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The company completed intensive negotiation sessions with representatives of all stakeholders this month, and achieved significant progress towards a restructuring that will provide long-term stability in face of the many challenges ahead and the changing market conditions In view of the restructuring, and in compliance with accounting procedures, the company qualified the accounts with a Going Concern Qualification. However there has been no deterioration in the company's performance. ZIM estimates that once the restructuring is completed and approved by all stakeholders, including the General Assembly of the Israel Corporation, there will be a significant improvement in the capital structure. The company recorded an operational profit of $17 million and presented an EBIDTA of $56 Million, in spite of difficult market conditions and a sharp decline in freight rates during the recent quarters. 01/12/2013 ZIM is hoping to complete the process of reaching an agreement on the principles of the arrangement in the near future. The finalized agreement will be signed subject to all the required approvals including a General Assembly of the Israel Corporation. In view of the restructuring, and in compliance with accounting procedures, the company qualified its accounts with a Going Concern Qualification. However there has been no deterioration in the company's performance. ZIM estimates that once the arrangement is completed and approved, there will be a significant improvement in the capital structure. ZIM’s results continued to improve during the third quarter of 2013. ZIM recorded an operational profit (EBIT) of $17 million, compared with an operational loss of $29 million in the last quarter, an improvement of about $46 million. ZIM’s EBITDA also improved, to $56 million in Q3, compared with $12 million in the last quarter, including the early interest expense. In spite of difficult market conditions, ZIM carried about 640,000 TEU’s during Q3, an increase of about 2% compared to last quarter. Revenues in Q3 amounted to $900 million, compared with $976 million last quarter. The decrease was due to a decline of about 4% in the average freight per container compared with the previous quarter (from $1,246 per 20ft container – TEU - to $1202 in the third quarter), in spite of the increase in volume of carried TEU’s. Operating cash flow in Q3 amounted to $15 million, compared with $5 million last quarter, a $10 million improvement. At the bottom line the company reduced its losses by $53 million compared with the last quarter and recorded a loss of $44 million compared with a loss of $97 million in the last quarter. In spite of the improvement, the shipping market conditions are still challenging due a downwards pressure on the freight rates and the continued uncertainty in the global economy. To tackle these challenges ZIM continues to initiate internal efficiency measures. At the same time the Company completed intensive negotiation sessions with representatives of all stakeholders this month, and achieved significant progress towards a restructuring that will provide long-term stability. In conclusion, it should be noted that in this quarter too, as in previous quarters this year, ZIM's operational results are in par with the industry average. These results demonstrate the considerable improvement in the company’s performance and the improvement of its competitive position. The company continues to take efficiency measures and to implement its strategic plan in order to further improve its results in the future. The combination of operational improvements on the one hand, and the proper examination and evaluation of possible changes in market conditions on the other, should provide for another leap in the company's performances in the coming years compared with the industry. ZIM Integrated Shipping Services press release |
