Zim posts net loss of US$74 million as revenue falls 19.8pc to $611.8 million
ISRAEL's Zim Integrated Shipping posted a second quarter year-on-year net loss of US$74 million drawn on revenues of $611.8 million, which fell 19.8 per cent.
This compares to profits of $12 million in the same 2015 period, a decline blamed on "historically low freight rates".
Zim's average freight rate in the first six months of the year dropped 24.8 per cent to $903 per TEU carried, compared with the first half of 2015.
Quarterly revenues declined despite increased cargo volumes rising 6.9 per cent from first quarter 2016 to 617,000 TEU.
Zim reported an adjusted loss before interest and tax (EBIT) of $40.5 million, compared with a positive EBIT $49.8 million in second quarter 2015, and an adjusted loss before interest, taxes, debt and amortisation (EBITDA) of $15.9 million, compared with a positive EBITDA of $74.2 million the previous year.
Zim said it reached an agreement with creditors to reschedule $115 million in debt repayments during a period of 12 months beginning September 30, saying it will "support the financial stability and growth of the company".
Said CEO Rafi Danieli: "We have increased our carried TEU in Q2 over Q1 by about seven per cent, which shows the trust of our customers in the company. Our fast reaction to market changes, and cost efficiency programs, aims at allowing Zim to cope with the challenges faced by the industry."
Zim differs among the 20 biggest box carriers in that it charters more than 90 per cent of its fleet, the highest percentage of any of the top 20 carriers, says Alphaliner.
ISRAEL's Zim Integrated Shipping posted a second quarter year-on-year net loss of US$74 million drawn on revenues of $611.8 million, which fell 19.8 per cent.
This compares to profits of $12 million in the same 2015 period, a decline blamed on "historically low freight rates".
Zim's average freight rate in the first six months of the year dropped 24.8 per cent to $903 per TEU carried, compared with the first half of 2015.
Quarterly revenues declined despite increased cargo volumes rising 6.9 per cent from first quarter 2016 to 617,000 TEU.
Zim reported an adjusted loss before interest and tax (EBIT) of $40.5 million, compared with a positive EBIT $49.8 million in second quarter 2015, and an adjusted loss before interest, taxes, debt and amortisation (EBITDA) of $15.9 million, compared with a positive EBITDA of $74.2 million the previous year.
Zim said it reached an agreement with creditors to reschedule $115 million in debt repayments during a period of 12 months beginning September 30, saying it will "support the financial stability and growth of the company".
Said CEO Rafi Danieli: "We have increased our carried TEU in Q2 over Q1 by about seven per cent, which shows the trust of our customers in the company. Our fast reaction to market changes, and cost efficiency programs, aims at allowing Zim to cope with the challenges faced by the industry."
Zim differs among the 20 biggest box carriers in that it charters more than 90 per cent of its fleet, the highest percentage of any of the top 20 carriers, says Alphaliner.