Aug.9--SINGAPORE' Neptune Orient Lines (NOL), owner of APL container line, has narrowed its first half operating loss to US$120 million, a 45 per cent year-on-year improvement, based on revenues of $4.4 billion, which fell six per cent.

　 　 But NOL also posted a half year net profit of $41 million because of the sale of its headquarters building in Singapore for $200 million, thus reversing last year's first half $371 million loss into a major gain.

　 　 APL posted an operational profit loss of $146 million in the first half, but showing a 39 per cent year on year improvement with revenues falling eight per cent to $3.7 billion.

　 　 During January-June period, APL's average revenue per FEU fell seven per cent, but efficiency improvements helped reduce cost of sales per FEU by eight per cent, said the company.

　 　 " Weak demand coupled with an oversupply situation in the industry have continued to put severe pressure on freight rates. This has impacted revenue significantly," said APL president Kenneth Glenn.

　 　 " By maintaining a strong cost discipline, we achieved a better performance despite the deteriorating demand and freight rate environment. We expect that the realisation of our fleet renewal programme will further make significant improvements to our cost base."

　 　 In the first six months of 2013, APL has taken delivery of 19 out of 34 new ships to replace smaller and older units for the sake of reducing APL's vessel slot costs.

　 　 Said NOL chief executive Ng Yat Chung: " Market conditions have worsened in the second quarter of this year compared to a year before. Our container shipping business managed to deliver an improvement in its operating result in spite of difficult trading conditions, which is a good achievement."

　 　 The company expects general market environment and freight rates to remain soft, and the container shipping industry still be beset " with overcapacity and weak freight rates" .

　 　 (Source:shippingazette)