P&O Q2 2003 Trading Statement

Peninsular & Oriental Steam Navigation Company, the ports, shipping and logistics group, said it saw 22 pct year-on-year organic growth in ports’ container volumes in the April to June second quarter. Its second quarter trading statement revealed ferries freight and tourist vehicle carryings during the period were at similar levels to last year but car rates remained significantly lower. It said the ferries first half result will be impacted by a 4.1 mln stg non-recurring provision relating to a European court judgment concerning operations on the Portsmouth-Bilbao route prior to December 1998.

P&O said its cold logistics division continued to perform well in Australasia and the integration of the recent acquisition from ProLogis in the US has been largely completed.

P&O Nedlloyd, P&O’s 50:50 container shipping joint venture with Royal Nedlloyd Group NV, reported its second quarter trading and financial results separately. It achieved an operating profit of 11 mln usd before restructuring costs compared to a loss of 46 mln usd in the second quarter last year. Volumes were 4 pct higher and average revenue per TEU (twenty foot equivalent unit) improved 11 pct on the second quarter last year and by 5 pct on the first quarter this year. P&O Nedlloyd said it has achieved 300 mln usd annualised cost savings so far in 2002/03. “Despite the strength of the euro and continuing high fuel prices, the balance of supply and demand in the industry is expected to remain favourable for the foreseeable future, creating an increasingly positive outlook,” the joint venture added.