ZIM reported $433 million loss in 2012 ( 01/04/2013 )

 

ZIM reported $433 million loss in 2012

Yet, ZIM Ends the Year with an EBITDA Profit of $107 Million and an Impressive Improvement in All Operational Parameters
 
ZIM reported $433 million loss in 2012 (Enlarge)
 

In 2012 ZIM recorded a loss to shareholders of $433 million, including a one-time charge of $133 million due to the decrease in value as a result of the ships orders cancellation. In Q4 2012 the loss amounted in $239 million compared with $151 million in the same quarter last year, whereas the entire loss related to the decrease in value was accounted for in this quarter.

Yet, according to the company, ZIM ends the year with an improvement in all operational parameters and with positive operational results despite the difficult market conditions prevailed in the last year. EBITDA profit amounted to $107 million compared with a loss in EBITDA of $82 million last year, a $180 million improvement.

According to ZIM’s spokesman, the company's efficiency and optimization measures contributed to the continuation of the business results advancements, and in accordance, the company introduced higher than average operational results compared to other companies in the sector. The accounting loss to shareholders amounted to $433 million. Out of it, $133 million is a one-time loss due to cancelled ships orders.

Additionally, ZIM reports achieving the sponsoring banks' full trust and support, as expressed in concessions in debt payments and an adjustment of the financial covenants in order to face the challenges of the market.

The concessions include the delay of principal payments that were due in 2013 to the banks and other financing bodies, to be paid in the end of 2014; this delay will contribute to improved cash flow of about $166 million and will allow ZIM additional flexibility in its current activities.

In addition, the company has reached an agreement to cancel an order of five ships with immediate effect, and to defer the delivery of the remaining ships orders to 2006. Additionally, the company secured a right to rescind orders of four remaining ships until January 2014, in accordance with the shipyard. The company will also receive a refund of $30 million off the deposit paid for the ships orders that were cancelled. The agreements include cancellation and postponement of payments of $235 million that were planned for 2013. The agreements free the company from off-balance-sheets obligations of $1.4 billion. The company recognizes in Q4 a loss of  $133 million as a result of the cancellation ship orders cancellation.

Revenues this year amounted to $3.96 billion, which reflect a 5% rise compared to the previous year. Revenues in the quarter amounted to $981 million compared with $899 million in the comparable quarter, a 9% increase. The increased revenues resulted from a rise in the average freight rates per container, which gained 6.3% compared with the same quarter last year (from $1,283 per TEU [a 20ft container] at the comparable quarter to $1,364 per TEU this quarter).  Annual average freight rate rose in 2% compared with last year (from $1,314 in 2011 to $1,342 this year). Carried TEUs amounted to 2,407 thousands TEUs, a decrease of 1% compared with the previous year and of less than 1% compared with the previous quarter.

From an annual perspective, the company's operational loss amounted to $206 million compared with an operational loss of $276 million last year – a $70 million improvement. In terms of EBITDA terms, the company ended 2012 with a profit of $107 million compared with a loss in EBITDA terms of $82 million last year, a $189 million improvement. Q4 ended with an operational loss of $170 million compared with an operational loss of $126 million in the comparable quarter, a worsening that resulted wholly from the cancellation of the ships orders in total of $133 million, while in terms of EBITDA the company recorded a $6 million profit compared with a loss of $79 million in EBITDA terms in the comparable quarter in the previous year – an $85 million improvement.

Operating cash flow amounted this year to $94 million compared with $22 million in 2012, a $72 million improvement. In Q4 this year ZIM recorded an operating cash flow of $49 million compared with a negative operating cash flow of $26 million at the comparable quarter, a $75 million improvement. 
 
Total financial assets excluding clients, other debtors and derivative instruments in the end of the year amounted to $197 million, compared with $198 million at the previous year-end – a $0.9 million decrease.

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