Zim Restructures Debt
Israeli container shipping company Zim has reached an agreement with its creditors to restructure payments for $115 million in debt.
The announcement comes as the group posted a $74 million loss for the second quarter of 2016.
The first half of 2016 was characterized by historically low freight rates, said Zim in a statement. The average freight rate per TEU carried was $903 in the first half of 2016, reflecting a 24.8 percent decrease compared to the respective period last year. As a result of significantly lower freight rates, total revenues in the quarter decreased by 19.8 percent to $611.8 million, compared with $762.9 million in the same period last year.
Zim carried 617,000 TEUs in the second quarter of 2016, a 6.9 percent increase over the first quarter and above market average growth for period.
Zim is a top-20 global container carriers operating 80 vessels and calling at 180 locations.
Seaintel Global Liner Performance Report named Zim best performing carrier in 2016 for the second quarter with a score of 87.8 percent schedule reliability among the Top-19 companies reviewed.
Rafi Danieli, Zim’s President and CEO, remains positive: “The very challenging market situation impacts the industry as a whole. Our strategic business plan, focusing on select markets where the company has a competitive advantage, is keeping Zim in the top of the industry in terms of EBIT margins. The company keeps investing in customer service excellence and on-time delivery to our customers, as evident in a recent first place ranking awarded to Zim in a schedule reliability performance report,” he said.
“Our fast reaction to market changes, and cost efficiency programs, aims at allowing Zim to cope with the challenges faced by the industry.”
Financial Highlights for the Three Months Ended June 30, 2016
• Adjusted EBIT was negative $40.5 million, compared to positive $49.8 million for the second quarter of 2015
• Adjusted EBITDA was negative $15.9 million, compared to positive $74.2 million for the second quarter of 2015
• Operating cash flow was positive $17.6 million, compared to positive $86.0 million for the second quarter of 2015