ZIM Integrated Shipping Ltd. generated a net profit of USD 4.6 million and adjusted EBITDA of USD 43.9 million in Q4 2016, a significant improvement over Q3 2016.
ZIM Integrated Shipping Ltd. carried 2.4 million TEUs in 2016, a 5.2 per cent increase compared to 2015. The container shipping line continued to record improved results and outperform the industry, through increased efficiency and cost reductions achieved against a background of volatile and rapidly changing market conditions.
As a result of increased efficiencies and cost reductions, along with other factors, the unit cost decreased in 2016 by 14 per cent compared to 2015. The average freight rate per TEU carried was USD 902 in 2016 reflecting a decrease of 19.9 per cent compared with 2015. As a result of the significantly lower freight rates, total revenues in in 2106 decreased by 15.1 per cent to USD 2.54 billion, compared to USD 2.99 billion in 2105.
Rafi Danieli, ZIM’s President & CEO: “In spite of the very challenging market conditions in 2016, our results continued to improve, with a net profit in Q4 2016 and an increase in carried TEUs. The results were achieved through a successful efficiency plan and costs reductions implemented at all levels in ZIM. We continue to improve ZIM’s network and to react rapidly to changing market conditions.”
Starting April 2017, in response to the changes in the alliances’ setup, ZIM will introduce an upgraded, efficient new network, with new services in the Asia-America, Asia-Med and Med-America trades, offering high quality services to customers. “We operate as an independent, global niche carrier, with emphasis on high level customer service and focus on selected markets where ZIM has a competitive advantage,” says Rafi Danieli.
Financial Highlights for the Year Ended December 31, 2016:
-) EBITDA was USD 49.9 million, compared to USD 204.4 million for the same period of 2015.
-) Net loss was USD 163.5 million, compared to net profit USD 6.5 million for the same period of 2015.
-) Adjusted EBIT was negative USD 54.3 million, compared to USD 117.7 million for the same period of 2015.
-) Adjusted EBITDA was USD 46.7 million, compared to USD 216.7 million for the same period of 2015.