ZIM REPORTS PROFIT FOR FIRST TIME SINCE 1995
Zim Israel Navigation Co. reported a net profit of $25 million for 1999, the first profitable annual result since 1995.
The 1999 profit compares with a loss of $5 million for 1998 and a loss of $39 million for 1997.
Operating profit before financing and taxes increased to $96 million in 1999, from $64 million in 1998 and $7 million in 1997.
Total revenues from shipping and ancillary services in 1999 amounted to $1.59 billion last year, as compared to $1.47 billion in 1998 and $1.42 billion in 1997.
“During 1999 a certain improvement was visible in the freight rates levels of several trade routes, as well as in improvement of ships’ usage,” a spokesman for Zim said.
Zim lowered its expenses through various measures, including efforts to increase efficiency, reducing operating and management expenses, and alliances with other shipping companies.
However, significant increases in oil prices and container vessels’ charter hire, which nearly doubled, caused a noticeable rise in the relevant operational costs, the company said.
Zim said that it also suffered “severe financial damages” because of disruptions in Israeli ports.
Zim carried 1,184,100 TEUs in 1999, an increase of 13 percent on the volume handled in 1998.
The company has recently approved a comprehensive program aimed at improving the computers and communication systems. They will include the upgrading of Internet-based services, Zim said.
The 1999 financial results of Zim and 13 other shipping lines are posted on the global shipping database ComPairData at www.compairdata.com.