APL’s profits up 4% after nine months

APL’s profits up 4% after nine months    APL, the container-shipping unit of Singapore-based Neptune Orient Lines (NOL), increased its core earnings before interest, tax and non-recurring items by 4 percent to $646 million, despite a 7 percent increase in overall costs per unit during the first nine months.
   Vessel charter expenses, as a result of higher charter rates, were $25 million more in the first three quarters than in the same period of last year, and are expected to be $33 million higher for the full year. Bunker costs in the nine month period were $136 million higher year-on-year. NOL said about 50 percent of its increased fuel expenses are recoverable through fuel surcharges.
   APL increased its traffic volume 13 percent to about 1.4 million forty-foot equivalent units (FEUs) in the nine months ended Sept. 30. Its average revenue per FEU rose 6 percent, resulting in an 18 percent rise in liner revenue at APL to $4.3 billion.
   At the same time, NOL said continued growth in demand for its liner shipping and logistics services, helped it post a 6 percent rise in third quarter net income to $249 million from $234 million.
   NOL’s group revenues increased 13 percent to $1.76 billion in the latest quarter, from $1.55 billion in the third quarter 2005.
   “Both the Liner and logistics businesses reported higher revenues and profits for the nine months, with logistics continuing to steadily improve its contribution. We continue to look for opportunities to expand and further integrate our Liner and Logistics businesses,” said David Lim, NOL Group president and chief executive officer.
   For the year to date, NOL posted a 9 percent rise in net income to $640 million, following group revenues of $5.25 billion, up 15 percent from $4.56 billion after three quarters last year.