NOL Cuts Losses
Singapore-headquartered Neptune Orient Lines Group (NOL) has still not shaken off the effects of the low volumes in their liner sector, posting a second quarter 2014 net loss of USD 54 million.
On the other hand, NOL has continued to make gains at the operating level, bringing its 2Q 2014 Core EBIT (Earnings Before Interest, Taxes and Non-Recurring Items) loss down to USD 15m, a year-on-year improvement of 52%.
NOL also improved its Core EBITDA this quarter, doubling it to USD 78m compared to USD 39m in the same period last year.
NOL attributed the better results to its continuing focus on cost management and operational efficiency, which returned USD 115m worth of cost savings in the second quarter of 2014.
Along with USD 80m recorded in the first quarter, this brings its total savings so far this year to nearly USD 200m, adding to the almost USD 1bn accrued in the preceding two years.
“The group put in an improved performance despite the persistent, difficult trading conditions. We have more to do, but both business units have continued to make gains in improving our costs and efficiencies,” said NOL Group President & CEO Ng Yat Chung.
Press Release, August 8, 2014