Improvement on most parameters compared to Q2 2016
The company continues to outperform the industry average in Adjusted EBIT margins for the 7th consecutive quarter
Despite continued distressed market conditions ZIM published on Thursday (Dec 1) improved results for Q3 2016, posting a loss of USD 37.6M, compared to a loss of USD 74.2M in Q2 2016.
The company’s EBIT margins are in the industry’s top 5.
Three Months Highlights:
- ZIM recorded an improvement in most of the parameters compared to Q2 2016 results.
- ZIM continues to outperform the industry average in Adjusted EBIT margins for Q3 2016, positioning ZIM among the industry’s top 5.
During Q3 2016, ZIM carried 622,000 TEUs, compared to 581,000 TEUs in the same period of 2015, a 7.1% increase.
The average revenue per TEU decreased by 20.8%, to about USD 887, in Q3 2016, compared to USD 1,120 in the same period of 2015. The company’s income for the three months ended 30 September, 2016 was USD 643.9M compared to USD 749.0M for same period of 2015, a 14% decrease, driven by a sharp reduction in freight rates.
While market conditions remain challenging, the company continued to improve its services. In line with its long-term strategy, the company invests in upgrading customer services, while maintaining efficiency and cost reductions.
ZIM’s strategy as an independent carrier, allows the company to operate an efficient and reliable network on select trades where the company has competitive advantage. It also enables the company the flexibility to react fast to market changes.
Rafi Danieli, ZIM’s President and CEO, said: “ZIM continues to achieve improved Adjusted EBIT margins, well above industry average. Our strategy, operating as a global niche carrier focusing on select markets, along with intensive investment in customer service, will improve ZIM’s position to endure the crisis and plan ahead for future growth.”
Financial Highlights for the Three Months Ended September 30, 2016:
- Adjusted EBIT was negative $14.4M, compared to negative $40.5M for Q2 2016 and positive $12.3M for Q3 2015
- Adjusted EBITDA was positive $10.5M, compared to negative $15.9M for the Q2 2016 and positive $37.8M for Q3 2015
- Operating cash flow was positive $12.7M, compared to positive $17.6M for the Q2 2016 and positive $16.9M for Q3 2015