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Zim losses mount after newbuild cancellations

Zim losses mount after newbuild cancellations
Tel Aviv: Zim today announced an annual loss of $433m for 2012 as fourth quarter losses hit $239m. The loss includes a $133m one time charge related to the recent cancellation of ship orders.

Annual revenues rose 5% to $3.96bn as average freight rates per teu increased 2% from $1,314 in 2011 to $1,342 in 2012. For the fourth quarter, rates rose 6.3% year on year from $1,283 per teu in 2011 to $1,364 per teu in 2012.

Operational losses at the Israeli box line fell from $276m in 2011 to $206m in 2012 whilst in EBITDA terms the company recorded a profit of $107m, an improvement over the $82m EBITDA loss in 2011.

In the fourth quarter 2012 operational losses totalled $170m, an increase over a $126m loss in the comparable period in 2011. The quarter's loss was largely due to a $133m loss on the cancellation of ship orders as EBITDA for the fourth quarter was a profit of $6m, improving on a $79m loss on EBITDA terms in the same period the previous year.

Despite the slight upturns in operational results, the company has approached its creditor's seeking concessions and delays on repayments, measures that have been accepted by all of its banks. In chorus with most of the container shipping industry, ZIM's forecast for 2013 is one of continued oversupply and low freight rates

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