NOL finally back in the black with $1.22b profit in Q2

Due to a massive gain from APL Logistics sale.

Neptune Orient Lines reported a net profit of $1.22b (US$890m) in the second quarter, compared to a net loss of $74.2m (US$54m) in the same quarter last year.

The steep rise was almost entirely due to the $1.218b gain (US$887) on the sale of APL Logistics. Excluding this gain, NOL's net profit stands at $4.12m (US$3m) in the second quarter.

NOL said that the second quarter saw severe freight rate erosion with rates in major trade lanes falling to some of the lowest levels seen in recent years.

“The Group’s container shipping business continued to face a challenging environment characterised by over-capacity and weak market demand. Nonetheless, APL reversed a core EBIT loss in the second quarter last year to a positive position this year. We remain focused on improving our cost competitiveness, yield optimization and service reliability to return the liner business to sustained profitability,” said NOL Group President and CEO Ng Yat Chung.