NOL shares fall on warnings

SHARES of Singapore’s NOL dropped after securities companies predicted that the box carrier would incur higher 2Q 2011 losses than predicted.

Analysts at DBS Vickers, Morgan Stanley and JP Morgan revised their forecasts after Neptune Orient Lines released its operating performance for June 4 to July 1. NOL is set to release its 2Q 2011 earnings results on August 12.

Volumes for the period were 232,700 FEU, up 5% from 221,900 FEU in the same period last year, but average revenues per FEU dropped 13% year on year, from $2,892 per FEU to $2,513 per FEU. Year-to-date cargo volumes rose 8% year on year to 1,455,700 FEU, while year-to-date revenue per FEU fell 3% year on year to $2,570 per FEU.

NOL said in a Singapore Exchange filing that volumes increased because of growing intra-Asia trade, while revenues dropped because of deteriorating Asia/Europe rates, which have been hit by a tonnage glut and slowing growth in Europe. NOL’s shares traded at S$1.435 ($1.19) after opening at S$1.45. <Korea Shipping Gazette>