Global container shipping and logistics group Neptune Orient Lines (NOL) has posted a net profit for 2007 of US$523 million, 44 per cent higher than the previous year.
The group's EBIT was $613 million, 53 per cent higher than in 2006. Revenue for the year was up 12 per cent to a record $8.16 billion.
For the fourth quarter of 2007, the company registered a net profit of $196 million, up 292 per cent year on year, and EBIT of $228 million, up 221 per cent.
"We have recorded significant growth in container volumes, succeeded in securing higher average unit revenues and adopted a rigorous, disciplined approach to the management of all aspects of our business," said NOL group president and CEO Thomas Held.
"We built excellent momentum in the fourth quarter, with liner volumes rising 16 per cent quarter on quarter and a significantly improved performance in logistics, coupled with effective cost control across the board," said Dr Held.
NOL container liner arm, APL, reported revenue of $6.9 billion, an increase of 15 per cent year on year, and 26 per cent higher for 4Q07 at US$2 billion. Fourth quarter average revenue per FEU of $2,865 was 11 per cent higher than for the same period in 2006, a company statement said.
For the whole of 2007, APL carried 2.4 million FEU, an increase of 12 per cent against 2006, with particularly strong volume increases in the Intra-Asia trade. APL's headhaul utilisation in 2007 continued at an average level of 96 per cent.
The liner unit reported EBIT for 2007 of $533 million, up 56 per cent on 2006, and 4Q07 EBIT of $196 million, 256 per cent higher than for the same period a year ago.
"Our business model with its focus on yield, value-added services, high asset utilisation and cost management has again delivered a good financial performance," said Dr Held.
APL Logistics recorded a one per cent improvement in annual revenue at $1.3 billion, with 4Q07 up six per cent at $381 million. EBIT grew by 14 per cent year on year to $57 million, with improved margins and continued cost management contributing to the positive increase. Quarter on quarter, EBIT improved by 90 per cent to $19 million, with the EBIT margin for 4Q07 at five per cent.
This year, NOL established a new unit, APL Terminals, which had it been operating as a separate business at arm's length, and would have delivered revenue of $609 million and EBITDA of $113 million in 2007, the group said.
The team appointed to manage the new business comes from NOL's existing management pool. The new president of APL Terminals, Steve Schollaert, has been with the NOL group for 18 years. Mr Schollaert reports to Dr Held.
Looking ahead, NOL expects growth in the US container trades to moderate. In other markets, it forecasts that there will be continuing growth in container shipping, particularly in trade lanes linked with the Asian economies, it said.
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