Zim Q2 loss deepens to $186 million
Zim Integrated Shipping Services, the troubled Israeli ocean container carrier, reported a second quarter loss of $186 million compared with $42 million deficit a year ago, swelling first half losses to $305 million.
Revenue in the three months to June 30 shrunk by over 50 percent to $543 million on lower cargo volumes and weaker freight rates.
Parent company Israel Corp. announced it will pump $60 million into the carrier as part of a $350 million recovery program.
The move came only a day after Tel Aviv securities regulators disallowed a key vote by Bank Leumi, an 18 percent Israel Corp. shareholder, in favor of a $100 million capital injection, because it was an “interested” party.
Israel Corp. said the cash infusion “is an important step towards ensuring the financial stabilization of Zim.”
Israel Corp. also is understood to have secured cuts of $150 million in charter payments by Zim for ships owned by the Ofer family, Israel Corp.’s controlling shareholders.
The oil-and-chemicals conglomerate said it is in “intensive” negotiations with banks and financial institutions over restructuring Zim’s debt. The carrier also is culling its chartered fleet of 61 ships, postponing deliveries of new ships, modifying its liner services and seeking lower charter payments.
“We are confident that these actions together with the shoots of economic recovery, as a result of improvements in global trade, will help the continued recovery of the company,” said Zim President and CEO Rafi Danieli.
Revenue in the three months to June 30 shrunk by over 50 percent to $543 million on lower cargo volumes and weaker freight rates.
Parent company Israel Corp. announced it will pump $60 million into the carrier as part of a $350 million recovery program.
The move came only a day after Tel Aviv securities regulators disallowed a key vote by Bank Leumi, an 18 percent Israel Corp. shareholder, in favor of a $100 million capital injection, because it was an “interested” party.
Israel Corp. said the cash infusion “is an important step towards ensuring the financial stabilization of Zim.”
Israel Corp. also is understood to have secured cuts of $150 million in charter payments by Zim for ships owned by the Ofer family, Israel Corp.’s controlling shareholders.
The oil-and-chemicals conglomerate said it is in “intensive” negotiations with banks and financial institutions over restructuring Zim’s debt. The carrier also is culling its chartered fleet of 61 ships, postponing deliveries of new ships, modifying its liner services and seeking lower charter payments.
“We are confident that these actions together with the shoots of economic recovery, as a result of improvements in global trade, will help the continued recovery of the company,” said Zim President and CEO Rafi Danieli.