Israeli flag carrier has posted a net loss of US$44 million in the third quarter, down from a year on year loss of $97 million, drawn on revenues of $900 million, down 8.4 per cent, according to the Shipping Gazette.
The net loss was blamed on heavy debt servicing, and the revenue decline on a four per cent fall in freight rates to $1,202 per TEU, despite a two per cent third quarter increase in volume 640,000 TEU.
Quarterly operating profit increased to $17 million compared with a $29 million loss in the third quarter of 2012 while earnings before interest, tax, depreciation and amortisation soared 366 per cent to $56 million.
When Zim finally published its third-quarter figures over the weekend, there was some confusion as the first release indicated that the company was on the verge of a restructuring deal.
The second version, distributed hours later, said Zim was "hoping to complete the process of reaching an agreement on the principles of the arrangement in the near future".
Despite the positive operating profit, the bottom line was impacted by its heavy debt burden as net interest expenses reached $56 million during the quarter.
Revenue fell 15.4 per cent to $900 million in the third quarter, down from $976 million in the corresponding quarter a year earlier, despite a two per cent increase in container liftings to 640,000 TEU.
Zim said it hopes to reach an agreement on its debt restructuring with its stakeholders and creditors "in the near future," which is subject to approval from parent Israel Corp. Zim has net debt, excluding money owed to shipyards, of around $3 billion.
Said the Zim statement: "In view of the restructuring, and in compliance with the accounting procedures, the company qualified its accounts with a Going Concern Qualification. However, there has been no deterioration in the company's performance. Zim estimates that once the arrangement is completed and approved, there will be a significant improvement in capital structure."
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