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Revenues for the first quarter were $912 million compared to $745 million in the same quarter last year - an increase of 22%. The increase stems primarily from an increase in volumes carried and an increase in average freight rates. During the first quarter, average freight rate per 20-foot container (TEU) was $1360 compared with $1200 in the same quarter last year. Quantity carried amounted to 555,000 TEU’s compared to 509,000 TEU’s in the same quarter last year, an increase of 9%. First quarter EBITDA was $22 million positive compared with negative EBITDA of $33 million in the corresponding period last year, an improvement of $55 million. First quarter operating loss amounted to $24 million versus an operating loss of $83 million in the same quarter last year - an improvement of $59 million, mainly due to increase in revenue and quantities of cargo carried. During this quarter, accounting expenses of $70 million were recorded due to revaluation of certain derivatives related to the financial restructuring. This is the main cause for the loss of approximately $111 million in the first quarter. Excluding these accounting expenses, the net loss in this quarter was $41 million. In any case, the company has improved its results in all parameters - turnover, quantities carried, EBITDA, cash flow and net profit/loss. Zim's financing expenses increased by $90 million in relation to the same quarter last year. The increase stems primarily from the accounting expenses of $70 million due to revaluation of certain derivatives related to the financial restructuring, compared with $36 million income recorded in the same quarter last year in relation to the same items. These are strictly accounting items which do not reflect the current operations of the company. Zim's financial results for first quarter are very close to the average operating income in the liner shipping industry, based on the results published by other liner companies. This reflects an improvement relative to previous quarters, where the company’s results were significantly lower than the average in the industry. Cash flow from operating activity amounted to $24 million positive in this quarter, compared with negative cash flow of $18 million in the same quarter last year, an improvement of $42 million, and short term financial assets at the end of the quarter stood at nearly half a billion dollars. During the quarter, S&P increased Zim's bond rating from ilBB + to ilBBB-. Zim continues to implement organizational and strategic changes in accordance with the plan formulated in 2010 and is currently in the midst of a move which, the company’s management’s believes, will bring about a continued improvement in the company's results. ZIM Integrated Shipping Services press release |
