Zim: loss narrowed to US$24 million in first quarter as sales rise 22%

Zim Integrated Shipping Services Ltd completed the first quarter of 2011 with improvement in revenues- US$912 million, an an increase of 22%. the net loss in this quarter was US$41 million
 
Zim Integrated Shipping Services Ltd completed the first quarter of 2011 showing an improvement in all business parameters compared to the same quarter of last year. Revenues for the first quarter were US$912 million compared to US$745 million in the same quarter last year - an increase of 22%.
 
The increase stems primarily from an increase in volumes carried and an increase in average freight rates. During the first quarter, average freight rate per 20-foot container (TEU- twenty foot equivalent unit) was US$1360 compared with US$1200 in the same quarter last year. Quantity carried amounted to TEU 555,000 compared to TEU509,000  in the same quarter last year, an increase of 9%.
 
First quarter EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) was US$22 million positive compared with negative EBITDA of US$33 million in the corresponding period last year, an improvement of US$55 million.
 
First quarter operating loss amounted to US$24 million versus an operating loss of US$83 million in the same quarter last year - an improvement of US$59 million, mainly due to increase in revenue and  quantities of cargo carried.
 
During this quarter, accounting expenses of US$70 million were recorded due to revaluation of certain derivatives related to the financial restructuring.
 
This is the main cause for the loss of approximately US$111 million in the first quarter. Excluding these accounting expenses, the net loss in this quarter was US$41 million. In any case, the company has improved its results in all parameters - turnover, quantities carried, EBITDA, cash flow and net profit/loss.
 
Zim's financial results for first quarter are very close to the average operating income in the liner shipping industry, based on the results published by other liner companies. This reflects an improvement relative to previous quarters, where the company’s results were significantly lower than the average in the industry.
 
Cash flow from operating activity amounted to $24 million positive in this quarter, compared with negative cash flow of $18 million in the same quarter last year, an improvement of $42 million, and short term financial assets at the end of the quarter stood at nearly half a billion dollars. During the quarter, S&P increased Zim's bond rating from ilBB + to ilBBB-.
 
Zim continues to implement organizational and strategic changes in accordance with the plan formulated in 2010 and is currently " in the midst of a move which, the company believes, will bring about a continued improvement in the company's results."