NOL

NOL: 3Q13 results is out tomorrow (30 October) after market, and CS expects a loss of $64m, compared with last year’s pre-ex NPA of US$41m and a corporate-monitored consensus of US$21m Peer Orient Overseas International Limited had a 10% dive in 3Q13 revenues, and CS reckons NOL’s results is not likely better due to the pressure of Industry-wide overcapacity. The house expects positive contribution from logistics business, cost savings from liner segment re-engineering, lower bunker expense and larger vessel efficiencies to provide some offset, but sell-side earnings are expected to trend lower. CS remains U/PF with TP: $0.95, and highlights if NOL cannot make profit in the strongest season, profitability for the year will likely once again elude NOL.