SINGAPORE (Nov 2): OCBC is maintaining its “hold” call on Neptune Orient Lines but has cut its fair value estimate to 96 cents from $1 saying the tough operating environment for the container shipping industry is likely to persist.

Neptune Orient said on Friday its third-quarter net loss widened to US$96.1 million ($134.6 million), compared with a net loss of US$23.1 million in the same period of last year. Revenue declined 28% year-over-year to US$1.21 billion. OCBC notes that Neptune Orient has been forced to sail empty ships, freight rates are falling and demand is weakening.

The cheaper fuel prices and cost savings by the company don’t offset such losses.

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