Thai-based container shipper RCL has reported a net profit of THB174 million (USD 5.18 million) for the first quarter of 2015.
The company recovered from a net loss of THB158 million in the first quarter of 2014 despite a decline in turnover and liftings, which is the company’s core business.
Total turnover decreased by 18% year on year (y/y) at THB2.877 billion for the period before mild gains on exchange differences and asset sales, the company said in a results statement.
Total liftings for the first quarter were 434,971 teu, down 8% y/y.
RCL used a number of different strategies to help produce an operating profit of THB163 million in the quarter.
It “continued its focus on increasing operation efficiency, up-sizing services for economy of scale, leading to lower unit cost in selective profitable routes”, RCL said in a statement.
Other actions include stringent cost controls, realignment of services, and a selective product mix.
RCL also redeployed vessels to lower costs.
These measures helped cut the cost of freight and operation in the first quarter of 2015 by 26% y/y to THB2.488 billion, mainly due to the decline in bunker prices, fixed cost and lifting, the statement noted.
The group also disposed of some old containers and recorded a gain on exchange of THB17 million in the quarter.