Singapore's Neptune Orient Lines (NOL) has reported a first quarter 2011 net loss of US$10 million, greatly narrowing the $98 million net loss made in same period last year, the Shipping Gazette reports.
NOL said first quarter 2011 revenue was $2.4 billion, up 16 per cent from a year ago. First quarter pre-tax profit (EBIT) was $13 million against a corresponding $74 million loss in the same period last year.
"In spite of year-over-year volume growth, a softer than expected Lunar New Year period and rising fuel costs have interrupted our momentum," said NOL Group president and CEO Ron Widdows.
APL, the container shipping unit, posted a 15 per cent quarterly revenue increase to $2.1 billion, still yielding a pre-tax profit loss of $8 million against $89 million corresponding last loss in the same period last year.
First quarter container volume was up nine per cent year on year with per box revenue up three per cent with vessel utilisation at 92 per cent.
"We lifted higher container volumes in the Asia-Europe and intra-Asia trade lanes during the first quarter, and freight rates improved in the transpacific," said APL president Eng Aik Meng.
"But our emphasis must remain on operating efficiency, as well as slow steaming to conserve fuel and counteract the effect of rising fuel prices, which were 28 per cent higher in the first quarter than in 2010," he said.