NOL today reported a 3Q 2015 net loss of US$96 million, compared to a net loss of US$23 million in 3Q 2014. The Group posted a third quarter 2015 Core EBIT loss (Earnings Before Interest, Taxes and Non-Recurring Items) of US$66 million, versus a Core EBIT of US$21 million in the same quarter last year.
NOL’s Core EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) in 3Q 2015 was US$21 million, compared to US$114 million in the same period last year. NOL’s cost savings program yielded US$80 million in 3Q 2015, bringing its total year-to-date cost savings to US$335 million.
In 3Q 2015, APL, NOL’s container shipping business, reported a revenue decline of 29% to US$1.2b versus the same quarter last year. APL’s average freight rates fell 21% amidst pressure from over-capacity in the industry. Volume contracted 11%, which APL attributed to various reasons, including a significant drop in U.S. exports and weak demand in the Intra-Asia short-sea market. APL also voided sailings in response to weak global demand and trimmed capacity in unprofitable trade lanes. APL was able to maintain a high headhaul utilisation of above 90%.
APL maintained its rigorous cost management as well as a yield-focused trade strategy that emphasises network rationalisation and better cargo selection. Six chartered ships were returned in the third quarter. As a result, total cost of sales per forty-foot-equivalent unit (FEU) fell by 17% year-on-year.