Israel flag carrier ZIM Integrated Shipping Services Ltd. concludes the first quarter showing improvement on all parameters and recording an EBITDA of US$29 million and a positive operating cash flow of US$23 million.
ZIM's Q1 2014 results were published against the background of the final stages of the debt restructuring agreement. As part of the agreement, Israel Corporation has agreed to invest additional $200m in new equity, provide the company with a liquidity line of $50m, and forgo $225m of loans.
In addition, related companies have agreed to support the company by $180m, by amending charter contracts and forbearing loans. The total support of IC and related parties over recent years has amounted to $1.4bn. Following the restructuring, Israel Corporation will see its stake in ZIM reduced from 100% to 32%.
Earnings before Interest (EBIT) in Q1 2014 were $8 Million loss, reflecting a sharp improvement on the same Quarter in 2013 which saw an operating loss of $47 Million. Q1 EBITDA was $29 Million against a $6 million loss in the same quarter of last year.
The volume of TEU containers carried increased by 2% compared with the same quarter of last year, to 617,000 TEU containers. Revenues in Q1 were $867 million compared with $918 million in the same quarter.
The decrease in revenues, in spite of an increased volume of containers carried, reflects continued downward pressure on freight rates. The average freight rate per TEU was $1213, a decrease of $69 (5%) compared with Q1 of last year. Operating cash flow in Q1 was $23 million, an improvement of $50 million compared with the same quarter of last year.
The results show continued improvement quarter on quarter and are in line with the industry average.