Neptune Orient Lines (NOL)

[CY09]

wow NOL forecasts shipping will be still be down for this year.

In its cash flow, the company produces only abt 30+M from OCF, but burnt 900M+ (this includes proceeds from disposal of HQ) in the investing line. They are really renewing their fleet in anticipation of upturn. I wonder will NOL call for a rights issue in 1-2 yrs time if shipping does not experience an upturn.

Also wondering how FSL and rickmers will fare in these tough times

[greengiraffe]

Without Temasek backing, already gone to grave already.

I re-iterated my stance on shipping - if lucky get 3 good years and 7 bad bad years.

Better buy fixed income shipping stocks like Singapore Ship - little wonder why Ow CK quite the volatile end of shipping to concentrate on relationship driven car carrier business. Make a lot less but certainly positive.

As allocators of scarce capital, we can decide where to invest our $ and not constrain by a company's survival battle given that they are mandated to operate in a certain industry.

NOL = No Orientals Left?

wow NOL forecasts shipping will be still be down for this year.

In its cash flow, the company produces only abt 30+M from OCF, but burnt 900M+ (this includes proceeds from disposal of HQ) in the investing line. They are really renewing their fleet in anticipation of upturn. I wonder will NOL call for a rights issue in 1-2 yrs time if shipping does not experience an upturn.

Also wondering how FSL and rickmers will fare in these tough times

[greengiraffe]

Sooner or later No Oil Left

http://infopub.sgx.com/Apps?A=COW_Corpor...uddies.com

[greengiraffe]

NOL hit by weather woes, excess capacity
Published on May 15, 2014 1:16 AM
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NOL posted a net loss for the three months to April 4 of US$97.9 million (S$122 million). Revenue fell 4 per cent to US$2.28 billion. --

By Rennie Whang

SEVERE weather disruptions in Europe and North America as well as continued excess capacity in the container shipping business cast a pall on earnings at Neptune Orient Lines (NOL) in the first quarter.

Net loss for the three months to April 4 was US$97.9 million (S$122 million), compared with a net profit of US$75.5 million a year ago, which had included a US$200 million gain from the sale of its headquarters building in Singapore. Revenue fell 4 per cent to US$2.28 billion.

"Operating conditions in the first quarter had been difficult... Nevertheless, both our business units delivered better year-on-year operating results this quarter," said group president and chief executive Ng Yat Chung.

APL, NOL's container shipping unit reported first-quarter revenue of US$1.88 billion, down 5 per cent on the same period a year earlier, mainly due to lower freight rates.

"APL's emphasis on capacity management, as well as savings in areas such as bunker consumption and vessel and voyage operations, helped cushion the impact of falling freight rates in this year's first quarter," said APL president Kenneth Glenn.

NOL's supply chain management business, APL Logistics, reported first-quarter revenue of US$423 million, a 1 per cent drop from last year partly due to severe weather conditions in North America.

NOL's loss per share was 3.79 US cents, down from earnings per share of 2.92 US cents last year, while net asset value was 76 US cents as at April 4, down from 80 US cents at Dec 27 last year.

"While our automotive logistics services are still feeling some impact from the ongoing automotive plant shutdown in North America, our growth strategy in the emerging markets has continued to propel our business," said APL Logistics president Beat Simon.

Mr Ng said global economic prospects and trading conditions "remain uncertain". "Oversupply of shipping capacity will continue to exert pressure on liner freight rates... The Group aims to improve... through its continued focus on cost discipline and drive for operational efficiency."

NOL shares closed unchanged at $1 yesterday.

wrennie@sph.com.sg

[greengiraffe]

How come NOL so lousy?

PUBLISHED MAY 22, 2014
Boxes lift Maersk's Q1 profit 62%

Revenues up 0.9% to US$11.7b, short of US$12b forecasts

Massive gains: Earnings from A.P. Moeller-Maersk's container shipping line, Maersk Line, more than doubled to US$454 million in the first three months of 2014. - FILE PHOTO
[COPENHAGEN] Danish shipping and oil conglomerate A.P. Moeller-Maersk reported yesterday a 62 per cent rise in quarterly profit as it shipped more containers but for a lower average price.
Net profit for the group rose in the first three months of the year to US$1.15 billion from US$710 million, beating a Dow Jones analyst consensus of US$1.05 billion, as earnings from container shipping line Maersk Line more than doubled to US$454 million.
Revenues climbed 0.9 per cent to US$11.736 billion, falling slightly short of an analyst consensus of US$12 billion.
Maersk Line reiterated that global demand was expected to grow by 4 to 5 per cent, but said it now believes its annual results will beat last year's due to "improved operational performance and utilisation".
The Maersk group, which in January sold its supermarket business for a gain of US$2.6 billion, raised its guidance for annual profit excluding discontinued operations, impairment losses and divestment gains to US$4 billion from US$3.6 billion.
With a 15 per cent market share in global container shipping, the company is considered a bellwether for international trade.
"Pressure from excess capacity is expected to remain throughout the year," Maersk said.
The financial crisis has weighed on the international shipping market and the major routes between Europe and Asia have been particularly badly hit by overcapacity.
The group's shipping business has outperformed a troubled sector partly due to cost cuts, and last year it announced an alliance with two other major ocean carriers on routes between North America, Europe and Asia, called the P3 Network.
The Danish company said it expects the alliance to start operations in "the autumn of 2014" rather than a previously stated goal of the middle of this year pending regulatory approval. - AFP

