In 2010, Singapore-listed NOL had enjoyed a full year net profit of $461m on revenue of $9.4bn. Revenue in 2011 was relatively stable at $9.2bn.
“The performance of container shipping is disappointing,” said Ng Yat Chung, group ceo of NOL. “Overcapacity and higher fuel costs have negatively affected the whole container shipping industry. We are urgently addressing costs and all other factors under our control to improve our performance.”
The adverse full year results followed a fourth quarter net loss of $320m as against a net profit of $177m in the same period a year ago.
APL, NOL's liner shipping arm, noted that the average price of bunker fuel was 33% higher in 2011 and shipping volumes rose 5% year-on-year.
“The volume increase was offset by downward pressure on freight rates and high fuel costs,” said Kenneth Glenn, president at APL. “We must continue to drive down costs and make better cargo selection decisions in the face of this industry-wide trend.”
NOL projected that the container shipping industry will continue to face high fuel costs and overcapacity.
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