Zim Sails a Sea of Debt

YERUSHALAYIM -
Zim shipping containers at the Haifa port. (Yaakov Naumi/Flash90)
Zim shipping containers at the Haifa port. (Yaakov Naumi/Flash90)

The Zim shipping line continued to sail troubled financial waters, filing losses of $132 million in the first half of 2016, Globes said on Wednesday.

Zim Integrated Shipping Services has been faring badly amid a severe oversupply in the international merchant shipping market.

The shipping company saw a 20 percent drop in revenue, to $1.24 billion, in the first half of 2016. The sharp drop in revenue resulted in a $1 million gross loss, compared with a $163.7 million gross profit in the corresponding period in 2015.

Moreover, Zim had $70.9 million operating losses, compared with $81.4 million profit in the corresponding period; overall, Zim reported huge losses compared with a $20.9 million profit in the corresponding period. In the second quarter, Zim reported a 19.8 percent drop in revenue, to $611.9 million, a gross loss of $11.7 million, an operating loss of $47.8 million and a net loss of $74.6 million (compared with a $10.3 million profit in the corresponding quarter in 2015).

Facing a $1.8 billion debt, Chairman Aharon Fogel and CEO Rafi Danieli requested a postponement in publication of its statements in order to secure the creditors’ approval for a rescheduling of some of the debts.

The company has already undergone two large debt settlements in the past two years — in 2009, its debts were rescheduled, and in 2014 a further debt arrangement led to creditors being subjected to a 50 percent write-off for a $3.4 billion debt. As part of the arrangement, banks, bondholders and the owners of ships leased by the company agreed to write-off a $1.7 billion debt for a 68 percent stake in Zim.