Ebeling Heffernan has issued a strong buy on Neptune Orient Lines with a 2011 price target of SGD$4.20.

Neptune Orient Lines Limited (NOL) is an investment holding company. The Company is engaged in the ownership and charter of shipping vessels, as well as participation in ventures related to these activities and the principal activities of its subsidiaries.

The Company operates in three segments: Container Shipping, Logistics and Terminals.

Its Container Shipping is engaged in global container transportation operations. The Company is a global logistics provider with a network of facilities and services.

The range of services include consolidation, warehousing, global freight management (ocean, air, truck and rail), domestic distribution networks, international deconsolidation and information technologies that provide information to manage supply chain activities.

Its Terminals segment is engaged in the operation of container terminals and provision of other related services.

On the 19th of October 2010 NOL Group reported net earnings of US$282 million for the third quarter of 2010, a US$421 million turnaround from the US$139 million net loss in the third quarter of 2009. NOL said revenue in the third quarter improved 55% to US$2.4 billion.

The Group has now reported net earnings of US$283 million through three quarters of 2010. It lost US$530 million during the same period last year.

“Strong demand and an improved rate environment have helped us turn around our performance,” said Group CEO Ronald D. Widdows. “Our emphasis at this point is on operating efficiency and cost containment to ensure that we maintain our momentum.”

The Group’s Core EBIT (Earnings Before Interest and Taxes) for the third quarter was US$319 million compared to a Core EBIT loss of US$115 million in the same quarter a year ago. For the first three quarters in 2010, Core EBIT was US$359 million compared to a Core EBIT loss of US$468 million for the first three quarters of 2009.

Posted by Shayne Heffernan on Oct 24th, 2010and filed underAnalysis, ASEAN News, Asia, Asia-Pacific Companies, Commodities, Economy, Emerging Markets, Energy, Equities, Equities, Exclusive, Financials, Forex, Futures, Hot Topic, In Depth, Industrials, Latest News, Limelight, Market, Market News, Markets, News & Events, Rail, Shayne Heffernan, Shipping, Singapore, Special Reports, Stocks, Transport, World News.You can follow any responses to this entry through theRSS 2.0You can leave a response by filling following comment form or trackback to this entry from your site