NOL sees red
Singapore container line Neptune Orient Lines (NOL) has managed to cut its fourth quarter loss thanks to cost savings but this did not prevent it from posting a bigger deficit for the full year.
Net loss for the period was $85m, down 38% when compared with the fourth quarter of 2013.
NOL recorded a full year loss of $260m in 2014, worse than the $76m deficit in the year prior mainly due to a one-time gain from the sale of its headquarters building.
The company said it is not in a position to declare a dividend following the losses.
Revenue for the fourth quarter booked a small decline from $2.33bn to $2.2bn due to lower turnover from the company’s liner division.
Ng Yat Chung, chief executive for NOL said: "While we are seeing some benefits from the current trend of lower bunker prices, the longer term impact of the drop in fuel price on container freight rates is uncertain.
"More port congestion, resulting from further deterioration in the labour situation on the US West Coast, is a potential risk factor."
Container volumes fell 8% during the fourth quarter to 734,000 feu.
NOL oversees a fleet of 56 boxships built between 1990 and 2014.