares in the market, not long ago. i think it would have closed shop long, long time ago if without AH KONG support. Anyone still waiting for shipping cycles to turn favorable?

Yes, i am still waiting....

Sure or not?
Me not shame to tell too.
Vested 5 lots.

[camelking]

AH...
This is a "BLUE/BLACK CHIP" highly cyclical stock. After expanding all these years, i think it is the "worst case" so far. They have to sell their Pasir Pangjang Neptune office after unsuccessful in trying to place preference shares in the market, not long ago. i think it would have closed shop long, long time ago if without AH KONG support. Anyone still waiting for shipping cycles to turn favorable?

Yes, i am still waiting....

Sure or not?
Me not shame to tell too.
Vested 5 lots.

yes!
quite a sizeable portion of my portfolio is in NOL.
No risk, no gain...