NOL Group Third Quarter Net Profits Up

Global container shipping and logistics group Neptune Orient Lines (NOL) today reported a net profit for the third quarter of 2007 of $191m, 50% higher than for the same period in 2006. The Group’s EBIT for 3Q was $209m, 115% higher than in the third quarter of 2006. For the first three quarters of 2007, the company reported net profits of $327m (up 4%) and EBIT of $385m (up 17%). Revenue for the year-to-date was up 9% to $5.7b, and by 15% quarter-on-quarter. In NOL’s container shipping business, APL, revenue rose 11% year-to-date, and 19% on a quarter-on-quarter basis. Third quarter average revenue per FEU was 9% higher quarter-on-quarter. Freight rates generally continued to move in a positive direction, with the benefit of several successful rate restoration programs in recent months in key trade lanes. APL carried 1.7 million FEU (forty-foot equivalent unit) year-to-date, which was 11% more cargo than the same period last year. The volume increase was driven mainly by the Transpacific and Intra-Asia trade lanes. APL’s overall headhaul utilisation averaged 99% during 3Q07. NOL’s logistics business, APL Logistics, reported a 2% improvement in revenue quarter-on-quarter. Year-to-date, sales were down 1%.