NOL capsizes with US$67m loss in the first half

It was an overturn from the US$1 million profit in the same period last year.

Global container shipping and logistics group Neptune Orient Lines lost US$57 million in the second quarter of 2011 and US$10 million in the first quarter.

This is despite NOL reporting a 9% revenue increase in the first half of 2011 to US$4.595 billion. It announced a Core EBIT (Earnings Before Interest and Taxes) loss of US$28 million.

The Group noted that first half 2011 results were affected by higher operating costs, especially for fuel, and declining freight rates.

“Conditions are challenging throughout the shipping industry. In this environment we are working aggressively to bring down costs while keeping our assets well utilized,” said NOL Group CEO Ronald D. Widdows.

According to NOL, deteriorating conditions in the global economy are resulting in weakened trade demand and continued pressure on freight rates. The company said that unless these conditions improve, they will post a full year loss.