Singapore's Neptune Orient Lines (NOL), which owns APL container shipping line, posted a first quarter net loss of US$98 million compared to a $76 million year-on-year profit, which included a $200 million gain from the sale of NOL head office building, according to Shipping Gazette.
But the company also posted a 14 per cent increase in year-on-year first quarter pretax profit (EBITDA), narrowing its operating loss to US$65 million from a year ago.
NOL attributed this improvement to a focus on cost management and operational efficiency, which delivered $80 million worth of cost savings in the first three months of 2014.
"Operating conditions in the first quarter had been difficult, with severe weather disruptions in Europe and North America. This compounded the challenges posed by continued excess capacity in the container shipping business," said NOL president and CEO Ng Yat Chung.
"Nonetheless, both our business units delivered better year-on-year operating results this quarter. Going forward, global economic prospects and trading conditions remain uncertain," Mr Ng said.
"Oversupply of shipping capacity will continue to exert pressure on liner freight rates. The group aims to improve its financial performance in 2014, through its continued focus on cost discipline and drive for operational efficiency. We will also seek growth opportunities, particularly in our logistics business," he said.
NOL's container shipping business - APL - increased pretax profit 10 per cent over the same period last year, recording a loss of $83 million. Cost savings and efficiency gains helped reduce cost of sales per FEU by six per cent.
APL reported a first quarter revenue of $1.9 billion, while its year-on-year volume grew two per cent and its average freight rate fell six per cent.
"APL's emphasis on capacity management, as well as savings in areas such as bunker consumption and vessel and voyage operations, helped cushion the impact of falling freight rates in this year's first quarter," said APL president Kenneth Glenn.
"As more of our newbuildings come on stream in the following months, along with the scheduled return of less efficient chartered tonnage, we are on track to continue lowering slot costs and further strengthen our competitiveness," he said.
APL's headhaul utilisation was at an optimal 95 per cent in the first quarter, said the company statement. APL registered a nine per cent volume expansion with stable freight rates in the Asia-Europe trade.
Container volume was firm in the transpacific trade with freight rates falling five per cent, while its intra-Asia trade grew one per cent in volume against an 11 per cent dip in freight rates.
APL Logistics posted a 13 per cent pretax profit increase drawn on revenues of $423 million, relatively unchanged year on year. Contract Logistics also scored a 13 per cent pretax profit rise to $9 million, drawn on revenues of $271 million.
"The first quarter performances of our core International Logistics and Contract Logistics businesses had been satisfactory, and we are progressing steadily on our growth trajectory," said APL Logistics president Beat Simon.
"While our automotive logistics services are still feeling some impact from the ongoing automotive plant shutdown in North America, our growth strategy in the emerging markets has continued to propel our business," he said.
But the company also posted a 14 per cent increase in year-on-year first quarter pretax profit (EBITDA), narrowing its operating loss to US$65 million from a year ago.
NOL attributed this improvement to a focus on cost management and operational efficiency, which delivered $80 million worth of cost savings in the first three months of 2014.
"Operating conditions in the first quarter had been difficult, with severe weather disruptions in Europe and North America. This compounded the challenges posed by continued excess capacity in the container shipping business," said NOL president and CEO Ng Yat Chung.
"Nonetheless, both our business units delivered better year-on-year operating results this quarter. Going forward, global economic prospects and trading conditions remain uncertain," Mr Ng said.
"Oversupply of shipping capacity will continue to exert pressure on liner freight rates. The group aims to improve its financial performance in 2014, through its continued focus on cost discipline and drive for operational efficiency. We will also seek growth opportunities, particularly in our logistics business," he said.
NOL's container shipping business - APL - increased pretax profit 10 per cent over the same period last year, recording a loss of $83 million. Cost savings and efficiency gains helped reduce cost of sales per FEU by six per cent.
APL reported a first quarter revenue of $1.9 billion, while its year-on-year volume grew two per cent and its average freight rate fell six per cent.
"APL's emphasis on capacity management, as well as savings in areas such as bunker consumption and vessel and voyage operations, helped cushion the impact of falling freight rates in this year's first quarter," said APL president Kenneth Glenn.
"As more of our newbuildings come on stream in the following months, along with the scheduled return of less efficient chartered tonnage, we are on track to continue lowering slot costs and further strengthen our competitiveness," he said.
APL's headhaul utilisation was at an optimal 95 per cent in the first quarter, said the company statement. APL registered a nine per cent volume expansion with stable freight rates in the Asia-Europe trade.
Container volume was firm in the transpacific trade with freight rates falling five per cent, while its intra-Asia trade grew one per cent in volume against an 11 per cent dip in freight rates.
APL Logistics posted a 13 per cent pretax profit increase drawn on revenues of $423 million, relatively unchanged year on year. Contract Logistics also scored a 13 per cent pretax profit rise to $9 million, drawn on revenues of $271 million.
"The first quarter performances of our core International Logistics and Contract Logistics businesses had been satisfactory, and we are progressing steadily on our growth trajectory," said APL Logistics president Beat Simon.
"While our automotive logistics services are still feeling some impact from the ongoing automotive plant shutdown in North America, our growth strategy in the emerging markets has continued to propel our business," he said.