ZIM Introduces a Sharp Improvement in its Results in Q2 with a Positive Operating Cash Flow of $24 Million and a Positive EBITDA of $46 Million

Internal efficiency measures and an improvement in market conditions brought about the improvement, as other liner companies in the industry also introduce growth and improved results. 
 
In accordance, ZIM recorded in Q2 a 6% increase in carried TEUs and in freight rates, which contributed to an overall growth of 22% in revenues to $1.05 billion.
 
Q2 Highlights
 
ZIM recorded significant improvement in its results compared to the first quarterof 2012(QOQ) and compared to the same period last year (YOY):
 
In the second quarter, ZIM recorded a positive operating cash flow of $24 million compared to a negative cash flow of $82 million in the previous quarter, and a negative cash flow of $6 million in the second quarter last year. 
 
ZIM recorded in the second quarter of 2012 a positive EBITDA of $46 million.
 
An impressive improvement was also recorded in the net loss attributable to the shareholders: in Q2 a net loss of $47 million was recorded (most of it, $44 million, due to financing expenses) which is an improvement of $116 million quarter on quarter. 
 
Internal efficiency measures and an improvement in market conditions brought about the improvement, as other liner companies in the industry also introduced growth and improved results. 
 
In accordance, ZIM recorded in Q2 a 6% increase in carried TEUs and in freight rates, which contributed to an overall growth of 22% in revenues to $1.05 billion,
 
Detailed Results
 
In the second quarter of 2012 ZIM recorded a sharp improvement in its financial results due to the strong recovery in market conditions, internal efficiency steps, and a positive seasonal effect. The company recorded a positive EBITDA of $46 million compared to a negative EBITDA of $69 million in the previous quarter, a $115 million improvement.
 
In addition, the company recorded positive cash flow from operations of $24 million this quarter, compared to a negative cash flow of $82 million in the previous quarter and a negative cash flow of $6 million in the same quarter last year.
 
Operating results were at breakeven (an operational profit of $1 million) compared to an operating loss of $117 million in the previous quarter and an operating loss of $79 million in the second quarter of 2011.
 
Carried TEUs amounted to 604,000 – an increase in the quarter of 6% compared to the previous quarter this year.
 
These increases, as well as an increase in other shipping-related operations and in subsidiaries‘ activities, contributed to the $1.05 billion revenues, an increase of 22% (compared to the previous quarter) . Compared to last year’s same quarter, revenues increased by 5%, from $1 billion to $1.05 billion, and EBITDA improved by $71 million.
 
It should be noted that oil prices dropped during the quarter; however, the positive impact of lower oil prices has still not materially impacted the second quarter results.
 
At the bottom line ZIM recorded a net loss to shareholders of $47 million, mainly due to financing expenses of $44 million. This result is an improvement of $116 million compared to the first quarter of the year.
 
According to a debt restructuring plan from 2009, Israel Corp injected to ZIM in the second quarter $50 million, 50% as shareholders’ capital and 50% as a shareholders’  loan. Together with the $100 million that were injected in the first quarter of the year by Israel Corp and by the Ofer Group, owners‘ injections in the first half of 2012 amounted to $150 million. This concludes the total of owners‘ injections outlined in the 2009 debt restructuring plan as approved by Israel Corp’s general shareholders’ assembly in 2009.
 
In the second quarter ZIM improved its liquidity level, an improvement which stemmed from the positive operating cash flows, from the owners‘ injections and from refinancing transactions that were completed during the quarter. Accordingly, by the end of the second quarter, total liquid assets (cash and similar) amounted to $159 million, compared to $121 million at the end of the last quarter – an almost $40 million improvement. 
 
The company continues to actively implement efficiency and optimization measures and to implement its strategic plan in order to improve its results.

Quelle: eyefortransport

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