Zim Integrated Shipping Services was hit with an even bigger net loss of US$163 million in the first quarter of 2012 compared to net losses of $111 million for the same period a year ago and $151 million in the last quarter of 2011.
The Israeli shipping line blamed its worse performance on “the pincer movement of declining freight rates combined with the increase [in] oil prices.”
Zim’s results “reflect the overall situation of the industry: the company’s financial results are in line with the average operating margins in the industry,” the world’s 16th largest carrier said in a media statement.
It said average freight per TEU (20-foot equivalent unit) decreased from $1,283 in the last quarter of 2011 to $1,236 per TEU in the first quarter of 2012, a further 4 percent decrease on top of a 5 percent decrease recorded in 2011.
At the same time, oil prices increased in the first quarter to $722 per ton on average compared to $639 per ton on average in 2011 for a nearly 13 percent rise.
The liner ended the first quarter of 2012 with negative EBITDA (earnings before interest, tax, depreciation, and amortization) of $69 million, a 13 percent improvement over its EBITDA in the last quarter of 2011.
Zim also recorded growth in TEUs carried, increasing by 3 percent to 570,000 containers in the first quarter of 2012 year-over-year.
The box ship said that freight rates have started to recover toward the end of the first quarter of 2012 even as oil prices have exhibited a sharp decline in the last few weeks.
“This recovery had not yet been reflected in Q1 results, but is expected to have a positive effect on the company’s results for the remainder of the year,” the carrier said.
Photo: Zim
