NOL

NOL: Operating results for Period 2 are out. MS maintains Overweight with TP$2.90, NOL remains as top pick and defensive near-term investment. Freight rates still fall but within expectations due to seasonal trends and excess capacity…

NOL is likely to be still profitable but margins are sharply lower, est to have fallen to 3-4% from 7% in 4Q10. Contributing factors are, a 5% decrease in freight rates from 4Q10 and bunker fuel prices rising 20%...

Notes that +12% yoy volumes were mainly attributed to strong volumes on Intra-Asia and Asia-Europe routes but was offset by 1% yoy rate decrease resulting in a 12% rev improvement overall in Period 2.