NOL remains mired in red ink

Singapore-listed NOL reported a net loss of $419m for 2012, a slight improvement on its $478m loss in the previous year. Revenues were up 3% last year at $9.2bn.

The company primarily blamed the loss on a $255m first quarter loss and one time charges, mainly related to restructuring, of $108m. However, NOL also remained in the red in the fourth quarter with a $98m net loss, although this did represent a huge improvement on its $320m loss in the period in 2011.

Losses could have been much worse though with NOL claiming $504m in cost savings from its “efficiency programme”.

“The savings were primarily achieved through reduced fuel consumption, network optimization and increased terminal productivity,” the company said.

NOL ceo Ng Yat Chung put a brave face on the situation and said: “General market conditions in 2012 remained challenging. But thanks to our focus on increasing efficiencies throughout the group, we are in a better competitive position than before. We have improved our cost base, renewed our fleet and expanded our logistics business. We are starting 2013 on a stronger footing than a year before.”