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WSJ reported yesterday (‘Temasek Puts Neptune Orient Lines Up for Sale‘, 16 Jul) that Temasek Holdings has put its US$1.7 billion container-shipping company, Neptune Orient Lines (NOL), up for sale.
“Heavily indebted, money-losing Neptune Orient Lines Ltd., 65% owned by Temasek and listed in Singapore, has been shopped to prospective buyers in recent months,” reported WSJ.
Apparently, Temasek has been in talks with one prospective buyer, but the two sides couldn’t agree on a price.
NOL was earlier reported that it was actively seeking merger discussions with other shippers including Germany’s Hapag-Lloyd AG and Hong Kong’s Orient Overseas (International) Ltd. There’s pressure to consolidate in the industry, which has suffered from overcapacity in recent years.
“It’s unclear whether any of NOL’s potential merger partners would now be interested in acquiring the Singapore shipper,” WSJ said.
In May, NOL sold off its profitable logistics business, APL Logistics Ltd, for US$1.2 billion to Japan’s Kintetsu World Express Inc.
NOL was founded in 1968 as Singapore’s national shipping line. It operates 92 vessels that service more than 160 ports world-wide.
The company’s liner business generated US$7 billion of revenue last year. The overall company, including the profitable logistics business it sold earlier this year, has lost money for three straight years.
Last year, NOL’s loss widened to US$260 million from US$76 million the year before.
NOL has declined to comment with regard to the potential sale and Temasek said that it won’t comment on “market speculation.”
However, if Temasek succeeds in selling NOL, new owners will typically bring in its own management team, resulting in the potential loss of jobs for current NOL CEO, LG (NS) Ng Yat Chung and his team at NOL. Temasek may then need to find new GLCs for LG (NS) Ng and his team to helm.
Maersk makes money while NOL loses
Long time NOL critic, Cynical Investor, in a blog post [Link] in May noted that while Denmark’s Maersk Line is making profit, our own NOL is making losses.
Maersk Line reported a jump in net profit to US$714 million from US$454 million in the first quarter of this year, largely due to lower bunker fuel prices.
At the same time, NOL reported that its first-quarter net loss was US$11 million down from US$89 million a year earlier.
“The performance of NOL’s CEO (scholar, SAF general, Temasek MD) tells the truth about ‘intelligence’ PAP style: it doesn’t work in the real world, only in S’pore,” Cynical Investor quipped.
LG (NS) Ng Yat Chung was the fifth Chief of Defence Force of SAF from 2003–2007. Before that, he served as the Chief of Army from 2000–2003. He became an executive in Temasek Holdings after leaving the SAF in 2007. In 2011, he joined NOL and became its Group President and CEO.
LG (NS) Ng has won many awards and medals in his career:
Public Administration Medal (Gold) (Military), in 1998
Knight Grand Cross (1st Class) of The Most Noble Order of the Crown of Thailand, in 2002
Knight Grand Cross (1st Class) of The Most Exalted Order of the White Elephantt, in 2005
(And Temasek hired him notwithstanding the clues to his capability? He is certified Chiak Liaw Bee!)
The Most Exalted Order of Paduka Keberanian Laila Terbilang (1st Class), in 2005
Bintang Yudha Dharma Utama (Grand Meritorious Military Order), in 2005
Darjah Panglima Gagah Angkatan Tentera, in 2005
Long Service Medal (Military), in 2007
Meritorious Service Medal (Military), in 2007
Outstanding Service Award, by NUS in 2013
Grand Cordon of the Order of the Resplendent Banner (3rd Class)
Legion of Merit (Degree of Commander)
Grand Cordon of the Order of the Precious Tripod
(Ah, this guy got award also for Por Lam Par!)
It’s not known how these awards and medals have helped him to make money for NOL.
http://www.tremeritus.com/2015/07/17/lg-ns-ng-may-be-losing-his-job-at-nol/
“Heavily indebted, money-losing Neptune Orient Lines Ltd., 65% owned by Temasek and listed in Singapore, has been shopped to prospective buyers in recent months,” reported WSJ.
Apparently, Temasek has been in talks with one prospective buyer, but the two sides couldn’t agree on a price.
NOL was earlier reported that it was actively seeking merger discussions with other shippers including Germany’s Hapag-Lloyd AG and Hong Kong’s Orient Overseas (International) Ltd. There’s pressure to consolidate in the industry, which has suffered from overcapacity in recent years.
“It’s unclear whether any of NOL’s potential merger partners would now be interested in acquiring the Singapore shipper,” WSJ said.
In May, NOL sold off its profitable logistics business, APL Logistics Ltd, for US$1.2 billion to Japan’s Kintetsu World Express Inc.
NOL was founded in 1968 as Singapore’s national shipping line. It operates 92 vessels that service more than 160 ports world-wide.
The company’s liner business generated US$7 billion of revenue last year. The overall company, including the profitable logistics business it sold earlier this year, has lost money for three straight years.
Last year, NOL’s loss widened to US$260 million from US$76 million the year before.
NOL has declined to comment with regard to the potential sale and Temasek said that it won’t comment on “market speculation.”
However, if Temasek succeeds in selling NOL, new owners will typically bring in its own management team, resulting in the potential loss of jobs for current NOL CEO, LG (NS) Ng Yat Chung and his team at NOL. Temasek may then need to find new GLCs for LG (NS) Ng and his team to helm.
Maersk makes money while NOL loses
Long time NOL critic, Cynical Investor, in a blog post [Link] in May noted that while Denmark’s Maersk Line is making profit, our own NOL is making losses.
Maersk Line reported a jump in net profit to US$714 million from US$454 million in the first quarter of this year, largely due to lower bunker fuel prices.
At the same time, NOL reported that its first-quarter net loss was US$11 million down from US$89 million a year earlier.
“The performance of NOL’s CEO (scholar, SAF general, Temasek MD) tells the truth about ‘intelligence’ PAP style: it doesn’t work in the real world, only in S’pore,” Cynical Investor quipped.
LG (NS) Ng Yat Chung was the fifth Chief of Defence Force of SAF from 2003–2007. Before that, he served as the Chief of Army from 2000–2003. He became an executive in Temasek Holdings after leaving the SAF in 2007. In 2011, he joined NOL and became its Group President and CEO.
LG (NS) Ng has won many awards and medals in his career:
Public Administration Medal (Gold) (Military), in 1998
Knight Grand Cross (1st Class) of The Most Noble Order of the Crown of Thailand, in 2002
Knight Grand Cross (1st Class) of The Most Exalted Order of the White Elephantt, in 2005
(And Temasek hired him notwithstanding the clues to his capability? He is certified Chiak Liaw Bee!)
The Most Exalted Order of Paduka Keberanian Laila Terbilang (1st Class), in 2005
Bintang Yudha Dharma Utama (Grand Meritorious Military Order), in 2005
Darjah Panglima Gagah Angkatan Tentera, in 2005
Long Service Medal (Military), in 2007
Meritorious Service Medal (Military), in 2007
Outstanding Service Award, by NUS in 2013
Grand Cordon of the Order of the Resplendent Banner (3rd Class)
Legion of Merit (Degree of Commander)
Grand Cordon of the Order of the Precious Tripod
(Ah, this guy got award also for Por Lam Par!)
It’s not known how these awards and medals have helped him to make money for NOL.
http://www.tremeritus.com/2015/07/17/lg-ns-ng-may-be-losing-his-job-at-nol/
