NOL second quarter profit surges 38pc to US$93 million

Singapore's NOL has reported a second quarter net profit of US$93 million, up 38 per cent against the same period last year.

Revenues of $1.8 billion were 11 per cent higher compared to the same quarter a year ago on the back of rising demand for shipments from Asia to Europe and by Asian regional trade, recovering freight rates and almost full vessels.

"Quarter-on-quarter, our net profit has risen significantly, which points to a general improvement in market conditions in the liner shipping sector and to our strong performance and the continuing success of our business model with its focus on service excellence," said NOL Group president and chief executive officer, Dr Thomas Held in a company statement.

First-half net profit declined by 27 per cent from the previous year to $136 million as revenues grew by five per cent to $3.7 billion.

NOL's container shipping business, APL, saw revenues rise seven per cent year-to-date, and 13 per cent over the second quarter in 2006. APL carried 1.1 million FEU in the first half of this year, which was 11 per cent higher than in the same period a year ago.

NOL's supply chain services unit, APL Logistics, recorded a two per cent improvement in revenues quarter-on-quarter, while year-to-date sales were down two per cent.

For the first half of the year, overall costs per FEU improved by around one per cent over the same period of 2006. Quarterly expenses increased by 11 per cent to $1.54 billion. During this period APL's overall fleet capacity grew by 11 per cent, with headhaul utilisation increasing to 98 per cent.

NOL anticipates a three per cent rise in full-year 2007 net profit to around $376 million, Reuters reports.