Management guided a time frame of at least two years for new asset acquisitions (WACC is approx 9%).
Sharing of slots with its alliance partners have helped to remove some capacity, raise utilization rates and reduce costs.
Demand is picking up due to seasonality factors rather than real recovery.
Funding situations have not improved.
NOL is cash profitable but not earnings positive.
Losses are expected for 2009.
Company has managed costs by reducing 10% of headcounts globally.
Thirteen vessels will be delivered in 2009 and five in 2010.
NOL has delayed some new orders by six to two-and-half years.
Expect plenty of tonnage to hit the waters in 2009-2010 with approximate 10-11% of supply coming on board this year.
The trough valuation for the container shipping sector is about 0.4x P/B and the long term average is about 1.3x P/B. Based on consensus forecasts, NOL is currently trading at 0.9x 2009 and 1.1x 2010 P/B.
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