China Shipping Container Lines Co. Ltd (CSCL) resumed a very profitable streak having reported 305.6% year-over-year net profit increase in the first quarter of 2015, attributed to a hike in operating profit.
CSCL’s net profit in the first quarter reached CNY 249 million (USD 40 million), a jump from CNY 61.4 million from 2014. However, the company’s revenue fell 9.4% to CNY 7.76 billion due to scrapping of old tonnage.
CSCL posted a gain of CNY 5.8m from the disposal of non-current assets during the quarter, up from CNY 871,025 recorded in 2014.
Overall, the surge in container line’s profit is believed to have been spurred by lower bunker fuel costs along with fuel modernization efforts that saw fuel efficient ships reap the benefits of reduced fuel consumption.
The company returned to black in 2014 posting a CNY 1.04 bn profit, thus recovering from a loss of CNY 2.61 bn in 2013.
World Maritime News Staff