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[h=2]With ex-general, scholar at helm, NOL still underperforming[/h]
May 26th, 2012 |
Author: Contributions
Ng Yat Chung
I was looking forward to comparing the 1Q results of NOL (world’s 6th largest container shipping co) and Maersk’s container division (largest in the world) because as a holder of a few NOL shares (“peanuts” but gd yield) I was interested in seeing how ex-defence chief Ng Yat Chung (and ex-Temasek senior MD) would perform. Mr Ng took over as CEO on 1 January 2012. He was made made executive director in April 2011. The retired CEO, a shipping man thru and thru, is now an adviser to the CEO.
At the time I asked, “Wonder what relevant experience he brings to the shipping co? I can only think of the experience in a managing big complex organisation. But then I couldn’t think of any reason for his becoming a senior MD at Temasek.”
Well NOL, and Maersk’s container division both came out with unexpectedly very bad sets of results, showing that the container shipping industry is in worse shape than expected with a weak global economy, expensive fuel and plenty of capacity coming on-line.
But NOL’s numbers were still worse than Maersk despite its focus on moving stuff between East Asia and the the US. Maersk also moves a lot of stuff to from East Asia – Europe, in addition to the US. As readers will know, the US economy has performed better than the European economies in 1Q 2012.
Maesrk’s revenue was up 7% to US$6.31bn, while NOL’s revenue fell 3% to US$2.38bn. As to losses, NOL lost US$254m, while Maesrk lost US$537m. Simplistically, if Maesk had NOL’s revenue, it would have lost US$203m, i.e. 20% lower. But then along the same lines, NOL should have made money, not lose money (US$10m) in 1Q2011.
Whatever it is, having a scholar, ex-senior MD from Temasek, and retired general as CEO of NOL, is of no benefit whatsoever when it comes to shareholder value. SIGH…
Let’s hope it’s different in the cabinet, where we have as newbies one ex-admiral and one ex-general, both of whom are scholars.
I was looking forward to comparing the 1Q results of NOL (world’s 6th largest container shipping co) and Maersk’s container division (largest in the world) because as a holder of a few NOL shares (“peanuts” but gd yield) I was interested in seeing how ex-defence chief Ng Yat Chung (and ex-Temasek senior MD) would perform. Mr Ng took over as CEO on 1 January 2012. He was made made executive director in April 2011. The retired CEO, a shipping man thru and thru, is now an adviser to the CEO.
At the time I asked, “Wonder what relevant experience he brings to the shipping co? I can only think of the experience in a managing big complex organisation. But then I couldn’t think of any reason for his becoming a senior MD at Temasek.”
Well NOL, and Maersk’s container division both came out with unexpectedly very bad sets of results, showing that the container shipping industry is in worse shape than expected with a weak global economy, expensive fuel and plenty of capacity coming on-line.
But NOL’s numbers were still worse than Maersk despite its focus on moving stuff between East Asia and the the US. Maersk also moves a lot of stuff to from East Asia – Europe, in addition to the US. As readers will know, the US economy has performed better than the European economies in 1Q 2012.
Maesrk’s revenue was up 7% to US$6.31bn, while NOL’s revenue fell 3% to US$2.38bn. As to losses, NOL lost US$254m, while Maesrk lost US$537m. Simplistically, if Maesk had NOL’s revenue, it would have lost US$203m, i.e. 20% lower. But then along the same lines, NOL should have made money, not lose money (US$10m) in 1Q2011.
Whatever it is, having a scholar, ex-senior MD from Temasek, and retired general as CEO of NOL, is of no benefit whatsoever when it comes to shareholder value. SIGH…
Let’s hope it’s different in the cabinet, where we have as newbies one ex-admiral and one ex-general, both of whom are scholars.
Editor’s note – Mr Ng Yat Chung came with an impressive resume:
Ng Yat Chung was the Singapore’s 5th Chief of Defence Force from 1 April 2003 to 23 March 2007. He was an artillery officer. Ng was an alumnus of Victoria School and Hwa Chong Junior College and was a recipient of the SAF Overseas Scholarship. He read mathematics at Cambridge University and earned his MBA at Stanford University. Ng was also the top foreign graduate of the US Command and Staff College at Fort Leavenworth in 1988–89.
Since his enlistment in 1979, Ng has been awarded a number of higher commissions. As Chief of Defence Force since 1 April 2003, Ng laid the transformational blueprint for the 3rd Generation SAF and oversaw its execution.
During his tenure as Chief of Defence Force, Ng has worked to bolster the SAF’s full spectrum capabilities to meet new security challenges, such as terrorism and low intensity conflicts, more effectively prosecute peacetime operations, and raise the SAF’s capabilities for conventional operations. Ng commanded the deployment of the SAF in peace support operations in East Timor and in humanitarian and disaster relief operations under Operation Flying Eagle in Aceh and Phuket after the tsunami in 2004, as well as to Yogjakarta and to Phitsanulok, Northern Thailand in 2006, following natural disasters. In addition, Ng has helped broaden and deepen the SAF’s extensive network of professional relationships with other armed forces, to further Singapore’s role as a constructive partner in regional security.
Ng Yat Chung relinquished his post as the Chief of Defence Force on 23 March 2007 and joined Temasek Holdings in a newly created position as its portfolio management managing director. Mr Ng Yat Chung then later joined the NOL Board in mid 2011. He was appointed Group President and Chief Executive Officer of NOL beginning October 2011 and officially on 1 Jan 2012. He is the Chairman of the Board of Trustees for the Singapore Institute of Technology. He is also a member of the Board of the World Shipping Council and a member of the International Advisory Panel of the Singapore Maritime Institute.
Ng Yat Chung was the Singapore’s 5th Chief of Defence Force from 1 April 2003 to 23 March 2007. He was an artillery officer. Ng was an alumnus of Victoria School and Hwa Chong Junior College and was a recipient of the SAF Overseas Scholarship. He read mathematics at Cambridge University and earned his MBA at Stanford University. Ng was also the top foreign graduate of the US Command and Staff College at Fort Leavenworth in 1988–89.
Since his enlistment in 1979, Ng has been awarded a number of higher commissions. As Chief of Defence Force since 1 April 2003, Ng laid the transformational blueprint for the 3rd Generation SAF and oversaw its execution.
During his tenure as Chief of Defence Force, Ng has worked to bolster the SAF’s full spectrum capabilities to meet new security challenges, such as terrorism and low intensity conflicts, more effectively prosecute peacetime operations, and raise the SAF’s capabilities for conventional operations. Ng commanded the deployment of the SAF in peace support operations in East Timor and in humanitarian and disaster relief operations under Operation Flying Eagle in Aceh and Phuket after the tsunami in 2004, as well as to Yogjakarta and to Phitsanulok, Northern Thailand in 2006, following natural disasters. In addition, Ng has helped broaden and deepen the SAF’s extensive network of professional relationships with other armed forces, to further Singapore’s role as a constructive partner in regional security.
Ng Yat Chung relinquished his post as the Chief of Defence Force on 23 March 2007 and joined Temasek Holdings in a newly created position as its portfolio management managing director. Mr Ng Yat Chung then later joined the NOL Board in mid 2011. He was appointed Group President and Chief Executive Officer of NOL beginning October 2011 and officially on 1 Jan 2012. He is the Chairman of the Board of Trustees for the Singapore Institute of Technology. He is also a member of the Board of the World Shipping Council and a member of the International Advisory Panel of the Singapore Maritime Institute.
