Zim back in black with US$54 million net profit in 2010

ISRAEL's Zim Integrated Shipping Services, the world's 17th largest carrier, has announced a turnaround in its results of 2010, indicating a US$54 million net profit against a $432 million loss in 2009 due to increased cargo volume and higher freight rates.


The carrier increased its revenue to $3.7 billion in 2010 from $2.45 billion the previous year. And its pre-tax profit was $403 million in 2010, showing a $921 million improvement on the $518 million loss in 2009, reported Newark's Journal of Commerce.


In the last quarter of 2010, Zim's net income grew $96 million compared to $81 million the same period of 2009, while revenue in fourth quarter last year was $986 million, up $298 million from $688 million recorded in the same period of 2009.


Average freight rates in Q4 raised to $1,485 per TEU from $1,136 and it handled a capacity of 566,000 containers, rising 14 per cent from 498,000 in the same period of 2009.


For the full year, the average freight rate was $1,384 per TEU, up 21 per cent against $1,142 in 2009.


"In addition to the improvements in net profit, EBITDA, cash reserves, surplus cash flow, quantities carried and freight rates, Zim completed the sale of [a] terminal in Nigeria ahead of schedule and at a higher price than planned, and took delivery of four additional mega vessels for its fleet," said Zim chairman and CEO of parent company Israel Corp Nir Gilad.


"However, there is still a large supply and volatility in the shipping market, and oil prices adversely affect companies operating in the industry," he said.
(Source:http://www.schednet.com)