China Shipping Container Lines’ (CSCL’s) profit increased more than three times year on year (y/y) to CNY249 million (USD40 million) in the first three months of 2015, as a result of sharply lower operating cost.
CSCL’s revenue fell 9% y/y to CNY7.8 billion during the same period due to scrapping of old tonnage in 2014, according to the company’s stock filing on 28 April.
The company’s operating cost fell 15% y/y to CNY7.2 billion on account of lower bunker cost.
Excluding one-off items, CSCL returned to the black with a profit of CNY243 million.
The fall in bunker cost since late 2014, the company’s optimisation of fleet structure, and improvement in its shipping route networks, have also helped with CSCL’s return to the black last year.
In addition, the company reaped about CNY910.6 million in proceeds by disposals of its non-core business and terminal-operating subsidiary in the same year.