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. Opening this line is part of the Company’s strategy to develop the Asia-U.S. trade route. Z7S is fully operated by ZIM and provides one of the fastest 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.
The Company carried 577 thousands TEU in the second quarter of 2015, reflecting a 6% decrease compared to the same period last year. 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 $763 million, compared to $875 million in the same period last year. Average freight rate per TEU was $1,150 in the second quarter of 2015, a 5% reduction compared to the same period last year.
Second Quarter 2015 Financial Highlights:
EBIT, on a Non-GAAP basis, was $50 million, compared to negative $15 million for the second quarter of 2014
EBITDA, on a Non-GAAP basis, was $74 million, compared to $23 million for the second quarter of 2014
EBITDA, on a GAAP basis, was $67 million, compared to $29 million for the second quarter of 2014
Net profit, on a Non-GAAP basis, was $23 million, compared to a net loss of $50 million for the second quarter of 2014
Net profit, on a GAAP basis, was $12 million, compared to negative $67 million for the second quarter of 2014
Operating cash flow was $86 million, compared to $19 million for the second quarter of 2014