Zim Reported a Profitable Second Quarter

Higher prices drove higher operating margins

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Zim

Zim reported the following second quarter results —

Financial and Operating Highlights for the Three Months, Ending June 30, 2019:

Total revenues were $834.3 million compared to $803.2 million in Q2 2018, a 3.9% increase. ZIM carried 731 thousand TEUs, compared to 772 thousand TEUs in Q2 2018. This represents a 5.3% decrease.

The average freight rate per TEU was $993, compared to $907 in Q2 2018, a 9.5% increase.

Adjusted EBITDA was $94.4 million compared to $24.3 million in Q2 2018.

EBITDA was $102.0 million compared to $14.9 million in Q2 2018.

Adjusted EBIT was $38.7 million, compared to its negative Adjusted EBIT of $3.1 million in Q2  of 2018.

EBIT was $44.2 million compared to negative EBIT of $12.5 million in Q2 2018.

Adjusted net profit was $3.0 million compared to Adjusted net loss of $20.6 million in Q2 2018

Net profit was $5.1 million compared to Net loss of $33.2 million in Q2 2018.

Operating cash flow was $64.1 million compared to $52.6 million in Q2 2018.

Financial and Operating Highlights for the Six Months Ending June 30, 2019:

Total revenues were $1,630.5 million, compared to $1,554.6 million in 1-6 2018. This represents a 4.9% increase.

ZIM carried 1,398 thousand TEUs compared to 1,470 thousand TEUs in 1-6 2018, a 4.9% decrease.

The average freight rate per TEU was $1,005 compared to $922 in 1-6 2018, a 9.0% increase.

Adjusted EBITDA was $163.7 million compared to $51.9 million in 1-6 2018.

EBITDA was $170.0 million compared to $37.5 million in 1-6 2018.

Adjusted EBIT was $60.7 million compared to negative Adjusted EBIT $3.3 million in 1-6 2018.

EBIT was $62.8 million compared to negative EBIT of $17.7 million in 1-6 2018.

Adjusted net loss was $14.5 million compared to $46.7 million in 1-6 2018.

Net loss was $19.2 million compared to $67.3 million in 1-6 2018.

Operating cash flow was $123.8 million compared to $110.5 million in 1-6 2018.

Eli Glickman, ZIM President & CEO, said: “ZIM’s results for the first six months of 2019 are encouraging. We can now clearly see the benefits of our long-term strategy, specifically the operational cooperation with the 2M Alliance, recently expanded to a fourth trade. In addition to the positive bottom line delivered this quarter, ZIM recorded a meaningful improvement in all parameters and continue to be a top performer in the shipping industry, in terms of adjusted EBIT margin. Our 2023 strategy will double down on our efforts to strengthen our competitive position by growing with our partners, upgrading our customer service, while driving relentless cost management and striving for commercial and business excellence. This is all the more relevant in light of the uncertainties lying ahead for the industry, mainly the USA related trade restrictions and the upcoming implementation of the IMO 2020 regulation.” 

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