ZIM posts 2019 results
Confronted with challenging business environment, ZIM continued to improve its performance and to expand its global network to its customers, the company said in its release.
In September 2018, the Company launched its strategic operational cooperation with the “2M” Alliance (Maersk and MSC), in several lines between Asia and the US East-Coast. During 2019 the cooperation was expanded in three additional trades: Asia - East Mediterranean, Asia - American Pacific Northwest and the Asia - US Gulf. These cooperation agreements enable ZIM to provide its customers with improved product portfolio, larger port coverage and better transit time, while generating cost efficiencies.
Eli Glickman, ZIM President & CEO, said: “2019 has been a challenging year for the industry which had to cope with the escalation of the US-China trade war whilst simultaneously getting itself ready for the IMO 2020 new regulation enforcement. Despite those difficult market conditions, we delivered a strong operational and financial performance with better EBIT margin contribution than most of our peers. We also accelerated the deleveraging of our balance sheet.
This clearly indicates that our strategy proves to be fruitful and effective and we intend to continue the path we initiated. We remain committed to our vision and values, focusing on providing exceptional service levels to customers, as reflected in a recent independent survey, ranking ZIM as the best performing global carrier in 2019 in Schedule Reliability. We continue to develop and implement lead innovative solutions, and we remain agile and ready to respond fast to new challenges. I’m convinced that these values will enable us to overcome the current Corona virus crisis, which we all hope will be contained soon".
Financial and Operating Highlights for the Three Months Ended December 31, 2019
Total revenues were $827.3 million compared to $852.6 million in Q4 2018, a 3.0% decrease
ZIM carried 698 thousand TEUs, compared to 714 thousand TEUs in Q4 2018, a 2.2% decrease
The average freight rate per TEU was $1,017, compared to $1,045 in Q4 2018, a 2.7% decrease
Adjusted EBITDA was $115.4 million compared to $49.0 million in Q4 2018
EBITDA was $114.7 million compared to $43.6 million in Q4 2018
Adjusted EBIT was $47.4 million, compared to $20.8 million in Q4 2018
EBIT was $44.6 million, compared to negative EBIT of $22.6 million in Q4 2018
Adjusted net profit was $7.6 million, compared to $0.8 million in Q4 2018
Net profit was $1.2 million, compared to net loss of $46.0 million in Q4 2018
Operating cash flow was $89.3 million, compared to $60.4 million in Q4 2018
Financial and Operating Highlights for the Year Ended December 31, 2019
Total revenues were $3,299.8 million compared to $3,247.9 million in 2018, a 1.6% increase
ZIM carried 2,821 thousand TEUs compared to 2,914 thousand TEUs in 2018, a 3.2% decrease
The average freight rate per TEU was $1,009 compared to $973 in 2018, a 3.7% increase
Adjusted EBITDA was $385.9 million compared to $150.7 million in 2018
EBITDA was $399.7 million compared to $126.3 million in 2018
Adjusted EBIT was $148.9 million compared to $39.1 million in 2018
EBIT was $153.0 million compared to negative EBIT of $23.2 million in 2018
Adjusted net loss was $3.2 million compared to Adjusted net loss $44.6 million in 2018
Net loss was $13.0 million compared to net loss of $119.9 million in 2018
Operating cash flow was $370.6 million compared to $225.0 million in 2018
As from January 1, 2019 the Company applies IFRS 16 (Leases), resulting in a reduction in the Company’s lease expenses, along with an increase in its depreciation expenses and interest expenses. Accordingly, the comparability of results in prior periods is limited. In addition, as from January 1, 2019 the Company includes its share of profit of associates as part of its Results from operating activities (EBIT), in all reported periods.