ISRAELI container carrier Zim suffered a 25.3 per cent operating loss in 2012 yet declared US$107 million profit in 2012 against the $82 million loss in 2011 in terms of earnings before interest, tax.
Zim troubled, but results improve despite cancelling orders for 5 ships ISRAELI container carrier Zim suffered a 25.3 per cent operating loss in 2012 yet declared US$107 million profit in 2012 against the $82 million loss in 2011 in terms of earnings before interest, tax, depreciation and amortisation, while revenues increased five per cent year on year to $3.9 billion.
Zim faced cancellation charges from Samsung Heavy Industries of $133 million for stopping orders on five 12,600-TEUers. Nine of them were first ordered at $170 million each while remaining ship deliveries will be deferred until 2016.
"We need those vessels toward the end of 2015 or early 2016, so we're not under any pressure," said Zim CEO Rafi Danieli.
Mr Danieli said same-sized ships ordered today are 25 per cent cheaper and more fuel efficient than those Zim ordered in 2007 destined for the Asia-Europe trade.
He said creditors view the decision to cancel the five ships with favour. Zim debts total $2.7 billion and the company has received shareholder cash injections and debt restructuring from lenders to survive financially.
Zim said was also able to reach an agreement with lenders to delay payment of debt covenants due in 2013 until the end of 2014.
Container volume was flat at 2.4 million TEU, but yield was higher with average freight rates increasing two per cent to $1,342 per TEU.
