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“2010 was characterized by the recovery of the global shipping industry, which suffered the most severe crisis in history in 2009. The industry has moved towards stability and growth. It should be noted, however, that there is still a large supply and volatility in the shipping market, and oil prices adversely affect companies operating in the industry. In 2010 a positive change and improvement was noted in all parameters in Zim. In addition to the improvements in net profit, EBITDA, cash reserves, surplus cash flow, quantities carried and freight rates, Zim completed the sale of the terminal in Nigeria ahead of schedule and at a higher price than planned, and took delivery of four additional Mega vessels for its fleet. Zim's achievements were reflected in S&P Maalot’s decision to upgrade Zim’s bonds rating to ilBBB-/Stable outlook in February 2011. During 2010, Zim made significant organizational changes and began preparing a new strategic plan, accompanied by an international consulting company for the purpose of optimizing business and operational processes, in order to achieve continued growth and expansion. The business plan focuses on the optimization of shipping activities and lines’ deployment, reshaping global sales and customer service, and dramatically reducing the expense structure while streamlining operational processes.” In 2010 Zim recorded a net income of $54 million compared to a loss of $432 million in 2009. Zim's EBITDA in 2010 amounted to $403 million compared with $518 million negative in 2009, an improvement of $921 million. Zim concluded the fourth quarter with a net income of $96 million, compared to a profit of $81 million in the same quarter last year. Zim’s revenues in 2010 totaled $3,717 million compared to a total of $2,449 million last year. The increase in revenues stems primarily from an increase in quantities carried, increased freight rates and increase in income from subsidiaries (mainly from a container production company). In 2010 the average freight rate per container increased by about 21% from $1,142 per container to $1,384 per container. Zim's revenues in the fourth quarter of 2010 amounted to $986 million compared to $688 million in the same quarter last year, an increase of 43% due mainly to an increase in quantities carried, increased freight rates, increase in income from subsidiaries, deducting a decrease in income from uncompleted voyages. In this quarter the average freight rate per container increased by 31% compared to 2009 from $1,136 per container to $1,485 per container. In addition, the quantity carried increased by 14% from 498,000 containers to 566,000 containers. In 2010 there was a rise of 51% in fuel expenses. Compared to the 4th quarter of last year, there was a rise of 26% in fuel expenses. ZIM Integrated Shipping Services press release |
