NOL reports improved performance in weak market conditions

NOL Group recently reported first half 2013 Core EBIT (Earnings Before Interest, Taxes and Non-Recurring Items) loss of US $120 million, a 45% improvement or US $97 million, in the key profitability measure from a year ago.

Singapore-based NOL attributed the improvement to a continuing focus on operational efficiency and cost management. The company said that it has achieved US $240 million cost savings through its drive to increase efficiency levels.

Enhanced bunker efficiency and network optimization accounted for more than half of the total savings. Efficiencies were also reaped through higher productivity at the terminals and reduced empty repositioning.

Including a non-recurring gain of US $200 million from the completed sale of the NOL headquarter building in Singapore in the first quarter, NOL posted a half year net profit of US $41 million compared to a loss of US $371 million last year.

"Market conditions have worsened in the second quarter of this year compared to a year before. Our container shipping business managed to deliver an improvement in its operating result in spite of difficult trading conditions, which is a good achievement," said NOL Group CEO Ng Yat Chung.

"The group`s results demonstrate that we are on target in our strategy to deliver a better performance through cost management. We will continue in our efforts to strengthen the company`s competitiveness for the long term." < Korea Shipping Gazette >