14.8 C
Hamburg
Thursday, June 4, 2020
Home News ZIM reports its Q3 results

ZIM reports its Q3 results

Total revenue stood at $840.7 million in Q3 2018, the highest in the last 4 years, reflecting an increase of 4.7% compared to $803.2 million in Q2 2018

In Q3 2018, ZIM carried 730 thousand TEUs (reflecting a decrease of 5.5% compared to Q2 2018)

Adjusted net profit was $1.3 million in Q3 2018, compared to Adjusted net loss of $20.6 million in Q2 2018

Adjusted EBITDA of $48.8 million in Q3 2018, compared to Adjusted EBITDA of $23.1 million in Q2 2018

Operating cash flow of $54.1 million in Q3 2018, compared to $52.6 million in Q2 2018

 

The container shipping industry is dynamic and volatile and has been marked in recent years by instability, as a result of continued deterioration of market environment. Furthermore, the shipping liner industry went through major developments and structural changes which include reshaping of the alliances and M&A activities that took place over the last quarters. The instability and volatility in the market, including significant uncertainties in the global trade, continue to affect the market environment.

Since the fourth quarter of 2017, freight rates have decreased while bunker prices as well as charter rates increased, negatively affecting the industry as a whole. In the third quarter of 2018, freight rates started to recover in most trades, while bunker prices continued to increase.

Confronted with tough business environment, ZIM continues to record improvements and to introduce new services to its customers.

In September 2018, the Company launched its strategic operational cooperation with the “2M” Alliance. According to this cooperation, the Company and the parties of the 2M Alliance (Maersk and MSC) operate together certain lines between Asia and the US East-Coast, enabling ZIM to provide its customers with improved port coverage and transit time, while generating cost efficiencies.

Eli Glickman, ZIM President & CEO, said: “Q3 2018 was characterized by freight rates increase and the continued rise in fuel costs. ZIM’s Q3 results reaffirm ZIM’s approach of coping with a challenging and volatile business environment. Our strategic operational cooperation with the 2M Alliance in the Asia-US trade is beginning to contribute to our overall results, and we expect it to bear more fruits in the coming quarters.  We have a clear path forward, and we remain committed to excellent customer service, as well as providing innovative quality solutions for our customers.”

Financial and Operating Highlights for the Three Months Ended September 30, 2018

  • Total revenues were $840.7 million compared to $816.7 million in Q3 2017, a 2.9% increase
  • ZIM carried 730 thousand TEUs compared to 688 thousand TEUs in Q3 2017, a 6.1% increase
  • The average freight rate per TEU was $1,006 compared to $1,058 in Q3 2017, a 4.9% decrease
  • Adjusted EBITDA was $48.8 million compared to $89.2 million in Q3 2017
  • EBITDA was $44.3 million compared to $83.6 million in Q3 2017
  • Adjusted EBIT was $20.6 million compared to $61.8 million in Q3 2017
  • EBIT was $16.1 million compared to $53.8 million in Q3 2017
  • Adjusted net profit was $1.3 million compared to $36.2 million in Q3 2017
  • Net loss was $6.6 million compared to net profit of $25.2 million in Q3 2017
  • Operating cash flow was $54.1 million compared to $46.4 million in Q3 2017

Financial and Operating Highlights for the Nine Months Ended September 30, 2018

  • Total revenues were $2,395.3 million compared to $2,217.4 million in 1-9 2017, a 8.0% increase
  • ZIM carried 2,200 thousand TEUs compared to 1,945 thousand TEUs in 1-9 2017, a 13.1% increase
  • The average freight rate per TEU was $950 compared to $1,008 in 1-9 2017, a 5.8% decrease
  • Adjusted EBITDA was $97.5 million compared to $216.7 million in 1-9 2017
  • EBITDA was $78.6 million compared to $197.7 million in 1-9 2017
  • Adjusted EBIT was $14.1 million compared to $136.2 million in 1-9 2017
  • EBIT was negative $4.8 million compared to EBIT of $114.8 million in 1-9 2017
  • Adjusted net loss was $45.4 million compared to adjusted net profit of $51.3 million in 1-9 2017
  • Net loss was $73.9 million compared to net profit of $21.1 million in 1-9 2017
  • Operating cash flow was $164.6 million compared to $169.2 million in 1-9 2017

 

- Advertisment - LR Sustainability Decarbonisation Digital Adverts

Latest Posts

ZMPC cranes deal boosts the port of Piraeus

COSCO Shipping Ports and Shanghai Zhenhua Heavy Industries (ZPMC), a heavy-duty equipment manufacturer, have signed a contract for three ship to shore (STS) cranes...

Index shows bunker prices steadily increasing

With crude oil prices steadily climbing in price after the April shocks the bunker fuel prices have, as expected, followed suit and have edged...

MSC Rosa M damages Mumbai crane

The 14,000TEU MSC Rosa M has hit and seriously damaged a crane at the DP World terminal in Nhava Sheva, NSIGT in Mumbai, while...

New distribution centre opens near APM Terminals Mobile

Automotive lift producer BendPak has opened a new distribution centre near APM Terminals Mobile to serve US Gulf, Midwest, East coast and Canadian markets...

Leading shipping lines reveal rates changes in various regions

Major shipping lines are moderating their rating strategy amid the Covid-19 pandemic, which has caused serious reductions in market demand. Given that the key...