NEPTUNE ORIENT LINES PREDICTS RETURN TO PROFIT THIS YEAR
The Neptune Orient Lines group, the Singaporean parent company of APL, expects to report a profit this year following the sale of its tanker arm American Eagle Tankers to Malaysia International Shipping Corp. Bhd.
Neptune Orient Lines said April 29 it reached an agreement to sell American Eagle Tankers for $445 million in cash, saying it will mean a “sizable” capital gain if the sale is completed.
In a statement to the Singaporean stock exchange, Neptune Orient Lines clarified the total sale amount for its tanker-shipping arm is about $1 billion, including the assumption of American Eagle Tankers’ debts by Malaysia International Shipping.
“Barring unforeseen circumstances and premised on the proceeds from the sale, improved container freight rates and cost cutting measures, the Neptune Orient Lines group is expected to return to profitability for the financial year ending Dec. 31,” the company told the stock exchange.
In 2002, Neptune Orient Lines reported a record group deficit of $330 million, because of losses from container shipping and logistics.
The sale of American Eagle Tankers is subject to the approval of Neptune Orient Lines’ shareholders. Neptune Orient Lines described the sale as a strategic move to focus on its core container transportation and logistics businesses, APL and APL Logistics.