EMEA News
ZIM Reports Strong FY 2015, Says Performance Puts it as One of the Sector's "Top Performers"
Following on from its 2014 debt restructuring, Israel-based ZIM Integrated Shipping Services (ZIM) has announced strong financial results for FY 2015, with the upswing said to have been achieved against a backdrop of "challenging market conditions, highlighted by vessel overcapacity and extremely low freight rates."
The company reported a huge increase in earnings, with adjusted earnings before interest, taxes, depreciation and appreciated (EBITDA) rising 87 percent to $217 million for the year.
Net income was $7 million, compared to net loss of $198 million in 2014; operating cash flow came in at $173 million, an increase over the $121 million reported in 2014.
ZIM says the results put it among the "top performers in the global container liner industry."
"The comprehensive structural, operational and organizational changes we have implemented in recent years enabled us to achieve operating margins ranked among the top in the industry, despite continued overcapacity and freight rate deterioration," said Rafi Danieli, President and CEO, ZIM.
The company noted that global capacity in the container market increased in 2015 by a "historic" amount of 1.7 million TEUs, or about 8.5 percent, resulting in a sharp drop in freight rates, while the Shanghai Containerized Freight Index plunged to "all-time lows."
The company also noted that the percentage of the global fleet that was idle reached a peak of about eight percent of global capacity, and "market challenges remain" as the order book for new capacity at the end of 2015 stands at four million TEUs, out of which 1.3 million TEUs are expected to be delivered during 2016.
"In the current market environment, our asset-light business model enables ZIM to benefit from highly flexible and cost-efficient fleet management. We continue to implement our business plan, focusing on select markets where the Company has a competitive advantage," said Danieli.
In May of 2015 Ship & Bunker reported that lower bunker prices and improvements in operational efficiency had allowed ZIM to also report a strong first quarter.
