NOL sinks into red with Q3 loss of US$90.22m, warns of FY2011 loss

By CARINE LEE


Neptune Orient Lines (NOL) Limited on Monday reported a net loss of US$90.22 million dollars for the third quarter ended Sept 30, 2011, compared to a net profit of US$282.63 million a year ago.

The group said that the net loss is mainly due to higher costs associated with higher volumes and higher bunker costs.

Revenue for the quarter fell 9 per cent year-on-year to US$2.21 billion from US$2.43 billion on the back of lower liner revenue from lower freight rates across most major trade lanes.

Consequently, earnings per share (EPS) for the quarer was negative 3.53 US cents. A year ago, EPS was 10.95 US cents.

For the nine months ended Sept 30, NOL posted a net loss of US$157.76 million from a net profit of US$283.46 million previously.

However, year-to-date revenue crept up 2 per cent to US$6.81 billion from US$6.65 billion a year ago, due to increase in logistics revenue from higher volumes across the various logistics businesses.

Year-to-date EPS for FY2011 is negative 6.12 US cents. A year ago, EPS was 11 US cents.

'With continued low freight rates in container shipping and slowing trade demand, NOL Group expects to report a loss for the full year in 2011,' said the global container shipping and logistics services provider.