NOL revenue jumps 183%

Singapore - Neptune Orient Lines (NOL) posted a net profit of US$121 million in the first quarter of 2008, a growth of 183% over the first quarter of 2007 (1Q07).

1Q08 earnings before interest and taxes (EBIT) stood at US$137 million, an increase of 114% over last year. Revenue grew year-on-year to US$2.41 billion, an increase by 27%.

NOL's APL container shipping business saw a growth by 33% for their first quarter revenue to more than US$2 billion. The first quarter did 286% better than the same quarter last year, rising US$108 million. The EBIT Margin in 1Q08 of 5.3% was up from 1.8% in the same period in 2007.

Revenues from the group's logistics activities rose 12% to US$363 million in 1Q08, while EBIT of US$17 million was up 42% from the same period in 2007.

The revenues for 1Q08 were down 6% in the terminal business activities to US$145 million compared to 1Q07. EBIT was US$12 million, compared with US$21 million in the same period last year.

APL has globally carried a total of 662,900 FEU in the first quarter in 2008, a growth of 14% from the first quarter in 2007. There was an 8% industry-wide tightening of US West Coast volumes in the first quarter, while APL recorded a 2% drop.

“Some softening of demand in the Transpacific West Coast trade coupled with network optimisation initiatives resulted in lower volumes at our US West Coast terminals. This impacted the contribution of our Terminals activities. In the mid to longer term, we expect West Coast volumes to recover. We continue to be focused on increasing utilisation and improving the productivity of all aspects of our Terminals. The long-term demand outlook for the sector remains very positive,” group president and CEO Thomas Held said.

Overall, APL's Transpacific volumes grew by 16% in 1Q08. This growth was due to increased backhaul volumes and to US East Coast cargoes rising as a proportion of total Transpacific liftings. Moreover, Intra-Asia continued to drive volumes with growth of 12% in 1Q08.

"Our increased revenue clearly shows our group is well positioned in a growth industry. At a time of economic uncertainty and unprecedented fuel costs, we have again illustrated the viability of our business model and our strong focus on cost management," he added