For the three month period ended June 30, [ds_preview]2016, ZIM Integrated Shipping Services announced a loss of 74 mill. $ and positive operating cash flow of 17.6 mill. $.
Adjusted EBIT was negative 40.5 mill. $ compared to positive 49.8 mill. $ for the second quarter of 2015. Adjusted EBITDA was negative 15.9 mill. $, compared to positive 74.2 mill. $ for the second quarter of 2015. Operating cash flow was positive 17.6 mill. $, compared to positive 86.0 mill. $ for the second quarter of 2015.
Rafi Danieli, ZIM’s President and CEO, said: »The very challenging market situation impacts the industry as a whole. Our strategic business plan, focusing on select markets where the company has a competitive advantage, is keeping ZIM in the top of the industry in terms of EBIT margins. The company keeps investing in customer service excellence and on-time delivery to our customers, as evident in a recent first place ranking awarded to ZIM in a schedule reliability performance report. We have increased our carried TEU in Q2 over Q1 by about 7%, which shows the trust of our customers in the company. Our fast reaction to market changes, and cost efficiency programs, aims at allowing ZIM to cope with the challenges faced by the industry.«
ZIM had reached an agreement with its creditors for rescheduling of payments in a total amount of approximately 115 mill. $, during a period of up to twelve months starting on September 30, 2016. With this agreement in place the company maintains its financial stability and will continue to develop its growth plan. Reaching this agreement is another proof of the confidence and trust that the creditors have in the company.
The shipping company carried 617,000 TEU’s in Q2 2016, a 6.9 % increase compared to Q1 2016, which is above market average growth for same period, ZIM stated.
According to ZIM the first half of 2016 was characterized by historically low freight rates. The average freight rate per TEU carried was 903 $ in the first half of 2016, reflecting a 24.8 % decrease compared to the respective period last year. As a result of significantly lower freight rates, total revenues in the quarter decreased by 19.8 % to 611.8 mill. $, compared with 762.9 mill. $ in the same period last year.
