ZIM turns Profitable on higher demand and freights rates in Q2 2017

Posted by Daily Shipping Times on 01-09-2017        Tweet

…Reports Adjusted Net Profits of USD 12.5 mn in Q2 FY17

HAIFA: 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. Since Q3 2016,

ZIM has been witnessing a positive trend in the industry with improved freight rates in most trades, however, market conditions on the whole, remained challenging and volatile.

In the face of this tough business environment, ZIM continues to outperform the industry and achieve improved results. ZIM’s Q2 results reflect the constant improvement in the company’s performance, as a result of the comprehensive transformation the company has implemented in recent periods.

ZIM reported an adjusted EBITDA of $70.1 million in Q2 2017 compared to negative $15.9 million in Q2 2016, with an adjusted EBITDA margin of 9.4%.

The carried quantities increased by 6.7% to 659 thousand TEUs in Q2 2017, compared to 617 thousand TEUs in the same period of 2016.

Eli Glickman, ZIM President & CEO, said: “ZIM’s positive results in Q2 demonstrate an ongoing, steady improvement in the company’s performance. We focus on achieving profitability through efficiency, innovation, and above all reliable and agile services to our customers. Our customer-centered approach is at the root of our strategy, and as an independent global niche carrier we can provide unique and flexible services to our customers. I’m confident that this approach will enable ZIM to prevail and achieve additional improvements in the coming years. I would like to take this opportunity to thank my predecessor Rafi Danieli, for his invaluable contribution to ZIM over many years.”

Financial and Operating Highlights for the Three Months ended June 30, 2017

•             Adjusted net profit was $12.5 million, compared to adjusted net loss of $64.0 million in Q2 2016

•             Net profit was $2.3 million, compared to net loss of $74.1 million in Q2 2016

•             Total revenues were $745.7 million, compared to $611.9 million in Q2 2016, a 21.9% increase

•             Operating cash flow was $88.9 million, compared to $17.6 million in Q2 2016

•             Adjusted EBITDA was $70.1 million compared to negative $15.9 million in Q2 2016

•             EBITDA was $62.8 million compared to negative $22.1 million in Q2 2016

•             Adjusted EBIT was $43.7 million, compared to negative $40.5 million in Q2 2016

•             EBIT was $36.4 million, compared to negative $47.8 million in Q2 2016

•             ZIM carried 659 thousand TEUs, compared to 617 thousand TEUs in Q2 2016, a 6.7% increase

•             The average freight rate per TEU was $1,007, compared to $866 in Q2 2016, a 16.3 % increase

Financial and Operating Highlights for the Six Months Ended June 30, 2017

•             Adjusted net profit was $15.1 million, compared to adjusted net loss of $110.8 million in H1 2016

•             Net loss was $4.1 million, compared to net loss of $130.4 million in H1 2016

•             Total revenues were $1,400.7 million, compared to $1,241.9 million in H1 2016, a 12.8% increase

•             Operating cash flow was $122.7 million, compared to $3.0 million in H1 2016

•             Adjusted EBITDA was $127.5 million compared to negative $7.7 million in H1 2016

•             EBITDA was $114.1 million, compared to negative $20.6 million in H1 2016

•             Adjusted EBIT was $74.4 million compared to negative $56.9 million in H1 2016

•             EBIT was $61.0 million, compared negative to $70.9 million in H1 2016