Singapore's Neptune Orient Lines (NOL) net profit rose 183 per cent year-on-year to US$121 million, courtesy of a "disciplined approach and a cost focus," a statement issued by the company said.
Group revenue also rose to US$2.41 billion for the period, representing a year-on-year increase of 27 per cent, while EBIT rose 114 per cent to US$137 million.
NOL Group chief executive Thomas Held, said the increased revenue is a clear indication of how well the group is positioned in a "growth industry".
Said Dr Held: "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 said.
NOL's container shipping division APL also fared well as revenue rose 33 per cent to US$2 billion, while its EBIT margin increased from 1.8 per cent to 5.3 per cent year on year.
The container shipping line carried a total of 662,900 FEU for the quarter, representing an increase of 14 per cent year on year.
APL's transpacific US west coast volume declined 2 per cent against and industry-wide fall of 8 per cent, APL recorded just a 2 per cent drop, while its total transpacific volumes grew 16 per cent for the quarter, mostly because of a increase in backhaul and a rise in US east coast bound shipments, the statement said.
Intra-Asia volumes also grew 12 per cent for the quarter.
Softening demand for US west coast shipments contributed to a revenue decline in NOL's terminal business activities, which fell 6 per cent to US$145 million
EBIT was US$12 million, compared with US$21 million in the same period last year.
"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," Dr Held said.
APL logistics revenue rose 12 per cent to $363 million, while EBIT was also up 42 per cent to $17 million.
The group's EBIT margin of 4.7 per cent places it among the more profitable logistics service providers. The company says it aims to increase the logistics division's contribution to its bottom line going forward.
Looking ahead, NOL anticipates further cost pressures due to escalating fuel prices. In response the group will focus on optimising asset utilisation, yield and cost management, the statement said.
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