ZIM Integrated Shipping Services Ltd. announced financial results for the three and nine month periods ended September 30, 2015.
Despite tumbling container rates, Zim recorded a net profit of US$11m for Q3, taking cumulative profit to US$35m for the first nine months of 2015. The Company carried 581,400 TEUs in the third quarter of 2015, reflecting a 1% increase compared to the same period last year. Carried quantities were negatively affected by lower global demand during the quarter, offset by the positive contribution of the new Z7S service that the Company launched earlier in the year.
The quarter was characterized by a challenging market environment with freight rates reaching historic lows in several key trades. The average freight rate per TEU carried was US$1,120 in the third quarter of 2015, reflecting a 13% decrease compared to the same period last year. As a result of significantly lower freight rates, total revenues in the third quarter decreased 12% to US$749 million, compared to US$854 million in the same period last year.
The launch of the new Z7S line, which is one of the fastest and most reliable lines connecting South China, South East Asia, the Indian sub-continent and the U.S. East Coast via the Suez Canal, is well aligned with the Company’s strategy to strengthen its presence in U.S East Coast as well as other growing trades around the world. The Z7S service has enabled the Company achieve a leading and dominant position in the important Asia-U.S. East Coast trade.
During the third quarter the Company completed the implementation of a new state-of-the-art vessel loading program. The new cutting-edge software is aimed at enabling ZIM to maximize vessel utilization and cargo load, as well as increase port productivity and data interface between planners, terminals, and vessels while significantly decreasing planning time.
Three Months and Nine Months Highlights:
- Reported Adjusted EBITDA of US$38 million for the three months ended September 30, 2015 and US$197 million for the nine month ended September 30, 2015.
- Achieved Adjusted EBITDA margins of 5.1% for the three months ended September 30, 2015 and 8.6% for the nine months ended September 30, 2015.
- Achieved Adjusted EBIT margins of 1.6% for the three months ended September 30, 2015 and 5.3% for the nine months ended September 30, 2015.
- Carried 581,400 TEUs in the three months ended September 30, 2015.
