NOL reported an operating profit of $16m for the second quarter of the year, but was dragged into a $118m net loss due to an $82m impairment charge on the values of vessels it plans to sell, and $29m in restructuring costs.
For the first half of the year the line reported a net loss of $371m, compared to a $67m loss in the same period a year earlier. Revenues were up 3% at $4.71bn.
The company has sold five older vessels and plans to sell five more as newbuildings start to flow into its fleet.
“The one-time charges were difficult but necessary,” said Ng Yat Chung, NOL ceo. “We need a more efficient organization and a more modern, cost-competitive fleet to deal with the oversupply situation in the container shipping industry.”
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