Singapore-based Neptune Orient Lines (NOL) said today that operating profit at its ocean carrier unit APL jumped 123 percent in the third quarter due to higher freight rates in key trades, strong box volume growth, as well as yield management and cost mitigation efforts.
APL's third quarter core earnings before interest, tax and non-recurring items (core EBIT) was $192 million, up from $86 million in the same quarter last year. Revenue from the liner company rose 19 percent in the quarter to $1.72 billion.
The carrier's average revenue per FEU gained 9 percent to $2,885 due to successful rate restoration programs in recent months, NOL said.
APL saw 12 percent growth in global container volumes to 564,000 FEUs while its network capacity rose 9 percent due to new ships and services. Head haul utilization averaged 99 percent, the same as in the third quarter of 2006.
For the year to date, APL's core EBIT was $337 million, up 18 percent from the same period last year, with revenue up 11 percent to $4.80 billion. APL's container volumes after nine months were up 11 percent to 1.69 million FEUs.
APL Logistics core EBIT for the third quarter declined 14 percent to $12 million with revenue up 2 percent to $318 million. For the first nine months, APL Logistics core EBIT was down 5 percent to $38 million with revenue lower by 1 percent to $942 million.
NOL posted a consolidated net income in the third quarter of $191 million, up 50 percent from $127 million a year ago. Group revenue for the period increased 15 percent to $2.03 billion. After nine months, NOL's net income was up 4 percent at $327 million with revenue growth of 9 percent to $5.74 billion.
The group has a positive outlook for the next quarter. "Over the first nine months of this year, improving market conditions have led to robust volume growth and higher freight rates in key trade lanes. We expect these conditions to continue through the rest of the year," NOL said in a statement.
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