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Generated highest ever quarterly net income of $888 million and adjusted EBITDA of $1.34 billion in the second quarter
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Significantly increased 2021 guidance to between $4.8 billion and $5.2 billion of adjusted EBITDA
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Second half 2021 results are expected to exceed first half results
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Second quarter carried volume increased 44% year-over-year, much higher than market growth
Global container liner ZIM Integrated Shipping Services announced a net income of US$888 million for the second quarter of this year, a massive leap from the $25 million earned in the same period of 2020 and the carrier’s highest ever quarterly income.
The shipping company in a release said adjusted EBITDA for the second quarter of this year was $1.34 billion compared to $145 million in the second quarter of 2020, a year-over-year increase of 820%.
Adjusted EBIT was $1.16 billion compared to $73 million in the second quarter of 2020, a year-over-year growth of 1,495%.
Total revenues were $2.38 billion compared to $795 million a year ago, higher by 200%.
“The expansion was primarily driven by an increase in revenues from containerized cargo, reflecting increases in freight rates as well as in carried volume,” the company said.
ZIM carried 921,000 TEUs in the second quarter of 2021, up 44% against the same period last year. The average freight rate per TEU was $2,341, a year-over-year increase of 119%.
Zim, a company that was billions of dollars in debt just several years ago, is now one of the most profitable companies in Israel due to its earnings bonanza and growth initiatives.
It joins other big-time winners that have also posted outstanding earnings in the second quarter and first half of the year, including OOCL, Hapag-Lloyd and Maersk, which like ZIM, have also increased their guidance for the year.
Eli Glickman, ZIM president and CEO, stated, “Driving our success, we have further leveraged digitalization initiatives and have drawn on our global-niche strategy to launch new lines to address profitable, underserved routes. This was instrumental in driving our all-time high results, as ZIM’s second quarter carried volume increased by 44% year-over-year, substantially higher than market growth.”
He added: “Our outlook for the remainder of 2021 and into 2022 is very positive and we are excited about our strategy to further enhance our position as an innovative digital leader of seaborne transportation and logistics services.”
In the first six months of 2021, total revenues were $4.13 billion compared to $1.62 billion for the first half of 2020.
Net income for the period was $1.48 billion compared to $13 million for the first half of 2020.
Adjusted EBITDA was $2.16 billion compared to $242 million for the first half of 2020. Adjusted EBIT was $1.85 billion from $100 million for the first half of 2020.
ZIM carried 1.7 million TEUs during the first half of 2021 from 1.3 million TEUs in the first half of 2020. The average freight rate per TEU was $2,145 for the first half of 2021, compared to $1,081 for the same period last year.
The Israeli shipping company significantly increased its full-year guidance and expects to generate in 2021 adjusted EBITDA of between $4.8 billion and $5.2 billion and adjusted EBIT of between $4.0 billion and $4.4 billion.
Photo by Daniel Ramirez