[Temperament]

How come NOL so lousy?

PUBLISHED MAY 22, 2014
Boxes lift Maersk's Q1 profit 62%

Revenues up 0.9% to US$11.7b, short of US$12b forecasts

Massive gains: Earnings from A.P. Moeller-Maersk's container shipping line, Maersk Line, more than doubled to US$454 million in the first three months of 2014. - FILE PHOTO
[COPENHAGEN] Danish shipping and oil conglomerate A.P. Moeller-Maersk reported yesterday a 62 per cent rise in quarterly profit as it shipped more containers but for a lower average price.
Net profit for the group rose in the first three months of the year to US$1.15 billion from US$710 million, beating a Dow Jones analyst consensus of US$1.05 billion, as earnings from container shipping line Maersk Line more than doubled to US$454 million.
Revenues climbed 0.9 per cent to US$11.736 billion, falling slightly short of an analyst consensus of US$12 billion.
Maersk Line reiterated that global demand was expected to grow by 4 to 5 per cent, but said it now believes its annual results will beat last year's due to "improved operational performance and utilisation".
The Maersk group, which in January sold its supermarket business for a gain of US$2.6 billion, raised its guidance for annual profit excluding discontinued operations, impairment losses and divestment gains to US$4 billion from US$3.6 billion.
With a 15 per cent market share in global container shipping, the company is considered a bellwether for international trade.
"Pressure from excess capacity is expected to remain throughout the year," Maersk said.
The financial crisis has weighed on the international shipping market and the major routes between Europe and Asia have been particularly badly hit by overcapacity.
The group's shipping business has outperformed a troubled sector partly due to cost cuts, and last year it announced an alliance with two other major ocean carriers on routes between North America, Europe and Asia, called the P3 Network.
The Danish company said it expects the alliance to start operations in "the autumn of 2014" rather than a previously stated goal of the middle of this year pending regulatory approval. - AFP

i guess NOL's SEE E O is never a seafarer before but a land grabber (robber), that's why.

[LLI]

Spoken to industry people in the container shipping.
NOL is not the best managed.
Container shipping is like the airline business, selling a commodity service that will disappear once the ship leaves, but NOL tried to go the SIA model, giving premium services. But what the customers want is a low cost model, where they want the basic service and add options if they want.
If you looking for shipping turnaround, better to look at OOIL 316:HK or WanHai 2615:TT

[greengiraffe]

http://www.businesstimes.com.sg/premium/...2-20140808

PUBLISHED AUGUST 08, 2014
Poor showing by NOL's liner business hits Q2
Group continues its focus on making gains at the operating level
BYMALMINDERJIT SINGH
msingh@sph.com.sg @MalminderjitBT

NEPTUNE Orient Lines (NOL) posted a second-quarter net loss of US$53.7 million, 55 per cent worse than the US$34.6 million loss it incurred last year, owing to poor performance from its liner business. This is the third straight quarter that the group is in the red.
The April-June quarter also saw a US$33 million rise in finance expenses. NOL said this was mainly due to realised gains from financial hedging instruments in Q2 2013.
The Singapore shipping group's revenue for the three months ended June 27 June dipped one per cent to US$2.05 billion from the US$2.06 billion last year, mainly due to decrease in liner revenue from lower volume.
Net loss per share came to 2.08 US cents, compared with 1.34 US cents last year.

[Shrivathsa]

Share price shot up by 3.5 cents on volume of 2.7 million shares, usual volume is less than 1 million.

Checked on SGX net, no news from company.

Only thing i can think of is that this is tracking Baltic Dry Index which gained 2.7%.

http://www.blackseagrain.net/novosti/bal...042-points

[corydorus]

Anyone knows how to read this BDI index. Dropped fromm 2008 high to current not even 10%. Does that mean rough gauge reduction of more than 90% in shipping volume since ?