24-03-2018

Zim back in black with US$50 million profit in 2017 as revenues rise 17pc

ISRAELI flag carrier Zim reversed itself from a 2016 US$150 million loss to declare a net profit of $50 million in 2017, drawn from revenues of $2.97 billion, up 17 per cent.

Zim also posted an adjusted pre-tax profit (EBITDA) of $53 million in the fourth quarter compared to a $44 million profit in the fourth quarter of 2016, with an adjusted EBITDA margin of seven per cent.

Fourth quarter payloads increased 12 per cent to 685,000 TEU compared to 613,000 TEU in the same period of 2016, said the company statement accompanying the results.

"I'm proud to say that Zim's results position us at the very top of the shipping industry," president and CEO Eli Glickman.

"Zim is undergoing a profound process of change and improvement in all aspects of its activity. We lead the introduction of innovative digital solutions that will enable us to cater for changing market needs swiftly and efficiently.

ZIM continues with its relentless efforts to improve customer service and to cost reductions. At the same time, the long-term overcapacity in the market and rising bunker rates continue to burden the industry as a whole," Mr Glickman.

During 2016-2017, the container shipping industry went through a structural change as a result of the extensive activity of mergers and acquisitions that led to reorganisation of the global alliances, said the company statement.

"Since Q3 2016 we have been witnessing a positive trend in the industry with improved freight rates. However, the overcapacity still exists in the market and market conditions, on the whole, remained volatile, as freight rates partially decreased towards the end of 2017," it said.

In the face of this dynamic and challenging business environment, Zim continues to outperform the industry and achieve improved results with the comprehensive transformation of the company in recent periods.

Source: Schednet

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