NOL Group 2nd quarter 2007 net profit up 38%

Neptune Orient Lines stays upbeat despite a 27% fall in net profit for 1H07. But freight rates are said to have picked up in the second quarter. “The double-digit rise in our container volumes and improving rate situation in our key trade lanes led to an improved EBIT performance in the second quarter,” Group President and CEO Thomas Held explained. Ships are running at near-full capacity and cost control measures have been effective, Held noted. For the three months ending 30 June net profit at $93M rose 38% compared to the corresponding period in 2006. For the half-year rates were down in the Trans-Pacific and Asia/Middle East routes though they rose as much as 7% for Asia-Europe route. For IH07 net profit amounted to $136M compared to $187M in IH06. Turnover rose 5% to $3.7Bn as volumes increased by 11%. The Singapore government owned liner and logistics major is listed in the Singapore Exchange and operates about 100 container ships. Carrying capacity expanded by 11% during 1H07 and more ships have been ordered including eight high-speed 10,000 teu vessels.