Neptune Orient Lines (NOL)(NEPS.SI), the world’s fifth largest container shipping firm, reported better than expected third quarter profit on Tuesday, rebounding from a loss a year ago thanks to a recovery in cargo volumes and rates.

The company, around two-third owned by Singapore state investor Temasek Holdings (TEM.UL), said it expects to remain profitable for the full 2010 year.

 

The global shipping industry suffered its worst downturn in history last year as the recession hit exports and forced many companies to lay up ships and cut jobs.

 

“Strong demand and an improved rate environment have helped us turn around our performance,” NOL CEO Ronald D. Widdows said in a statement.

 

“Our emphasis at this point is on operating efficiency and cost containment to ensure that we maintain our momentum.” NOL carried 29% more cargo, measured by the number of fourty-foot equivalent unit (FEU) containers, in the first nine months of this year compared to a year ago, while its average revenue per FEU rose by 21%, the company said.

 

It earned US$282.3 million ($368.5 million) in third quarter net profit compared to a US$139 million loss a year ago. The profit was ahead of

analyst estimates of US$166.67 million.

 

The third quarter earnings took the nine-month net profit to US$283.5 million compared to a US$529.7 million loss in the same period last year.

 

Before the results, analysts polled by Reuters predicted the company would book net profit of US$232.6 million for the full year.

 

Revenue in the three months ended September 2010 climbed 55% to US$2.43 billion.

 

NOL shares have gone up by around a quarter so far this year, outperforming the 10% rise in Singapore’s benchmark Straits Times index.