ZIM reports results for Q3 2015
ZIM Integrated Shipping Services Ltd., one of the world’s leading container shipping carriers focused on attractive trades in growing markets, has announced financial results for the three and nine month periods ended September 30, 2015.
Operational Highlights:
The Company carried 581,400 TEUs in the third quarter of 2015, reflecting a 1% increase compared to the same period last year. Carried quantities were negatively affected by lower global demand during the quarter, offset by the positive contribution of the new Z7S service that the Company launched earlier in the year.
The quarter was characterized by a challenging market environment with freight rates reaching historic lows in several key trades. The average freight rate per TEU carried was $1,120 in the third quarter of 2015, reflecting a 13% decrease compared to the same period last year. As a result of significantly lower freight rates, total revenues in the third quarter decreased 12% to $749 million, compared to $854 million in the same period last year.
The launch of the new Z7S line, which is one of the fastest and most reliable lines connecting South China, South East Asia, the Indian sub-continent and the U.S. East Coast via the Suez Canal, is well aligned with the Company’s strategy to strengthen its presence in U.S East Coast as well as other growing trades around the world. The Z7S service has enabled the Company achieve a leading and dominant position in the important Asia-U.S. East Coast trade.
During the third quarter the Company completed the implementation of a new state-of-the-art vessel loading program. The new cutting-edge software is aimed at enabling ZIM to maximize vessel utilization and cargo load, as well as increase port productivity and data interface between planners, terminals, and vessels while significantly decreasing planning time.
Financial Highlights for the Three Months Ended September 30, 2015:
Adjusted EBIT was $12 million, compared to $14 million for the third quarter of 2014
Adjusted EBITDA was $38 million, compared to $41 million for the third quarter of 2014
EBITDA was $61 million, compared to negative $97 million for the third quarter of 2014
Net income was $11 million, compared to net loss of $63 million for the third quarter of 2014
Operating cash flow was $17 million, compared to $37 million for the third quarter of 2014
Financial Highlights for the Nine Months Ended September 30, 2015:
Adjusted EBIT was $123 million, compared to negative $17 million for the same period of 2014
Adjusted EBITDA was $197 million, compared to $86 million for the same period of 2014
EBITDA was $197 million, compared to negative $39 million for the same period of 2014
Net income was $35 million, compared to net loss $192 million for the same period of 2014
Operating cash flow was $156 million, compared to $79 million for the same period of 2014
