P&O’s losses widen
London-based Peninsular and Oriental Steam Navigation Co. saw its net deficit widen to '33 million ($60 million) in the first half of the year from '9 million in the same period of 2003, as its ferries shipping business reported greater losses.
Yet, the group’s total operating income increased to '113 million ($207 million) in the first half, from '45 million a year ago, helped by a strong performance from P&O Ports. Group revenue was stable, at ' 1.1 billion ($2 billion), excluding the share of joint ventures.
P&O Ports’ operating income for the first half was '71 million ($130 million), up from '58 million in the same period of 2003. The ports division handled 6.6 million TEUs worldwide, 27 percent more than in the first half of 2003. Organic volume growth was 16 percent, significantly exceeding estimates of growth in global containerized trade of approximately 12 percent in the same period, the P&O group said.
The ferries arm of P&O posted an operating deficit of '25 million ($46 million) in the first half, as compared to a loss of '20 million in the first six months of 2003.
P&O also reported that its share of the results of its container shipping interests was an operating profit of '21 million ($38 million) in the first half, as compared to a loss of '20 million a year ago. On April 16, P&O sold half of its previous 50 percent share of P&O Nedlloyd and now holds 25 percent of Royal P&O Nedlloyd N.V.
P&O treats the results of its stake in Royal P&O Nedlloyd as those of an associated company.