NOL “totally focused” on returning APL to profitability

Neptune Orient Line (NOL), the parent company of financially-strapped container liner, APL, reported a profit of US$890 million for the second quarter.

But it’s largely a one-time profit from the gain of $887m on the sale of its APL Logistics business in May to Japan’s Kintetsu World Express. Last year NOL had a net loss of $54m in the second quarter.

The company did not confirm or deny reports that APL might be sold to another company or what the plans of its largest shareholder, the Singapore government’s investment company Temasek Holdings, are.

Said Ng Yat Chung, NOL president and CE: “Hypothetically, if I receive a good price for the company, of course we will always consider selling the same way we had a fair price for APL Logistics and decided it was in the best interest of shareholder value to be able to do the transaction.

“But what I can say now is that the company is totally focused on returning the liner business into profitability. And our focus on managing cost and improving yield, has led to continual improvement in liner performance despite deteriorating market conditions. Our balance sheet is also healthier now with the sale of APL Logistics.”

He added that NOL was now positioned where it makes sense to further invest in the liner business in order to improve the liner’s competitive position.