ZIM ends the Q2 with improvement compared with Q1

ZIM recorded an EBITDA of $36 Million, compared with a negative EBITDA of $6 million in Q1 - a $42 million improvement, despite difficult market conditions and further decrease in freight rates in Q2.

The Israeli company ZIM continues with support from all its creditors that have agreed to continue the process of reaching its new business plan.

This agreement is a major and significant step towards a long-term plan that will enable financial stability in the face of multiple challenges and changing market conditions, and illustrates the trust the company has from involved parties. As a part of the company's efficiency plan, ZIM has reached an agreement with the company's employees' union and the General Federation of Labor (Histadrut) over early retirement of 100 of the company's employees.

With creditor support, including the vessel and container lenders, ship owners, shipyards, unsecured lenders and bond holders, ZIM continues to negotiate an agreed long-term comprehensive solution to the capital and debt structure that will enable financial stability in the face of the multiple challenges and the volatile market condition.

The ship owners agreed to continue to receive reduced amounts until the end of the year, and, similar to the lenders, agreed to postpone the repayments of those amounts to Q3/2015.

Revenues in Q2 amounted to $976 million, which reflect an increase of 6% compared with Q1. The growth in revenues, despite a decrease in the average freight rates per TEU, which went down 3%, compared with the previous quarter (from $1,282 per container in Q1 to $1,246 per TEU in Q2), was achieved mainly due to a 5% increase in volume, to 631 thousand TEU.

ZIM`s operational loss amounted to $5 million (excluding a one-time cost of $24 million for employees early retirement) compared with an operational loss of $47 million in the previous quarter - a $42 million improvement.

Operating cash flow in Q2 amounted to $5 million, compared with a negative operating cash flow of $28 million in Q1, a $33 million improvement.

On the bottom line, ZIM recorded in Q2 a $72 million loss (excluding a one-time cost of $24 million for employees early retirement) compared with a loss of $110 million - a $38 million improvement. < Korea Shipping Gazette >