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APL posts US$10.9 million net loss, sales fall 22pc to $1.32 billion

SINGAPORE's APL has posted US$10.9 million net loss, drawn on revenues of 1.32 billion, which fell 22 per cent year on year, reports Alphaliner.

For its liner shipping business in the first six months of this year to $47.1 million, a decline of 11 per cent.

But the second quarter results mark a year-on-year 80 per cent improvement for APL, as operating profits turned from a loss of $29 million to a $20 million gain.

This was mainly attributed to a reduction in bunker fuel costs and rate increases secured on transpacific contract rates.

But overall profits were also brought down by interest costs, as net financial expenses of $30 million in the second quarter erased all of APL's operating profits.

Liftings fell 20 per cent as freight rates dropped 17 per cent on average.

APL, the principal holding of Neptune Orient Lines (NOL), has continued to lose market share as it has cut total operating capacity 13 per cent since January last year.

Revenues were also affected by the severe rate erosion on the spot market for exports out of Asia with only the transatlantic segment showing positive rate movements.