NOL staggers from US$478m blow in 2011

As higher fuel costs have adversely affected the container shipping industry last year.

NOL Group reported a US$478 million net loss in 2011 following net earnings of US$461 million in 2010. The container shipping and logistics company said unsettled economic conditions, high fuel costs and lower freight rates impacted results.

“The performance of container shipping is disappointing.” said Group CEO Ng Yat Chung. “Overcapacity and higher fuel costs have negatively affected the whole container shipping industry.”

NOL said 2011 revenue decreased 2% to US$9.2 billion. The Group reported a Core EBIT loss of US$377 million for the year. It reported a fourth quarter 2011 net loss of US$320 million. NOL’s supply chain management business, APL Logistics, reported record performance in revenue and Core EBIT.

APL, NOL Group’s liner shipping business, reported 2011 revenue of US$7.9 billion, down 5% from 2010. It announced a Core EBIT loss of US$446 million. Volume increased 5% year-on-year.

Average Revenue Per FEU (forty-foot equivalent unit) was down 10%. APL said the average price of bunker fuel was 33% higher in 2011. “The volume increase was offset by downward pressure on freight rates and high fuel costs,” said APL President Kenneth Glenn.

APL Logistics reported 2011 revenue of US$1.4 billion, up 12% from 2010. Core EBIT was US$69 million. Both were all-time highs for the business. Growth in auto logistics and a strong first half in international logistics contributed to the results.
 

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Tags: NOL profit loss 2011, NOL revenue 2011, container shipping, liner shipping business