During the quarter ended June 30, 2012 (Q2), Haifa, Israel-based ZIM Integrated Shipping Services Ltd. recorded a sharp improvement in its financial results due to a strong recovery in market conditions, the results of efforts to increase efficiency, and seasonal factors. The company recorded a positive EBITDA (earnings before interest, taxes, depreciation and amortization) of $46 million compared to a negative EBITDA of $69 million in the previous quarter. The company recorded positive cash flow from operations of $24 million this quarter, compared to negative cash flow of $82 million in the previous quarter and negative cash flow of $6 million in the same quarter last year. An operating profit of $1 million was recorded, compared to an operating loss of $117 million in the previous quarter and an operating loss of $79 million in the second quarter of 2011.
The company carried 604,000 TEUs, an increase of 6 per cent compared to the previous quarter this year. The additional volume, combined with increases in other shipping-related operations and in the activities of subsidiaries, resulted in revenues of $1.05 billion during the quarter, an increase of 22 per cent compared with the previous quarter, and an increase of 5 per cent compared with Q2 of 2011. The positive impact of lower fuel prices did not materially impact Q2 results. For the quarter, ZIM recorded a net loss of $47 million, mainly due to financing expenses of $44 million. This result is an improvement of $116 million compared to the first quarter of the year.
The company continues to actively implement its strategic plan, which includes measures to enhance efficiency and productivity improvements.