NOL posts 4Q 2015 net loss of US$77 million
NOL Group today reported a 4Q 2015 net loss of US$77 million, an improvement of US$8 million over 4Q 2014. The Group posted a Core EBIT (Earnings Before Interest, Taxes and Non-Recurring Items) loss of US$65 million in the quarter. Its Core EBITDA remained positive at US$39 million.
On a full year basis, NOL posted a net profit of US$707 million. Excluding a one-time US$888 million gain on the sale of its logistics unit, NOL incurred a full year net loss of US$181 million, an improvement of 30% over last year. NOL’s full year core EBIT loss reduced 5% year-on-year to US$72 million.
APL reported a revenue of US$1.28 billion in the final quarter of 2015, a 29% contraction from the year before. Average freight rates fell 22% amidst pressure from over-capacity in the industry. Volume slid 12% in the quarter over the prior year, mainly due to a reduction in backhaul volumes out of the US and the Gulf. In response to weak global demand, APL maintained prudent management of its deployed capacity, while keeping its headhaul asset utilisation rate at 90%.
The container shipping line maintained its rigorous cost management as well as a yield-focused trade strategy that emphasised network rationalisation and better cargo selection. APL achieved cost savings of US$100 million in 4Q 2015, bringing its full year cost savings to US$435 million. As a result of the cost savings and lower bunker price, APL’s total cost of sales per forty-foot-equivalent unit (FEU) fell by 17% year-on-year.
APL narrowed its Core EBIT loss from US$139 million for the full year in 2014 to US$98 million in 2015. This is APL’s fourth consecutive year of reduced losses.