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APL Logistics sale won’t save NOL in the long run
The liner business remains a key drag.
Neptune Orient Lines’ proposed US$1.2b divestment of APL Logistics may help it in the short-term, but the high-profile deal is unlikely to save the loss-making shipping giant in the long run.
According to OCBC, the short-term boost comes with the loss of around US$55m in its annual net profit, while the net result of annual interest savings and loss of PATMI is a negative impact of around US$25m to NOL’s bottomline.
“With recovery of the liner industry not yet in sight, we think the divestment of its only profitable unit over the last three years is not too positive, if the divestment is approved,” stated OCBC.
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