Israeli shipping company ZIM has managed to return to profit in the fourth quarter of 2016, generating a net profit of USD 4.6 million and adjusted EBITDA of USD 43.9 million in Q4 2016.
This is a significant improvement over Q3 2016 when ZIM posted a loss of USD 37.6 million on the back of challenging market conditions and low freight rates prompted by oversupply.
The carrier saw a 3.9% increase in containers carried in Q4 compared to the same period last year, to 613 thousand TEUs and a 5.2% increase to a total of 2.4 million TEUs in 2016 year-on-year.
However, for the full year the Israeli shipping company remained in the red booking a net loss of USD 163.5 million, swinging from a net profit of USD 6.5 million reported in 2015.
EBITDA was USD 49.9 million, down from USD 204.4 million for the same period of 2015.
“In spite of the very challenging market conditions in 2016, our results continued to improve, with a net profit in Q4 2016 and an increase in carried TEUs. The results were achieved through a successful efficiency plan and costs reductions implemented at all levels in ZIM,” Rafi Danieli, ZIM’s President & CEO, said.
Starting April 2017, ZIM plans to introduce an upgraded new network, with new services in the Asia-America, Asia-Med and Med-America trades.