Singapore-based global shipping company Neptune Orient Lines (NOL) has posted a US$54m loss in the second quarter of 2014, leading to a $152m loss in the first half of the year.
In a corporate report, NOL said global economic uncertainty and a persistent oversupply of shipping capacity would limit its rate of recovery, adding it would continue to focus on operational efficiency and cost management.
“The group put in an improved performance despite the persistent, difficult trading conditions,” said chief executive of NOL, Ng Yat Chung. “We have more to do, but both business units have continued to make gains in improving our costs and efficiencies.”
NOL’s container shipping arm, APL, posted a second quarter revenue of US$1.7bn, down 2 per cent on the same period last year, but made a 29 per cent improvement in its second quarter core EBIT (earnings before interest, taxes and non-recurring items), recording a loss of $29m.
“The improvement in our second quarter operating results is significant given that we saw reduced revenue and higher operating costs,” said APL’s president Kenneth Glenn. “We were able to achieve this through out continued focus on lowering fixed costs."