Severe weather disruptions in Europe and North America as well as continued excess capacity in the container shipping business cast a pall on earnings at Neptune Orient Lines (NOL) in the first quarter.
Net loss for the three months to April 4 was US$97.9 million compared with a net profit of $75.5 million a year ago, which had included a $200 million gain from the sale of its headquarters building in Singapore.
“Operating conditions in the first quarter had been difficult. Nevertheless, both our business units delivered better year-on-year operating results this quarter,” said group president and chief executive Ng Yat Chung.
APL, NOL’s container shipping unit, reported first-quarter revenue of $1.88 billion, down five percent on the same period a year earlier, mainly due to lower freight rates.
APL Logistics reported first-quarter revenue of $423 million, a one percent drop from last year, partly due to severe weather conditions in North America.