Singapore's NOL 2007 profit rises 44 pct to $523 mln

SINGAPORE, Feb 12 (Reuters) - Singapore's Neptune Orient Lines (NEPS.SI: Quote, Profile, Research) reported on Tuesday a 44 percent rise in full-year 2007 profit, above market expectations, and expects a slowing U.S. economy to moderate growth in U.S. container trade.

NOL, which owns the world's eighth-largest container shipping firm APL, said net profit for 2007 was $523 million, compared to $364 million a year earlier.

State-controlled NOL was expected to report 2007 net profit of $465 million, according to the average forecast of 8 analysts polled by Reuters Estimates.

The company, reportedly in talks to merge its shipping operations with Germany's TUI (TUIGn.DE: Quote, Profile, Research) to create the world's third-largest shipping business, had posted earnings of $327 million in the first nine months of 2007.

Freight rates at NOL, and rivals such as the world's top two shipping firms AP Moller-Maersk (MAERSKb.CO: Quote, Profile, Research) and Mediterranean Shipping Co, are expected to come under pressure this year from a worsening U.S. economy and high oil prices.

(Reporting by Daryl Loo; editing by Kevin Lim)