Israel-based container carrier Zim returned to profitability in 1Q15 with its EBIT numbers improving dramatically, reaching USD61 million compared with USD5 million in the last quarter of 2014, and a USD16 million negative EBIT in the same quarter last year. In GAAP terms, the Q115 EBIT was USD40 million in profit.
At the same time, ZIM announced today that it ended 1Q15 with a non-GAAP net profit of USD35 million, compared with a USD4 million loss in the previous quarter and a USD53 million loss in the parallel quarter a year ago.
Operating cash flow in 1Q15 amounted to USD54 million compared with USD43 million in the previous quarter and USD23 million in the same quarter of last year.
The quarterly statement quoted ZIM president and CEO Rafi Danieli as attributing the continuing improvement to the implementation of its business plan “which focuses on opening new lines in profitable trade areas and seizing business opportunities, as well as [improving] operational efficiency, enhancing customer relations and the sharp reduction in fuel prices”.
The company also attributed the positive result to the launch of additional sailings from Asia to the US east coast. ZIM recently announced the inauguration of a new line, ZIM Seven Star Express (Z7S), connecting south China, southeast Asia and the Indian subcontinent with the US east coast via the Suez Canal and back. The Z7S, with one of the best transit times between south China, Vietnam, Singapore, and Colombo in Sri Lanka, will be operated exclusively by ZIM and will deploy ten 5,000-6,500 teu vessels.