ZIM Posts Fourth Consecutive Profitable Quarter, Despite Tough Market

Volumes were up slightly for Zim, but low freight rates negatively impacted its Q3 2015 total revenues.

With a net income of $11 million compared to a net loss of $63 million for the same period last year, ZIM Integrated Shipping Services Ltd. (Zim) says its third quarter 2015 result makes this the fourth consecutive quarter of positive operational income for the Haifa, Israel-based company.

However, ZIM goes on to note that historically low freight rates resulted in total revenues in the third quarter decreasing 12 percent to $749 million, compared to $854 million for the same period last year.

Net income for the nine months ended September 30, 2015 was $35 million, compared to negative $39 million for the same time last year, and a huge improvement on the $428 million it lost in FY2012, and the $530 million loss posted in FY2013 before its $3 billion debt restructuring last year.

ZIM also says it carried 581,400 twenty-foot equivalent units (TEUs) in Q3 2015, a 1 percent increase compared to Q3 2014.

Operating cash flow was $17 million, compared to $37 million for the third quarter of 2014; additionally, the company achieved an adjusted EBITDA of $38 million for the three months ended September 30, 2015 and $197 million for the nine month ended for the same time frame.

ZIM characterizes Q3 2015 as "a challenging market environment, with freight rates reaching historic lows in several key trades."

Other recent company developments were mentioned in the Q3 2015 results, including the launch of the new Z7S line, said to beone 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.

ZIM says this launch "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."

Earlier this year, ZIM reported a return to profit in the first quarter, crediting bunker prices and operational efficiencies for the "sharp improvement."