NOL Group swings to US$100 million net profit in 2Q

Global container shipping and logistics group Neptune Orient Lines (NOL) reported a net profit of US$100 million for the second quarter of 2010. That was up from a net loss of US$146 million in the second quarter of 2009.

The Group Core EBIT (Earnings Before Interest and Taxes) for the quarter was US$114 million compared to a Core EBIT loss of US$131 million in the same quarter a year ago. Second quarter 2010 revenue increased 53% to US$2.1 billion.

Continued strong container shipping volumes and improving freight rates have helped return us to profitability, said Group President and CEO Ronald D. Widdows. The result for this latest quarter reflects significant progress as we turn around our performance from the economic downturn of 2009.

NOL reported Core EBIT (Earnings Before Interest and Taxes) of US$40 million for the first half of 2010, compared to a US$353 million Core EBIT loss a year ago. Revenue in the first half increased 44% to US$4.2 billion. Net profit for the first half of 2010 was US$1 million, compared to a net loss of US$391 million in the first half of 2009.

The Group said it will not pay an interim dividend to shareholders. However, the Group will consider a final dividend to be paid based on its current policy of paying an annual dividend of 20% of net profits after tax.