Neptune Orient says losses in first half 'quite likely'
Neptune Orient Lines Ltd said it may be unprofitable in the first half because of concerns about the sustainability of a pick-up in demand.
In a Bloomberg report, losses in the period are “quite likely,” Chief Executive Officer Ron Widdows of Neptune Orient, Southeast Asia’s largest container carrier, told reporters in Singapore where the shipping line is based.
Neptune Orient earlier reported a fifth consecutive quarterly loss as rates plunged 28 percent, offsetting a rise in volumes.
Widdows, who has taken a pay cut and idled ships according to the report, will continue with cost reductions as a glut of new vessels damps container-shipping fees.
"It will be tough to reach profitable levels," said Alfred Low, an analyst at Phillip Securities Research Pte in Singapore.
The company had a net loss of $211 million in the fourth quarter compared with a loss of $149 million a year earlier, it said in a statement.
The shipping line was expected to make a $129 million loss, based on the median of three analyst estimates compiled by Bloomberg. Revenue fell 12 percent to $2 billion.
View full report in Bloomberg.
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