The continuing contrasting tale of two shipping lines, one led by a scholar who attended elite ang moh uni ( also an ex-SAF chief and ex-Temask MD with a Stamford postgrad biz degree thrown in); and the other led by a graduate from Copenhagen University, who has an an MBA from IMD, Switzerland, who has only worked with one co. all his life.
NOL is still stuck on a reef, with water pouring in. Neptune Orient Lines Ltd said on 30th October that its net profit fell sharply in the third quarter as the container shipper battled weak demand.
Net profit fell to US$20 million in the three months ended Sept. 30, compared with US$50 million in the same period last year, Neptune Orient said in a statement to the Singapore Exchange.
Revenue fell 10% to US$2.06 billion, it said.
“This is one of the weakest peak seasons we have seen in recent years, characterized by depressed freight rates and industry overcapacity,” the statement quoted group chief executive Ng Yat Chung as saying.
It said general market conditions had not improved in the third quarter, resulting in a muted peak season, adding that the company expects volatile freight rates and overcapacity in the industry to continue.
On 13 November, A.P. Moeller-Maersk A/S’s container-shipping line, the world’s largest, reported an 11 percent increase in third-quarter profit after cost cuts countered a decline in freight rates.
Maersk Line’s third-quarter net income rose to $554 million from $498 million a year earlier, the Copenhagen-based company said today in a statement. Its parent, A.P. Moeller-Maersk, raised its full-year forecast and said net income rose 23 percent to 6.36 billion kroner ($1.14 billion), beating the 6.14 billion-krone average estimate in a Bloomberg survey of nine analysts. (http://www.bloomberg.com/news/2013-11-13/maersk-line-profit-advances-as-cost-cuts-counter-rate-decline.html)
True most shipping lines are struggling to reach break-even amid volatile freight rates, and even Maersk has warned of a much weaker fourth quarter, following a 12% drop in container cargo rates in recent weeks. Freight rates “deteriorated significantly during the quarter and hence the seasonally low fourth quarter 2013 has started with low freight rates, which will result in a significantly lower fourth quarter result” than in the third quarter, Maersk Line said. Still, the result for 2013 will be “significantly above” the $461 million profit in 2012, it said.
But hey tot scholars and ex-SAF chiefs are paid serious money because they are S’pore’s finest? Juz like ministers like Raymond Lim, Mak Bow Tan and Yaacob. Remember ex-SAF chief Kee Chui said juz like XO carrot cake is more expensive ’cause of the taste, scholars and ministers deserve higher pay ’cause they better?
BTW, our constructive, nation-building media have failed to report Maesrk’s gd results, even though BT reported that NOL’s CEO grumbled that giant ships are undercutting NOL’s freight rates. Maersk owns these ships.
This NOL CEO gives scholars like TRE’s Richard and NSP’s Hazel and Tony a bad name. But then VivianB is a scholar.