P&O Nedlloyd Q3 2002 results

The attached information sets out the financial results, trade statistics and
key points for P&O Nedlloyd Container Line Limited for the third quarter 2002.
In summary it shows that:

* P&O Nedlloyd made an operating loss for the quarter of $46 million, the
same as for Q2 2002 but with higher fuel prices having an adverse impact of
$15 million;
* average revenue rates were marginally up on Q2 2002, the first quarterly
improvement since Q1 2001;
* volumes were 11 per cent higher than in Q3 2001;
* the cost savings programmes continue ahead of plan; and
* the overall outlook is more positive than for some time, although higher
fuel costs, a weaker US dollar and supply/demand pressures continue.

Further information: Peter Smith, Director, Communications and Strategy, P&O
020 7930 4343
Cor Radings, Corporate Public Relations, Royal Nedlloyd
00 31 626 316 854

RESULTS & STATISTICS

Q3 Q3 Year to Date Year to Date
2002 2001 2002 2001
Throughput (teus)
Europe/Asia 303,200 272,200 854,600 800,000
North/South & Cross Trades 343,600 306,500 961,200 861,300
North America 282,300 255,500 804,100 694,300
Total 929,100 834,200 2,619,900 2,355,600
Average revenue per teu 1,138 1,275 1,139 1,329
Revenue 1,057 1,064 2,983 3,131
Operating profit/(loss) before interest and (46) 32 (159) 110
tax (before restructuring costs)
Restructuring costs (5) (2) (22) (3)
Operating profit/(loss) before interest and (51) 30 (181) 107
tax (after restructuring costs)
Net profit/(loss) on sale of fixed assets (4) 0 1 0
Interest, minorities and other items (12) (14) (33) (41)
Profit/(loss) before tax (67) 16 (213) 66

Notes:

1. Teu = twenty foot equivalent unit. This is the standard size of container and
is a common measure of capacity in the container business.
2. All financial figures are US$ million except average revenue per teu which is
US$.
3. It is important to note that a change in average revenue per teu does not
necessarily equal a change in profit contribution. Average revenue per teu
is calculated equally across all trades and products. It makes no allowance
for cargo mix, relative volumes on different trades or additional elements
which are raised and paid for in local currency.

KEY POINTS

1. The $46 million operating loss for Q3 2002 (before restructuring costs of $5
million) was the same as for Q2 (before restructuring costs of $15 million)
despite fuel prices being $15 million worse. It compares to a profit of $32
million for Q3 2001 with higher fuel prices having an adverse impact of $19
million.
2. The main factor affecting the result continues to be low revenue rates, which
were 11% down on Q3 2001. Importantly, however, the average revenue rate of