There was no safe harbour in sight for Singapore container shipping and logistics firm Neptune Orient Lines (NOL), which was stuck in the red for a second straight quarter.
NOL reported a net loss of US$57 million for the second quarter of the year, a stark reversal from the US$99.7 million profit in the corresponding period last year, reported the Straits Times.
NOL warned that it would post a full-year loss if conditions in the global economy did not improve, pointing to "weakened trade demand and continued pressure on freight rates".
The company said it was too early to say what the impact of the recent market upheaval would be on its operations, but added that the turmoil would not affect its financing.
NOL's revenue for the three months ended July1 was largely flat year-on-year, at $2.15 billion. Despite a nine per cent gain in first-half revenue to $4.6 billion, NOL suffered a $67 million net loss for the first half of this year.
Group deputy president and chief financial officer Cedric Foo said NOL's liner shipping business, its unit APL, had contributed to the loss.
He attributed the weak results to "a drop in utilisation in transpacific trade and a sharp fall in freight rates in the Asia-Europe trade, as well as rising fuel prices".
Revenue on standard-sized containers at APL dipped by nine per cent in the second quarter from a year earlier. |
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Source: cargonewsasia
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