Losses deepen at Neptune Orient Lines in Q1

Neptune Orient Lines posted a net loss of US$105.1 million (S$142.6 million) in the first quarter.
Neptune Orient Lines posted a net loss of US$105.1 million (S$142.6 million) in the first quarter.PHOTO: BLOOMBERG

SINGAPORE - Losses at the shipping liner Neptune Orient Lines (NOL) deepened in the first quarter as it posted a net loss of US$105.1 million (S$142.6 million) for the period, compared with a loss of US$10.8 million a year earlier.

Revenue for the three months to April 1 slipped 28 per cent to US$1.14 billion.

This was mainly due to decrease in Liner revenue from weak container trade demand and challenging freight rate environment, the company said.

Loss per share from continuing operations was 4.05 US cents for the first quarter, compared with loss per share of 1.40 US cents a year earlier.

Net asset value per share was 92 US cents at April 1, down from 95 US cents at Dec 25.

NOL noted in a statement that on April 29, CMA CGM said it has received anti-trust regulatory clearance from the European Commission for its pre-conditional Voluntary General Offer for NOL.

The remaining pre-conditions related to anti-trust regulatory clearances are expected to be satisfied by mid-2016.

The counter closed up 0.5 cent to S$1.295 on May 6.

The results were announced after markets closed.