ZIM Integrated Shipping Services Reports Results for Three Months Ended June 30, 2016
ZIM published today Q2 results, with a loss of USD 74M and positive Operating cash flow of USD 17.6M
Despite unprecedented low freight rates and severe market conditions, ZIM maintained its top position in terms of EBIT margins, well above industry average
ZIM had reached an agreement of rescheduling of payments with its creditors that will support the financial stability and growth of the company. This agreement shows the confidence and trust of the creditors in the company
Three Months Highlights
ZIM well above industry average in EBIT margins for the three months ended June 30 , 2016
ZIM continues to record good performance compared to the industry. First half, June 30 2016 results are in the top of the shipping industry
ZIM has recorded an increase of 6.9% in carried TEU’s compared to Q1 2016
Haifa, Israel; October 2, 2016 – ZIM Integrated Shipping Services Ltd., one of the world’s leading container shipping carriers , today announced financial results for the three month period ended June 30, 2016.
ZIM had reached an agreement with its creditors for rescheduling of payments in a total amount of approximately US$ 115 million, during a period of up to 12 month starting on September 30, 2016. With this agreement in place the company maintains its financial stability and will continue to develop its growth plan. Reaching this agreement is another proof of the confidence and trust that the creditors have in the company.
ZIM carried 617,000 TEU’s in Q2 2016, a 6.9% increase compared to Q1 2016, which is above market average growth for same period.
ZIM’s strategy and new organizational structure enables the company to react fast to market changes and to operate an efficient and reliable network of lines and services, focusing on select trades where the company have competitive advantage.
The company continues to invest in customer service excellence and on-time delivery to customers, developing and introducing new cutting-edge, digital customer service systems to further improve our customer interface.
Rafi Danieli, ZIM’s President and CEO, said: “The very challenging market situation impacts the industry as a whole. Our strategic business plan, focusing on select markets where the company has a competitive advantage, is keeping ZIM in the top of the industry in terms of EBIT margins. The company keeps investing in customer service excellence and on-time delivery to our customers, as evident in a recent first place ranking awarded to ZIM in a schedule reliability performance report. We have increased our carried TEU in Q2 over Q1 by about 7%, 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”.
Financial and Operating Highlights
The first half of 2016 was characterized by historically low freight rates. The average freight rate per TEU carried was $903 in the first half of 2016, reflecting a 24.8% decrease compared to the respective period last year. As a result of significantly lower freight rates, total revenues in the quarter decreased by 19.8% to $611.8 million, compared with $762.9 million in the same period last year.
Financial Highlights for the Three Months Ended June 30, 2016
Adjusted EBIT was negative $40.5 million, compared to positive $49.8 million for the second quarter of 2015
Adjusted EBITDA was negative $15.9 million, compared to positive $74.2 million for the second quarter of 2015
Operating cash flow was positive $17.6 million, compared to positive $86.0 million for the second quarter of 2015