ZIM reports income turnaround in Q1

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ZIM reports income turnaround in Q1
Image from ZIM.
  • ZIM reported a net income of $92M in the first quarter from a net loss of $58 million in the same period last year
  • Gross revenues reached $1.56B
  • Operating income for the first quarter was $167 million, compared to operating loss of $14 million year-on-year
  • ZIM president and CEO Eli Glickman says fleet revamp exceeded expectations

ZIM Integrated Shipping Services Ltd reported an income turnaround in the first quarter of the year with a net income of $92 million compared to a net loss of $58 million for the same period last year.

Gross revenues reached $1.56 billion for the first three months.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) were reported at $427 million and adjusted EBIT of $167 million.

For the same period of 2023, the company reported an operating loss of $14 million.

ZIM president and CEO Eli Glickman said he was pleased with the current positive momentum in their business.

“Having taken important steps to revamp our fleet and enhance our cost structure, which exceeded expectations, we delivered profitable growth” in the first quarter of the year, he said.

Glickman added that given the recent improved freight rate environment currently impacting more trades, “we have increased our full year guidance and forecast full year adjusted EBITDA between $1.15 billion and $1.55 billion.”

Looking ahead, he said that they now expect freight rates to “remain stronger than initially anticipated due to a combination of continued pressure on supply and availability of equipment.”

He also expects an uptick in demand, but added that the rate environment for the second semester of this year “remains unknown.”

ZIM’s carried volume in the first quarter was 846,000 TEUs, representing a year-on-year increase of 10%. Average freight rate per TEU for the period was $1,452, a year-on-year increase of 4%.

According to Glickman, ZIM expects delivery of the final 16 out of 46 newbuild containerships, including 28 LNG-powered vessels.

“We are well positioned to achieve our volume growth targets and deliver on our commitment to profitability over the long term,” he said.

In accordance with ZIM’s dividend policy, the company’s board of directors declared a cash dividend of about $28 million, or $0.23 per ordinary share. This reflects roughly 30% of the first quarter’s net income, and will be paid on June 11, this year to holders of ordinary shares as of June 4, 2024.