NOL’s 2013 financial performance up 82%
NOL Group today reported a 2013 net loss of US$76 million, improving 82% from a US$412 million loss the previous year, the company said in its press release.
The Group’s full year financial results were helped by a non-recurring US$200 million gain from the completed sale of its headquarter building in Singapore, as well as its continued focus on operational efficiency and cost management, which delivered US$470 million worth of cost savings in 2013. Coupled with US$504 million saved in 2012, NOL had shed almost US$1 billion in costs over the past two years.
“The delivery of new tonnage in 2013 added to the over-capacity in the container shipping industry. Overall freight rates declined through the year, with the fourth quarter recording one of the lowest levels the industry has seen in the last three years,” said NOL Group CEO Ng Yat Chung. “Despite the tough environment, the Group put in a better financial performance. We started the year with an improved cost base which we continued to build on. In particular, our liner business strengthened its operating results, delivering a significant 72% improvement in Core EBITDA.”
NOL Group reported positive Core EBITDA of US$150 million, a 24% year-on-year improvement from 2012. Over the same period, NOL’s revenue dropped 7% to US$8.8 billion. NOL registered a Core EBIT loss of US$167 million, a 9% improvement from a year earlier.