mai hien

Zim's record peak season volume lifts result in major turnaround in profit

Monday, 04 December 2017 02:24

ISRAEL's Zim Integrated Shipping Services recorded an adjusted profit of US$36.2 million in the third quarter, taking the carrier to a $51.3 million nine-month profit, a significant turnaround from the $151 million loss in the same period of last year.

Total revenue in the third quarter soared by almost 30 per cent to $817 million as the carrier transported 688,000 TEU from July through September, a record quarterly volume that was up 10.6 per cent year over year. Adjusted EBITDA was $89.2 million in Q3 compared to $10.5 million in the same quarter last year, according to IHS Media.

ZIM president and CEO, Eli Glickman, said ZIM's third quarter results were a cause for optimism, and he hoped the momentum could be maintained through the next few quarters.

"However, we still face many challenges, including the uncertainty of market conditions, freight rates and bunker prices," he said. "I believe we are on the right track as we continue to outperform the industry."

In its third quarter earnings report, ZIM said the industry was beginning to stabilise after the alliances were reshaped in April and the M&A activities that took place over the last few years and it was benefiting from a positive trend being seen in container shipping over the last four quarters.

The carrier's significant growth in revenue during the three quarters mirrored that of the other container lines, with more boxes being transported at higher rates. The average freight rate per TEU was $1,008, up 12.2 per cent compared to $898 in the comparable period of 2016.

ZIM carried 1.9 million TEU in the first nine months, an increase of 7.1 per cent year over year. The carrier's net profit for the January-September period was $21.1 million compared to a net loss of $168 million in 2016.