ZIM recorded a net profit of US$35 million during the first quarter of 2015, as compared to a loss of $4 million during the previous quarter and a $53 million loss in the same quarter of last year. Operating cash flow in Q1 2015 amounted to US$54 million compared to $43 million in the previous quarter and $23 million in the same quarter of last year.
The Company carried 560,000 TEU containers during the first quarter, reflecting a 0.5 per cent decrease compared with the previous quarter and an 8 per cent decrease compared with the same quarter of last year. Most of the decrease in comparison to last year was as a result of terminating the service from Asia to Northern Europe and withdrawing from trades which are no longer part of the Company’s business focus. As a result of the reduced volume of containers carried, revenues in Q1 2015 were US$792 million, compared to $813 million in the previous quarter and $867 million in the same quarter of last year. The average freight rate per TEU amounted to $1251, representing no change from the previous quarter and an increase of 3 per cent compared to the same quarter of last year.
ZIM successfully implements its work plan and shows positive operational results and a significant improvement compared to previous quarters. The total measures and initiatives that the Company promotes are reflected in the consistent improvement in its results.
ZIM President and CEO Rafi Danieli said: “We are very pleased with our performance in this quarter and the return to profitability. The continuing improvement of our business results stems directly from the comprehensive initiatives the company advances, implementation of the business plan which focuses on opening new lines in profitable trade areas and seizing business opportunities, as well as improves operational efficiency, enhancing customer relations and the sharp reduction in fuel prices. At the same time we see the continued stagnation of the global economy and the volatile fuel prices, and we are taking steps to face these challenges.”
The positive results stem from continued improved operational efficiency, enhanced customer interface, as well as additional sailings from Asia to U.S. east coast. In addition, ZIM has recently announced the inauguration of a new line, ZIM Seven Star Express (Z7S), connecting South China, South East Asia and the Indian sub-continent with the U.S. east coast via the Suez Canal and back. Z7S, with one of the best transit times between South China, Vietnam, Singapore and Colombo, will be operated exclusively by ZIM, and will deploy ten 5,000/6,500 TEU vessels.