A year-on-year increase of 394%, setting a 10-year quarterly profit record
Xing's second-quarter revenue fell 4.7% year-on-year, and cargo volume fell 12.3% year-on-year. But the profit was $25.3 million, the best in 10 years.
Star Shipping announced its results for the second quarter of this year on August 19, achieving a net profit of US$25.3 million, the highest single-quarter net profit since 2010, an increase of 394% over the same period last year.
In the second quarter, Star Air’s operating revenue was US$795.1 million, a decrease of 4.7% from US$843.3 million in the same period last year. During the period, a total of 641,000 TEU of cargo was transported, compared with 713,000 TEU in the same period last year, a decrease of 12.3%. Adjusted EBITDA for the second quarter was US$145.1 million, a year-on-year increase of 53.7%. In addition, operating cash flow also improved significantly, increasing by 86.9% year-on-year to US$119.8 million.
In the first half of this year, Star Shipping made a total net profit of 13.4 million US dollars, and a net loss of 19.2 million US dollars in the same period last year. The total revenue in the first half of the year was US$1.618 billion, a year-on-year decrease of 0.7%.
According to Star Shipping, the container shipping industry is a dynamic and changeable industry. In recent years, the trade situation between China and the United States has brought instability to the market environment. In addition, the spread of the epidemic this year has severely affected the global economy, many industries have been affected, and trade volume has shrunk. At the same time, however, fuel costs and charter rates have also been reduced, and the increase in freight rates has had a positive impact on performance. In this context, Star Shipping continues to expand its global service network and improve its operating level.
Yixing Shipping also specifically mentioned that in the first half of 2020, the company launched innovative services to meet market demand, and continued to broaden the application range of digital tools, and optimize the way it does business with customers.
Recently, Star Shipping launched the artificial intelligence-based monitoring software ZIM Guard system, which can detect and identify incorrectly declared dangerous goods before shipment. The system has been used in major ports in China, the United States and Israel. It is expected to be by the end of this year. Will be deployed in all ZIM routes.
Earlier this year, Star Shipping also launched ZEX, an e-commerce express service from South China to the West Coast of Los Angeles, USA, to meet the needs of e-commerce customers.
