Showing posts with label nol. Show all posts
Showing posts with label nol. Show all posts

Saturday 3 April 2010

A quick look at Maybulk

Stock Performance Chart for Malaysian Bulk Carriers Bhd




A quick look at Maybulk 2009
http://spreadsheets.google.com/ccc?key=t1cbkYBrl-qTfTAwdDlo6ZA
A quick look at Maybulk 2009 (Earnings normalised)
http://spreadsheets.google.com/ccc?key=teSUeL8rtSOTpKZ7hfAV0aw



Shipping industry starts to turn

The US economy is on the mend. So says Emil Wolter, head of regional strategy, Asian markets at RBS, who prefers to play developed market growth over emerging market growth. He is forecasting that US unemployment is going to fall to 8% from 10%. That would support a continued recovery in US consumption. As a consequence, global trade is poised to rebound by 6-8% in the next 12 month, Wolter says. While the shipping sector has supply issues, Wolter says “You can buy a lot of these companies at their NAVs and although some companies have problems with their balance sheets, there are also a lot of companies with strong balance sheets.” Moreover, pricing power is returning, and the shipping companies are operating more efficiently too.

That’s a view that Survo Sarkar, an analyst at DBS Group Research, agrees with. In a 32-page report on Neptune Orient Lines, DBS has re-initiated coverage with a price target of $2.40. According to Sarkar, the figure represents seven times FY11 EV/EBITDA, (enterprise value to earnings before interest, tax, depreciation and amortisation) and a price to book of 1.6 times. These valuations are conservative compared to peers’ average of about 10 times FY11 EV/EBITDA, the report says.

According to the report fundamentals for the shipping sector are indeed turning increasingly positive. “Year to date, container rates and volumes have both made a strong comeback — with rates on Asia-Europe routes now about 70% higher than last October levels,” Sarkar writes. NOL’s operating statistics for the first 10 weeks of FY10 reflect the improved fundamentals, the report says. Volumes have risen 52% y-o-y, and freight rates are up 7% and 10% on a sequential basis in the first two reporting periods, it adds. “According to our estimates, NOL’s container shipping business should return to profitability by 4Q10, on the back of 9% growth in trade volumes, a 10% growth in average freight rates/FEU and a 3% drop in average operating expenses/FEU for FY10,” Sarkar states in the report. NOL last traded at $2.01.

The Edge Singapore

Friday 7 August 2009

Business at NOL still 'depressed'

Business at NOL still 'depressed'
CEO says difficult dynamics to 'be with us for some time'

05:55 AM Aug 07, 2009

FEWER goods being shipped due to the global trade slowdown and cheaper shipping rates have caused net profits of Neptune Orient Lines (NOL) to slump for the third straight quarter.

The Mainboard-listed container shipping firm reported a second quarter net loss of US$146.2 million ($210 million), reversing a net profit of US$75.8 million in the same period a year ago.

While the second quarter losses was an improvement to the first quarter loss of US$245 million, the company expects business conditions to remain tough going forward and will likely post a "significant" full-year loss.

NOL's chief executive Ron Widdows said that "although volumes and operating performance improved in latter months of the first half, business conditions remained depressed, and this continued to impact our financial performance".

He added: "It's going to continue to be very difficult, so we've provided guidance that we anticipate a significant loss. These conditions that we see in place today, the dynamics affecting the industry, will be with us for some time."

The lower second quarter net profits was on the back of a 38-per-cent decline in group revenue for the three months ended June to US$1.4 billion. This was largely due to falling revenue from its container shipping division APL, which dropped 39 per cent to US$1.2 billion from the previous year due to declining cargo volumes.

The container shipping business accounts for about 80 per cent of NOL's revenue.

APL president Eng Aik Meng said: "In terms of volume, there has been an across-the-board reduction of 19 per cent. Most significant was the reduction in the Americas. Trans-Pacific trade had a 25-per-cent reduction in volumes in Q2 '09 versus Q2 '08." Europe had a similar reduction of 26 per cent and Asia/Middle East had a relatively smaller reduction of 8 per cent, he added.

For the rest of the year, the shipping firm said that it will continue to focus on improving asset utilisation, yields and productivity.

With the completion of its rights issue last month which raised nearly $1 billion, the company said that this will help it to better weather the downturn with a stronger balance sheet. 938LIVE