Israel’s shipping company ZIM reported a net profit of USD 23 million for the second quarter of 2015, compared to a loss of USD 50 million in the same quarter last year.
The company kept its positive results from the first quarter when it posted a sharp improvement in its business results as its non-GAAP net profit stood at USD 35 million, compared to a USD 4 million loss in the previous quarter and a USD 53 million loss in the parallel quarter in 2014.
EBITDA, on a Non-GAAP basis, was USD 74 million for Q2 2015, compared to USD 23 million in the same quarter last year. The company’s operating cash flow stood at USD 86 million for the quarter, much higher from USD 19 million reported in the same quarter last year.
The company carried 577 thousands TEU in the second quarter of 2015, reflecting a 6% decrease compared to the same period last year. ZIM said that most of the decrease was a result of service terminated from Asia to Northern Europe and withdrawing from trades which are not part of the company’s business focus, as well as a decline in demand in the Asia-Mediterranean trade route.
As a result of lower container volumes and freight rates, total revenues in the second quarter of 2015 were USD 763 million, compared to USD 875 million in the same period last year. Average freight rate per TEU was USD 1,150 in the second quarter of 2015, a 5% reduction from last year.
During the second quarter of 2015, ZIM launched operations of the ZIM Seven Star Express (Z7S), a new line connecting South China, South East Asia and the Indian sub-continent and the U.S. East Coast via the Suez Canal.
Z7S is fully operated by ZIM and provides services in the trade route between South China, Vietnam, Singapore and Sri Lanka to the U.S. East Coast and back. ZIM deploys ten 5,000-6,500 TEU vessels for the line on a weekly schedule.
ZIM was ranked first in schedule reliability and punctuality on the Asia-U.S. East Coast trade route in May and June 2015, according to a July 2015 SeaIntel report.