Zim Integrated Shipping Services rebounded to a $54 million net profit in 2010 from a $432 million loss a year ago driven by increased cargo volume and higher freight rates.
The Israeli ocean container carrier, which came close to collapse a year ago, boosted revenue to $3.7 billion from $2.45 billion.
Zim earned $403 million before interest, tax, depreciation and amortization in 2010, a $921 million improvement on the $518 million loss in 2009. The carrier closed the year with cash and deposits of $600 million.
Fourth quarter net income rose to $96 million from $81 million in the final three months of 2009 as revenue jumped to $986 million from $688 million.
Average freight rates per 20-foot container surged 31 percent in the fourth quarter to $1,485 from $1,136 and traffic grew 14 percent to 566,000 boxes from 498,000 in the year earlier period.
For the full year, average freight rates were 21 percent higher at $1,384 against $1,142 in 2009.
"In 2010 a positive change and improvement was noted in all parameters in Zim," said Nir Gilad, Zim chairman and CEO of parent company Israel Corp.
"In addition to the improvements in net profit, EBITDA, cash reserves, surplus cash flow, quantities carried and freight rates, Zim completed the sale of [a] terminal in Nigeria ahead of schedule and at a higher price than planned, and took delivery of four additional mega [container] vessels for its fleet."
"However, there is still a large supply and volatility in the shipping market, and oil prices adversely affect companies operating in the industry," Gilad said.
Zim is the world's 17th largest ocean carrier with a fleet capacity of 324,509 twenty foot equivalent units and a 2.2 percent market share, according to Alphaliner, a Paris-based analyst.
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