NOL sinks to deeper Q1 net loss of US$105m

NEPTUNE Orient Lines on Friday reported a wider net loss for the first quarter in 2016 from a year ago, as gross profit slid.

Net loss for three months ended March 31, 2016 stood at US$105 million, compared to a net loss of US$10.8 million a year ago.

Gross profit slumped to US$4.54 million from US$135 million, as the shipping company saw a decrease in liner revenue from weak container trade demand, and challenging freight rate environment.

"Industry overcapacity worsened in the second half of 2015. Freight rates across major trade lanes continued declining to hit historic lows in Q1 2016. Freight rates are expected to remain under pressure," said NOL in its financial statement. "The group will continue its focus on cost and operational efficiencies, as well as yield and network capacity management."