NOL sails back into the black in Q2 with $1.22 billion profit

 A file picture of the headquarters of Neptune Orient Lines Ltd. stand in Singapore. PHOTO: BLOOMBERG
A file picture of the headquarters of Neptune Orient Lines Ltd. stand in Singapore. PHOTO: BLOOMBERG

SINGAPORE - Neptune Orient Lines has posted a net profit of US$890 million (S$1.22 billion) in the second quarter 2015 ended June 30, reversing from the losses a year ago.

Excluding the US$887 million gain on the sale of its supply chain management business, NOL achieved a net profit of US$3 million.

The company had announced a net loss of US$54 million in the corresponding quarter in 2014.

Revenue for the shipping and logistics group also fell 24 per cent to US$1.55 billion from US$2.05 billion previously.

"The Group's container shipping business continued to face a challenging environment characterised by over-capacity and weak market demand," NOL Group President and CEO Ng Yat Chung said in a release. "We remain focused on improving our cost competitiveness, yield optimisation and service reliability to return the liner business to sustained profitability."