NOL slashes Q1 loss, says outlook still bleak

Singapore PORT congestion in the west coast of the United States and weaker freight rates across most trade lanes weighed down liner revenue for shipping company Neptune Orient Lines (NOL), leaving the group underwater for the first quarter.

Though it said it managed to narrow its Q1 loss by cutting operational costs, NOL also warned that the outlook for shipping remains bleak.

The group's net loss narrowed to US$10.78 million for the three months to April 3, from US$97.94 million for the year-ago quarter. These figures factor in both its loss-making liner business and the profitable logistics business which it agreed to sell for US$1.2 billion to Japanese logistics group Kintetsu World Express in February. The sale is expected to be completed by the middle of 2015. The logistics business is classified as discontinued operations in its Q1 financial statement as a result of the proposed sale.