Zim cuts loss 170pc to $127 million,N but box flow falls on quitting Asia-Europe

Apr.2--ISRAELI flag carrier Zim Integrated Shipping Services narrowed its net loss to $127 million in 2014 from $343 million the year before, drawn on revenues of US$813 million down 9.2 per cent year on year.

"The company recorded a sharp improvement in Q4, and continues to record a steady and ongoing improvement of its operating results," said Zim president and CEO Rafi Danieli.

"Through the implementation of our business plan, enhancing efficiency and improving our service and sales, we aim to continue to return to profitability and growth in 2015," he said.

Fourth quarter net loss fell to $4 million from $20 million, which would have translated into a $17 million profit had it not been for the revaluation of derivatives.

Operating profit fell to $5 million from $14 million because of a $21 million loss from wrong-way fuel hedging.

Earnings before interest, tax, depreciation and amortisation (EBITDA) came to $116 million, compared with a $2 million loss in 2013.

Container volume fell 11.9 per cent year on year to 577,00 TEU mostly because of its departure from the Asia-North Europe trade.

Average freight rates went up two per cent to $1,243 per TEU from $1,219 per TEU through the year, but jumped eight per cent in the last quarter to $1,271.

Zim said the $3.4 billion restructuring, including a $1.4 billion debt-for-equity swap,N that was sealed in July 2014 has significantly improved its financial strength and allowed it to report positive equity.