Despite the impact of the Covid-19 crisis on the shipping industry, ZIM has achieved a significant improvement in its first-quarter performance, compared to the same period of 2019.
ZIM president and CEO, Eli Glickman, presented the Q1 results which showed a growth in container volumes by 4.5%, translating to 638,000TEU, and increased total revenues by 3.4%, at US$823.2 million.
“ZIM was able to mitigate the adverse impact of the crisis, and Q1 2020 results show improvements in all parameters, compared to the same period in 2019, including strong cash generation and a continued deleveraging of our balance sheet,” stated Glickman.
The 11th largest shipping company in the world, according to Alphaliner, has reported adjusted EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) of US$97.2 million and adjusted EBIT (earnings before interest and taxes) of US$27.2 million during the first three months of 2020, compared to US$69.3 million and US$22 million in 2019 Q1, respectively.
“ZIM took decisive steps to cope with the new reality by cutting costs, finding out-of-the-box operational solutions and switching smoothly to work-from-home mode,” the company’s CEO said.
While the average freight rate per TEU increased by 7.1% at US$1,091, the adjusted net loss of the Israeli shipping firm was US$6 million, cut by US$11.5 million compared to the same period of the last year.
“Even during the peak of the crisis, ZIM was able to introduce and promote advanced digital tools,” commented Glickman who saw the company’s operating cash flow marking a bigger than 40% growth and reaching US$101.6 million.
ZIM’s president seemed optimistic in his conclusion saying that following the current strategy, the Haifa-based company will further strengthen its position.