NOL registers net loss of US$11 million in 1Q 2015
NOL Group has reported a first quarter 2015 net loss of US$11 million, compared to a US$98 million net loss in the same period last year. It posted a positive first quarter 2015 Core EBIT (Earnings Before Interest, Taxes and Non-Recurring Items) of US$30 million, compared to a US$65 million loss last year. NOL attributed the positive core EBIT to cost savings of US$155 million and lower fuel cost.
The Group recorded a positive Core EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) of US$133 million in the first quarter, up from US$33 million last year, while its revenue declined 13% to US$2 billion in the same period. The revenue fall was due to freight rate erosion, planned capacity cuts in unprofitable trades and adverse impact from the US West Coast port congestion.
“The Group’s container shipping business continued to operate in a challenging environment. Nonetheless, APL has reduced its losses through capacity management, and improved cost and operational efficiencies,” said NOL Group President and CEO Ng Yat Chung. “While congestion in the US West Coast is easing, the liner industry continues to face persistent over-capacity and uncertain global economic prospects.”