ISRAELI flag carrier Zim has posted an operational loss of US$5 million in the second quarter, while narrowing the $47 million quarterly loss from the year before.
Second quarter revenue was six per cent up at $976 million, despite a three per cent fall in average rates to $1,246 per TEU. There was a five per cent increase in quarterly throughput to 631,000 TEU.
The net loss of $72 million also narrowed from $110 million lost the year before, but that did not include the $24 million cost of arising from cutting 100 jobs from the total headcount of 5,000.
Such cutbacks soothed creditors, vessel and container lenders, shipowners, shipyards, unsecured lenders and bond holders, who renewed their support for the troubled shipping line with fresh terms.
Lenders have now "agreed to a long-term comprehensive solution to the capital and debt structure that will enable financial stability in the face of the multiple challenges and the volatile market conditions", said the Zim statement.
Company debt stands close to $4 billion, with $2.7 billion owed to banks, shipyards and shipowners, plus another $1 billion in off-balance-sheet obligations.
Zim will also cancel all nine of the 12,600 TEU ships it ordered from Korea's Samsung Heavy Industries and re-open talks to re-order them at lower cost.
The nine ships first ordered in 2007, would have cost $170 million each, while same-size, more modern vessels now cost between $100 million and-$110 million, the company said.
Zim chief financial officer Guy Eldar told London's Lloyd's List that the carrier will want ships of 13,000 TEU or below to retain an ability to meet the demands of various trades and not be restricted to the Asia-Europe.
WORLD SHIPPING
30 August 2013 - 19:37
Lenders ease up, Zim shrinks pre-tax loss 5pc as revenue rises 6pc
ISRAELI flag carrier Zim has posted an operational loss of US$5 million in the second quarter, while narrowing the $47 million quarterly loss from the year before.
WORLD SHIPPING
30 August 2013 - 19:37
Lenders ease up, Zim shrinks pre-tax loss 5pc as revenue rises 6pc
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