ZIM Sees "Sharp Improvement" in 2014 with $116M EBITDA

EBITDA swung to positive, but the company still made a net loss in 2014

Israel's ZIM Integrated Shipping Services Ltd. (ZIM) Tuesday announced a "sharp improvement" in 2014 results compared to the prior year.

The group's EBITDA for last year swung to $116 million from negative $2 million in 2013.

Nonetheless, ZIM posted a net loss of $127 million, which it said was still a considerable improvement compared to the net loss of $343 million it suffered in 2013.

"The Company recorded a sharp improvement in Q4, and continues to record a steady and ongoing improvement of its operating results," said ZIM President and CEO, Rafi Danieli.

"Through the implementation of our business plan, enhancing efficiency and improving our service and sales, we aim to continue in order to return to profitability and growth in 2015."

Overall revenues were down year-on-year to $3.4 billion from $3.7 billion, but operating margins were improved significantly.

"In spite of the reduction in revenues, ZIM managed to improve its operating profit thanks to its continued efficiency drive, improved sales and customer service, reduced fuel costs in the latter part of 2014, the termination of non-profitable lines, and freight rate increases in some other lines," said the company.

"The reduction in fuel prices, which occurred towards the end of the year, also contributed to the improvement in Q4, despite these prices remaining unstable," it added.

ZIM also said it had completed a $3.4 billion debt restricting during the year, including a debt-for-equity swap amounting to $1.4 billion.

Last year, the Israeli state was said to have lost control of the company as part of the major restructuring.